Payment Platforms Reduce Fraud and Paperwork in the Affordable Segment

Handling rent payments has always had unique challenges in the low-income housing market, causing additional administrative burden on top of already-complex housing rules and regulations. Property managers typically receive rent via money orders in the office, sometimes in multiple payments if rent is above $500, and manually post. Paying rent in person at the leasing office means residents have to get there during regular business hours which can be challenging. Properties are moving away from using drop boxes due to the increased risk of fraud and theft they bring. If part of the rent goes to a HUD repayment agreement, the staff may have to manually divide the payment in the books. The process costs time and money, and creates administrative headaches, for the resident and property. But the affordable market is taking a page from the conventional housing sector, where receiving non-paper payments is commonplace. Integrated payment platforms now allow property management companies in the affordable sector to accept multiple types of online payments and to manage the complexity of these programs. Freeing up administrative time and creating a better renter experience The trip to the leasing office is a ritual of sorts that has historically been valued as enabling the property and resident to get at least one face-to-face meeting each month. With resident touch points so critical in this day and age, some property managers have been reluctant to make the change to online payments for fear they won’t see their residents as often, Ford says. That doesn’t have to be the case. In fact, taking care of business electronically frees up administrative time to engage with residents in a setting that doesn’t involve exchanging money. And, they provide a new reason to stay connected to residents. “One of the things I try to drive home with our clients is that there are other ways to promote contact with your residents,” Ford said. &ldquo...