Property management software has come a long way. What was once only available for large landlords and sophisticated property managers is now available to real estate investors with as little as a single unit under management. And what’s more, these tools are easier to use and less expensive than ever before. When it comes to the software and tools available, it’s good to be a landlord. In fact, there are even free property management software platforms out there that do not compromise when it comes to features.
Ironically, the revolution in property management software has resulted in one unfortunate side effect: too many choices. If you’re unfamiliar with the space, it can be overwhelming to determine which property management software is the best choice for you. To help you make that decision, we’ve identified the seven core features to look for in property management software. Hopefully this guide helps you determine which software is the right choice for you!
Tenant Screening Services
Great renters are worth their weight in gold, and the best way to identify great renter’s is through thorough tenant screening. As a successful landlord, you likely already know that, but what you may not know is how property management software can help.
A good program will integrate screening tools directly, offering you access to credit, criminal, and eviction histories when needed. A great program, however, will also help you manage these potential applicants. That includes collecting custom data (like the breed, weight, and age of their dog) and managing the status of various applicants. Some even allow applicants to upload additional forms as a part of their application – a great way to acquire bank statements or pay stubs.
Digital Document Signing
After a tenant is screened, it’s time to sign a lease agreement. This is the last step in legally binding the renter (and their potential income) to your property, so it is not something you want to delay. Property management software fortunately can help here too.
Many renter management software providers include some form of online signing. Look for programs that also allow you to create re-usable templates. And the best programs expand beyond just leases into other document types, enabling you to quickly and easily sign parking addenda, pet agreements, and any other document you can think of.
Online Rent Collection
Perhaps the most requested feature of any property management software, online rent collection will save you far and away the most time. First of all, it’s a feature that your tenants want. According to the National Multifamily Housing Council (NMHC) nearly 80% of tenants prefer to pay their rent (and other rent related bills) online.
If making your tenants’ lives easier isn’t reason enough, it’s also a huge benefit to you. Between automated reminders and automated payments, you’ll have far fewer tenants forgetting to pay rent. What’s more, you’ll spend less time chasing down and delivering a pile of checks to the bank.
Automated Late Fees
Tracking down late payments and enforcing late fees is one of the most annoying and time-consuming responsibilities a landlord has. And because of this, it often gets left to the wayside. Too often, landlords chase down a late payment only to give up on enforcing the late fee, but property management software can change this. Off-boarding your rental collection to a faceless computer program means your tenants have a harder time wriggling out of their responsibilities.
What’s more, the rental management software you choose should prevent tenants from paying future month’s rent until their prior month and all late fees have been paid. Also ensure that you can implement the late fees according to your lease, whether that means you charge a flat fee, a percentage fee, a repeating fee, or some combination of them all.
Maintenance and Work Order Management
While tenant management software can’t fix a leaky faucet, it can help you track, respond, and manage the process of fixing it, and that is highly valuable in it’s own right. Ensure that it’s easy for your tenants to report issues when they arise and easy for you to comment on and assign those tickets as needed. You should be able to upload pictures, video, and add descriptions and notes.
Rental Advertising Tools
When it’s time to find new renters, property management software can help there too. Many tools these days offer the ability to syndicate your available listings to a variety of websites across the internet. Be sure that the major players in your area are covered. Usually that means Realtor, Apartments.com, and possibly Zillow. Keep in mind that Zillow is now charging for the time you advertise your rental, so you may look to cut them out of your rotation.
It should be easy to add a listing and remove it, make edits, and add pictures and videos.
Mobile App
These days, most of your management will occur while your out of the office or away from your home. For that reason, it’s more important than ever to find management software that also offers a mobile app. Managing on the go allows you to access all the great features above whenever you need them.
Look for an app that is simple to use but also feature packed. Keep an eye out for programs that offer a vastly different (namely, inferior) mobile app experience.
Conclusion
Above are just some of the features you should look for in a property management software. There are plenty of other ways it can improve your business and your life as a real estate investor. Our best guidance is to do some research and try out various platforms. Plenty of programs offer free trials and some even remain free all the time. The bottom line, however, is that property management software can really help!