Bitcoin is certainly going places. The latest is that in the near future, you might be able to pay your rent dues with bitcoin.
ManageGo is a rental platform based in New York which offers maintenance scheduling and payment services to tenants and landlords through mobile and online applications. And now it is ready to add bitcoin to that list. From next year onward, tenants might be able to use a mobile app to make payment in bitcoin.
Bitcoin payment method
So, how does this cryptocurrency payment system actually work? Well, it’s quite straightforward. A tenant makes use of bitcoin and ManagGo works to convert the cryptocurrency to dollars with the help of Coinbase, a broker dealing in digital cryptocurrency. Therefore, the landlord ultimately receives the rent in dollars. Bitcoin is known to be a highly volatile currency and the value gets locked in when the payment is made. Although the demand for such a service is not very high, the executives working at ManageGo believe that it will become prominent quite soon.
ManageGo Vice President, Chaim Lowenstein was reported saying that bitcoin will likely turn into a permanent currency in the near future. He informed that landlords have already shown an interest, even though tenants are yet to catch on to the idea. The business is taking several steps to market this idea all over the country. Lowenstein explains that they are offering bitcoin rent payment as a new amenity, something that is as lucrative, if not more, as a fancy couch or gym in a building.
Limited renting audience for bitcoin at present
The American Apartment Owners Association has been approached by ManageGo to implement this concept. However, the representatives of the association haven’t yet received any requests from landlord or tenants for bitcoin payment options.
According to an association representative, Alexandra Alvarado, landlords and realty management firms have taken a lot of time to shift to online modes of payment. Hence, they are highly conservative and cautious. This means that they will avoid trying something new, and possibly risky, until and unless it has broad acceptance and establishment in the industry.
Toby Bozzuto, CEO, The Bozzuto Group, says that he learned about the bitcoin use in the real estate market at a recent conference. He informed that they have not seen any inclination to make rent payments in bitcoin so far.