Anyone who owns or manages property knows that it is no cakewalk; it takes a lot of hard work and multitasking. Many people start renting out their place thinking it will be a source of passive income, but they are often wrong.
Property owners have to keep track of various tasks like tracking rent payments, maintenance and repairs, updating paperwork, and so on. It can get very difficult to keep track of different tasks simultaneously.
Enter, property management software. It involves the use of web based or mobile based applications that streamline and automate different tasks for real estate managers, and property owners. All data related to the property, like rent payments, lease period, maintenance requests, etc. is collated in a central database.
Property owners can easily access this information and complete their tasks with less manual workload and fewer errors. With most of the heavy lifting left to the software, property managers can focus on improving communication with tenants. Online portals provide a more organised and efficient way for addressing their complaints and maintenance issues.
According to a survey by iProperty Management, the property management software industry in the USA generates an annual revenue of $99.499 billion, and as of 2022, there were 326,000 property management companies registered in the country.
In this article, we will look at the most common features that such software offers, and the benefits of using property management software for property owners and managers.
Features to look for in your property management software
Lease management
Property management software allows you to safely keep all lease related documents in a centralised, secure database and protects it from unauthorised access. You can proactively monitor your lease agreements, track expiration and renewal processes, and prevent lapses. Modifications to the lease can be easily updated and tracked within the system.
Rent payments
A property management software will allow tenants to pay rent online on secure and user-friendly tenant portals. This automated rent collection system shows real time status of payments, flags late payments and charges penalty on time. Such a transparent system creates a relationship of trust and understanding between tenants and property owners, while also reducing the manual workload for the property manager.
Maintenance requests
Imagine, one of your tenants, Dave, notices a leaking faucet in his apartment. He calls your receptionist, who makes an entry in a spreadsheet and adds it to a list of multiple maintenance issues, that you plan to resolve over the weekend.
Dave doesn’t know when you plan to respond, so for all he knows, you are ignoring his concerns. In many cases, this would be followed by multiple frustrated phone calls from Dave until you find enough time to send a plumber and get the job done.
Now, imagine Dave had access to an online portal for maintenance requests. He would log into the portal, submit a maintenance request, provide details about the issue and add a picture to highlight how urgent the problem is. You log in to the software, see the new request, and understand that the faucet must be fixed at the earliest.
So you review the details and assign the task to the building’s maintenance staff, and set it on a high priority level. The plumber gets the notification on his phone, and they contact Dave at the earliest. Meanwhile, Dave gets updates about each stage of the process, so he knows that you are working on it.
In this way, property management software organizes and prioritizes maintenance requests, ensures timely responses and resolution, and keeps the tenants happy. In the long run, maintenance reports generated by the software can help you flag recurring issues, so that you can work for overall property upkeep.
Reporting and analytics
The reporting and analytics feature provides insights into the performance of the real estate property. The software generates reports about finances, tenant occupancy, rent payments and maintenance, and compliance with laws and regulations. You may also customize the reports to narrow down on data from specific time periods.
For example, you may observe that tenants are more likely to miss or delay rent payments during certain months. With this in mind, you can plan ahead and offer incentives or discounts for timely payment during that time period. You can also, for example, create an alert for updates in legal requirements for real estate managers in the area.
Marketing
Property management software gives you the necessary tools to make your business more visible, attract potential tenants and make your services more accessible to people. You can reach out to your target audience through online listings, advertisements and a rental website. The software also helps you to give prompt responses to enquiries, schedule visits, and keep applicants informed about the decision-making process.
Scalability
Scalability refers to the capacity of the software to adapt to the expanding reach of your business. A good property management software accommodates your growing portfolio, i.e., increasing number of units, tenants. This happens without any disruptions to the way things are already working. So even if your workload gets heavier, you don’t have to worry about making any major changes to the way you function.
Benefits of property management software
Efficient work
History has shown that automation makes tasks faster, easier and more accurate. Automated payments and maintenance request tracking, along with a centralised database for all tenants and units, eliminates the mistakes and confusion resulting from manual data entry. As a result, property owners don’t have to break a sweat over the same kind of tasks over and over again.
For example, if a tenant misses their monthly rent payment, the software automatically sends them a reminder, and a notice about late fees. You, as a property owner, don’t have to worry about calling the tenant and having awkward conversations with them again and again until they make the payment.
Keeps tenants happy!
When tenants have access to an online portal for all their needs, their experience will be smoother. They can pay rent online, get advance reminders about deadline of payment, get instant updates on changes in rent or lease agreement, and moreover, get prompt updates on their maintenance complaints!
Also, while the software takes care of repetitive, menial tasks, you can focus your energy and resources on maintaining good relations with the tenants. You don’t have to worry about getting frustrated over piling up work, the software will take care of it. All you have to do is talk to your tenants and make them feel understood.
If you are a property owner or manager, a property management software can be a game changer for your business. When you search for one, make sure you look for all the features you need, like rent and lease management, reports and analytics, tools for marketing, and so on. Good luck on your journey to transform your property management business!
