While paying rent was once through a method of “pay by check or money order,” business is shifting toward online payments of all varieties. Even cash payments have become outdated.
Let’s investigate this shift and what it might mean for your property.
Traditional Forms of Rental Payment
A 2022 study by the Federal Reserve Bank of Boston, showed that 22% of American renters paid with cash, 43% by check, and 16% via a money order. However, in general, U.S. consumers have shifted away from making payments with cash and checks and started using cards and electronic forms of payment.
Things have changed dramatically in just a few short years. Americans are looking for convenience in how they pay for things. They want mobile availability and quick, easy ways to make payments. This doesn’t involve having a checking account or physically going to the bank.
Since the COVID-19 pandemic in 2020, individuals have tried to avoid in-person payments and switched their entire way of working to curb-side, remote, and at-home. It makes sense that rental and homeowners associations would make the switch to online payments as well. Traditional cash, check, or money order payments have quite a few drawbacks. These include deposit slips, checks, banking statements, and delays in cashing checks.
Trending Forms of Payments
Digital payment methods have gained more traction than traditional ones as the top methods to pay for rent in 2024. Venmo, ApplePay, and Zelle Pay are common terms used for paying friends or for services, and now they are popular in the rental industry. Landlords can also collect online payments through ACH transfers and credit card payments.
As a way to simplify payments and curb late payments, many associations are encouraging these online payments. Most people find that they are not only easy (once set up), but are also a safer way to make payments without having to be in person.
In addition to these credit card or online payments being easier and more timely, many tenants and association members find that they are beneficial in the long run by increasing their credit score and allowing them to build up credit card “cash back” or reward points.
There are a wide variety of payment apps that your community or property management company may choose to use. Check out the benefits for your rental purposes and get with the trend of online payments.
Work With Thayer & Associates
We will make your rent collection hassle-free by streamlining the process. We have a secure online payment system that provides tenants with the convenience of paying through various methods.