Property managers have a lot on their plates but a multinational company, recently launched in Toronto, endeavours to simplify their myriad responsibilities.
PayProp is an automated payment platform for residential rentals that allows property managers and landlords to collect rent payments, track invoices and more.
“Our plan is for a property manager or someone managing a property portfolio, we give them an account and any tenant can pay their rent, with any method out there, into this account,” said Tom Samodol, director of PayProp Holdings. “The property manager can upload an invoice to the right property. In essence, the rent is being collected from the tenant, and all other expenses affecting that particular property are paid, and the rest is left with the landlord.”
PayProp receives a fee from the rent, but the expedience of the transaction cannot be understated. The platform’s back office, which is automated, occurs on the fly, and what normally takes a few minutes takes a few clicks.
“The value proposition for property managers is we solve a dozen problems instantaneously. What we allow them to do is remove the headache of running the administration of a property portfolio and reduce it to four clicks,” said Samodol. They know if a tenant has paid on time, they can chase arrears, they know the cash flow of the business in real time and, on the tenant side, they know the finer details.
“The property managers, by using PayProp, improve the service level for landlords, because their clients are landlords, and, frankly, we make them look much more professional because, rather than taking a week or two to collect rent, we can do it in a couple of hours for them.”
Property managers need trusted employees to collect and manage their financial accounts, and that could come with its own set of problems. However, the 24/7, 365 days a year platform is mistake-free.
“We do everything on time and in real time, even on bank holidays,” said Samodol. “They can check their portfolios from anywhere in the world with an internet device. We don’t solve one pain point; we solve about a dozen of them.”
Originally launched in South Africa, PayProp also has a presence in the United Kingdom and has been in Toronto for about a year, with an upcoming launch in Florida slated for the months ahead. The company moves about CAD$1.5 billion worth of funds through its system every year.
Smaller clients will pay higher fees, which are capped at 73 basis points, while larger clients pay smaller fees. The platform also uses bank-grade security and, in Canada, has partnered with CIBC for its system. In South Africa, PayProp is partnered with Barclays and in the U.K. with NatWest.
Samodol says PayProp has identified a burgeoning rental market in Canada, particularly in Ontario,
“The Canadian market is a massive rental market, starting with Ontario,” said Samodol. “There’s no system that does what PayProp does—we’ve been doing it in other countries and we’re good at what we do.”