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The Multifamily Money Movement Playbook
In property management, money movement refers to the flow of funds into and out of a property and plays a vital role in the growth of your properties. Cash flow disruptions such as late fees, chargebacks, and NSF returns can slow progress and impact profitability. Read this playbook to learn key strategies to unlock revenue and optimize expense streams.
Start readingHow money movement drives property management growth and NOI
Managing money movement effectively is essential for property management growth and maintaining a healthy NOI in multifamily operations. Every financial transaction, from rent payments to utility expenses, directly impacts your property's bottom line. When funds move smoothly, you can reduce operational inefficiencies, optimize cash flow, and ensure long-term financial stability.
What are some examples of money movement in multifamily?
Money movement includes all incoming and outgoing funds that sustain daily operations.
- Incoming funds: Revenue such as property charges, rent payments, and application fees.
- Outgoing funds: Expenses including utility charges, operating costs, and security deposit refunds.
Without a streamlined process, delays in these transactions can slow down revenue cycles and increase property management expenses. In this playbook, learn how to keep money moving efficiently. Start reading now!
Cash flow disruptions & their impact on multifamily revenue
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Slow security deposit refund process
Ineffective deposit refund processes delay move outs, slow the return of funds to residents, and tie up money.
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Late utility invoice payments
Late utility supplier payments interrupt smooth billing cycles and may result in non-compliance penalties or late fees.
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Poor utility expense recoupment
Insufficient recoupment strategies create gaps between resident reimbursement and utility expenses, leading to financial strain.
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Unsecured payments
Unsecured payments are at risk of theft or fraud, resulting in potential revenue loss; manual collection methods also inherently slow down receivables.
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NSF and rent returns
Invalid, insufficient, or closed bank accounts lead to NSF and rent returns – blocking crucial incoming funds and delaying revenue past expected deadlines.
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Chargebacks
Chargebacks, or reverse payments initiated by the resident, result in unexpected income loss and slow-to-resolve payment disputes.
Insights and strategies to drive long-term financial growth
Keeping revenue flowing and expenses optimized is critical to maximizing NOI and sustaining long-term growth. By addressing common cash flow disruptions and implementing automation for repetitive tasks, you can minimize inefficiencies and reduce operational risk. To enhance revenue flow, read this playbook for actionable strategies to improve both resident-facing and back-office operations, giving your team more control over cash flow and profitability.
Create a seamless security deposit payout process with Resident Payouts
43% of respondents preferred to receive their security deposit refund as a digital transaction. With Resident Payouts, you can automate and manage resident payouts all within Zego, ensuring a smoother move-out experience for residents and staff. Book a demo to see how you can speed up your security deposit payout process and eliminate compliance & accounting headaches.