New technology is constantly shaping our lives, and the real estate industry is no different. From 3d printed houses to virtual reality tours. For landlords, one of the biggest revolutions is in property management software. This is software that offers all of the essential tools that a landlord needs for the day-to-day management of their properties in one place. 

The best property management software has both desktop access and a native app to allow you to access documents, digitize receipts, input income and expenses, set reminders, and more wherever you are. 

In this article, we take a look at five ways property management software is revolutionizing the real estate industry for property investors and what landlords need to look for to find the solution that’s right for them.

Finding Tenants 

One of the principal aspects of running a rental property is avoiding costly vacancies. There are numerous solutions online that can help you get your listing in front of thousands of prospective tenants and fill your vacancies fast, including high-traffic sites such as Zillow, Zumper, and even Facebook Marketplace. By listing your properties on sites such as these you can easily and affordably generate a large number of quality rental property inquiries. 

Property management software can help augment and streamline this process. A good landlord software will allow you to create a listing and manage applications in one place. Some will even syndicate to major rental listing sites so that you can easily maximize the exposure of your listing and track all your applications in a single place. 

Screening Tenants 

Tenant screening is the best way to prevent loss of revenue through missed and late rent payments. By screening tenants, you can ascertain whether or not the prospective tenant has the income level requirements that will allow them to comfortably make their rent payments every month. Generally speaking, tenants should earn at least three times the rent amount. 

A professional tenant screening report run through property management software will not only allow you to check an applicant’s income but also their employment and credit history, criminal background, and rental history. 

Collecting Rent

Despite rent collection being a principal part of being a landlord, there historically haven’t been many good solutions for landlords to use. This has led to a reliance, even today, on checks and cash payments from tenants. However, checks and cash are slow, insecure, and inefficient methods for collecting rent. 

Ideally, you should be collecting rent online and thankfully, many property management software’s such as Landlord Studio can facilitate this need for online rent collection

All you have to do is set up your property on the system, connect the bank account you want to receive funds into, and invite the tenant. The tenant can then view upcoming and historical rent payments as well as set up recurring rent payments that go straight into your bank account. 

Rental Property Accounting 

Running rental properties is like running any form of business. In order to ensure that you’re running a cash flow positive business that is sustainable, and profitable you need to continually track and assess your portfolio’s income and expenses. 

With one or two properties, this can be done on a spreadsheet, however, as you scale this method becomes unwieldy and many landlords look to accounting solutions like QuickBooks. The issue with software like QuickBooks is that it is designed for small businesses. And as such, unless you are very familiar or trained in the software, it can be difficult to set up and easy to make a mess of your accounts. 

Accurate income and expense tracking is vital if you want to speak to lenders for new loans and scale your portfolio, and is essential when filling out your end-of-year tax return so you don’t end up overpaying or underpaying.

A good property management software solution will be specifically designed by landlords for landlords to allow you to easily and effectively track your income and expenses on a property by property and unit by unit basis.

Time Management 

When many people think about real estate investing, they think of it as a passive investment. However, anybody that owns and runs rental properties knows that it is anything but passive. 

This is one of the final aspects that property management software can help you with. Using a system like Landlord Studio, you can set important reminders for things like gas and electrical safety checks, routine inspections, and lease end dates allowing you to stay on top of these important events even as you scale your portfolio. 

Additionally, automation features such as automatic income tracking, rent reminders, and recurring expenses can reduce time-consuming tasks and manual data entry, saving time and reducing errors. Finally, with native apps, you can keep your accounts up to date in real-time so at the end of the year, all you have to do is print a report and you’re ready to go.

Final Words

Though the real estate industry has historically been slow when it comes to adopting new technology, we are seeing a surge in the popularity of technological solutions to help landlords and investors scale their portfolios. The right property management software will help you save time and solve your key pain points such as rent collection and accounting. 

It’s worth making sure that whatever landlord software you do look at has a free trial period so that you can test it out and make sure that it is the right solution for your needs.

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