Approximately ⅓ of the United States’ population are renters, with 2,600 new renters being added every day. A leading rental property management platform aims to empower landlords, rental property managers, and real estate investors with the tools that allow them to efficiently and appropriately manage their tenants and properties.
An existing payment processor created unpredictable costs and restrictions for a rapidly-growing software provider. The company needed a non-branded bank transfer solution that could automate payment flows and reduce friction for the customer.
The software provider integrated Dwolla’s White Label bank transfer API, maintaining end-to-end branding while adding bank verification, automating payment flows and reversals, and mitigating direct and indirect costs.
Landlords from all 50 states leverage the rental property management platform to send rent due notices and collect payments from tenants. The platform facilitates electronic ACH payments between their customers (landlords) and customer’s end-users (tenants). The platform charged a per transaction fee, as well as a monthly access fee to landlords to offset the costs of using a well-known commercial payment service to collect rent payments, late fees, utilities, and other items.
The rental property management platform should be able to simply integrate a payment platform that allows tenants to easily link their bank account and enable or disable recurring rent payments to their landlord. Unfortunately, the technical limitations of the platform’s existing payment provider imposed daily chores, like manual attention to processing reversals and manually sending transaction status updates to end-users. This increased costs to the platform as it scaled and added new customers.
The payment provider did not offer a cost-effective bank verification method. If a tenant were to miskey their account or routing number, their next rent payment would fail. The rental property management platform’s staff would look for reversals daily, and from there, manually process each failed transaction—while notifying both the landlord and tenant of the issue.
Growing with the existing payment solution would restrict the rental property management platform’s ability to scale, require an excessive amount of manual work, and impose a growing financial burden. Adding a level of automation to their payment processing was critical for the platform to grow and scale their platform effectively.
“With Dwolla, we’re as close to the payment process as we ever have been. The timing of payments is more predictable and with event-based web hooks we know what’s going on at all times. Because of this reliability, we’re able to confidently help our customers collect rent payments on time every month.”
Brett Yates, CTO, RentMonitor
The rental property management platform needed a flexible and robust solution that would allow them to design both the tenant and landlord payment experience while automating payment flows so that they could relocate more of their resources toward providing quality customer support and rental property management tools.
Solution: With Dwolla’s White Label bank transfer API, the rental property management platform can leverage Dwolla’s webhooks to send custom real-time account and transfer status notifications to both tenants and landlords.
Outcome: The real-time status updates from the API lets the rental property management platform confidently leverage the ACH infrastructure to automate payment flows—rent payments, late fees, and reversals. The platform decreased time spent on manually processing reversals by 90% while simultaneously improving transaction-related communications.
To make customer onboarding as seamless as possible for both landlords and tenants, the rental property management platform required a non-branded payment provider. The platform needed a solution that complemented or improved their existing compliance requirements and their users’ ability to link bank accounts.
Solution: The rental property management platform added bank verification functionality to their platform by integrating Dwolla’s instant account verification and micro deposit functionality. Both options were white labeled.
Outcome: By integrating bank verification processes, the platform was able to decrease their regulatory and compliance challenges, and their total number of reversals by 23%.
For increased control of costs, from onboarding to transactions, the rental property management platform needed to partner with a platform that offered predictable pricing month over month, rather than being charged for every action, as was the case with their current provider. The platform needed a cost-effective payment solution with straightforward payment terms in order to become more price competitive in their industry. A non-scaling payment platform threatened their business outlook.
Solution: The rental property management platform entered into a flat monthly payment structure to access Dwolla’s White Label bank transfers API—allowing them to facilitate payments, easily onboard tenants and landlords, verify bank accounts, and initiate recurring transfers using event-based webhooks.
Outcome: By lowering their costs of facilitating ACH payments and entering a predictable pricing model, the platform was able to eliminate the monthly fee for landlords to access their property management tool. Rent payments are charged on a transaction basis giving more flexibility and value to their customers.
Are you interested in how your business could be leveraging Dwolla’s White Label bank transfer API to facilitate seamless bank transfers within your platform or application? We’d love to help you design your ideal payment experience.
Dwolla, Inc. is an agent of Veridian Credit Union and Compass Bank and all funds associated with your account in the Dwolla network are held in pooled accounts at Veridian Credit Union and Compass Bank. These funds are not eligible for individual insurance, including FDIC insurance and may not be eligible for share insurance by the National Credit Union Share Insurance Fund. Dwolla, Inc. is the operator of a software platform that communicates user instructions for funds transfers to Veridian Credit Union and Compass Bank.