In the modern age, nearly every industry is supported by apps or software solutions to streamline operations. The real estate industry is not exempt from this trend either! With rental property management software, property owners and managers have an easier way to navigate all tasks related to their rental business.
Here's how it can benefit you, your real estate success, and your day-to-day operations.
1. Rent Collection
Collecting rent is among the repetitive tasks landlords have to do, which is why it's simpler to automate rent collection. The management software will not only provide options for online rent payments, but it can also schedule automatic deductions to a tenant's chosen bank account and set rent reminders.
With some models, the property management system can detect whether the tenant paid late. It can also automatically issue late fees. With this aspect out of the way, landlords and managers will have more time to focus on property management tasks that need a more hands-on approach.
2. Document Storage
Whether you have a big or small business, it's crucial to always keep necessary documents. That includes leases, maintenance records, inspection reports, tenant communications, and expenses. Most systems use a cloud-based program, so your files will be protected from device failures.
However, some cloud-based software solutions require subscriptions or one-time payments so you can access all the features. You can always find other systems that aren't behind a paywall but still offer the features that you require. Just exercise caution, as the free route usually comes with caveats.
3. Financial Data Calculation
There are comprehensive property management software that offer integrated accounting, so you won't have to use a separate accounting software. With this feature, you can perform expense tracking, calculate rental income, determine return-on-investment (ROI) in real-time, and keep financial records securely.
Depending on the property management software solution, property managers and owners can also use these numbers to make informed decisions, such as cost-saving opportunities based on operating costs. The expertise of real estate professionals will be within reach with just a few clicks.
4. Streamlined Tenant Screening
Screening tenants can be a very time-consuming task, but a property management software can automate that by conducting background checks on your behalf. This can be extremely helpful if you have multiple properties and have several potential tenants to look into.
Be sure to research the property management software first to determine whether it uses comprehensive criteria. Most will look into the basics like credit report, criminal history, and rental history, while others can go beyond by verifying employment or identifying debt-to-income ratios.
5. Answering and Coordinating Maintenance Requests
Maintenance and repair requests are a part of a landlord's daily operations. It is a vital aspect in retaining the value of your rental property and improving tenant relations. Real estate owners often struggle with coordinating maintenance requests; however, property management software can automate this process as well.
Innovative solutions like this allow enhanced communication with tenants, as simple inquiries are answered with pre-written responses. It can also track maintenance activities, which residents can monitor through the tenant portal, and schedule routine maintenance.
6. Lead Tracking
Landlords can use the property management software to monitor leads from listings or inquiries from potential tenants. With this kind of operational efficiency, property owners can fill vacancies quickly and easily.
Some property management software could even identify trends for residential or commercial properties and inform you about the best ways to list your properties. The online software can be linked to popular listing sites like Zillow or Trulia.
What Are the Disadvantages of Property Management Software?
- Complicated Navigation: Certain property management systems are so complex that landlords and property managers who are not tech-savvy may struggle to maximize their potential.
- Paid Features: To earn revenue from the product, developers of many property management software platforms place additional features behind a paywall.
- Stolen Information: Data such as names, birthdays, online payment details, emails, and other personal information can be acquired by malicious actors if the software is not secure.
- Reliance on the Internet: Some property management software requires an internet connection to function, which can be an inconvenience when you lose network connection.
How to Choose the Right Property Management Software
Using property management software can boost tenant satisfaction and efficiency if you pick the right service for your residential properties. Landlords and property managers should look into things like:
- Payment Processing: You should learn how tenants can pay online and how it processes rental payments. Does it accept ACH transfers? Is it compatible with cash apps?
- Must-Have Features: It will be useless to landlords and property managers if it doesn't have the necessary features. Can it automate repetitive tasks, or do you have to set them up manually? Can it receive phone calls? Does it provide payment reminders?
- Legal Compliance: Ensure that the software complies with legal regulations. If you find that the software employs illegal methods, such as discriminatory tenant screening, for instance, you should avoid using it to avoid potential legal issues.
- Compatibility: Some platforms are designed to manage certain real estate property types. You might need a particular software to manage residential and commercial properties, as opposed to vacation homes.
- Multi-Management: How many properties can it manage? Many real estate investors own several rental properties and may need a tool that can manage all of them at the same time.
- Communication Tools: The software should provide tenants with easy access to you or your property manager for improved communication.
Why a Property Manager is Still Crucial
There's only so much a property management software can do to help you manage properties. Companies like Blue Line Property Management don't just provide tools like tenant portals, they can also give you real estate expertise to help your business.
Software solutions are ideal for accurate data tracking and calculations, but managing tenants requires more than established programming. You should know what your tenants need and approach it with compassion and consideration.
In simpler terms, certain aspects of property management still require a hands-on approach. We can help you with that, and all you have to do is contact us to learn more.
