Using Open Banking with August: a landlord's guide
October 14, 2024
New technologies, like August, can help Landlords streamline their property management. One of the best examples of this is Open Banking, a government-backed payments technology that helps you better manage your property payments securely.
In this guide, we’ll walk you through the ins and outs of Open Banking, how it can benefit Landlords and how you can make the most of it when the August app launches this year (join the waitlist now for early access).
What is Open Banking?
Open Banking is a system where approved tech companies can use secure connections, called APIs, to handle your payments directly through your banking app.
When using August, this means you can benefit from two key Open Banking features:
Payment Initiation for Tenants: Tenants have the option to make direct payments into your bank account through August, making the payment process smoother for everyone.
Account Information Services: Alternatively, you can connect your bank account to August to receive notifications when your properties’ rent has been paid. This is especially handy if you and your Tenant decide to handle rent payments outside of the August platform, like through an existing Direct Debit set-up. For more information, see our Rent Tracking page.
The benefits for landlords
1. Less admin
Ditch the spreadsheets and manual paperwork, Open Banking allows you to streamline your rent payment collections. With APIs providing direct communication between your bank, regulated provider and the August app, you can streamline rent collection and bookkeeping as it’s all in one place.
2. Always up-to-date
Landlords don’t need to worry about Tenants’ payment card information expiring or accidentally being mistyped; with Open Banking it’s always up to date and payments are reconciled automatically every time.
3. Better tenant experience
Happy Tenants are more likely to stay longer and take better care of your property. With Open Banking, you can offer Tenants a secure and significantly more convenient way to pay rent, helping improve Tenant-Landlord relationships and overall satisfaction in the process.
4. Informed financial insights
Open Banking provides you with real-time access to your payment transactions, giving you a better understanding of your cashflow. This information helps Landlords make informed decisions, whether it be investing in property upgrades or adjusting rental rates.
How Open Banking works
1. Consent
To begin using Open Banking in the August app, your Tenants will need to give explicit consent to process payments via their banking app. Additionally, when connecting your bank account, you’ll also provide consent for August to notify you once rent has been paid.
2. Access
Once your Tenants have granted consent within their banking app, your property’s rent payments can be processed simply and securely. August will never ask for bank credentials from you or your Tenants.
3. Real-time insights
With your payment transactions now accessible in real-time, you can track your cashflow in the August app, receive rent payment notifications and even send rent reminders to Tenants.
Ensuring safety and security
Open Banking is growing significantly, with over 11 million UK payments made using the technology in July 2023 (more than double the number during the same month the previous year).
August will never ask you or your Tenants to give access to bank login details or passwords, all payments happen directly within your, and your Tenants’, banking apps.
The future of landlord management
With its ability to help track your finances and increase Tenant satisfaction, Open Banking is a powerful tool for Landlords managing their property. It’s built into the August app and available for all users, meaning Landlords can save time, money and better optimise their rentals for success.
Want more property management tips and guidance? Follow August on Facebook and Instagram, or join our waitlist to get early access to the app when it launches later this year.
This article is a guide and not intended to be relied upon as legal or professional advice, or as a substitute for it. August does not accept any liability for any errors, omissions or misstatements contained in this article. Always speak to a suitably qualified professional if you require specific advice or information.
