If you are in the business of property management and you are striving to provide excellent service while having a hard time keeping up with all the many properties that your company handles, then it is probably the right time for you to look for a property management software (PMS) to make your business step up its game even more. Most of the large-scale property management firms are acknowledging automation as the solution to their dynamic management problems and are dependent as well on the other benefits that the integrated, multifunctional property management software solution can deliver.
Property management is a day-to-day process of facilitating management of all company assets from real estate to equipment, monitoring the flow of work, communication, accounts and finances, scheduling of maintenance and repairs, manpower, legalities, etc. and making sure that the end product meets both the clients’ expectations and needs. PMS is an all-in-one software package created to innovate your way of doing all these things and has the ability to almost eliminate the traditional, inefficient paper-based methods of the past as this is basically designed and packed to modernize the way you operate the business by automating tedious management-related processes that take place in managing properties.
But before you start the process of choosing the right software package to fit your needs, you must be able to identify, first, the types of property management and, second, how it is being operated. There’s a wide range of styles and types of property management, each of these having its own challenges and demands that influence the nature of property management software needed. However, having the knowledge of what your company’s current status will help you further understand what the right software package is and how to get it and maximize the use of it. Here’s what you need to know.
Types of Property Management
Some companies focus or specialize in a single type of property management, while other companies offer just about anything. And there are so many solutions out there in the market that either will get the job done for you or will only complicate an already complicated situation. That’s why identifying your company’s nature of business is the first step towards finding the perfect solution you need. Listed below are the two most popular types of property management:
- Residential Property Management. This is the management of all real-estate housing properties such as single-family dwellings, apartment, condominium units, private residences, duplex, triplex, and quadruplex.
- Commercial Property Management. This is the management of properties that are intended to generate profit or income either from rental or capital gain. This field of the business is highly attractive to investors as it provides a lot of options to invest money. These are some examples from the vast amount of options for these properties: office buildings, warehouses, self-storages, industrial properties, boutiques, retail stores, kiosks, shopping centers, strip centers, and malls.
If your company is focused on a single type of management, try finding yourself a software package that specializes in that specific field. In that way, you can guarantee the efficiency and effectiveness that PMS utilization promises. But this is just one thing; you have to consider other factors before pulling the trigger. And here’s another.
Tasks of Property Management
Property management is the same as managing any other businesses that generally involves the system and processes of managing and operating like resources management, sales and accounting, and customer relationship management (CRM). However, just like in any other businesses, again, property management does require specific tasks that you need to manage that are vital to keep the life cycle of your business going.
Property management requires you to do the following:
- Management of Tenants. It is rather important to develop a strategic plan for tenants such as tenant screening which involves performing background checking of new applicants’ identity, credit history, rental history, income, etc. for validation and verification before they get an approval. Management of tenants also involves meeting tenants’ real estate needs, development of communication program to reach out to you and your tenants, and conducting appropriate measures to assess tenants’ level of satisfaction.
- Management of Finances. This management process deals with the detailed accounting of the flow of money from all your financial transactions like collection of payments for rent and leases, the accounts receivable and payable, maintenance expenses, billings for common area expenses, operational expenses, all taxes imposed on the company, yearly and monthly or even current financial statements, and insurance.
- Management of Maintenance and Repairs. For tenants, expectations are high for the quality of service the owner must provide as considering that they are either in your properties to live or make a living. The demand for maintenance and repair will rise as the number of occupancies continues to grow, and a 24-hour emergency repair request service accommodation would be necessary.
- Management of Marketing. This is essential to the business as this is the biggest contributor in landing contracts. Having the right marketing strategy is highly recommended to be successful in this field; that is why other companies pay huge amount of money for a consultant to give them better ideas on how to approach and penetrate a certain market.
- Management of Documents. It is always necessary for any company that they should be able to manage and organize all acquired documents such as leases, notices, applications, eviction documents, and other property records, as these are legal documents that are required in protecting the interest of the business as well as its customers or clients.
Having these guidelines will help you to easily evaluate the general status of your business, and once you’re done evaluating, your next step will be the process of finding the best property management software that will perform accordingly to your needs. And here’s how you can do it.
How to Choose the Right Property Management Software
After evaluating the general status of your business, the next thing that you have to focus on is deciding whether to acquire a web-based software or an on-premise solution. Premise-based software is operated using local computer with a database that is located inside your business premises, while a web-based software provides easy access anytime, anywhere through a chosen device via the internet.
Another vital element that needs to be considered is how much money you are willing to spend for a solution. You may opt for a “pay-per-use” pricing model where you are going to be obliged to share licenses, while only a limited number of users are given access at a certain given time. But there is a much better option, which is the “pay-per-unit” pricing model that allows as many people to use it at the same time. It is important to note that the cost of a certain solution is the difference between fees for monthly subscriptions and one-time purchases. You also need to ensure that you consider how much you are going to spend for training your employees in using this new technology, for professional technical support and upgrades.
List of Important Criteria to Consider
To give you even more tips in picking the right PMS, below is a list of significant criteria that need to be considered:
Data Migration. It is important to evaluate if a certain PMS product will be able take all your existing data and how it is going to effectively perform in data migration process.
Complete Accounting. It is also important to evaluate if the software is going include accounting integration and if it will be flexible enough to fit the specific needs of your business. You likewise need to look for products that are capable of helping you comply with real estate regulations, running reports in cash and accrual mode, and completing bank reconciliations.
Paperless Workplace. Another thing to look for is the capability of sending clients their billings and invoices through email, therefore resulting in a paperless office environment.
Security. When considering acquiring certain PMS software, it is imperative to study how confidential customer data will be protected and if it prevents unauthorized access to company computers and databases. The product should be capable of setting certain parameters so that only duly authorized employees have the access to sensitive data.
Ease of Use. The PMS software that you need to be looking for should be intuitive and easy to navigate. Not only will this ensure that your employees will not have a hard time using it, but also it will prevent inaccuracies in data entry and processing.
Managing your business will never be the same after getting the right software package that is very important in growing your business. Every property management software package is designed to streamline management operations resulting to delivering improved services, saves your time, and increases your revenue.
Check out the best property management software from CrowdReviews.com for rankings and reviews by other users.
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