Earlier this year, PYMNTS Intelligence estimated that housing costs make up a significant portion of consumers’ take-home pay, particularly those living paycheck to paycheck.

In fact, as Karen Webster writes in her current column, the cost of a roof over one’s head is equivalent to 37 percent of net income for consumers with annual incomes of less than $50,000. For households above this threshold, the percentage changes dramatically, reaching about 13 percent of net income.

But no matter how you look at it and no matter how high the income, mortgages and rents are high, and inflation has pushed them up even further. When you add to that the fact that rent and other housing payments do not always arrive at the same time as wages arrive, the pressure on the family’s wallet becomes ever greater.

For landlords, too, the unevenness of cash flow (13% of tenants missed payments last year) can put a strain on their own coffers if payments are missed or staggered – and prevent them from paying their suppliers, employees and supply chains on time.

A number of recent announcements in the real estate industry have demonstrated the value of flexible payments and using digital channels for faster payments. As the From Rent to Refunds report notes, more than a third of renters still use checks and use electronic transfers to meet their rent obligations to landlords.

What tenants want

But this is where technology is appreciated: Data shows that more than half of renters prefer to pay their rent online, with 77% saying it’s easier and faster than traditional methods like checks. Renters who use online payment methods report a 77% satisfaction rate, significantly higher than the 35% satisfaction rate for those who use traditional payment methods. Instant payment options can increase tenant loyalty and satisfaction in the event of refunds (for example, if repairs have resulted in a reduction in rent for a particular month) or security deposit refunds.

Supply chain management

For landlords, faster payments from tenants means better visibility and transparency into cash flow. Improving the funds available to pay staff can help landlords stay competitive in a tight labor market and ensure that everything from equipment to coffee in the clubhouse to maintaining on-site gyms gets a little easier.

In an announcement earlier this month, real estate software platform RealPage said it had partnered with Flex to offer its clients “flexible” rent payment options. In terms of how it will work, the collaboration will allow RealPage clients to offer Flex as a payment option for residents in LOFT, RealPage’s resident portal and app, as it allows them to pay their rent in multiple installments rather than a single transaction. The companies have found that flexible rent payments can provide property managers with a way to increase net operating income, improve resident retention and stand out in a competitive rental market.

In a recent interview with Karen Webster, Adam Feinstein, Vice President of Products and Payments at AppFolio, explained that using push-to-debit systems in the property management industry could speed up payments, reduce reliance on paper checks and invoices, and end the traditional three-day processing times for ACH transactions.

And as mentioned here, Stake has acquired Circa to reduce delinquency and arrears in the rental industry by offering both rental incentives and collections management. The acquisition adds Circa’s free payment processing and performance-based collections management to Stake’s loyalty, tenant banking and incentive optimization services, the companies announced in June. The platform enables fee-free rent payments, cash back for on-time rent payments, credit building and reporting, and a debt-free way to access paychecks early.