Overcoming the Hurdles of Payments in the Affordable Housing Industry

Online payment adoption is rising steadily in conventional multifamily and leading to the expectation of more self-service opportunities for renters. Recent industry information shows a continued shift of traditional payment methods away from the leasing office. Since 2015, paying rent on line has increased and estimates are that 55 percent of the apartment industry will pay rent via the internet through 2018, according to RealPage. Increased reliance on affordable smart phones presumably is driving some of the adoption as more Americans connect through devices other than expensive desktop computers. Using smart phones for online access is most common for younger adults, non-white and lower-income Americans, says the Pew Research Center. Yet a significant segment of the population is accustomed to squaring up with the landlord at the end of the month with a paper money order, paid in person either directly or through a drop box. Changing socioeconomic factors are playing a role. RealPage research shows that money order usage and cash payments are among the fastest growing payment methods at the retail level. In particular, 55 percent who live in Affordable apartments pay by money order; renter adoption of online payments in that vertical is 30 percent, lowest among conventional, student and military housing. ‘Cash society’ presents challenge to Affordable industry RealPage Senior Vice President of Financial Services Matt Davis said the erosion of the middle class is pressuring people to move to alternative forms of payments, including cash, even though technology is encouraging online transactions. He said that he’s seen up to 80 percent of residents at some customer properties pay with paper. “The cash society continues to grow even though technology is pulling people online,” said Davis, a 20-year veteran in financial services. “And that presents a challenge to the Affordable housing industry.” One reason may be th...