- Timely Rental Reimbursements Desired as Only 35% Of Renters Receive Security Deposits Back Within a Week
Onbe, a market-leading corporate disbursements platform, revealed the findings of its Rental Disbursement Survey, which surveyed 807 U.S. renters about their reimbursement preferences. Overall, nearly two-thirds of renters preferred to receive reimbursements, such as security deposits, via digital methods (direct deposits, peer-to-peer methods and virtual cards), and 41% would be willing to pay a convenience fee for immediate access. Despite the growing trend towards faster payments, half (51%) of surveyed tenants still receive their security deposits via paper checks, signaling a required change for the paper-check heavy rental industry.
“We’re not surprised to learn that renters, like other consumers, want to receive reimbursements for repairs or security deposits via digital payment methods, rather than outdated modalities such as a paper check sent in the mail,” said Bala Janakiraman, CEO of Onbe. “Our recent Future of Payments Survey demonstrated that consumers value choice, speed and convenience, and that extends to the rental industry, where tenants often need prompt disbursements to secure their next home or apartment rental. Renters are quick to share their experiences online, and timely reimbursements lead to much better reviews. Additionally, digital payment solutions relieve property owners of the time, cost and complexity of cutting paper checks.”
Key survey findings pinpoint renters’ views on rental reimbursements, including the following:
- Only 35% of all renters receive their security deposits within a week of moving out– likely due to paper checks being printed and mailed
- For renters who received an incorrect security deposit reimbursement amount, 76% had to wait a few weeks to over a year for the mistake to be corrected, with nearly 44% waiting a month or more
- 18% of all renters surveyed have accidently thrown out a reimbursement check, and that increases to 31% among 18-24-year-olds
- Almost a quarter (24%) of respondents had to delay a move to a new apartment because their security deposit check was for the wrong amount, and they didn’t have sufficient funds for the move
- 41% would pay a convenience fee to get immediate access to their security deposit reimbursement
The Onbe rental property market is undergoing significant changes as rental property owners and administrators face an increasing need for automated payment options. New disbursement services, specifically digital solutions, offer property managers more flexible payment options and eliminate the need to manually cut checks – saving both time and money while improving accuracy. As new services make it to market, property managers will not only have the ability to reimburse renters directly, but they will have options to provide incentives and other rewards directly to their residents.