Manual security deposit management processes leave your company vulnerable to missing regulatory deadlines, paying duplicate refunds, and missed charges/deductions. With refund automation software, properties can streamline processes and provide better transparency and service to residents while saving their site and accounting teams hundreds of hours per year. Check for these 12 things in a security deposit automation solution.
When you consider security deposit automation solution, make sure you evaluate the solution for the following:
Because security deposit requirements vary by jurisdiction, you need a vendor who can tailor the platform to your requirements.
Your requirements may include:
You may also need regulatory compliance features like notifications, interest accruals, and return deadlines.
Ensure that your security deposit automation solution includes features like SSL encryption and is SOC-2 Type II compliant and PCI-certified for credit cards.
The platform should also have built-in fraud detection, such as:
Your security deposit automation software should offer automatic sync with your property management system, including bi-directional data.
Not only should the platform manage processes based on detected changes in events, but it should also write-back to the ledger.
Security deposit automation software should be intuitive and easy to use so staff and residents can quickly understand roles and processes.
Take a demo of the software you’re exploring to ensure it’s easy to use for your residents and easy to learn for your team.
Residents expect more flexibility than money orders and checks. Digital payments are also better for the property—they’re faster, present less fraud, and are cheaper.
Look for security deposit automation systems that support:
Payment types allowed vary by jurisdiction, so ensure the payment system is configurable at the property level.
Most jurisdictions give residents the right to receive (or require) a printed and mailed check and deposit accounting statement.
Your security deposit automation provider should include a full-service function for 1st class mailed refunds, including an SLA for meeting tight deposit return deadlines.
The security deposit refund process is fraught with errors, and a property can unintentionally overcharge, miss a deadline, forget to itemize in full detail, or attach receipts.
Look for a refund authorization system with built-in smart reminders and alerts to help guide your team and minimize human error.
Every modern security deposit automation system should come with:
Nearly every jurisdiction requires residents to receive a detailed, itemized statement of charges and deductions and the resulting calculation of their security deposit refund.
Look for software that presents this detail, descriptions, and receipts to all lease signers in multiple formats—app, email, and mailed statements. Read 10 security deposit management mistakes to avoid.
Roost customers report 20% of security deposit refunds return or go uncashed.
Look for a vendor that includes tier 1 support for residents, including refund inquiries, re-issuance of checks, unclaimed property tracking, and more.
Your property management system should always serve as your source of record. However, additional reporting is essential and can significantly reduce time-to-close with deposit reconciliation reporting to ensure ending property and deposit bank balances match at the end of a particular accounting period.
Business leaders and external stakeholders may want documentation to improve the effectiveness of the payment process.
Ensure that your security deposit automation solution keeps complete and detailed documentation to simplify future audits and inquiries.
Streamlining your security deposit workflow automation can lower stress levels throughout the site and AP department while improving your metrics, saving you time and money.
It also provides an agile, scalable refund pay process that can flex with peak move-out seasons and grow with your business.
To see how Roost can help you implement refund accounts payable process improvements that your AP team, approvers, and residents will love, request a live demo or start your risk-free trial today.
