Managed App (Managed), an automated platform for rental payments, has achieved a remarkable feat by doubling its transaction volume in a little over a year.
In June 2023, the company notched up over $2 billion in total transaction volume, a significant surge from the $1 billion recorded in April 2022, as previously disclosed by REB.
These transactions encompass a spectrum of financial activities, including the collection and distribution of rental income from tenants to landlords, as well as disbursements to third-party entities like tradespeople.
Over the past twelve months, the platform has undergone a substantial upswing in engagement. A slew of new agencies have migrated from traditional trust accounting-oriented property management software to the more streamlined, cost-effective, and customer-centric payment technology offered by Managed. This transition has been noted by Matthew Wilson, the Head of Sales at Managed.
Fundamentally, Managed functions as an automated payment gateway that extends a swift and secure avenue for the real estate sector to carry out financial transactions among all involved stakeholders. This encompasses tradespeople conducting work orders and maintenance, property managers, and landlords.
Reaching the $2 billion transaction milestone is a testament to the robust growth Managed has witnessed in the past year, according to Mr. Wilson. He observed that the real estate landscape has undergone substantial transformation due to factors such as escalating interest rates influencing residential property sales, coupled with a reevaluation of the rental market.
Mr. Wilson highlighted an unprecedented surge in inquiries from property management agencies across Australia, owing to the prevailing market conditions. With real estate being cyclical, agencies are now prioritizing their rental portfolios as a crucial source of revenue and expansion.
In the words of Mr. Wilson, “The rental market is currently experiencing a surge. Rental values are on a rapid upward trajectory, poised to ascend further as landlords strive to offset the mounting costs of property ownership, exacerbated by 15-year high mortgage rates.”
He also pointed out that his team is encountering a barrage of queries from department heads and property managers keen on streamlining their operations. These professionals aim to allocate more time to tenant and landlord interests, rather than being ensnared in the intricacies of trust accounting administration and manual payment duties that can be automated.
According to Mr. Wilson, agencies are eager to present a more attractive proposition to landlords, who increasingly demand swift access to their rental earnings. This swiftness is a significant advantage that agencies can leverage, particularly when landlord cash flow assumes paramount importance.
Mr. Wilson posed a pertinent question: “Why would landlords tolerate a delay of up to 30 days for their rental income to be accessible when it can be promptly deposited into their bank accounts?” His belief is that every dollar of rental income should be immediately channeled into an offset account linked to a mortgage.
He emphasized, “This is precisely what landlords now anticipate. Agencies that fail to meet this expectation risk losing management deals to those that can fulfill it.”
While the benefits for landlords are evident, Mr. Wilson also emphasized that agencies stand to gain a valuable new revenue stream through Managed’s revenue-sharing model.
“This model permits agencies to partake in the income generated from tradespeople managing work orders and maintenance via the Managed platform.”
“On average, an investment property typically undergoes two to three repair, maintenance, or enhancement projects annually, overseen by tradespeople whose payments are facilitated through the Managed platform. For agencies adhering to the revenue-sharing model, this can become a lucrative revenue-generating mechanism. Additionally, these agencies are exempt from subscription fees,” he concluded.
