Managing post-move-out receivables can be a complex and time-consuming task for property managers. It involves generating accurate move-out or security deposit statements, often including detailed balances owed, along with tracking down the necessary receipts and photos to support any charges. Many property managers rely on internal staff to follow up with residents for 30 to 60 days. If payments aren’t collected, these accounts are often handed off to collection agencies, which can take up to 50% of the recovered amount. This process is stressful for staff and often yields low success rates, making it essential to consider more efficient solutions like automated receivables management.
Automation can revolutionize how property managers handle post-move-out receivables, offering unique benefits that go beyond simply streamlining processes:
Automation tools, like those from Roost, allow property managers to generate and deliver statements immediately after a tenant moves out via email, mail, and SMS. Including photos and proof of damage helps reduce confusion and minimizes disputes.
Automation ensures consistent communication with former tenants by scheduling reminders at regular intervals. Roost’s Balance Recovery automates this entire process, from initial invoicing to final reminders, reducing the need for manual follow-up and increasing the chances of timely payments.
Automated systems offer advanced reporting that provides deep insights into receivables management. Property managers can monitor payment statuses in real-time and analyze the effectiveness of their follow-up strategies, enabling continuous process optimization.
A key advantage of automation is the ability to integrate seamlessly with existing PMS. This integration eliminates manual data entry and reduces errors, ensuring that all information remains accurate and up-to-date.
Automation tools provide flexibility in managing receivables by allowing shared payments among lease signers and offering flexible payment plans. They can also provide discounts to incentivize full payment before accounts are sent to collections, reducing the need for further action.
Automated systems significantly reduce human error in calculations, invoicing, and follow-ups while ensuring compliance with local regulations regarding notifications and timelines, protecting the property’s reputation.
As your property portfolio grows, automated receivables management tools scale with you, maintaining efficiency and accuracy across all properties.
When selecting automation tools for post-move-out receivables management, consider these key factors:
Integrating shared payments, flexible payment options, and SMS reminders with Roost’s Balance Recovery and other automation tools creates a comprehensive automated receivables management solution.
This combined approach not only streamlines payment processes but also leverages familiar methods for residents, ensuring a smoother transition and higher recovery rates.
Automation is crucial in modern property management, transforming how move-out receivables are handled before hitting collections. By reducing errors, saving time, and improving recovery rates, automated receivables management enhances the experience for all parties involved.
Roost’s Balance Recovery, combined with security deposit automation and refund vendors, offers a comprehensive solution that protects your property’s financial health.
As property managers face increasing demands, embracing automation will be key to maintaining efficiency, reducing costs, and improving tenant satisfaction.
Now is the time to evaluate your current processes and consider how automated receivables management can transform your approach to managing move-out recievables.
While there is an initial investment required to implement automated receivables management tools, the long-term cost savings can be substantial.
Property managers save on labor costs by reducing the need for manual follow-ups and data entry.
Additionally, automation increases recovery rates, meaning less reliance on costly collection agencies, which can take up to 50% of recovered amounts. Over time, these savings typically outweigh the upfront expenses, making automation a cost-effective solution.
Transitioning to automated receivables management can present challenges such as initial setup costs, a learning curve for staff, potential integration issues with existing systems, and resistance to change.
To overcome these challenges, property managers should
The cost of move-out receivables technology can vary widely depending on specific features, the size of the property management portfolio, and the level of integration required with existing systems.
Typically, property management software that includes automated receivables management may involve a combination of a monthly flat fee or a per-unit fee, a success fee based on a percentage of payment recovery, and potential setup fees.
These costs can fluctuate based on the vendor and the complexity of the system being implemented.
