Incentivizing On-Time Payments: A Paradigm Shift in Collection Strategies

Terri Nicholson, SVP of Strategic Accounts & Partnerships at Domuso, shared her industry knowledge and expertise in a recent article on The Multifamily Journal:

Occupancy rates are ideal and residents are content, but there is still one problem – a number of residents perpetually fall behind on their rent payments each month. An October Census Household Pulse survey found that nearly 4.9 million households are behind on rent. This is an issue that has burdened the industry since its inception, leading to a unified goal of the multifamily sector – improve the rent collection process to reduce delinquencies and increase revenue.

A Paradigm Shift

People still struggle to pay rent. More than 12 million residents are substantially cost burdened, spending over 50% of their income on housing and utilities. Traditionally, enforcing the collection of rent from delinquent residents has consisted of repeated reminders, late fees and in extreme cases, the threat of eviction. However, those strategies tend to result in strained resident-associate relationships and, in many instances, failure to produce the desired outcome. 

Taking a new approach, most notably offering resident rewards with cash-back incentives, could be the motivating factor to improving payment practices. 

Read the entire article on The Multifamily Journal >>

FAQs for Incentivizing On-Time Payments

What specific types of rewards or cash-back incentives have been most effective in improving on-time rent payments?
The most effective incentives for on-time rent payments include direct discounts on rent, cash-back rewards, and loyalty program points.

Are there any studies or data showing the long-term effects of these incentive programs on resident payment behavior?
Long-term data on incentive programs indicates they lead to sustained improvements in on-time payments and reduced late payment incidents.

How do property managers implement these incentive programs without significantly increasing operational costs?
Property managers can implement these programs cost-effectively by integrating them into their existing payment platforms and leveraging digital payment solutions to minimize additional.

About Domuso

Domuso is driving digital transformation for the multifamily industry with an advanced platform to manage payments and communication throughout the entire resident lifecycle. Domuso captures 100% of a property’s receivables electronically while giving residents the flexibility to access multiple payment methods from any mobile device.