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Agencies that lag in adopting secure automated payments for real estate rental transactions will stifle their ability to win managements and retain their landlords, writes Managed’s commercial director Alex Whitlock.
Property management is undergoing a rapid transformation, with automated payment platforms at the forefront.
While many in the industry recognise the advantages of moving away from trust accounts, some are hesitant – awaiting regulatory approval before adopting new and logical technology.
The reality is that waiting carries risk.
Agencies that have already adopted platforms like Managed are gaining a significant competitive edge.
If you believe the future lies in digital payments, but you’re going to wait for a government green light, here are three compelling reasons to make the switch now.
1. Your owners want secure digital payments.
Ask your landlords if they would prefer their rent paid securely and instantly to their nominated bank account, or if they would rather it go into a trust account to be manually reconciled at the end of the month?
I can assure you that no owner wants their money sitting in someone else’s bank.
Most investors want access to their cash immediately, or at least sitting in an offset account reducing interest payments.
As agencies around you switch to automated payments, they gain a competitive advantage that you cannot match – there’s a new breed of property manager winning over landlords with a very compelling reason to switch agencies.
Innovative agency LJ Hooker in Devonport promoted their instant owner payments in their shopfront window, for example, and landlords walked in off the street to move their investment properties.
What a brilliant idea to build a rent roll! We were so impressed that we printed window stickers for all of our customers to help them accelerate their market share.
2. Legislation always lags innovation.
While there’s different legislation connected to each state and territory jurisdiction, the Property and Stock Agents Act in NSW, as an example, states that “trust money” should be “retained in a trust account”.
However, with an automated payments platform like Managed, there is no trust money. The agent never receives any rental funds; they are transacted directly and securely between tenant and landlord (with other stakeholders also paid simultaneously – like the PM or trades).
Property managers and real estate employees have no access to any funds or bank accounts. Therefore, Managed does not infringe existing legislation.
With only a small percentage of the property management industry currently using a secure automated payments platform, it’s too early for legislators to officially endorse this new technology. If you wait, you’ll miss the advantages that early adopters are harnessing.
3. Property management is changing now, not in the future.
Trust account management is challenging and becoming more so. It’s also increasingly expensive to find experienced property managers who can manage reconciliations. New entrants to property management would rather not want the responsibility of manually handling trust account transactions, especially when their experience in other domains is characterised by simpler, more streamlined payment methods.
There’s a good reason why 40 per cent of the fastest-growing property management start-ups choose Managed and automated payments. They spend minimal time on administration, allowing them to focus on growing their business.
So, when you’re talking to an owner, do you really have a market-leading advantage that the agency across the street can’t claim? Can you offer your owners a secure payments platform, the best in market owners’ portal, AND rental income paid instantly?
The bottom line
The property management landscape is changing rapidly. Waiting for regulatory approval could leave you behind competitors who’ve already embraced the future.
Automated payments platforms like Managed are secure, fast, and deliver a better experience for landlords and tenants. They eliminate risk, cut admin costs, and offer a clear advantage to property managers in a competitive market.
Ask yourself: Can I offer existing and prospective owners a tangible benefit that my competition can’t? If the answer is “no”, it’s time to act.
Give your agency the edge now with secure automated payments because the future won’t wait – and neither will your customers.
Register for free to the REB Masterclass where I will be joining the panel discussing the future of property management and secure digital payments.
Alex Whitlock is the commercial director of Managed, an innovative payments platform powering real estate rental transactions. For more details visit www.managedapp.com.au.
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