If Accepting Bitcoin for Rent, Why Not Another Cryptocurrency?

Perhaps you’ve already witnessed several industries use Bitcoin and other cryptocurrencies for payment and similar transactions. These digital currencies are a hot subject of news, gossip, and misconceptions that often confuse consumers regarding whether they can use crypto to their advantage in various applications. The market continues to increase in value over the years, and property managers and landlords consider them as viable means of payment for their tenants. 

Nonetheless, the real estate industry is welcoming changes in technology and strategies to keep profits up, but the risks are low. Using blockchain and cryptocurrencies — such as Tether and Ethereum — is now becoming common. Since some landlords now accept Bitcoin for rent, why not use another cryptocurrency? This article will delve into the nuances of using cryptocurrency for rent collection and how property managers can use it to their advantage. 

How Bitcoin Is Accepted as Rent

Real estate giants are starting to open their gates for using Bitcoin as a viable source of rent payment. One of them is Rick Caruso, who is a renowned businessman and founder of a prominent American real-estate company. He has long believed in the power of Bitcoin and how it can help real estate companies thrive more in the ever-lucrative and competitive market that they are in. He believes Bitcoin and cryptocurrency will play a crucial role in the collective future. From there, several other institutions and companies have started to accept Bitcoin as a reliable method for paying and receiving rent.

Aside from being decentralized, safe, and simple to use as payment, Bitcoin is also a good form of investment for businesses that want to grow and thrive in their industry. Even small businesses have witnessed significant rewards that come with using Bitcoin as a form of payment. As rent tends to double in around two years, tenants are also looking for ways to keep up with the fast-paced real estate value in their own ways. 

Why Landlords Should Consider Other Cryptocurrencies

Like Bitcoin, other cryptocurrencies have more financial advantages than you can imagine. Crypto facilitates quicker payment transactions, streamlines operational efficiency, and promotes secure data sharing. Moreover, millennials comprise most of the economy’s contributors as they are currently in their prime. Millennials are also known to be digital natives, and would like more convenient and quicker forms of payment for rent. They are now the biggest demographic of individuals who use Bitcoin and other cryptocurrencies for their financial transactions. 

Thus, one of the direct responsibilities of a landlord is to look for means to enhance the convenience of residents. They will look for means to cater to the needs of their tenants. This is where other cryptocurrencies — including Bitcoin — become more relevant in the real estate industry, particularly as a viable mode of payment for rent. 

Pros of Using Cryptocurrency for Rent

The following are the pros of using Bitcoin and other forms of cryptocurrency for the payment of rent:

Cheaper and Faster Than Bank Transactions

Cryptocurrency is a free financial system, which means it’s open to senders and recipients of payment. It can be used similarly to other online payment platforms — which means you can collect rent payments through your computer, tablet, or other mobile devices. The only difference is that crypto has fewer processing fees. Moreover, crypto is transmitted through radio waves and satellites, making it flexible enough to transmit payments from all around the globe. This is particularly beneficial for property managers who often travel for business. 

Added Security

While there are testimonies that push for the risks associated with cryptocurrency, it has an element of added security to it that still entices payers to use it. The tenants’ assets are protected with cryptocurrency because these currencies — like Bitcoin — use anonymous addresses and do not require personal information to complete the transactions. This means that credit card or other financial information can’t be stolen or exposed by hackers in the process. 

Form of Investment

Cryptocurrency functions the same way as stocks do. Their values fluctuate, but once you get lucky, you may be able to make the most of your investments and double your profits in the long run. Those who are brave enough to invest in crypto can succeed with the right amount of caution and efficient strategies applied. 

Cons of Using Cryptocurrency for Rent

To answer the question as to why others refuse to utilize crypto as a form of payment, here are some cons that you should be wary about.

Crypto Lacks Regulation

There is no telling when cryptocurrencies may decrease in value; if that happens, the government won’t back you up for it. Its value may plummet to a lower level in just a finger snap. Unlike tangible commodities like gold, cash, or silver, Bitcoin and other cryptos are in the form of bytes and bits that are not regulated by the government or other institutions. 

Property Management Software Does Not Support It

While there are a handful of reliable property management software on the market, most of them do not support payment through cryptocurrency. This is because landlords prefer the more traceable means of receiving payment.  

How Property Managers Can Use Crypto 

Utilizing cryptocurrency is not very popular among property managers yet, as they deem it more effective to use property management software and other modes of payment they have been using for years. However, if you’re considering crypto to streamline your payment processes, think about the changes that come with it and the risks associated with employing these changes.

Nonetheless, utilizing crypto for real estate transactions means monitoring the market, planning your entry, and dipping your foot in the water to see if it works well for your business. Weigh the benefits and risks first before jumping on the bandwagon. 

Schedule a Free Demo With Us 

If you’ve considered shifting to cryptocurrency as a viable mode of payment, you might have also been thinking about streamlining your real estate transactions more with an efficient tool. Property management software is designed to deal with all of these transactions more safely and conveniently. Although ExactEstate does not currently allow cryptocurrency as a form of payment, this can easily be added upon request. You don’t have to risk anything with our state-of-the-art property management software. Schedule a free demo with ExactEstate to verify whether we are a good fit for the profitability and productivity of your business.