Property management software is designed to make life easier for property owners and managers. The key benefit the software provides is the automation of every aspect of property management that can be automated so that managing multiple properties concurrently becomes easier, faster and impeccably accurate. This leads to better management, timely decision-making and, eventually, increased profits.
Although property management software does cost you money, and you may have to invest time in learning to use it, its benefits far outweigh the costs. Let’s take a brief look at how you can benefit from property management software.
- Fast and accurate accounting: By automating the process of accounting, the software saves you a lot of time and money. Just imagine yourself calculating income, expense and cash flows, preparing balance sheets and calculating tax returns. Doing them manually can consume all your waking hours, leaving you little or no time for other things. Even your accountant may have to work overtime, which means extra overhead. Using the software, your accounting will be faster and more accurate.
- Calculation of profitability: The software can compute your rental yield automatically. This gives you a clear picture of whether your investment is generating the profit that it should or not. If it is not, then you can find ways to make it more profitable, such as by hiking the rent, leasing it to a new tenant, putting it to another use or even selling it.
- Accurate record keeping: The software keeps track of the rent payment, dues, invoicing and billing. This helps in timely collection of rent. In case of late payment, the tenant can be told that the automated system is designed to automatically add a late payment fine, which is a surefire way to make the tenant pay on time.
- Helps screen tenants: The software keeps records of applicant’s credit score, criminal record, rent payment history and ability to pay. This helps in screening bad tenants and selecting only the right tenants. Records of tenants who are consistently behind schedule in payment or have breaching terms of contract can be kept. At the right time, these records can be produced as evidence when giving them warning or notice of eviction.
- Speeds up communication: The software allows the manager to send notices to the tenant regarding rent hike, late payment, eviction, etc. This eliminates the need to phone the tenants or meet them in person. The tenants can also be given access to the website with a username and password so that they can report damages and leakage, request repair and maintenance, lodge complaints and express grievances. This eliminates the need for to phone or meet the manager in person.
- Eliminates paperwork: Traditional accounting and management requires a lot of paperwork requiring huge amount of paper and stationeries. By automating a large portion of the work, the software eliminates paperwork.
- Reduces overhead: Managing a large number of properties requires considerable resources and manpower. By automating most of the work, property management software helps reduce overhead.