Virtual currencies like Bitcoin are definitely the way of the future and will slowly become more and more accepted. @Kristina Heimstaedt Bitcoin can be converted instantly to the US dollar which would get rid of the price fluctuation concern. Unfortunately, bitcoin get's a bad rep because people use it for shady business and to try and avoid taxes. On the other side of the coin, there are several advantages to using a virtual currency. I would not blame anyone if not interested now, but I'd bet in 20 years from now, collecting rent in virtual currency will be very standard and we will laugh at this thread:)
Just learned that Rentalutions is accepting Bitcoin (see https://www.rentalutions.com/bitcoin). Also found this: https://www.coinbase.com/merchants?locale=en-US and am now wondering if I should amend my leases to say "no Bitcoin or similar crypto-currency accepted."
Wow that will be pretty cool to get a percentage of payment via bitcoins. Across a portfolio if you say 10% can be through bitcoins then you expose yourself to that asset class.
Wonder how the tax status of that will be if you were to sell the bitcoins and make a profit...
Interesting idea. If your comfortable with the possible losses when converting, there is a lot of options to play with the evaluation overtime. Clearly sitting on the payments, and waiting for a peak could have a huge upside... or down. Over all, it's just muddying the waters to an business, I can just take the profits and go buy my own BC.
@Susan H. Unfortunately, this is something Rentalutions provided in the past but we no longer accept Bitcoin as a payment option. I am so sorry for the confusion. We do however allow tenants to pay by ACH or credit/debit card.
Please let me know if you have any other questions.
Delmas Edwards I wouldn't do it but I don't see why you couldn't do it. Really it seems like you're taking rent payment in stock options. It could hold its value, it could increase, it could crash. Net recommendation: if you wouldn't convert the rent cash into Bitcoin on your own, don't accept it.
Virtual currencies like Bitcoin are definitely the way of the future and will slowly become more and more accepted. @Kristina Heimstaedt Bitcoin can be converted instantly to the US dollar which would get rid of the price fluctuation concern. Unfortunately, bitcoin get's a bad rep because people use it for shady business and to try and avoid taxes. On the other side of the coin, there are several advantages to using a virtual currency. I would not blame anyone if not interested now, but I'd bet in 20 years from now, collecting rent in virtual currency will be very standard and we will laugh at this thread:)
It is really the same question of should you accept bitcoin, gold, silver, classic car parts, old comic books, baseball cards. When it comes down to it, there is additional risk/reward available. Could go up, could go down. Diversifying your funds is something I like, but you could always get the money and they buy bitcoins when you felt the price was right vs having them give you them on their terms.
Great response from @Mike Cumbie, you can choose what form of value u are ok with receiving, but each may come with its own risk and reward. If i were to accept bitcoin i would put a massive spread on the value of receiced coin to hedge against volatility. i own bitcoin but havemt tried to sell any yet so i dont knoe how liquid it is, but depending in liquidity, id tell the renter each btc is 1800-2300 (market -2750). At the end of the day the person can just sell their btc and pay cash if they care that much.
Mixing one investment with another is confusing when there is such a fungible and transferable asset like dollars available. You probably wouldn't accept gold, stocks, art or trading cards (if only I still had my Magic: The gathering collection from the early 90s!), so don't treat bitcoin any differently.
My advice is collect the rent in dollars, and then independently figure out how you want to invest those dollars.