Bank testing automated payments for small landlords
According to CNBC, the world’s largest bank is launching a platform for multifamily owners that automates billing and accepts online rent payments.
However, the great majority of renters in America still pay using pen and paper. A few bigger landlords have adopted digital invoicing platforms, the bulk of which allow tenants to opt into automated payments. According to JPMorgan, cheques or money orders are used to pay around 78 percent of property owners.
Sam Yen, chief innovation officer for JPMorgan Chase’s commercial banking group, claimed that when locals were interviewed today, they frequently stated, “The only reason I have a checkbook still is to pay my rent.” Therefore, there are several chances to create efficiency there.
The extremely fragmented character of the rental market is a major factor in its continued usage of checks, even though customers have adopted digital payments for everything from retail purchases to utility bills. There are around 12 million landlords in the United States, the majority of whom are in charge of modest portfolios with less than 100 units. Implementing an automated system is frequently not worth the money or effort for tiny business owners.
Collecting rent checks, depositing them one at a time, and keeping track of everything using a spreadsheet is also inefficient. In an effort to streamline and automate the rental industry, other firms are addressing this issue in addition to JPMorgan.
The JPMorgan platform will be accessible beyond its current test phase next year and will include other capabilities like tenant screening or market indicators to assist landlords establish rent levels. The scheme will not need landlords to be JPMorgan clients.
With $95.2 billion in loans to multifamily property owners as of June 30, up from $89 billion at the end of previous year, the bank claims to be the top lender in the nation. It claims to serve 33,000 clients in the industry.