Property management software is the best modern tool for landlords. With software development and automation, it’s no longer necessary to manage a rental business by hand.
Best property management software makes many daily landlord tasks more efficient. For example, online rent collection is as simple as adding your bank account to the software. Similarly, tenant screening is a one-step process of entering an applicant’s identifying information. Even multi-step processes like creating and signing leases are simplified with property management software.
Here are six additional reasons to use property management software.
1. Collect Rent Online
Cash and check payments are long-held traditions by many landlords. However, they come with some disadvantages. If you collect rent manually or by mail, it may be difficult to keep track of payments and enforce late fees. There are also higher security risks associated with these practices.
To streamline rent collection, property management software makes rent almost entirely automatic. Instead of cash or check payments, tenants pay via debit, credit, or ACH transfer. Their funds will be deposited in your bank account each month, without any extra work on your part.
2. Enforce Late Fees
Another benefit of property management software is that it makes enforcing late fees much easier. Keeping your tenants accountable can be difficult, especially if a tenant makes the original payment but neglects the incurred late fee.
Property management software can automatically push late fees to the accounts of all tenants who haven’t paid their rent by a specific date. If you want, you can also designate a grace period for typically responsible tenants. The software won’t allow tenants to make future payments until they’ve covered the late fee in full.
With property management software, you no longer have to be the “bad guy.” You can enforce the lease terms with as little involvement as possible.
3. Quickly Screen Tenants
One downside to tenant screening is that it is usually time-consuming and costly for the landlord. In addition to certain fees associated with pulling criminal or eviction histories, landlords need to spend adequate time combing through results and verifying correct information.
Property management software is a relief to landlords who are tired of spending time and energy screening. Most software platforms partner with a third-party service that does the hard work for you. All you need to worry about is entering an applicant’s basic information. Your software does the rest: locating the individual, pulling credit and criminal histories, and consolidating the information in a readable document.
4. Sign Leases Remotely
Whether for health and safety or another reason, sometimes meeting in person simply isn’t feasible. With property management software, you and your tenants can sign documents remotely.
As soon as you upload your lease to the software, you can edit or revise the document until you’re happy with it. Then, simply choose the option to share the lease with the email addresses you’ve indicated, and the software will send signable copies to everyone involved.
Lease signing can be stress-free while remaining entirely remote.
5. Add Your Team Members
Do you have multiple people helping you manage your properties? Many software platforms allow your team members to join as users too.
For instance, let’s say you have an accountant and a general maintenance person. Software platforms that support multi-user management allow these individuals to be added as secondary users of the software. You can also designate which features they’ll be able to use and manipulate: your accountant can access payment records, and your maintenance staff can see and respond to maintenance tickets.
6. Improve Tenant Experience
Landlords are always looking for ways to improve the tenant experience. Property management software is one of those ways.
Tenants appreciate the simplicity and efficiency of property management software as much as you do. Not only does it provide clear procedures for processes like submitting maintenance requests or paying rent, but software also makes features extremely accessible. For example, tenants can pay rent on their phones, monitor automatic payments, and easily communicate with you from wherever they are.
Improve Your Rental Business with Property Management Software
Whether you work alone or have help, managing a rental business is no easy endeavor. The smartest way to manage this challenge is to delegate the most tedious tasks to property management software. With software in your toolbelt, your rental business is certain to find success.