Cryptocurrency seems to be a hot topic lately, and most people have probably already heard of Bitcoin which has created waves because its value has skyrocketed since June and peaked in December 2017 at almost $20,000 per coin. There’s one group in particular who cannot afford to buy a home in major cities like Los Angeles, San Francisco, Seattle, New York, etc. They prefer to invest in bitcoin rather than stocks, that’s right I am talking about the millennials. As the U.S. is turning into a renter’s nation, it only makes sense for property management companies to begin accepting bitcoin as rent payments. It currently takes more than a week for payment to reconcile between tenant, landlord, and banks. Bitcoin and other cryptocurrencies such as Ripple, Ethereum, and Stellar are nearly instant and reconcile automatically. With the potential to eliminate this outdated protocol, companies like Coinbase and Managego are providing a platform and leading the way in this revolution.
The Real Estate Industry Is Making Hay While The Sun Shines
The fact that Bitcoin has appreciated in value by nearly 1,200% last year has not gone unnoticed by investment property owners and landlord. Not only is Bitcoin used to buy products and services, it can also be exchanged with fiat currencies such as the US dollar by using payment processing systems and Bitcoin exchanges. The allure of the rapidly increasing value of Bitcoin has forced companies to cater to newly created millionaires and businesses have began accepting this virtual currency in real Estate transactions. The recent surge in investor interest in the crypto space has yet to slow down, the general attitude seems to see no harm in making the hay as long as the sun is shining.
Businesses Must Modernize To Survive
With Bitcoin’s value continuing to swing upward, there is an increasing trend among the investors to utilize it for the payment of goods and services. Real estate and property management companies are also looking to adopt a new modern look by getting rid of old technologies and rules. Many have already done away with fax machines, and more are becoming a paperless office. The introduction of Bitcoin as a currency for the payment of rent is a part of this strategy to modernize and provide services that are demanded by the customers.
Americans pay a staggering sum of $160 billion in rent every year. Although companies having allowed rental payments in Bitcoin or Ethereum acknowledge that very few tenants choose to to use their virtual currency for payment of rent, there is no doubt that Bitcoin’s use is inevitable in the future real estate industry. Because of this, more companies are allowing payments in cryptocurrencies because they realize that staying current with technology is critical to the life of their business. Startups are finding their ways to integrate blockchain technology into almost every industry. In 5-7 years from now, Blockchain will replace everything we’ve ever known about real estate and property management from how we sign real estate contracts, interact with clients, and operate the business. From any location, investors will have the ability to invest in prime real estate all over the world by simply buying tokens from a company.
Jesse Sasomsup is an owner and CEO of PMI Golden State, a property management company located in Sherman Oaks, CA. PMI is one of the largest property management network with over 200 offices worldwide.