By offering flexible rent payment programs, property managers can help residents stay on track while ensuring steady cash flow and smoother operations.
By Aaron Gries
Vice President of Product Management at Zego
Rent is the biggest expense for most residents, and many struggle to pay it on time. With costs rising and paychecks stretching thinner, staying on top of rent isn’t getting any easier. At the same time, property managers face growing challenges in collecting rent reliably. By offering payment flexibility, property managers can help residents stay on track while ensuring steady cash flow and smoother operations.
Demand for flexible rent-payment options has increased, especially after the pandemic. Today, a quarter of renters now spend more than 50% of their income on rent. At the same time, rent prices rise by 6% to 8% each year, while wages grow by only 1% to 2% annually, or even decline in some cases. Many residents also rely on non-traditional income sources, such as gig work or irregular job schedules. With these shifts, property managers need solutions that fit real-life financial situations, not just one-size-fits-all due dates.
Flexible rent-payment programs help residents by letting them pay in smaller amounts instead of all at once. A survey by Intuit Credit Karma found that 24% of American renters struggle with rent affordability, highlighting the need for solutions that ease financial strain. Flexible payment programs allow residents to apply through an online portal, where financial underwriting helps set up personalized payment schedules. Once approved, residents can make payments according to their plan, reducing late fees and easing financial stress.
For property managers, flexible payment systems help maintain consistent rent collection, improve cash flow, and reduce financial uncertainty. Partnering with financial service providers lowers risk while ensuring residents have options that fit their income schedules. These systems also take time-consuming tasks, like chasing down late payments, off property managers’ plates. By automating payment reminders, late fees, and collections, property managers can focus on higher-value work that improves resident satisfaction.
The rise of flexible rent payments reflects the larger shift in the multifamily industry. Property managers are adopting tools to enhance operations and strengthen resident relationships. Since resident satisfaction is key to retention, offering payment flexibility has become an important amenity. When property managers provide options that make life easier, residents notice – and they stay.
As economic pressures continue to reshape the multifamily market, flexible rent-payment options will be key for the future of housing. Yet, despite the growing availability of flexible payment systems, 65% of renters don’t even know they exist, according to payments company Zego’s 2024 State of Resident Experience Management Report. Implementing flexible payment options is only part of the equation – property managers must also spread the word. Clear communication ensures residents understand their options and take advantage of the flexibility available to them.