According to the US authorities that conduct and issue economic surveys, one of the most surprising facts of its times have been discovered only recently. The authorities disclosed that around 20% of adults in the US households are either 'under-banked' or 'unbanked.'In today's high-tech economy and amidst advanced applications, it's quite surprising to know that citizens of a developed country do not prefer to hold bank accounts. A large segment of the US population still follows traditional ways of money management.
The report also claims that according to this particular segment, banks are simply undesirable and least important for the primary purpose that they are designed to serve. On the other hand are those who do have bank accounts, but their earnings and savings are not sufficient enough to make it worthwhile.
Here are the implications for those concerned with property management. Since 20% of US adults are under-banked or unbanked, they essentially resort to traditional payment methods when extending rents to their landlords. Lack of bank involvement lengthens the rent collection and processing period.
There's nothing to worry about because there are options to collect rent other than only via bank involvement. Property managers can benefit from other cash management alternatives and continue renting out to US households, no matter which particular economic segment they belong to.
Asking tenants to pay via money orders is a good option. Likewise, cashier's checks also work in this regard. By following one of the two options, the property manager will not have to operate a local office for cash collection.
Certain convenience stores also offer cash payment services. For instance, tenants can reach a nearby convenience store, pay the rent, and get the receipt in return. This is truly a hassle-free process because money is instantly transferred to the property manager's bank account. The recipient also gets an electronic notification for the action performed.
Property managers can run through simulations in order to determine the amount of time required to conduct and process cash transactions without the bank's involvement. Additionally, scheduling rent collection time with tenants can work. Tenants must be provided receipt against the collected rent as it gives them peace of mind.
However, collecting rent in cash, transferring it securely to the bank, depositing the money, and then getting the account updated involves both monetary and non-monetary costs for property managers.
