Paying rent in bitcoin is no longer a trend only for forward-thinking people; it’s something that your tenants and potential customers likely expect or are soon to expect!
The real estate industry is often known as a slow starter when it comes to adopting new technology. Accepting rent payments in cryptocurrency is a move toward the future. However, it’s certainly risky and experimental by today’s standards. Real estate is an industry that relies on bricks-and-mortar as opposed to bits and bytes!
While crypto currency and blockchain technology are no doubt still in the very early stages of development, the potential exists for them to manage crucial aspects of rental home properties for landlords. Such as with collecting rent payments or creating a vested community of token investors. This is by issuing tokens bitcoin-based tokens and/or smart contracts that pay dividends.
What is Crypto?
Cryptography is the process of encoding and decoding information primarily used to ensure the security of confidential electronic communication. It involves the use of encryption to encode a message or information in such a way that only authorized parties can access it. Cryptocurrency are digital currency created to work as a medium of exchange. Cryptocurrency does not rely on a centralized banking system, but it uses cryptography for security so no one else other than the owner can use their coins. The most popular are Binance Coin, Cardano, Ethereum, Litecoin, Solana, Stellar and Tether.
The appeal of cryptocurrency lies in its strong privacy and user security. Transactions made on it can be seen by everyone but using blockchain technology makes it almost impossible to tamper with. Unlike paying for products and services from companies that require middlemen to process payments, using cryptocurrency is more cost effective!
Crypto has a new kind of magic to it.
People are jumping on board, investing in and using crypto for all kinds of transactions, like buying and selling merchandise, online investing, money transfers, travel, lodging and even paying rent.
Cryptocurrencies have real value. They aren’t just a convenient way to buy things, although that convenience is nice. Nor are they just for criminals trying to store wealth without getting caught. They can actually help you as a landlord. By enabling you to secure data sharing, streamline collection and payment, provide secure due diligence, improve operational efficiency and save time and costs.
Not too long ago, crypto was something that only a select few discussed. Which is not surprising considering that the market is constantly changing by the hour. Merchants, consumers and financial payment firms are now on board with this movement with crypto ownership rapidly increasing across North America. Landlords and multifamily property owners should be aware of the benefits that crypto will offer so they can absorb as much information as they can on this evolving global trend.
Did you know Millennials are more likely to use crypto for payments?
Millennials are currently the largest consumer demographic investing in cryptocurrency. Currently, Millennials are the largest group of people in history aged 24 to 39. Because of their affinity for digital devices, they’re very keen on bitcoin and other cryptocurrency.
Nearly one in five millennials will be, or already are, living without a home of their own. For that reason, we need to make some major changes to the housing industry and increase awareness about how many people these developments will affect. It’s incredibly important that we understand what the housing market looks like now, especially millennials!
This does not necessarily mean diving into the digital currency pool today but rather taking proactive steps to understand the opportunities and challenges of the cryptocurrency industry. For example, in order for you to succeed in understanding this space then it might be a good idea to have a discussion about what tenants like about crypto currencies and whether or not that same tenant is interested in adopting a crypto currency as your standard.
With the growing number of blockchain-based platforms and payment systems, we are seeing an influx of new tech-savvy tenants who are willing to use cryptocurrency to pay rent.
As a forward-thinking landlord, there are many reasons that you should consider accepting cryptocurrency as a form of rent payment. If you accept cryptocurrency as rent payment, you are able to receive fractional coins of the cryptocurrency that you accept as payment. This can help you to increase your income and make you more competitive. You can earn interest off of coins you are holding. Some coins, like Dash and NEM, reward users who hold the coins in their wallets. This is a great way to make extra money off of coins you are holding. You can avoid the drawbacks of cash. When you accept cash as a form of rent payment, you have to go to the bank to deposit it.
Cryptocurrency is an exciting new frontier. Forward-thinking landlords are taking notice and opening their doors to the wide range of benefits that cryptocurrency can bring. Landlords are always looking for new and innovative ways to attract tenants to their properties and the way of the future is to accept cryptocurrency, consider accepting cryptocurrency for rent payments.
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