The following sections discuss various property management aspects and their importance to your business:

Market a Portfolio on Multiple Channels

Gone are the days when you could post an ad for an open house in a local newspaper, and people would start streaming in. Due to the pandemic, the internet has become one of the most important, if not the only, place for home buyers to research and find properties. 99% of people within the age group of 23 to 41 predominantly use the internet for house hunting, according to a survey.

The only way to get your properties noticed in this digital age is to market them on popular listing channels, OTAs and global distribution systems. A personal website for direct applications is a bonus that helps you build trust with potential tenants.

Property management systems offer channel managers that accurately distribute information across marketing channels and business websites. You can get a centralized view of every listing, booking and application and quickly edit data with a few clicks.

Some platforms also offer website designing kits with templates, drag-and-drop tools and HTML toolboxes.

• Channel manager
• Reservation system
• Website designing
• Prospect cards

Receive Applications and Screen Tenants

Customers prefer to see the property before finalizing the deal, but this may be a tricky job for owners with multi-location properties. An efficient property management system can help streamline this process — you can collect applications, chat with prospects about tours and open houses using a unified inbox and connect with TransUnion for screening their background, credit score and criminal history.

Advanced solutions offer unique media tools for virtual property tours, 3D floor maps, drone videos and more.

• Application portals
• Tenant screening
• Tour appointments
• Communication tools

Design, Distribute and Sign Leases

One of the most crucial features of property management is to keep up with the ever-changing leasing guidelines and state-specific regulations.

For example, you don’t need a license to be a landlord in Alabama, and there aren’t strict eviction, security deposit and late fee laws. But in New York and Maryland, landlords must be registered and licensed before signing leases, and eviction processes can take up to two months.

You must identify the applicable state laws and design leases adhering to the latest regulations. Property management systems make the job easier by offering state-specific lease templates that drastically reduce the time taken to create leases. You can also send digital copies to prospects for eSignatures.

• Lease designing
• Template library
• E-signature
• Document library

Process Rent Payments

Handling rent payments is a multi-faceted work cycle that includes sending reminders, collecting rent, processing payments, calculating late fees and updating ledgers. Doing this for multiple properties and tenants is a highly time-consuming and stress-inducing task.

Property management platforms save the day by automating rent reminders and rent collection. You can connect the system with your bank account to get notifications when you receive rent. Also, define rules to automatically charge tenants for late fees, utility bills, deposits, CAM reconciliations and more.

• Payment processors
• Late fee calculation
• Vendor invoicing
• Utility bills
• CAM reconciliation

Manage Maintenance Tasks

Tenant well-being and satisfaction are directly proportional to a property’s occupancy rate and value. And one of the major factors contributing to this aspect is the response time to tenant requests. If you don’t manage the property well and take long periods to react to tenant requests, they are bound to get frustrated. Efficient property management can help bridge the gap between owners, managers and tenants.

Using the right system, you can boil down this process to a few clicks and notifications. Tenants get individual portals to issue maintenance tickets with multimedia proof. The system relays information to concerned parties based on cost, budget, available facilities and custom rules. Managers can track every activity, issue work orders and send invoices from a dashboard.

• Tenant portals
• Maintenance requests
• Work orders
• Third-party housekeeping services
• Task tracking

Handle Accounting and Reporting

This is the most technical task in a property manager’s job description. More so due to the latest ASC 842 and IFRS 16 lease accounting standard update that requires every public, private and non-profit organization to disclose both financial and operating leases in their balance sheets.

Property managers are responsible for recording transactions, maintaining ledgers and designing public disclosure forms. Moreover, rental income falls under the 1099 MISC tax bracket. This means managers must design and submit owner and property-specific 1099 forms annually.

Also, you must create and distribute owner-specific profitability and operational reports to handle multi-owner portfolios. Property management platforms automate bookkeeping according to current standards and offer a template library for quickly generating reports.

• Transaction recording
• Bookkeeping
• Compliance management
• Reporting

FAQs

Who Needs Property Management?

Property developers work on several projects and prefer delegating day-to-day management to third-party managers. Similarly, owners with multi-location properties need property management to comply with local laws and guidelines. If you identify with any of the following scenarios, you should consider property management systems:

• You lack the time and expertise to manage the daily humdrum of property management.
• You aren’t interested in managing properties and prefer being absentee landlords.
• You own multiple properties in different states.
• You’ve participated in affordable housing programs, which need to comply with complex federal regulations.

What Is Property Management Software?

Property management platforms are integrated solutions that help managers and owners handle every aspect of their real estate, including marketing, tenant screening, leasing, rent payments, maintenance, accounting and reporting. It serves as a repository of business data and improves efficiency with automated administrative tasks.

What Are the Types of Property Management Software?

Various property management tools are available based on property type, business scale and requirements. Some of the major ones are:

• Commercial Property Management: Used for managing commercial properties like offices, malls, hospitals, airports, campgrounds and more.
• HOA Software: Offers essential property management functions and packs a few nuanced features for conducting HOA board meetings, elections, polls, community notices and more.
• Rental Property Management: Ideal for handling residential rental properties.
• Landlord Software: Specifically designed for single landlords who handle their units without property managers. It provides intuitive interfaces and easy accounting modules.
• Vacation Rental: These systems help manage short-term rentals in tourist spots and offer built-in modules for Airbnb, Tripadvisor, Expedia and other major OTA connections.
• Hotel Management: Unlike traditional property management software, these systems can track individual rooms and beds. They offer seamless connections between your front desk and back office operations and can handle hotels, motels, bed and breakfasts, and other hospitality units.
• Hotel Reservation: These aren’t full-fledged property management systems but help you accept direct bookings and applications through the website. They help avoid incurring third-party booking commissions and fees.
• Self-storage Software: It manages short-term rental storage spaces. Offers lease templates and integrates with proptech like biometric access, digital keys, gate access systems, CCTV, thermostats and more.
• Lease Management: You can create a centralized library of real estate and equipment leases for easy tracking. It sends real-time, event-based notifications to keep you up to date.
• Lease Accounting: It lets you automate lease accounting and public disclosures based on current guidelines and regulations, ensuring compliance.

What Is the Primary Benefit of Property Management Software?

A property manager is responsible for a myriad of tasks — market properties on multiple channels, scan applications, screen prospects, offer property tours, sign leases, collect rents, manage maintenance and create reports for all these tasks. Sounds overwhelming? That’s what it is.

Property management software combines every miscellaneous workflow in a unified platform, allowing you to access them using any device from anywhere. You can avoid getting bombarded with notifications from disparate systems and ensure smooth collaboration and data flow through every stage of a tenant’s lifecycle.

How Do I Select a Property Management System?

To find an ideal solution, you must create a personalized requirements checklist and budget before comparing products. There isn’t a single solution that fits every type and size of business. The best property management system for your business is less about the software and more about your unique needs and budget.

You can follow our nine-step selection procedure, lean selection, to identify your requirements, compare vendors and find the perfect fit. You can also use our free property management comparison platform to compare products and their features.

Need a more personalized recommendation? We’d love to help. You can contact our team of analysts and experts by messaging [email protected] or via phone at 855-850-3850.