Proptech Tool Eases Rental Affordability Concerns For Residents, Building Managers

The pandemic has fundamentally reshaped the way Americans work, and landlords are starting to adjust their rental payment policies accordingly.

Demand for rental housing has quickly outpaced supply, which, coupled with inflation, has caused rents to soar by 6.8% this year. As Americans continue to struggle with the pace at which rent is rising, nearly 9 million renters across the country are not caught up with their rent payments. Renters must pay on time or face monetary penalties or even eviction. 

To ease the financial stress that comes with paying rent, Americans have begun to look for housing that offers flexible payment policies. Some are even willing to pay a steeper price if it means greater payment flexibility.

“As the pandemic accelerated the work-from-home trend, many people created alternative work arrangements, such as operating a home business and taking consultancy work,” Qira CEO Brian Ball said. “Due to that change, the traditional biweekly payroll cycle has shifted to a more fluent model of income earned throughout the month. The way rent is paid must shift alongside this change.” 

Qira is a financial services platform designed to simplify financial operations for property managers and renters. The firm specializes in rent collection, flexible rent payments, security deposit programs and end-of-lease settlement.

Taking into account this increased demand for payment fluidity, Qira designed its flexible rent program to help residents avoid hefty late fees or slipping into eviction status.

“When it comes to our flexible rent payment service, we already have the most significant pieces in place: rent payment processing, screening and underwriting,” Ball said. “Putting these elements together made it a relatively small leap to offer a flexible payment solution.”

The service is straightforward to use. Residents can choose to pay their rent weekly, monthly or defer their payment up to 14 days with the click of a button. 

Those who choose to pay all or a portion of their rent at a later date are asked to answer a standard questionnaire for Qira. The firm then provides an instant decision if the transaction is approved, Ball said. 

“Once approved, Qira deposits the payment directly into the property account and updates the resident’s ledger to reflect that a payment has been made,” Ball said. “From the property manager's point of view, it will look no different than if the resident had paid the rent themselves. Residents pay a nominal fee on the amount borrowed, typically up to 2%.”

Ball said that properties experience significantly fewer late payments with this methodology, since Qira is paying the balance owed on the residents’ behalf. This means properties can access their funds more quickly so cash flow processes are not disrupted.

Property managers who offer flexible rent payment services are taking a step in the right direction when it comes to helping clients with their biggest expense, Ball said. Regardless of the reason that residents need leniency with their rent, whether it be financial or personal, Qira’s flexible payment service offers an accessible and affordable line of credit when renters need it most, he said.

Ball noted that though property managers were somewhat hesitant to adopt flexible rent policies in the past, it is now seen as a desirable amenity by landlords and renters alike. 

“We continue to see significant growth with this service,” he said. “Initially, property managers were hesitant to add a flexible payment option. Some didn’t trust the program would work and some didn’t see the need. But as the experience with Qira widened, properties are seeing significant improvement in their cash flow and the cost saving on collection efforts.”

This article was produced in collaboration between Studio B and Qira. Bisnow news staff was not involved in the production of this content.

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