Rent Recording vs. Payment Gateways: Why Manual Recording Saves PG Owners Thousands in Transaction Fees
2% gateway commissions cut deep into thin hostel margins. Discover how digital rent recording tracks accounts with 0% extra fees.
When choosing management software, many PG owners search for platforms that handle automatic online rent collection via gateways. While this sounds convenient, the economics are often unfavourable for small-to-medium properties.
The Hidden Penalty of Payment Gateways
Standard payment gateways charge between 1.5% and 2.5% per transaction. If your monthly PG collection is ₹5,000,000, a 2% gateway fee means you are paying ₹100,000 *every month* directly to banking intermediaries. Since co-living margins are thin due to high rental overheads and food expenses, this fee eats up a huge chunk of your clean profit.
The Solution: Zero-Fee UPI & Digital Rent Recording
In India, direct peer-to-peer UPI transfers have 0% transaction fees. By sharing your Google Pay, PhonePe, or business bank details directly, you receive 100% of the rent amount with zero cuts. Using Dormico, you simply log the received payment in the tenant's ledger (Rent Recording). The system automatically tracks pending dues, generates digital ledger sheets, and sends receipts via WhatsApp, giving you all the benefits of automated accounting without losing a single rupee to gateway transaction fees.