AP departments use security deposit automation to read and collect deposits, apply rules and workflows, collect approvals, and make security deposit refunds. Refund automation providers integrate with property management software and other financial solutions for heightened efficiency, visibility, and transparency. But that’s just the beginning. For the future of security deposit automation solutions, here are five key security deposit management trends to watch.
Finance teams have continuously tracked KPIs to measure their companies’ financial health. Today’s tech-savvy CFOs are turning that lens around to optimize their own operations.
By tracking key metrics across AP processes—including security deposit management—finance teams are identifying time-consuming bottlenecks to drive cost-saving efficiency and a better resident experience.
Refund automation solutions will continue to support this number one security deposit management trend by providing visibility into the data behind the metrics and giving teams with automated payment processes a strategic edge to drive efficiency and improve resident service.
Analysts predict checks will be extinct by 2026. Presumably, this includes security deposit refund checks, which over 90% of property management companies issue today as the primary refund payment.
With Millenials and Gen Z on their way to making up 72% of the workforce by 2029, they’ll continue to press for modern payment methods and more flexible options that mirror the other financial services they use. Digital payments are better for the property, too—they’re faster, cheaper, and present less fraud risk.
Unit move-out inspection and charge assessment and application is largely a manual process today—and it’s fraught with subjectivity, error, and delays in communication. As a result, many properties undercharge for damage and do not charge enough against the security deposit to cover their actual costs.
Through tighter integration with payable systems, properties will start to track, compare and optimize for real-time variance across their portfolio.
Look for refund automation to work hand-in-hand with A/P systems, providing reporting, analytics, and insights to reduce error, improve charge consistency, ensure compliance, and reduce costs for better NOI.
Mistakes in your average refunds payable department may not be deadly, but they can cost a company a small fortune. Not entering damages correctly, missing return deadlines, and associated fines add up.
AI can help human operators enter that data, check for errors and make the process of approvals faster. Alerting users to potential human error, including missed deadlines, failure to attach receipts, exceeding rent caps, or differences in process for military personnel. AI lets computers check details that human operators could easily miss.
Most people gloss over repetitive information, seeing only what they expect to see.
The phenomenon is known as change blindness, and the boredom of routine tasks only makes it more likely. Expanded error checking and notifications will help finance teams catch mistakes and potential fraud long before the security deposit refund goes out the door.
Leading refund automation platforms already integrate with major property management software (like Yardi, Realpage, Entrata) and ERP systems, bringing tremendous efficiencies to the AP refund process.
Still, property management software integration is only the first step in the evolution of security deposit process automation. Business finance workflows are now poised to enter the next stage of digital transformation—fully integrated end-to-end solutions for every aspect of business finance operations.
Look for new integrations to create all-in-one turnkey fintech solutions and developer programs and APIs that let businesses extend those integrations throughout their operations.
CFOs who put a complete fintech stack in place early can stay ahead of the game with workflows that are ready to scale. Roost’s security deposit automation platform is used by more properties to automate security deposits than any other platform.
To see how Roost could help you reduce time spent on refund management and refund AP, speed up your monthly close, and enhance your team’s performance in other key metrics, sign up for a demo today.
