The majority of households in the U.S. pay at least some of their bills online. The trend towards online transactions and payments, however, seems to be weaker in the multifamily industry, where many communities still don’t offer online payment options. And, while we’ve seen communities achieve participation rates from 50-70 percent, industry surveys show that, on average, less than 15 percent of apartment residents pay online. By falling behind in online payment participation, your property may be missing out on real benefits that go beyond saving a little time during rent week.
How do you spend your time?
Think about it this way: the best way for your property to make money is to reduce turnover and fill vacancies. But many properties spend a full week of every month putting resident retention and leasing activities, if not on the back-burner, a little lower on the priority list, in order to focus on rent collection and payment posting. What if all that time during rent week were available for more profitable pursuits?
Online payment systems like ResidentPay™ provide a way for properties to process payments quickly, accurately, and securely. We hear some of our most glowing reviews from accounting personnel who find that an integrated payment system not only reduces data entry, it saves time during reconciliation and allows funds to settle more efficiently, letting them close the books more quickly than ever before.
Troubling trends
On the other hand, there are some troubling trends. We’ve seen a number of instances where on-site staff only mention their online payment system to prospective residents when they’re shopping for an apartment. Once the lease is signed, it’s never brought up again. While systems like ResidentPay are a great way to differentiate yourself from the competition and win prospective renters, the real value of the amenity comes with its use. Think how much more valuable it is to have actual residents spreading positive word-of-mouth about the convenience of online rent payments… it doesn’t work if no one uses the system.
We’ve done some research among the thousands of properties using our payment system and identified a few trends among our clients with the most success in achieving high online payment participation in their communities. Check out our video or review the Payments Scorecard for ideas on ways to build resident awareness and participation at your property. And as always, your Account Manager is available to help you measure adoption rates and design a plan to increase online payment processing across your portfolio. Why not call today?
