Best Rental Property Management Software

Rental Property Management Software Guide

Rental property management software is designed to automate and streamline a landlord’s or property owner's day-to-day responsibilities. This software, at its core, makes it easier for property managers to manage their rental properties. This includes managing the physical space and aspects of leasing, accounting, and caring for tenants.

Property management software can be used for both residential and commercial properties. It is flexible, so it can grow or shrink with the size of the property portfolio.

Property management software falls under the category of software as a service (SaaS). Property owners can use property management software to monitor the rental property management tasks they have from wherever they are located. It is a cloud-based platform. All that is required is an Internet connection.

The benefits of property management software become even more apparent for property managers who have several property locations that they want to manage from one platform. Besides the cloud-based options that are available, there are on premise versions of certain property management software on the market.

The capabilities of property management software vary based on the vendor. Some focus on specific markets, such as senior living, commercial properties, multi-family properties, residential properties, and student living. Other vendors offer third-party integrations to expand the ability of the property management software, allowing for things like inspection information and renter insurance control.

The Basics of Property Management Software

Property management software can improve an overworked property manager’s ability to successfully do their job. Property managers have responsibilities in the back and front office and take on the role of landlords. This can feel tiring and require a lot of manual and repetitive work.

Some of their responsibilities could include handling lease applications, talking with tenants to resolve problems, monitoring rent payment, and responding to delinquent payments. They need to look after maintenance requests and make sure that property listings are accurate and up-to-date.

Although the jobs are not 100 percent the same, there are some similarities between the tasks carried out by facility management and property management. The primary differences lay in what the property is used for and the tenants who rent the space.

Facility management centers on the productivity of tenants and keeping the building maintained. A property manager is focused on managing the property. They want to keep things nice for the tenants and residents. Their end goal is to increase the property’s value.

Facility management focuses inspection and maintenance. Property management is concerned with issues connected to financial management.

You will notice some overlap between rental property management software and software designed to manage hotel properties. Where this overlap is most noticeable is in areas like room resource allocation, operational efficiency, and general facility management features.

They created rental property management software to work in industrial, commercial, and residential properties. It works with different business types and sizes.

Property management facilitates the management of operations for real estate portfolios. It is not designed to develop or nurture real estate rental investments.

The Benefits of Using Property Management Software

If you are looking to manage the extensive list of responsibilities that come with property management and ownership, then property management software is right for you. It allows managers to do their tasks efficiently from a central location.

Property management software makes it possible for property managers and property owners to get rid of manual systems, including document filing, emails, and spreadsheets. This software provides a unified, centralized array of tools that allow property management to be handled effectively.

It can be confusing and overwhelming to attempt to use a variety of paper and web-based tools. With these platforms, property owners and managers can use a single platform that seamlessly integrates with third-party software.

Financial Management

Regardless of the property being managed, property owners and managers needed to be aware of and oversee each aspect of the facility. Property management software allows property owners to have a single source of information for things like maintenance requests from their tenants. This software allows property owners to keep up-to-date with the vendor payments and to set up recurring work orders.

Tenant and Resident Communication

Communication between tenants and owners is essential. This software improves communication between the two parties. Rent collection is simplified, and it’s easier to keep track of when rent has been paid and when it has not been paid. Tenants benefit because they can use the software to submit maintenance requests.

Confusion is greatly minimized. Improved communication leads to improved resident loyalty and an improved reputation.

Reporting

Property management tools make it possible for users to have property records that are accurate and compliant. They can visualize and foresee occupancy rates. Their ability to conduct tenant screenings is improved. The leasing process is also streamlined.

Types of Property Management Software

Property management software can be cloud-based or on premise. Different tools can be used for different property types.

There are several end-to-end or all-in-one property management solutions designed to cover the real estate rental business and business needs of property management. However, users will do better if they select a software that has been crafted to meet the needs of their specific property type.

There are many differences between managing residential and commercial real estate. It is best to find the property management software that has the right tools for the right jobs.

Commercial

Commercial real estate is used solely for business activities. Its primary purpose is to generate income. When you think about commercial properties, you can think about sports facilities, medical buildings, hotels, office buildings, retail stores, and restaurants. Industrial real estate is considered commercial real estate and includes laboratories, warehouses, and distribution centers.

Residential

People live in residential rental properties. These can be homes or apartments for rent or for purchase. A single-family home, condominiums, cooperatives, townhomes, or multi family homes are examples of residential properties.

Features of Property Management Software

In just about every iteration of property management software, you will see many of the same features. However, since the needs of different property types and real estate business sizes vary, certain software will have features that others do not.

Some more common software features you will find in property management software include the following:

Rental Listing

MLS, or multiple listing services, integrations along with rental listing management features are typically included in property management software. These are used to advertise units that are going to be available and advertise vacancies.

Maintenance Management

These features facilitate communication between tenants and property owners about maintenance management activities. They allow management to monitor and control maintenance requests, service, and scheduling.

Rental Payment

These features facilitate the collection and processing of rent. Many will integrate with third-party rental payment solutions.

Lease Management

Property management software will include lease management features that allow for the customization of a lease template. It allows property owners to create, store, and duplicate rental applications.

Accounting

Since accounting is so important to property management, most software will have a built-in real estate accounting functionality. This could include the ability to use third-party integrations. These features allow for financial monitoring and financial management of properties.

Additional Advanced Property Management Software Features

Tenant Screening

It is in a property manager’s interest to screen prospective tenants either before or after they submit a lease or application for rent. Some property management software allows property owners to communicate with the databases that have information on potential tenants and offer potential rental leads.

Insurance Management

This feature makes it easy for property managers to comply with and gain access to pertinent rental insurance policies.

Space Management

These features allow property managers to manage the space in their properties and better allocate space in their properties. The purpose of this feature is to streamline space allocation.

Why Use Property Management Software?

There are several reasons to use property management software:

• Lease and tenant tracking. Property managers want to keep track of tenant details, including contract information, rent payments, and lease dates. They benefit from being able to automate the leasing process and the move out process.
• Accounting. Property management software helps property managers keep track of rent payments. The software allows for the generation of a general ledger and the creation of reports that help property managers see the financial health of their properties.
• Tenant portal. A tenant portal lets tenants pay rent, request maintenance, and communicate with their landlord as needed. Most tenant portals send reports, notifications, and alerts to tenants about upcoming maintenance, upcoming rent payments, and other information.

Who Uses Rental Property Management Software?

• Property Owners: Property owners use rental property management software to manage and track tenants, collect rent payments, and keep track of maintenance tasks.
• Tenants: Tenants use the software to pay rent online, submit maintenance requests, review lease terms, and communicate with the landlord.
• Maintenance Workers: Maintenance workers can use the software to respond to tenant requests for repairs or upkeep, schedule follow-up inspections after a repair is complete, and view logs of past work done on different properties.
• Real Estate Agents: Real estate agents use rental property management software to market available rentals, process applications from potential tenants, coordinate lease signers, and monitor tenant feedback.
• Landlords: Landlords use the software to set up leases that outline rental policies such as pet restrictions and late fees; screen applicants; collect security deposits; track rent payments; generate invoices; and maintain records of legal documents.
• Property Managers: Property managers use the software to list multiple properties in one place, contact landlords or tenants when needed via email or text message notifications; store inspection reports; create customized portals for tenants who need access; manage work orders; organize payments received from tenants; provide easy access to forms related to repairs or renovations needed on their properties.
• Investors: Investors use the software to research potential properties and view detailed analytics about their returns on investment. They can also track rental income, compare different properties, and set up alerts when a property becomes available or needs maintenance.

How Much Does Rental Property Management Software Cost?

Rental property management software can range in cost depending on the features and services that are offered. Generally speaking, rental property management software tends to start at around $20-$40 a month for basic packages, but some more comprehensive packages can cost anywhere from $80-$150 per month. Many providers also offer additional features as add-ons for an additional fee. All of these costs will vary depending on the provider you work with and the specific package you choose.

In addition to monthly subscription fees, most rental property management software providers charge one-time setup or activation fees to get started with their service. These fees may include things like customer onboarding services, giving your team access to the platform, or setting up data integration tools so that your existing applications can talk to each other seamlessly. Depending on the level of complexity or customization needed for your project, these one-off costs could easily reach into thousands of dollars.

Finally, it's important to factor in any additional costs associated with training staff members on how to use the platform correctly and efficiently. Most software providers offer either free tutorials or paid training sessions that cover all of their product offerings and how they can be used within your business model. Investing in this type of training is key if you want to make sure that you are taking full advantage of everything the software has to offer.

What Integrates With Rental Property Management Software?

Rental property management software can integrate with a variety of other types of software. For example, it can easily integrate with accounting software, such as QuickBooks or Sage, to help track financial transactions. It can also integrate with real estate customer relationship management (CRM) systems to allow property owners and managers to better manage their tenants' details. Additionally, rental property management software can be integrated with communication tools like email and SMS in order to send notifications or reminders to tenants about rent due dates or upcoming maintenance issues. Furthermore, it can be connected with real estate marketing platforms like Facebook Ads for promoting vacant properties more effectively. Lastly, it may even integrate with utility and vendor payment processors so that landlords and tenants can pay bills directly from the platform.

Trends Related to Rental Property Management Software

1. Cloud-Based Software: Cloud-based rental property management software allows users to access their data and applications from anywhere with an internet connection. This makes it easier for managers to manage their properties remotely, even when they are away from the office.
2. Ease of Use: Modern rental property management software is designed to be easy to use, even for those who are not tech savvy. Many systems feature simple drop-down menus and information that can be quickly viewed, edited, and saved.
3. Integrated Payments: Many rental property management software solutions offer integrated payment services which allow tenants to pay rent online without having to mail a check or go to the office in person. This makes it easy for property owners and managers to keep track of payments and handle transactions quickly and securely.
4. Analytics: Some modern rental property management software systems offer advanced analytics tools that allow users to easily track important metrics such as occupancy rates, maintenance costs, revenue generation, and more. This can give managers valuable insights into how their properties are performing and help them make better decisions about how they run their business.
5. Automation: Automation features have become increasingly popular in rental property management software over the last few years as they help simplify tasks such as rent collection, tenant communication, maintenance scheduling, and more. This makes it easier for landlords and managers to save time managing their properties without sacrificing quality of service or risking legal issues due to non-compliance with regulations or landlord/tenant laws.

How to Choose the Right Rental Property Management Software

1. Identify Your Needs: Take some time to think about what your company needs in terms of managing properties. Do you need something that will integrate with existing systems, like payroll or accounting? Or do you need something more specific, like maintenance tracking features? Once you have identified your needs, this will make it easier to narrow down your search and find the right software.
2. Research Vendors: Now that you have an idea of what you're looking for, use online resources to research vendors and their services. Make sure to read customer reviews as these can give insight into how well the software works in practice. Compare rental property management software using the tools on this page, and sort by user reviews, pricing, features, country, integrations, operating system, and more.
3. Create a Shortlist: Compile a list of potential vendors who offer products or services that meet your needs and compare prices, features, customer service availability and other important factors. You may want to talk directly to vendors before making any decisions as well so that you feel confident about the choice you make.
4. Make Your Choice: After carefully reviewing all available options, make a final selection and sign up for the rental property management system that best suits your needs.