There’s a lot of money to be made in the property management industry, and it’s easy to see why so many entrepreneurs are taking an active interest in this particular industry, too. There’s always going to be demand for property management companies, and as the demand for private rentals and holiday rental properties increases, the need for property management services increases right along with it.
So, if you’re thinking about setting up a new property management company or already have an existing company ready to grow and expand, it’s vital to carry out the necessary research and prepare properly. One key thing you’ll surely need when running your property management business is a property management merchant account. Shark Processing can help, and this guide will cover all you need to know about property management merchant accounts and how to get them.
Property management can involve a lot of different aspects of looking after and managing one or multiple properties. It covers operation, control, maintenance, and so on, and it can apply to both residential and commercial properties, as well as land, too. These kinds of services are vital for people who own properties that they wish to rent out or use as holiday homes.
A landlord, for example, may own an apartment and want to rent it to tenants, but not want to handle all of the various aspects of managing the property and dealing with tenant issues alone. They can therefore bring in a property management company to take care of the property on their behalf.
The company can handle tasks like advertising the property, screening prospective tenants, creating a lease agreement, checking on the condition of the property, handling repair requests and services, collecting rent from the tenant, arranging the various utilities, and so on, while keeping the landlord informed throughout the process. But, in order to do all of this, the company will need its own property management merchant account.
So what exactly is a property management merchant account and why is it such a key piece of the puzzle for running a property management business? Well, let’s begin with a basic merchant account definition: a merchant account is a form of business account that is designed to allow businesses to receive digital card payments online.
Property management merchant accounts work very simply; they essentially serve as a kind of “middleman” in the transaction process between customers and businesses. The money goes from the customer’s account into the merchant account when carrying out a card-not-present transaction online. The payment is then processed in the merchant account before the money is passed on to the main business account.
Given that most property management companies in the modern era carry out their business online and receive payments electronically, property management merchant accounts are an absolute necessity for this kind of business. Without a property management merchant account, you wouldn’t be able to receive card payments online from your clients, making it impossible to do business.
It’s clear to see that property management merchant accounts are vital for property management companies. However, if you head to your usual bank and try to obtain one of these accounts, you may find that you get rejected.
Why? Because the property management company is associated with high risk credit card processing and is seen as a “high risk business”. This means that banks and merchant services are generally less willing to work with these kinds of businesses because they worry about issues like fraud, chargebacks, fees, and unnecessary drama on their side of things.
And why is property management seen as such a high risk industry? Well, there are a few possible explanations. The first main reason is that, as stated previously, most property management business is done online or over-the-phone, with card-not-present transactions, and this is generally seen as riskier in the eyes of banks, as compared to transactions that involve the physical presence of the customer and their card.
In addition, a lot of property management companies suffer from relatively high rates of chargebacks. This happens because, when it comes to dealing with tenants and vendors, disputes can arise and card payments can be questioned as conflicts appear in relation to the property. Banks have to deal with extra fees and hassle every time chargebacks occur, so they prefer to avoid them if they can.
So, if banks and payment processors won’t help you get a property management merchant account because of high risk payment processing, what can you actually do if you want to set up a property management business and get your own merchant account? Well, there are other options out there, and Shark Processing can help you get ahead in the property management industry.
At Shark Processing, we specialize in providing high risk merchant accounts to high risk businesses, including those in the property management world. We know the risks and challenges involved in obtaining high risk merchant accounts, but we’re willing to help, and we work with a large network of trusted banks and payment processors who feel the same way.
With the help of the experienced, expert team here at Shark Processing, you can get your own property management merchant account much more easily than you would elsewhere. We also offer competitive rates and professional customer service for all of our high risk merchant account holders. Get in touch with the team today to find out more about our merchant accounts for property management professionals.