Nearly Two-Thirds of Renters Highly Satisfied With Receiving Refunds Instantly

couple looking at finances

Just as digital options have gained popularity for paying rent directly from a bank account, the digitization of refunds has also gained momentum. In fact, the days of writing checks and mailing them are dwindling, with tenants, particularly those with higher rents, increasingly favoring convenient, hassle-free digital and instant transactions.

Generation Instant: Renters and Refunds,” a PYMNTS Intelligence and Ingo Money collaboration, draws insights from a survey of more than 2,600 consumers across the United States to examine consumer satisfaction with rent-related disbursements received from government and non-government entities.

According to findings detailed in the study, renters favor receiving instant refunds to their bank accounts over digital wallets and cards. In fact, among those who received rent-related refunds, 40% primarily used instant methods, with 19% receiving most of those payments instantly to a bank account and 13% to a digital wallet.

graphic, rent reimbursements

The data also shows that rent-related refunds received via instant payments are, on average, 46% larger than those received via non-instant methods. This suggests that when receiving higher rent-related refunds, tenants prefer to receive them sooner rather than later. Additionally, the average refund received via an instant method is higher than non-instant methods, indicating the value renters place on receiving larger refunds promptly.

Examining the data further shows that while only 57% of renters receiving refunds via non-digital payment methods report high satisfaction, a significant 72% of renters receiving refunds via digital payment methods express high satisfaction. Furthermore, 61% of renters express immense satisfaction with receiving rent-related refunds via instant payment methods, indicating that property management companies offering digital and instant refund options have a competitive advantage in attracting tenants.

It is worth noting, however, that 44% of renters were not offered the option to receive instant payments, and 35% of this group would have chosen instant payments if given the choice. This highlights the potential for property management companies to improve refund satisfaction by meeting the demand for instant payment methods.

That said, not all renters are keen on embracing faster payments. Among those who do not prefer to receive rent-related refunds via instant payment methods, security concerns and a reluctance to share payment credentials were the top reasons. Additionally, a lack of incentives and rewards for using instant payments was a common deterrent. However, cost was not a significant factor for most renters, indicating their willingness to pay for instant access to their funds.

In summary, the shift toward faster rent-related refunds is evident, with renters clearly indicating their preference for receiving refunds digitally and instantly. Property management companies have a golden opportunity to engage and attract high-income, digitally savvy consumers by offering these payment options, while addressing security concerns and providing incentives that align with modern consumer expectations.