Login
iscover
With automated payment systems gaining traction among property managers, industry leaders have explored the impact of these technologies which are shaping the future of property management.
A recent report from Agile Market Intelligence has revealed that 30 per cent of surveyed agents are now considering automated payment systems as an alternative to running a trust account.
The report was based on insights from property management professionals across Australia, examining sentiment around trust account alternatives and how property managers are responding and interacting with these new technologies.
In addition to showing that 10 per cent of respondents had already moved to automated direct payment systems for rent roll transactions, the firm reported that 30 per cent of those surveyed said that if they were to start a new business tomorrow, they would do so without a trust account.
Alongside this take-up, the report also highlighted a shift in broader attitudes around automated payment systems, with more than 70 per cent of surveyed property managers aware of the alternatives to managing rent roll payments through a trust account, and one in 10 agencies already running their rent roll without a trust account.
Commenting on trust account alternatives for property managers, Tim McKibbin, CEO of the Real Estate Institute of NSW (REINSW), pointed to the “huge efficiencies in the technology” in stating “we need to be embracing that technology”.
McKibbin highlighted that consumer expectations now revolve around immediacy, with a growing demand for more efficient service delivery at minimal or no cost and emphasised that to meet these demands, the “industry has to adopt technology to be able to achieve that”.
As a result of these advancements, the CEO stressed that regulatory documents dictating property managers’ obligations must properly take into account the capabilities of emerging technologies, stating that “we are able to do things that 20 years ago would have been considered fanciful and impossible”.
And while the CEO highlighted that the REINSW takes a “very conservative approach to technology advancement “, McKibbin emphasised that “you can’t be left behind” when it comes to emerging technologies.
“You can’t be left behind either, otherwise the services you’re providing just won’t keep pace with the expectations of the consumer. You’re walking that careful line but I think it is very wise to be dubious and conservative,” he said.
Noting that advancements in AI technology made at the beginning of the year are now becoming increasingly normalised, McKibbin highlighted that legislation surrounding automated payment platforms will need to adopt an outcome-based approach to keep up with the rapid pace of technological development.
“They’ll have to say things like in the trust account environment that the trust money of your client cannot be used in this way or that way and cannot be misused for any other purpose, and I think they’re going to have to go very general to allow the technology room to breathe,” McKibbin said.
Leanne Pilkington, president of the Real Estate Institute of Australia (REIA), adopted a similar standpoint, stating that “automated payment platforms are the way forward”, but highlighted the need for “clarity and consistency across jurisdictions”.
While Pilkington acknowledged that “the technology offers potential efficiencies and streamlines processes”, she highlighted that “property managers are understandably cautious about adopting these platforms” due to this transition coming with “risks that must be thoroughly understood”.
“Over time, confidence in these systems will grow, especially as more businesses share their success stories. However, anyone considering this change needs to undertake detailed due diligence and seek advice from those who have already made the switch,” Pilkington said.
You are not authorised to post comments.
Comments will undergo moderation before they get published.