Until the advent of COVID, common thought was that scanning checks was an unavoidable part of rent payment processing. With the increased use of online payments, credit cards and ACH transfers by businesses and banks, the days of paper check scanning are numbered.
The federal moratorium on evictions is set to expire January 31st, putting millions of American households at risk. Evictions also pose enormous challenges for landlords and property management companies, or PMCs.
COVID-19 has forced a rapid shift to the adoption of online payment technology, triggering a massive disruption in traditional resident payment behavior in its wake. An analysis of payment activity across Domuso’s portfolio of multifamily properties at the beginning of the April rent cycle showed a marked preference to limit in-person exchanges in favor of safer, contact-less ways to pay.
Fraudulent applications have always been a concern for property owners and managers. Fraud is taxing for properties to resolve and can directly impact their bottom line. The COVID-19 pandemic has all but compounded the risk for owners to now include fraudulent payments from current residents.
Domuso evaluated its portfolio of national multifamily properties to uncover rent payment trends at the start of the April payment cycle as compared to March. Resident payment activity was analyzed during the first 15 days of April as residents and property owners were forced to adopt contactless payment processes.
The COVID-19 pandemic has been difficult on property management operations and resident relations, but its true economic impact may not be known for months.
Payment processes can be a hassle for property operators of all sizes. But what happens when resident payments arrive late or are only partially paid? How does this affect the property management’s ledger reconciliation?
Recently, a multifamily regional manager of a property in northern California reported to Domuso that they were faced with a loss of $15,000 in credit card chargebacks in a single month - from two residents alone.
Moving in, moving out, rent deposits, pet deposits - the list goes on and on when it comes to payments that have to be made via money order or cashier’s check.