We live in a world that is consumed by technology and automation. Everything around us, right from the products we use, to the work we do, has been transformed by digitization. The property management industry is no exception to this. Traditional, paper-based systems of property management are dwindling, giving way to advanced digital solutions.
According to a 2022 market analysis report by Grand View Research, property management software market size was valued at USD 4,473.3 million. Software has revolutionized the way property managers handle their portfolio.
On one hand, tasks have become easier, smoother. On the other hand, these changes could feel overwhelming. Cloud based software, with its user-friendly features, easy accessibility and automated functions, is here to hold your hand through the process and guide you to better functioning.
What is cloud based property management software?
Just like other softwares, the main job of a cloud based software is to help you in tasks like managing leases, handling rent payments, and keeping track of maintenance requests. So, what sets it apart from other types of software? The answer is remote servers. It operates on the internet, using remote servers to store data and run the application.
Now, let’s break down the differences between cloud-based, web-based, and desktop-based property management software in simpler terms.
Desktop software has to be installed on a device, like your computer. All the information and tools are stored on one device, and can be accessed from that device only. It is convenient for a person to login and access information whenever they need, but you cannot have your employees or partners access it from their devices at the same time.
Web-based software, as the name suggests, is accessed on a web-browser, just like you access files on Google drive. As long as you have the username and password, and an internet connection, you can use the software from any device you want. The data may still be stored on local servers.
Now, cloud-based software takes things a step further. First, it runs on the internet. Second, it also stores all your data on remote servers, also referred to as ‘cloud servers. So, as long as you have an internet connection, you can access the software.
People opt for cloud-based solutions because many people can log into the app at the same time, they can get notifications and reminders for their tasks, and they can make changes to the portal as per their needs, when the business grows.
Advantages of cloud based property management software
Different companies offer cloud-based software with different features. Here are a few advantages that set cloud-based software apart, sort of the unique selling points, in comparison with web-based and device-based software.
Scalability
Scalability means how well the software can adapt to the changing needs of a business. As your business grows, you will have more tenants, investors and maintenance staff. The software should be able to accommodate this change in scale, without you having to make big adjustments, or buying expensive upgrades. Cloud based software is usually able to do this.
Real time updates
Real time updates means constant updates on the status of tasks. If there are changes to property details, tenants, or financial records, notifications are sent to all the involved people. This makes it easier for all stakeholders to have up-to-date information before important discussions.
Automatic back-ups
Sometimes, when a software glitches or stops working, your entire digital set-up can be lost in a matter of seconds. This is a nightmare for anyone running a business by themselves. Cloud-based software usually offers automatic backups. So if you accidentally delete your data, or your software crashes, all your information is safe in a back-up folder, and you can recover it safely.
Cost effective
If you use cloud-based software, you don’t have to put a lot of money into buying, repairing and maintaining hardware and infrastructure. You will be using the software on a subscription basis, so you will only pay the subscription fees for as long as you want to continue using it. This is a cost effective option, especially for small scale property managers.
Better security
Cloud service providers invest heavily in security measures like encryption, regular security updates, and advanced authentication methods. The risk of losing important data due to glitches, broken equipment or data theft, is relatively low. It is important for protecting sensitive property and financial information.
Features of cloud based property management software
Both property managers, and renters, have certain features designed for them in a cloud-based property management software.
Accessibility
When you use any cloud-based software, you can access it from anywhere you want. Mobile phones, tablets, computers- you name it, they have it. It is very convenient to finish tasks on the go-when you are at the gym, or taking the bus to work, or watching TV at home, you can take care of things at the click of a button.
For example, if your tenant calls you about maintenance issue, you can quickly address it through the app, regardless of your physical location. You can login with your credentials and review the maintenance request then and there, assign the task to someone from the maintenance team, and send a quick update to the tenant, before you get on with your day!
Automation
Cloud-based software often provides automatic updates without requiring manual installations. This ensures that you always have the latest features, security patches, and improvements without the need for user intervention. Also, tasks like sending reminders for rent payment, fixing and repairs, alerting when the lease is about to expire, etc. can be tracked with automatic update notifications.
Scattered data centers
Cloud-based systems use faraway data centers spread out in different places, making sure your property information is stored in more than one spot. This helps if there’s a problem in one location; your data is still safe in another. It’s like having copies of your important documents in different places to make sure you don’t lose them. This way, the property management system stays working most of the time, and you can access your property info whenever you need it.
Serverless architecture
Serverless architecture is an arrangement where the cloud provider takes care of the infrastructure, including servers for processing all this data. With all this additional work out of the way, you can focus on making best use of the software to keep your tenants happy.
Reporting and analytics
With this feature, you can generate detailed reports that show important trends, numbers, and insights about your properties. For example, you can easily see how much money you’re making, track expenses, and understand the overall financial health of your properties.
You can then use these reports to turn your attention on specific aspects in which you are lagging behind. Maybe your rent collection needs to happen on time more often, maintenance and repairs needs to be more efficient, or move-out process needs to be quicker and smoother. It’s like having a map that guides you to make better decisions for your properties, helping you manage them more effectively and plan for the future.
If you are a property manager who is curious about cloud based software, this is a great place to start. There are unique advantages that cloud-based property management software can offer; at the same time it is important to assess whether it is a necessity for your business. Comprehensive reading and research is the key to making any good business decision. Good luck!
