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JPMorgan Chase is banking on a new platform it believes will make things easier for landlords, property managers and tenants.
In an era where digital payments reign supreme for nearly all transactions, the banking institution claims more than 3 out of every 4 renters still pays rent with a paper check, CNBC reported on Monday.
A tool for tenants to pay rent online — rather than with a paper check — is one feature of JPMorgan Chase’s new platform, Story, which also offers management tools for landlords, builders and renters.
Successfully rolling out such a platform would not only streamline one of the most time intensive and inconvenient process of renting a home for tens of millions of Americans, it would put JPMorgan at the center of what it estimates to be a $500 billion market.
“The vast majority of rent payments are still done through checks,” Sam Yen, chief innovation officer at JPMorgan, told CNBC. “If you talk to residents to this day, they often say ‘The only reason I have a checkbook still is to pay my rent.’ So there are lots of opportunities to provide efficiencies there.”
JPMorgan generates billions of dollars worth of loans each year to apartment building owners. Story offers market and submarket insights on vacancy rates, rent prices and rental comparisons.
Investors can build investment pro formas based on a specific property before moving toward applying for a loan. Landlords can screen tenants and manage their loans on the platform.
JPMorgan is testing the rent collection feature in four states today: California, Illinois, Washington and New York.
Rent collection is the first focus for the financial giant because it’s one of the most manual-driven processes of property management for renters and managers, JPMorgan executives told CNBC.
“We’ve been investing to build comprehensive payments and rent solutions capabilities specifically for our multifamily clients,” commercial banking CEO Doug Petno told the outlet. “In doing this, we hope to create an entirely new and substantial revenue opportunity for our business.”
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