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One of the most important decisions you will make as a property management company is choosing which CRM / software platform you are going to use to keep track of your business and reporting. You may be asking yourself “What exactly is property management software?” PM software is a internet-based application suite that will help property managers and landlords streamline a wide variety of tasks. These tasks range from online rent collection, three day notices automation, financial / accounting reports as well as marketing channel integration. Though each solution offers something different, they all share the same basic purpose. The three major categories that a PM software should encompass are as follows:
Tenant and/or Lease tracking
This will allow landlords or rental property managers to automate and track the leasing process from beginning to end. Functions for your PM software solution should include the following: tenant screening, move-in, rent/utility payments, maintenance, vacancy planning, move-out, and make-ready.
Accounting
This will allow you to Track individual tenants and properties, distinguish between multiple properties, and tackles other specific challenges in property management accounting that may be too sophisticated for a generic accounting program such as Quickbooks. Functions should include some of the following: online payment, rent and deposit information tracking, automatic late fee notices, owner ledgers, tenant payment history, etc.
Maintenance
This will allow you to track work orders, schedule preventative maintenance, and communicate seamlessly with your maintenance staff or subcontractors. These applications should automatically create schedules, alerts, and generate work orders, or allow for tenants to make maintenance requests online, which will help to expedite service for your customers.
Now that you are aware what each PM software solution should offer, the next step is choosing which platform is best for your property management company. You should first identify which product is best suited for the type of properties and the total number of rental units you manage. Property managers should also consider the following:
Will you need a customer relationship management (CRM) application to manage the incoming lead flow from your marketing campaigns and effectively recruit prospective tenants? Do you have an effective website? Do you have the ability to automate your listings from MLS/IDX to your website including photos, brochures, and floor plans online to attract prospects?
Will you require a resident portal so that residents can communicate with your management team, make online payments, renew leases, and place service requests?
Once you have answered these questions, it is time to begin deciding what management software will best suit your needs. Each property management company works differently, so it is important to review as many different platforms as you can. The main purpose of property management software is to increase efficiency, improve collections, and enhance the quality of service provided to your tenants and property owners. Increased efficiency helps to streamline the administrative tasks that are associated with rental collections, lease management, and maintenance. This will, in turn, reduce staff requirements over the long term. Online services, quicker turnaround times, and maintenance requests will all help reduce turnover, which is the greatest expense associated with property management.
Often times the cost of the software is nowhere near the amount of money you can save on the back end, which is why most PM companies prefer to use a property management CRM / software solution that will allow them to keep everything organized. Now, lets get into a few of the most popular solutions out there…
Buildium
Currently one of the highest rated and most popular PM solutions available. Buidlium encompasses everything mentioned throughout the course of this article. Buildium also allows for a large amount of centralized tenant and owner interaction which will provide complete transparency with your investors. For more information click here to visit the Buildium website.
AppFolio
Designed mainly for use by residential property managers. AppFolio Property Manager is quite user-friendly and offers a web-based solution that’s available for a minimal monthly fee, which includes training, support, and numerous online features. Like Buildium, AppFolio allows for quite a bit of interaction between manager/owner/tenant, and also offers iOS iPhone and iPad apps to complement and further mobilize their solution. For more information click here to visit the AppFolio website.
When it comes to CRM’s and lead flow management, you may want to explore Sales Force, and 37 Signals HighRise. We at Condo Rental Ads use and rely on the entire 37 Signals Suite. It’s much more cost effective and practical than Sales Force in our opinion and it gets the job done without all the clutter. If you’re looking to venture out of Outlook with a solid SaaS CRM, check out what 37 Signals has to offer.
Of course these are only three of the most popular PM solutions, as there are far to many to review in one sitting. There are many other options such as Yardi, LandlordMax and Property Boulevard. As we reviewed earlier, each software offers something different, and will function differently for different sized PM companies. Hopefully, if anything, this small review will start you on the path to choosing which program best suites you and your companies needs.
August 30, 2011 at 5:21 pm | General PM, Professional Tips | No comments
Many people are skeptical when it comes to hiring a property manager. Most people have had a couple bad experiences with managers, and others just don’t see the benefits of paying 8% to 10% for management and often times an additional fee for leasing. A lot of management companies are rapidly growing and do not have the right processes and teams in place to effectively manage your real estate portfolio. Of course, as investors, we’ve been lacking selection and complete transparency – which is what Property Management Ads aims to rectify.
The truth is, there are hundreds of fantastic A+ property management companies spread throughout the hottest foreclosure markets in North America; the problem is finding them. Tech savvy investors have learned to use property management directories such as All Property Management, Rent List and Manage My Property to locate managers for their properties. A new directory has arrived at PropertyManagementAds.com. Property Management Ads is a FREE search used for finding a PM company and also a FREE RENTAL property search for condo, single family home and various commercial rentals. Once you identify your property manager, here is a summary of some of the benefits you can expect:
* Gain insight on your rental / investment portfolio. The best property managers analyze the performance of your rentals and are generally very familiar with the local real estate rental market, ultimately helping you maximize income potential from your rental properties. Finding a property manager that’s also a real estate broker is often widely beneficial to making intelligent investments and understanding the ROI of your properties.
* Save time, money and stress. If you only manage one property, you may not find it very involved or stressful. If you own 5-200+ properties like many investors, you most likely simply don’t have the time. 3 day notices, managing evictions, tenant screening, leasing / advertising, maintenance, HOA relations, accounting… it’s just way too much and best left in the hands of a professional. Likely the 8-10% management fee won’t be missed with all the value added services you’re gaining out of finding the right PM. A property managers primary objective should be gaining you the highest return out of your rental properties.
* Maximize occupancy rates. The better performing property managers generally feed their listings out to tens or hundreds of the top real estate listing sites such as Zillow, Trulia, Realtor.com, Oodle, Craigslist, Rent.com, Rentals.com, Property Management Ads, etc. When you request information from a property manager make sure you ask key questions such as, “Do you have a list of the sites where you list your vacancies?”
* Find better tenants for your properties. Avoid costly repairs and evictions by selecting a property manager with higher standards in their tenant screening process. Ask them for things such as their credit score threshold, deposit requirements, lease terms, late fees, etc. Gain as much insight on a company as possible.
* Increase Rental Profits. If your current property manager isn’t performing, browse the property management companies on PropertyManagementAds.com, sort through the ratings and reviews, request information from the company that interests you the most and find the PM that’s going to give you the insight and transparency you need and deserve.
There are many more benefits that can vary from company to company but either way if you find a property manager that’s performing for the rest of their portfolio, with an occupancy rate over 90%, you will see a positive return on investment and it will/should be a nearly hands-off process so you can make the best use of your time. In conclusion, the benefits of property management are many, both for the investor, the renter and the property management company.
That’s all for today, thanks!
Are you a property management company? Learn more about PropertyManagementAds.com can help your business grow and prosper. We’re so confident you’ll love our leads that we’re offering $100 in FREE LEADS with every new account.
June 8, 2011 at 1:59 am | General PM | No comments