Do you accept cryptocurrency for rentals?

16 Replies

Would you accept bitcoin or another form of cryptocurrency as payment for rent?  (See for example https://www.inman.com/2018/01/04/landlords-increas....) My rentals are in a university town, and prospective tenants are asking me if I'll accept bitcoin. At this point I do not, but am certainly open to hearing why others do accept cryptocurrency.

This morning's report of a major "hack" (see http://money.cnn.com/2018/06/11/investing/coinrail-hack-bitcoin-exchange/index.html) has me wondering how landlords can protect their income if paid this way. 

No, it is not stable enough yet.  If I were a tenant I might ask this to take advantage, by saying "oh it was worth $1,000 when I sent it" even though it is only $700 now if you would have to exchange it for real money make them do it so you know you are getting the proper amount.

@Aaron Klatt says it well. To think of it a slightly different way. Would you take their rent check and immediately invest it in crypto if you that the value would go up or down 15% within a week? Or would you rather have the money.

I agree it's not (yet) a stable currency. I'll be interested to see if/how this changes. In the meantime, I'll keep saying no. <smile>

No.  No plan to do so either.

Originally posted by @Susan H. :

Would you accept bitcoin or another form of cryptocurrency as payment for rent?  (See for example https://www.inman.com/2018/01/04/landlords-increas....) My rentals are in a university town, and prospective tenants are asking me if I'll accept bitcoin. At this point I do not, but am certainly open to hearing why others do accept cryptocurrency.

This morning's report of a major "hack" (see http://money.cnn.com/2018/06/11/investing/coinrail-hack-bitcoin-exchange/index.html) has me wondering how landlords can protect their income if paid this way. 

They are calling blockchain the "2nd internet" and in my opinion everyone should expose themselves to cryptocurrencies 

At least with what they can comfortably afford to loose

Check out an article I just wrote on Crypto and accepting a down payment in Crypto on a property I sold - https://www.biggerpockets.com/renewsblog/sold-prop...

Also, here is another article I wrote on Blockchain - https://www.inman.com/2018/05/01/why-you-need-to-j...

Much success

Sure you can give the rent payment in crypto and actual cash. Lol.

There’s a start up that just raised 100 M to create a stable crypo currency. Until that happens this would be a bad idea, not to mention transaction fees are absurd

It's a fool's errand because nobody has any idea what will happen with cryptocurrency. It could explode and make you rich or - more likely - it could fall apart when something better comes along.

This idea that electronic money is secure is ridiculous. For every key invented, there is a lock pick.

I don't believe cryptocurrencies are developed enough yet, but one day they will be. Currently, they are treated more as an investment like gold than a means of exchange. They will need to become more stable and as easy to use as a credit card, then we will see their use greatly increase. There are arguments that they are not backed by anything or that digital monies are insecure, but your fiat money in the bank is stored electronically and backed by nothing but a promise. 

@Susan H.

No I wouldnt, if the bank is not accepting it for your mortgage payments it's essentially a bad idea for you to accept it as your rent payment

Would you accept Japanese Yen?   It's pretty much just as arbitrary.

I only take dead presidents or Franklins

The only way I would accept it is if you signed up for one of those services that gives you your money in USD and debits the current value of btc from their wallet. Even then, I'm guessing you'd be manually processing them into your system.

The value of bitcoin changes too frequently. They pay you $1200 in rent, but you cash out less because the value changed, no thanks.

Also the transactional costs of bitcoin are high.

Lot of risk to take to accommodate a fraction of a percentage of current users.

there are digital methods that are cheap, fast, easy and require little infrastructure already (ex: venmo)

I'd like to see an update on the article https://www.inman.com/2018/01/04/landlords-increas... and see how the landlords and property managers have fared.  If you know of one, please share!

As for me, I'm going to continue playing it safe, or as safe as possible these days. <smile>

Anyone who accepts this as payment might as well accept ious and Monopoly money . 

If I had 100 units and one wanted to pay me in bitcoin, I'd go for it. If I had 10 and one wanted to pay in bitcoin... probably not. 

I've spent probably 200 hours now, studying the blockchain/crypto space. The first thing you need to do, is disregard the opinions of anyone who hasn't...

It is very nascent and most of what's been going on since early 2017 has been pretty shady. Crooks are always drawn to that moment where big money discovers something revolutionary that nobody yet knows how to regulate. I remember when eBay was plagued with scammers selling fake everything, internet stock forums were full of pump-and-dumpers (who actually succeeded at their ploys) and Google search advertisements promised to regrow your hair. 

Bitcoin, at least, has a decade of history and a very large core of brilliant developers working on it. And people are actually using it - for things like international remittances (though you need to liquidate it pretty quick given the volatility). Who knows if it will be the dominant "e-money" in the future. But mark my words, there WILL be a dominant e-money of some kind.  That's really what cryptocurrency is all about; highly encrypted data that has innate (or at least agreed-upon) value. Data-as-money. 

Is it ready for broad adoption? I don't think so. Will it be Bitcoin that "wins" out? Who knows. Would I put 1% of my portfolio into it on the chance it might? Yes. It is unequivocally the best-positioned currently and the compound annual return of bitcoin over the last five years has been more than 160%. 

This is not investment advice. I am not a financial advisor. Risk of loss.

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