Massive Discounts For Property Ads Paid In Bitcoin
Businesses offering discounts for payment in Bitcoin is not new. But as much as a 60% discount for making payment in Bitcoin was quick to grab headlines. In the hotseat was popular New York property listing website RentHop. It was not the first player in the property industry to step into the Bitcoin scene but it has made waves with what is an amazing discount to its clients.
New York Property Rental And Bitcon
RentHop focuses on rental property listings in the New York area, with its business extending to Boston and Chicago. Miami is also on the horizon for the company. It currently has some 87,000 listings, catering mainly for landlords and agents in the New York rental scene. RentHop is currently in the top 5 property rental listings websites in New York.
Founders of RentHop, Lawrence Zhou and Lee Lin, believe in Bitcoin’s long term potential and that Bitcoin payments may remove some of the obstacles their business had experienced. Zhou had informed CoinDesk that he started investing in Bitcoin this year and was also involved in altcoins by mining Litecoin. Taking Bitcoin payments from clients seems like a logical next step.
Zhou also said that Bitcoin payments could solve some of the problems faced in the property rental industry, like tenants being required to obtain a cashier’s check to pay for rental deposits. Furthermore Bitcoin payments circumvent the issue of charge backs on credit cards as experienced with some clients.
Up To 60% Discounts
RentHop users purchase credits available in packages to utilize services on the website, with packages ranging from $6 to $75. As yet they have not had any payments in Bitcoin when interviewed by CoinDesk, just a day after opening up to Bitcoin payments. However, Zhou reports that there has been interest shown in Bitcoin payments by some of its clients.
Although the rental property industry is not quick to embrace new technology according to Zhou, digital currency may change this attitude as it grows in popularity among consumers. RentHop has dived in head first and upped the stakes by offering a whopping 60% discount for its smallest package paid by Bitcoin. Even its largest package is being heavily discounted by 40% for Bitcoin payments.
Currently RentHop clients would pay 0.833 milli-Bitcoin for a listing which at today’s prices equates to a modest $0.76 per post. This is significant when looking at the prevailing prices of $2 per post that landlords and brokers pay at the moment. It may seem like ‘small money’ to some but when looking at large clients with multiple posts, the savings can quickly add up.
Cryptocurrency Shaping Property
Looking beyond the discounts, it was clear that the founders have a deeper commitment to cryptocurrency. Most businesses will almost immediately convert Bitcoin into fiat currency but not the RentHop founders. Zhou has affirmed his company’s commitment to hold onto any Bitcoin acquired from customers so as not to contribute to market fluctuations in the price of the cryptocurrency.
However, other rental property businesses should also be acknowledged for their move into digital currency. Rentulations is one company that allows tenants to pay rent in Bitcoin, as early as August this year. There have been similar offerings for rent and deposits from smaller websites and we already have seen that land is for sale in Bitcoin. It will be interesting to see how the digital currency will positively contribute to the property industry at large, in time to come.