Lease at Speed with Bond Finance
Learn more from Katie Cotton at easyBondpay.
Follow the links below to check out Part 1 and 2 of this series.[/vc_column_text]
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Leesa: Welcome to another edition of Rent Roll Insights and joining me again today is Katie Cotton from easyBondpay.
Katie: Thanks Leesa great to be here.
Leesa: Welcome back.
Katie: We’ve changed things up a little bit today.
Leesa: Yes. We have for those watching us we’ve switch sides just to mix it up a little bit, but for those just tuning in on audio.
Katie: It makes not much of a difference for you.
Leesa: No, the visual effects would be a little bit lost, but that’s okay.
Katie: We’re ready to get into it.
Leesa: Katie what we’d really like to focus today on is what easyBondpay does to support the leasing function of the property management business and also the staff as well in a property management business. So, talk to us a little bit more about that.
Katie: Sure. So, obviously yes it does support the leasing function and if we look at it realistically we need properties to lease and we need tenants to lease them and that’s ultimately the goal every day. So, if we can I suppose from a tenant’s perspective you give them the most flexibility in terms of paying that bond payment over monthly installments, if it gets them to move into the properties sooner, it’s going to be less work for the leasing function as we look at it.
The best way to get the best traction I think as we’ve spoken about the last two videos with easyBondpay is it’s got to be offered to everybody. You need to offer it as an option so that they know that it’s there. You’re never going to really see how it’s going to be beneficial until you start to use it until you realise that we can in fact transfer funds far quicker than a tenant would ever be able to transfer through to you. I suppose if we look at and in this leasing space I suppose one of the biggest things that’s brought up most of the time is my bond is tied up at the RTA can you please transfer my bond and like every agency the answer is no. So how do we overcome that question because typically what we would say is no I’m sorry and our tenants tend to get a little bit cranky. We now have a solution to that problem.
You now can come in and say no we don’t transfer bonds however we’re on board with easyBondpay, you can use that to pay your bonds and the best thing is that they can pay us out sooner if they wish. So, it’s minimal to pay out the loan, they save on the interest in the admin charges because they’re calculated monthly so it’s really a win-win for them. I think I mentioned earlier as well you know that most actually don’t pay us out that sooner because it is so convenient to keep this going and then they have cash flow again which really works well for them. But I suppose if we look at it in terms of offering this to all our tenants think about our car insurance renewal. I know you and I’ve had this conversation a couple yawns and everybody is always offered two options and one is to pay annually and then the second one is to pay monthly and there is no judgment based on this so they don’t come across to you and say “oh excuse me Mrs Sinn, but you do not get the option to pay monthly because you have so much money”.
Leesa: I wish.
Katie: But idea is that it’s offered to everybody, there’s no judgment based on where they live the suburb there from, it’s just saying that here you go you get to decide which one works better for you. Do we want to outlay two thousand dollars at the beginning of every year or do we only want to outlay a hundred and fifty dollars at the beginning of every year and then you know it’s more convenient? We have cash flow again and things become a little bit easier in that space.
Leesa: That convenience thing.
Katie: It’s so much about the convenience and I think you know to give you an idea, we come from premium funding, so one of the first companies in 2009 to launch monthly installments for your car insurance. So, it’s really nice to know that we have been around for such a long time. You know we’ve been in finance for 32 years so even though the real estate world was new to us in 2016 we’re not a new product. With 3,000 agencies already using us it’s more uncommon to come into an agency and for them to tell us that they’re not using us or have never heard of us than it is to see the stickers on the door, the brochures at the front counter offering it as an option to all the tenants.
Leesa: It’s amazing because you’ve likely had tenants out there coming into your office saying, “oh do you have on bond finance?”.
Leesa: If you don’t there’s the potential that tenants going to walk out and then find another agent down the road who does.
Katie: We designed door stickers and they’re fabulous and they’ve just got “easyBondpay available here”. We get asked all the time “why did you do that?”. If you walk into a shopping center and you see a massive Afterpay sticker you know that you don’t have to ask, you know that it’s available. So, for our tenants we want to make it convenient so if we put a door sticker on they know that easyBondpay is available in that agency and it’s convenient for them, they’re happy because they say, “excellent we know it’s easyBondpay, we can move in, we don’t have to worry about the fact that our bond is already tied up at the RTA”.
Leesa: Excellent and that speed again in getting those properties leased and tenanted quicker not having to wait for another week or week and half.
Katie: Tenants will say to us “they have transferred the bond” and four days later we pull a report and still no bond. It could be held up because sometimes we know Australia Post is very unreliable in terms of delivering the mail so, for us it’s the idea is convenience yes it’s quick and from that we have a portal available which means that confirming tenant details are easy it’s as easy as you will ever find.
Leesa: That’s fantastic. So, convenient, great customer experience–
Katie: It costs nothing.
Leesa: Properties get leased quicker.
Katie: Yes it costs nothing for the agency to get on board.
Leesa: Yes fantastic look thank you so much again Katie for joining us today and thank you so much for joining us for another episode of Rent Roll Insights.
Katie: Thanks so much.
Leesa: Thank you.