New Zego data finds credit card usage for rent payments up 30% in April
Pioneer in digital rent payments analyzes April rent in wake of COVID-19
San Diego, CA
April 8 at 12pm ET, 2020
Today, Zego (Powered by PayLease), the property technology company that powers better resident engagement & efficiency for multifamily and HOA communities, is releasing a new report that analyzes the State of Rental Payments in the wake of the Covid-19 pandemic – including digital rent usage and changes to how rent payment trends have changed in April. Most notably, Zego data shows new registrations for digital payments is up 25 percent compared to last month, while credit card usage for processing lease payments was up 30 percent in April.
“For weeks, the property management industry has been bracing itself for a potentially devastating April rent cycle,” said Dirk Wakeham, CEO of Zego. “With stay-at-home orders in effect for most of the nation and millions of Americans unexpectedly unemployed, the way in which rent can be processed and paid for is changing rapidly. As a pioneer in online payment processing for the residential real estate industry, we are committed to helping residents and properties streamline online payments and provide an enhanced virtual engagement platform at a time when they arguably need it most – especially since we understand this is likely just the beginning of a tumultuous time for properties and renters alike.”
In addition to a dramatic increase in credit card usage in April, Zego’s analysis shows CashPay, the alternative to cash and money orders where individuals pay rent via CheckFreePay® retail locations nationwide, dropped nearly 40 percent. In addition, Zego saw a 14 percent reduction in Check Scanning, a process by which onsite managers convert paper checks into digital payments via a desktop scanner, signaling a decline in paper payments. Digital transactions are up 11 percent and there’s been a 34 percent spike in new property owners and landlords interested in adopting Zego’s digital payment solution.
“The ability to process online payments safely and securely through Zego enables us to continue serving our residents and streamline operations during a critical time in our industry,” said Andrew Greenberg, Vice President at Trilogy Real Estate Management. “Digital rent payment utilization is up nearly 50 percent and we expect that number to continue to climb. We’re proactively talking with residents to discuss their situation, including waiving late fees and establishing payment plans.”
Zego provides a comprehensive resident engagement platform that unifies critical resident touch-points—from payments and utilities, to communication and smart devices—into one app. Zego serves 6,000 residential real estate companies and over 12 million units nationwide and is backed by Vista Equity Partners, a leading technology investment firm focused on enterprise software, data, and technology-enabled businesses.
Zego (Powered by PayLease) is a property technology company that frees management companies and community associations to go above and beyond for their residents. Zego’s mobile-first engagement platform for the residential real estate industry unifies the most critical resident touch-points into one app. From payments and utilities, to communications and smart devices, everything is seamlessly integrated into your back-end system. Zego delivers portfolio-wide efficiency, higher NOI, and more engaged residents. Learn more about how Zego drives community engagement and efficiency at gozego.com.