NEW YORK, Oct. 07, 2024 (GLOBE NEWSWIRE) — RentRedi, the fastest-growing property management software, released new data that demonstrates the effectiveness of its automatic payments (“autopay”) feature in ensuring landlords collect rent on time. According to data collected between January 2020 and August 2024, units with at least one tenant using RentRedi’s autopay feature reported on-time rent payments 99% of the time. Conversely, units without tenants using autopay had an 88% on-time payment rate.
The autopay feature is widely used on the RentRedi platform across a variety of rental property types. While units associated with classic residential property categories (single-family residential, duplex, etc.) dominate the top of the list of RentRedi’s autopay users, other property types using automatic payments include sorority and fraternity housing, parking garages, and storage/warehousing facilities.
Tenants can set up autopay to ensure that their rent payments will be made consistently for the same amount every month. If tenants have not already set up autopay on their own, their landlords can invite them to do so using the rent collection features within the RentRedi app. Tenants who share rent for the same unit can also take advantage of a RentRedi’s ability to allow multiple tenants to set up autopay to split rent charges.
“We are fundamentally focused on making renting easier for both landlords and tenants, and our autopay feature is proven to benefit both parties,” said RentRedi Co-founder and CEO Ryan Barone. “There is a great incentive for tenants to use the autopay feature, because it removes the risk of missing payments and incurring late fees. This saves tenants time and money, and also provides a more reliable cash flow to landlords.”
Autopay’s benefits remain consistent for tenants with different economic situations, resulting in similar on-time payment patterns. For example, data collected between January 2020 and August 2024 show that units with tenants that had weaker credit scores still pay 98.8% of their monthly payments on time when using autopay, as opposed to 85.4% for those who do not enable the feature.
Additionally, RentRedi recently expanded its on-time rent reporting to all three major credit bureaus: Equifax, Experian, and TransUnion. The ability to report on-time rent payments helps tenants build and boost their credit scores. RentRedi data shows that landlords are likely to see a 13% jump in on-time rent payments when a tenant is benefitting from the RentRedi Credit Boost feature.
When Credit Boost is combined with autopay, there is added incentive and convenience to being punctual with rent payments. More information about this and other related data can be found in the RentRedi white paper: The Secret Success of Self-Managing Your Rentals.
Methodology
For this analysis, as long as one tenant occupying a unit was using autopay at the time of payment, the entire unit is considered to be benefiting from that feature. Payment status categories (on-time, late, and unpaid) are from the same methodology used in the Chandan Economics Independent Landlord Rental Performance Report. Critical features of Chandan Economics’ methodology are:
- It only includes rent income charges.
- It only contains charges between $500 and $10,000.
- It removes units that are inactive for more than two months from the sample.
About RentRedi
RentRedi offers an award-winning, comprehensive property management platform that simplifies the renting process for landlords and renters by automating and streamlining processes. For landlords, RentRedi provides all-in-one web and mobile apps to collect rent, list and market vacancies, find and screen tenants, sign leases, and manage maintenance and accounting. For tenants, RentRedi’s easy-to-use mobile app allows them to pay rent, set up auto-pay, build credit by reporting rent payments to major credit agencies, prequalify and sign leases, and submit maintenance requests.
Founded in 2016, RentRedi is VC-backed and a proven leader in the PropTech market. The company ranks No. 180 on the 2024 Inc. 5000 list and No. 12 on the Inc. 5000 Regionals list and was named an Inc. Power Partner, a GetApp Category Leader, a Capterra Established Player, and a G2 High Performer and Momentum Leader based on the software’s user ratings and popularity. To date, RentRedi has more than $28 billion in assets under management with nearly 200,000 landlords and tenants using the platform. The company partners with technology leaders such as Zillow, TransUnion, Experian, Equifax, Realtor.com, Plaid, and Stripe to create the best customer experience possible. For more information visit RentRedi.com.
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