Enter your email address for weekly access to top multifamily blogs!

Multifamily Blogs

This is some blog description about this site

Financial Amenities Support Residents and Operators Alike

Financial Amenities Support Residents and Operators Alike
Apartment perks for residents vary by community, from an incredible amenities package to resident events, local business discounts and everything in between. These are nice incentives for prospects to move in, but there are other ways to make a positive, long-term impact in residents’ lives that simultaneously support owner/operators. Financial amenities are emerging as the next distinct amenity offering at apartment communities. From flexible payment options and budgeting tools to credit building, financial amenities help support on-time, in-full payments and boost resident morale. These amenities provide a huge benefit to owner/operators as well by proactively reducing delinquencies. Residents are in a precarious state of financial health, especially coming out of the pandemic, and owner/operators are at higher risk of bad debt when residents have unstable finances. According to a 2020 American Payroll Association survey, nearly 69% of Americans say it would be somewhat or very difficult to meet their financial obligations if their paycheck were delayed by a week.  Here are some of the reasons financial amenities can make a positive difference for residents, and in turn, reduce bad debt for owner/operators: A Proactive Approach to Bad DebtBad debt has become an even larger issue plaguing the industry after the pandemic. According to an Aspen Institute study in August 2020, about 12.6 million households are at risk of eviction, and TransUnion estimates that it costs operators on average $3,500 to evict a resident. Based on this average, evicting 12.6 million households could cost the rental housing industry $44.8 billion. The late f......
Continue reading
2062 Hits
0 Comments

Rising Rents Make It Tough to Afford Housing But Property Owners Aren’t to Blame

Finding an apartment is hard enough. Understanding the calculus of finding an apartment you can afford could make you wish you’d paid more attention in math class. According to the latest annual report by the National Low Income Housing Coalition (NLIHC), "in no state can a minimum wage worker afford a one-bedroom rental unit at the average Fair Market Rent working a standard 40-hour work week, without paying more than 30% of their income."  In a market driven by supply and demand the scales may seem tipped against the renter, but it’s important to realize that property owners are also in a bind in that they need dependable cash flow to maintain operations, and the individuals whose income has to stretch beyond 30% to cover their monthly rent will likely also present a payment risk. In these days where consumer credit worthiness is in the doldrums, perhaps it’s time to re-think what percentage of income should be allocated to housing. Would 40% make more sense? That’s a larger conversation for bigger math minds than mine. For now, let’s look at what renters really need to know in budgeting for a new rental home. Take for example costs associated with a new one bedroom lease in rental markets like Charlotte, South Carolina or Austin, Texas. Here’s the math you have to assemble your budget: 1.       Twelve months rent @ $1,000 per month = $12,000. Anyone can get that far, but that’s only half the story. 2.       Twelve months rent @ $1,000 per month = $12,000 + one month r......
Continue reading
1563 Hits
0 Comments

Lose the Drama: 4 Online Payment Options for Residents

Lose the Drama: 4 Online Payment Options for Residents
There are people that love drama. There are people that create drama. There are people that feed on watching other people’s drama. Just tune into some reality television if you need a dose of drama. You may not know it, but Property Managers play a critical role in the universe by reducing drama. Let’s walk through some examples. “Where am I going to live? This is the most important thing in my life right now! I want the right floor plan in the right neighborhood with the right amenities at the right price.” Property Managers can slice through that drama and provide their residents with a wonderful place to call home. “How am I going to pay my rent? I am a busy person, always on the go and I don’t have time to get to the office to drop off my check. I can’t deal with the stress of making this payment!” Property Managers can provide online payment options. Click, click and you are done – your rent can be paid from any computer or device at a time that is convenient for you. “How can I remember to pay my rent? I am working long hours at my job and I am juggling all kinds of personal commitments. What if I lose track of time and forget that it is the first of the month?” Property Managers can offer the ability for you to ‘set it and forget it’ with Auto-Pay. That way, the rent payment is charged to your credit card or pulle......
Continue reading
1028 Hits
0 Comments

The Mobile Checkbook for Tech Savvy Renters

The Mobile Checkbook for Tech Savvy Renters

Paying bills, particularly rent, has evolved tremendously over the past few years. And depending on if your renter prefers a digital or paper process, the way they pay can be vastly different. Let’s take a look: Scene 1: A stack of bills that came in the mail, a kitchen table, a checkbook, a book of stamps. Your resident sits at their kitchen table with a checkbook, a roll of stamps and a stack of bills. He/she writes checks, inserts coupons and checks into envelopes, puts stamps on the envelopes and walks to mailbox. Bills are paid, but only in the resident’s mind. For the property manager, rent isn’t actually paid until several days later when the check arrives and it is deposited in the bank. Scene 2: Your resident is at Happy Hour with friends getting ready for a night out. Beers and apps are just being served when someone mentions that tomorrow is the first of the month. Renter grabs their smart phone and follows a few prompts. Just like that, rent is paid they go back to the conversation. The difference is more than generational. The technological advancements that allow us to essentially carry a fully functional computer in our pocket has revolutionized – and simplified – so many aspects of our life and mobile bill payment is just another example. How do you ensure that you are riding this wave of technology and convenience? By having a robust mobile payment option. The advantages to you, the Property Manager, ar......
Continue reading
1077 Hits
0 Comments

Rent is Due! Due on the 1st, or Late on the 5th?

imageA property’s performance is measured by two components. The ability to generate revenue and the ability to control expenses, resulting in the Net Operating Revenue. Occupancy and related fees are the driving forces for revenue generation. Without effective rent collection, achieving an occupancy goal is a hollow victory. It’s a puzzling moment to the on-site staff to learn a vendor has not been paid for a service, “it’s in the budget!” But it was also in the budget, to achieve an occupancy goal and collect the corresponding rent. Without rent collection, the property, a small independent business will not have the resources to satisfy its financial obligations, i.e, pay its bills. Most residents pay their rent on or before the due date. Encouraging residents to use payment portals establishing auto-pay functions can improve rent collection. Every property has a percentage of residents that pay late or regularly are placed in the court system to obtain a court order demanding payment or an eviction will occur. Changing the personal habits of residents is a slow uphill, maybe impossible process. Managers do not have the ability to make a resident pay their rent. Step One starts with the landlord reference before a resident moves in. Securing a positive landlord history, a resident that pays on time, will probably continue to do so. Step Two, when quoting the rental rate, the phrase “due on the first,” must be stated. An orientation for new residents that explains when rent is considered late, before emphasizing when rent is due, ......
Continue reading
5222 Hits
6 Comments