Property management software is the landlord’s number one tool. Recent software development in the rental business niche has resulted in an explosion of property management software platforms, services, and features.
With software, landlords have more choices and opportunities than ever to improve their business management. Features like online rent collection, tenant screening, and document signing go a long way toward maximizing the most important functions of a rental business
Today, many tenants even expect to sign leases or pay rent online. If tenant satisfaction is important to you, it’s crucial to take advantage of the tools at your disposal.
Here are four reasons why using property management software is a must.
- It Saves You Money
Property management software is an expert at cutting expenses.
For example, software platforms that offer tenant screening feature eliminate the costs of screening tenants yourself. If you currently run background checks without the help of software, you know how those costs can add up.
County records typically cost around $16-$25 per applicant. State records are about as expensive at $10-$25, and national records can vary anywhere from $13-$60 per applicant. These costs might not be significant for small businesses with only a few units. However, landlords who manage a lot of tenants or have high tenant turnover need to budget a significant chunk of their revenue.
In contrast, property management software makes screening much less expensive. As soon as you’ve paid the initial fees to access the platform or the tenant screening feature, your software will perform background checks free of cost.
- It Makes You Competitive to Applicants
Renters (especially younger ones) are attracted to housing with streamlined management. If a renter sees that your application process is inefficient and outdated, they may be turned off your properties entirely.
Property management software is highly attractive to tenants. There are a number of reasons why a renter might prefer a housing option with software management. For instance, the software is convenient for making payments, allowing tenants to pay rent on their mobile devices. Property management software also makes it easy to submit maintenance requests and communicate with you, should they need to.
If you want your rental properties to be competitive in the housing market, your first step is to utilize property management software.
- It’s Safer and More Secure
Another reason to invest in software is that it’s more secure than traditional management. Modern encryption is a much safer way to store your data and sensitive information.
This becomes especially important for online rent collection. If tenants ask whether their bank accounts and card numbers are safe on your property management software, you can ensure them of the highest security.
Online leases are also much safer than paper ones. Since eSignatures have been fully recognized as valid signatures by the U.S. government, this mode of signing has grown in popularity. This is because eSignatures retain much more information about the signer than a traditional, “wet” signature. For example, eSignatures record the signer’s email, IP address (physical location), and timestamp, while wet signatures are far more ambiguous.
- It Automates Your Business
Finally, automation is another key feature that makes property management software a must for landlords. Landlords have many tedious, repetitive tasks on their plates. Whether recording payments, collecting rent, or screening tenants, these tasks can pile up and quickly become inefficient.
The automation provided by property management software mitigates these daily challenges. For example, tenants can set up AutoPay, which automatically transfers funds from the tenant’s account to yours each month when rent is due. Not only does AutoPay eliminate late fees, but it also ensures you get your funds on time every month.
The software also automatically generates payment records. Instead of creating your own accounting and receipts, the software automatically records when a tenant pays, tells you how much they paid, and sends that tenant an email receipt of the transaction. You never have to waste time keeping these records manually again!
Property Management Software: A Must for All Landlords
Whether you manage many units or only a few, property management software is a must. Given its ability to cut expenses, maximize efficiency, and attract new applicants, software is a no-brainer. Secure the success of your rental business and start using property management software.
