To say that the world is going through some major changes would be an understatement. We aren’t even talking about the global pandemic infiltrating every crevice of our lives. Rather, we are talking about a revolution in the way that people, in particular renters and association members, are making their payments online.
What was once a “pay by check or money order” type of 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 Even cash payments have become outdated.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
According to PropertyWare online, a 2014 study by the Federal Reserve Bank of Boston, showed that 22 percent of American renters paid with cash, 43 percent paid with check, and 16 percent paid with a money order.
This was in line with the trends of that time period. Most people had a checking account or access to a physical bank where they could get a money order completed fairly easily. A quick run to the bank or filling out a check was seen as simple… at least it was.
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, that doesn’t involve having a checking account or physically going to the bank.
In the past couple of years most people, across the globe, have tried to avoid in-person payments and switched their entire way of working to curb-side, remote, and at-home. In light of the coronavirus pandemic, it makes sense that rental and homeowners associations would also make the switch to online payments as well.
Trending Forms of Payments
Traditional cash, check, or money order payments have quite a few drawbacks including: deposit slips, checks, banking statements, delays in cashing checks, and (of course) the hassle (and sometimes the cost) of going to a bank to get a money order. And don’t even get me started on the fees associated with bouncing a check!
It’s easy to see why credit card, debit card, online transfers, wire transfers, and online payments are up 30% in the top methods to pay for rent in 2020.
In a world where Venmo and ApplePay are common day terms used for paying friends or for services, why not the rental industry as well.
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 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.