The world of property management software (PMS) has evolved dramatically over the last several years. This is largely due to the increase in data usage and cloud-based hosting solutions available today.
Property management software helps landlords and property managers streamline their workflow. By automating tasks like rent collection, work order management, and tenant screening, property managers can save time and money. In turn, this can improve the ROI for their rental properties.
To discover how PMS can improve your return on investment, read below.
What is Property Management Software?
Property management software is a software application that helps landlords and property managers keep track of their properties, tenants, and maintenance tasks. This type of software typically includes features for tracking rent payments, maintaining a tenant database, and generating reports.
Some property management software applications also include features for accounting and bookkeeping, as well as online tools for marketing and listing properties. In addition, many property management software companies offer mobile apps that allow landlords and property managers to access their account information and perform tasks on the go.
PMS can be a valuable tool for landlords and property managers who want to streamline their operations and keep track of their properties in one central location.
How Property Management Software Boosts ROI
1. Frees up time
When it comes to property management, one of the most important things you can do is free up your time. By using online property management software, you can improve your ROI by freeing up your time. This software is designed to help you manage your properties more efficiently, so you can focus on other aspects of your business.
Property management software can help you keep track of your properties, tenants, and finances. It can also help you automate tasks like rent collection and maintenance requests. This way, you can spend less time managing your properties and more time growing your business.
2. Increases financial control
By tracking and managing your finances with the best property management software, you can make more informed decisions about your property investments. This, in turn, can lead to increased profits.
Property management software provides you with the tools you need to track your income and expenses. This information is critical in making sound investment decisions. With this type of software, you can see exactly where your money is going and where you can make cuts to improve your bottom line.
In addition, PMS can help you keep tabs on your tenants. By knowing who’s behind on rent and who has been causing damage to your property, you can take action to protect your investment. In some cases, this may even mean evicting problem tenants.
3. Makes it easier to manage maintenance requests
Property management software can save you time and money by making it easier for you to manage your maintenance requests. By automating the request process, you can keep track of all your maintenance requests in one place.
This can help you prioritize your requests, get them completed in a timely manner, and make sure the work is completed properly. Additionally, PMS can help you track your expenses and see where you’re spending the most money. This information can be used to improve your bottom line and make your property more profitable.
4. Easy way to generate rental income reports
If you’re a rental property owner, you know that generating rental income reports can be a tedious and time-consuming process. However, property management software makes it easy for you to generate rental income reports, which can help improve your ROI.
With PMS, all you have to do is input your rental data and the software will do the rest. This means you can spend less time generating reports and more time escalating your business. As highlighted in the book by Andrews, et. al., the use of PMS plays a vital role in innovation and economic growth.
5. Cost effective as compared to traditional methods
One of the best ways to improve your ROI is to switch to using property management software. This type of software is more cost-effective than traditional methods, and it can help you save money in the long run.
For one, you won’t have to spend as much on paper and mailing costs. With the software, you can send out digital communications that are environmentally friendly and cost-effective. You’ll also be able to track all your expenses in one place, which will help you stay organized and on budget.
Additionally, PMS can automate many of the tasks that are traditionally done manually. This includes tasks like rent collection, maintenance requests, and even marketing your vacancies.
6. Data security
One of the main reasons why property management software is so beneficial is because of its data security feature. This feature ensures all the data pertaining to the property is secure and protected from unauthorized access.
According to a study by Pew Research Center, one of the biggest concerns for property owners is the security of their data. With property management software, they can rest assured knowing their data is well-protected. This feature gives property owners peace of mind and allows them to focus on more important tasks.
7. Better tenant retention rate
When it comes to your rental property, one of the most important factors in determining your ROI is your tenant retention rate. If you can keep your tenants happy and living in your rental unit, you’ll be in good shape to see a healthy return on your investment.
But what can you do to ensure a high retention rate? One of the best things you can do is invest in quality property management software. This type of software can help you keep track of important information about each tenant, including contact information, lease terms, and payment history. Best of all give your tenants their own branded Resident Portal where they can communicate with you directly and take care of all their rental needs.
With this valuable data at your fingertips, you’ll be able to quickly identify any potential issues that could lead to a tenant leaving. Additionally, many PMS programs include features and integrations (like the one in this Zendesk review) that make it easy to communicate with tenants and collect rent payments online—both of which can help reduce turnover.
8. Helps with inventory
If you manage rental property, you know that keeping track of inventory is essential to your success. By using property management software, you can streamline your inventory operations and improve your ROI.
The software can help you keep track of what units are available and what needs to be repaired or replaced. You can also use it to schedule repairs and maintenance, so you don’t have to waste time dealing with those tasks yourself.
9. Easier rent collection
Gone are the days of chasing down tenants for late payments or waiting for checks to come in the mail. With property management software, you can set up automatic rent payments so you can always be sure you’re getting paid on time. You can also send out reminders and even accept online payments, making it easier than ever for tenants to pay their rent on time.
Make the Most of Your Investment with Property Management Software
As reported by Grand View Research, the global property management software market size is projected to grow at a CAGR of 45.6% between 2022 and 2030.
Property management software is a powerful tool that can help improve ROI in a number of ways. By automating tasks, reducing operating costs, and increasing occupancy rates, the software can help you make the most of your investment.
To get started, find property management software that meets your needs and try it out on a small scale. With the right tools in place, you can maximize your ROI and take your business to the next level.
Learn more today, let’s talk.
