4 Reasons why using property management software is a necessity
4 Reasons Why Using Property Management Software is a Necessity
Property management software is the most important tool for a landlord. In the rental business niche, there has been an explosion in the number of property management software platforms, services, and features as a result of recent software development in the rental business niche.
Landlords now have more options and opportunities to improve their business management than they have ever had before thanks to software. Rent collection, tenant screening, and document signing all contribute significantly to the optimization of the most critical functions of a rental business.
Many tenants now expect to sign their leases and make their rent payments online. If maintaining tenant satisfaction is a top priority for you, it is critical that you take advantage of the resources available to you.
Property management software is required for a number of reasons, as listed below:
- It assists you in saving money
- It improves your ability to compete with other applicants
- It provides greater security and safety
- It can assist you in automating your business
1. It assists you in saving money
Using property management software, you can save money on your expenses.
For example, software platforms that include tenant screening capabilities eliminate the need to conduct manual tenant screening on prospective tenants. If you are currently conducting background checks by hand, you are probably aware of how quickly those costs can add up over time.
According to industry standards, county records cost between $16 and $25 per applicant. Prices for state records range from $10 to $25 per applicant, whereas prices for national records range from $13 to $60 per applicant, depending on the state. These costs may be negligible for small businesses with fewer than ten units, depending on the size of the company. Landlords who manage a large number of tenants or who experience high tenant turnover, on the other hand, must set aside a significant portion of their revenue for this purpose.
Property management software, on the other hand, significantly reduces the costs associated with screening. The free background checks provided by your software are only available after you have paid the initial fees for access to the platform or for tenant screening.
2. It improves your ability to compete with other applicants
Renters, particularly younger renters, prefer housing that is easy to manage. If a potential renter notices that your application process is inefficient and out of date, they may lose interest in your properties entirely.
Using a property management software program is extremely appealing to tenants. Rental housing that is managed by software is preferred by many renters, and there are a variety of reasons for this. For example, the software makes payment easier by allowing tenants to pay their rent using a mobile phone or tablet. Property management software also allows tenants to submit maintenance requests and communicate with you when necessary.
Property management software is the first step in ensuring that you maintain a competitive advantage in the rental market.
3. It provides greater security and safety
Another advantage of investing in software over manual management is that it provides a higher level of security than the latter. Modern encryption technology offers a significantly safer method of storing your data and sensitive information than previous methods.
This is particularly important when it comes to online rent collection. If tenants have concerns about the security of their bank accounts and credit card numbers stored on your property management software, you can assure them that their information is protected to the highest possible level.
Aside from that, online leases are significantly safer than paper leases. ESignatures have gained in popularity since the United States government recognized them as legitimate signatures. The reason for this is that electronic signatures (eSignatures) retain significantly more information about the signer than a traditional, "wet" signature. Wet signatures, on the other hand, are significantly more ambiguous. For example, eSignatures store the signer's email address, IP address (physical location), and timestamp, while eSignatures do not.
4. It can assist you in automating your business
Finally, automation is a critical component of property management software, making it a must-have for landlords who want to maximize their profits. Owners of rental properties are tasked with a slew of time-consuming and repetitive responsibilities. This list of tasks, which can include everything from collecting rent to keeping track of payments to screening tenants, can quickly grow in number and become inefficient.
The automation provided by property management software helps to alleviate many of these daily challenges. Using AutoPay, for example, tenants can have funds transferred from their account to your account on a monthly basis when rent is due, saving you time. Using AutoPay not only helps you avoid late fees, but it also ensures that you receive your funds on time every month.
In addition, the software generates payment records on a regular basis automatically. Rather than having to keep track of payments and generate receipts, the software keeps track of when a tenant pays, notifies you of the amount paid, and emails the tenant a receipt for the payment transaction. This means that you will never have to waste time manually maintaining these records again.
Each and every landlord should have access to property management software
A property management software package is essential whether you manage a large number of units or a small number of units. It's a no-brainer when you consider software's ability to reduce costs, increase efficiency, and attract new applicants. Implementing property management software can help you ensure the long-term success of your rental business.
