For many, the checkbook is an indispensable device that allows large amounts of cash to be ferried from one point to another without having to carry briefcases full of bills around.
It’s also a great way to pay bills remotely, especially utility bills and even the rent. With millennials rapidly throwing over checkbooks in favor of mobile payments, however, that’s got the rental industry rethinking if maybe it shouldn’t do likewise. For some, that’s a tool that’s on the way.
With the number of checks down by half of what was seen in 2000, and a report from WePay finding that over half—52 percent—of millennials never actually use checks, it makes a sound case for looking into alternate payment methods.
One developer—RadPad founder and CEO Jonathan Eppers—thinks that the right solution may be all that’s required, with a sufficiently convenient and powerful tool making it as easy to make a rent payment as it is to pay cash.
RadPad, for example, has already been used to send a cumulative total of $120 million in rent. Eppers, however, notes that mobile payment technology is still comparatively new.
Landlords, especially, don’t have reason to change—why change when checks work just fine for paying rent?—so shifting over because it’s more convenient for tenants isn’t much of a driver.
Moreover, since rental properties are largely occupied, there’s no reason to make things more convenient to draw renters; renters just show up regardless.
That may be changing, however, as more companies—including big names like Square—are stepping into the rental market and offering these tools.
The key thing to keep in mind is that conditions on the ground that makes rental property a seller’s market may not be in place tomorrow.
It could be, with the arrival of an improved economy or the like, that buying houses instead of renting will become the new thing and renters will have their choice of properties.
It’s worthwhile for a landlord, therefore, to be prepared for such an eventuality, and have the new payment methods in place in advance of that sea change.
It’s not just about what works today. It always has to be about what will work tomorrow. While a checks-only system does work for today and tomorrow, we may only be a few tomorrows away from that no longer being the case. Smart landlords will prepare for this.