With the rise of digital technologies in property management, more agencies are stepping away from traditional trust accounts. According to Agile Market Intelligence, 10% of agencies have already transitioned to these modern digital solutions, streamlining their financial workflows.
Alex Whitlock, the commercial director at Managed, discussed in a recent REB webcast how these digital options provide a unique opportunity to establish a payment process that is both more efficient and clear system..” He highlighted that such systems can help create smoother interactions between property managers, tenants, and owners, offering significant advantages over traditional methods.
Since its launch in 2018, Managed has streamlined the payment process for rental properties. This automated platform ensures that transactions are handled securely and swiftly, offering a fast and effective way to process payments for everything from rent to repair work.
Rohith George, the chief operating officer at Managed, reportedly stated that digital payment systems furnish a dependable and streamlined structure for property dealings. This, in turn, can empower property management firms to augment their collection of rental agreements while keeping any increases in trust account expenses to a minimum. According to George, transitioning from managing 100 properties to 500 should not proportionally inflate operational expenditures.
The COO further elaborated that ideally, novel technological solutions should aim to maintain outlays at the lowest possible level while simplifying the clerical work for the team. George suggested that the implementation of such advancements should prevent a significant rise in overheads even with substantial portfolio expansion. The objective, as per his perspective, is for contemporary technology to curtail administrative burdens without a corresponding surge in operational costs.
REB’s inaugural Stellar Agencies ranking also highlighted the rise of digital payment platforms, noting that four of the fastest-growing agencies had adopted property management systems focused on automating direct payments.
Ashlea Merlo, co-director at The Property Collab, one of the top-ranked agencies, explained that property owners have come to expect their rental income to be delivered without delay. She added that the Managed platform’s rapid payment processing has made the use of trust accounts seem outdated, enabling owners to access their funds quickly and put them to work right away.
Apart from the advantages for investors, Merlo highlighted how digital payment systems provide significant benefits for tenants as well, facilitating instantaneous transactions with full transparency. She explained that these platforms eliminate concerns over delays or complicated reconciliation processes by enabling real-time payments without the need for manual intervention.
Grant McKay, a director at NU Management who utilizes the Managed platform, shared how the system has streamlined property management operations. By simplifying logistical tasks, it has allowed his agency to allocate more time towards nurturing client relationships and enhancing overall service delivery.
McKay conveyed that the system empowered their firm to execute essential daily tasks, specifically the crucial aspects of resident relations and prompt attention to necessary property upkeep. Furthermore, the platform facilitated transparent dialogue with all involved parties and aided in the identification of possibilities for engaging with prospective lessees.
Similarly, Merlo noted that their technological framework assisted the team in circumventing an unwritten office principle where assistance was typically sought too late. She elaborated that by leveraging available technologies, they had successfully implemented automated processes to support expansion and, more importantly, to interact with their clientele efficiently, often in advance of the clients needing to reach out.
In George’s assessment, granting property managers greater availability to cultivate connections with their lessees, while also equipping them with a swift and complimentary electronic payment system, would likely lead to a more accelerated distribution of financial benefits, allowing stakeholders to obtain their returns with greater expediency. This viewpoint suggests that by streamlining administrative tasks and enhancing the tenant experience through accessible digital transactions, the flow of funds to investors stands to improve noticeably.
He further posited that a robust rapport between the property manager and the individual occupying the residence invariably has a positive influence on the property’s backers. Consequently, George concluded that regardless of their specific nature, digital platforms and technological solutions should fundamentally serve as tools that facilitate and elevate this crucial interaction, ultimately contributing to a more favorable overall experience for all parties involved.
