It can seem like a never ending list of tasks to manage a rental business. Landlords and owners of rental properties must first deal with the collection of monthly rent, screening potential tenants and keeping tenants satisfied. There are also unexpected situations to deal with, such as emergency repairs, disputes between tenants, and the long process of evicting someone for a lease violation.
Software for real estate can automate many of the tasks that landlords perform on a daily basis. Automation of tasks such as rent collection, screening tenants, maintenance requests and listing vacancies can save you a lot of time. You can then devote more time to your core business.
Many landlords may find that switching to digital tools for running a rental company is a steep learning curve. Some may be concerned about data processing or security when using apps to collect rent or manage properties.
The article discusses seven benefits that your real estate business can gain from using software for rental businesses.
What is the purpose of using real estate software for your rental business?
As a landlord, you have many tasks that are repeated. Real estate software makes these easier. There are many other benefits. You can access data from your property management software securely on any device. It’s almost like having your office wherever you go.
Collaboration is another compelling reason for switching to digital solutions in real estate. Imagine, for example, that your business is a rental company with a small staff. Then, each person can get the information that they need. It is no longer necessary to send email or reminders.
Software for real-estate companies makes it easy to communicate with listing agencies, tenants and property managers. Imagine how easy it would be for real estate companies to notify tenants in bulk about maintenance or automatically list a vacant unit when the lease expires.
Seven Ways Real Estate Software Can Make Your Rental Business More Profitable
The job of property management requires a variety of skills. The more tasks you automate with software, the less time you need to manage a successful business. You can use real estate software to perform seven different tasks.
1. Processing online tenant applications
The entire rental application is done online, so you save time. The entire rental process is digitally stored and can be signed electronically. No more manual processing, no need to meet with tenants or mail applications.
Online rental applications eliminate the possibility of human error. The information in the application is automatically populated into the lease contract. Electronic forms also ensure tenants do not accidentally leave fields empty or write in a scribbled style that makes it difficult to read.
2. Rent screening service
It is important to screen tenants because this will help you find good tenants. If you’ve ever manually screened prospective tenants, you understand how tedious the process is.
Digital rental applications can include a screening function. The tenant must first approve the background check, which includes their credit history, rental history and criminal record. The report is delivered to you in no time. You can then accept or reject their application online.
3. Tracking maintenance requests
Software for real estate helps keep you on top of requests. It is important to keep tenants satisfied by keeping rental units clean and processing requests promptly.
What can you do to stay organized with a tool for property management? The tenant can contact you through the app and then you send the request on to the contractors. You can then communicate with both the tenant and contractor about the timelines through the app. This system has everything in one location.
Software applications for landlords also help you save time, as neither you nor the contractor have to visit the property in order to evaluate the problem. The tenant may instead take a picture or video and upload it to the app.
4. Advertising vacancies
If you delay in filling vacant positions, it can affect your profit. If you have a property management software, you can list your vacancies automatically on multiple rental listings sites. All the data is saved in the program, so you don’t have to constantly create new listings when looking for new tenants.
5. Online rent collection
Rent collection apps simplify the rental process by making it easier for tenants to pay online. Rent collection apps help simplify the rental process by making it easy for tenants to pay online.
There are many reasons that a service for rental payments can assist you in collecting rent on time.
- Tenants may set up monthly online payments
- Tenants can make debit card or credit card payments
- Some rental payment apps notify the credit bureaus
- You can remind your landlord before the rent is due
Apps for rent collection also allow landlords to control payments during an eviction. You can, for example, block partial payments from tenants facing eviction. You can use this option to prevent a bad tenant from causing the whole process to fall apart, costing you money, time and resources.
6. Accounting software integrated for landlords
Rent management software can help you keep track of all the financial aspects involved in running your rental business. Accounting software, for example, automatically adds rent, contractor invoices, debts, and mortgage payments to the list. Accounting features give you immediate access to all your financial information.
Real estate software can also save you space. With cloud-based software, you can store thousands of files (sometimes hundreds) in the office. The files are protected from being damaged, stolen or lost.
7. Data analysis
Real estate software is one way to make your business profitable. You can gain insights about the real estate industry by using analytics. This is something you would never be able to do if all you did was keep paper records and process rent checks. You could gain a huge advantage over your competitors.
There are many ways in which landlords or owners of rental properties can gain from analytic tools.
- Automated valuation tools
- Revenue optimization
- Property prices indices
- Use cluster analysis to determine rental performance by area
- Cost analysis and maintenance management
- Expense tracking
Conclusion
Any successful real estate investor or landlord will find that the right software can be invaluable. Many rental management solutions are available for free to both landlords and tenants.
Automating repetitive tasks can save you time and money. Renters find their rental experience better when they have the option to use an app for online payments, service requests and building credit histories.