For many of us (Generation X and older) the personal check as a payment method is something we grew up in managing our finances (“balancing our checkbook”). Despite the convenience of managing our finances online between bill payment (direct biller websites and online bank bill pay services) and personal finance tools (like Mint.com) checks are still necessary for most charitable contributions or paying for maintenance work at our primary residence (mowing, snow shoveling, pest control). In addition, there are those few renters that still haven’t signed up for RentPayment that may be living in the dark ages of paying their rent with a check as well.
In contrast, Generation Y who represents the greatest influx of new renters (particularly when unemployment goes down and they FINALLY move out of their parents’ house) has probably never owned, let alone carried a checkbook. That means that minus a special trip to 7 Eleven or the post office for a money order, the fastest-growing demographic of renters will not have a way to pay rent unless properties embrace electronic payments. The necessity of offering renters the ability to pay by mobile technology (RentByText, iPhone app, mobile-optimized version of payment screens) is driven by the way they communicate in their day-to-day lives. In addition, renters who have paid with a credit card or E-check in the past are shifting to using mobile devices and away from a desktop computer connected to the Internet.
Electronic payment acceptance is no longer a differentiating amenity for property management firms. Mobile payment options for rent and communicating with renters by text and email received on smartphones is the future for properties to efficiently collect rent and minimize delinquencies.
-Matt Golis – CEO and Founder, RentPayment (a YapStone company)
