The convenience of digital payments is also extending to the rental market, with tenants increasingly opting for instant rent refunds through digital channels.
According to recent PYMNTS Intelligence study, Digital options for paying rent are becoming more common, and tenants are now demanding similar convenience for refunds, especially when large sums are involved. The study, in collaboration with Ingo Money, revealed that more than 62% of renters have received at least one refund using instant payments, and 40% primarily rely on instant refund methods. Ta.
Additionally, rent-related refunds received through immediate payments are 46% higher than those received through non-immediate payment methods, with an average refund amount of $1,222. A high-income consumer, on average, receives a higher refund of $1,159, while a low-income consumer receives $446.
Additionally, the study found that the tendency to immediately receive large refunds, such as refunds for security deposits or real estate work, is motivated by the inconvenience associated with waiting times. check Arrive before dropping off.
Regarding the primary refund method used by 40% of renters who receive rent-related refunds primarily through instant channels, instant transfers to bank accounts were most widely used by 19% of renters in the past 12 months. This is how it works. Next, 13% and 9% respectively chose digital wallets and cards for instant refunds.
Overall, the study showed that property management companies that offer instant payment options have a competitive advantage in attracting tenants. More than 70% of renters who use digital payment methods report being very or very satisfied, while 61% of renters are satisfied. very satisfied If you receive a rent-related refund using an instant payment method.
Meanwhile, credit-building apps that leverage rent payment data, which have traditionally been excluded from credit scoring models, are rapidly gaining popularity.
A recent example of this trend is the launch of credit reporting services by financial wellness platforms. bloom credits. As PYMNT reporta rental app that is part of this effort — TenantPort, a product of PayOperated by , and Rent App. appear — Reports rent payment data to major credit bureaus, giving responsible tenants the opportunity to build credit when paying rent.
The company emphasized the importance of this service in an Oct. 31 press release, stating that in today’s financial climate, “credit history plays a pivotal role in determining whether an individual has access to affordable credit.” “Unfortunately, a significant portion of consumers play an important role, especially those who: Those who rent their homes are left without a meaningful way to establish credit. ”
This opportunity to build your credit score through digital means is highlighted in another article. study Conducted by PYMNTS Intelligence Sezzle, The results showed that credit-building apps help users improve their credit scores, with nearly 80% of consumers likely to see a score increase of 100 points or more. The PYMNTS report notes that app users’ ease of use and motivation contribute to higher credit improvement success rates.
In summary, the convenience of instant payment of rent-related refunds is a favorite among landlords, and property management companies that embrace this trend are gaining a competitive advantage in attracting tenants. At the same time, tenants can leverage digital tools like Bloom’s credit-building app to proactively improve their credit scores and improve their overall financial health.