It started out so simply, you had one rental property and keeping up with it required hardly any effort at all. In fact, it worked so well, you happily acquired more. But now, staying on top of everything is starting to be more like a full-time job than a side investment. Said simply, it’s starting to become taxing and now you’re wondering, do you need property management software? To be sure, ask yourself these five questions:
1) Do You Have Rent Delinquencies?
Are some tenants delinquent on rent payments and you haven’t had time to contact them to remind them they’ve fallen behind because you have so many your accounts receivable have become difficult to manage? Are you no longer laughing all the way to the bank, because the trips to deposit rent checks have become too frequent? These are signs you need to automate this aspect of your business. Property management software facilitates online rent payments so transactions are logged automatically and the money goes straight to the bank. You’ll also get notices when tenants miss due dates.
2) Are There Unaccountable Irregularities in Your Cashflow?
Do you have plenty of income, but somehow the ends still don’t seem to be meeting? Really good property management software like Onerent’s guarantees your rent payment each month, regardless of whether your tenants are paying on time. Otherwise if you’re trying to keep payments straight in your head and your months are coming out red when you’re sure you have more than enough income to stay in the black, something is probably slipping past you. Property management software can help you keep a tighter rein on things. You can easily track income and expenses and get key financial reports immediately — whenever you’d like.
3) Has Your Accounts Payable Activity Fallen Behind?
Blindsided by an invoice from your gardener? Accounts payable constantly in need of attention? You think all your vendors have been covered and here comes a bill from the pool maintenance company for the replacement filters you needed last month? Did that plumbing invoice get overlooked? This doesn’t happen with property management software. Your service people can present invoices through a central platform and they’ll be automatically flagged for payment.
4) Have Maintenance Requests Becoming Overwhelming?
With online reporting, your tenants can submit maintenance requests 24/7/365. You’ll have no more forgotten phone calls because they came at an odd hour, or when you were focused on another aspect of your business. Maintenance requests can also be tied to invoices, so you can make sure vendors are compensated for work when it’s complete. You can also automate the notification process by which you keep tenants apprised of upcoming inspections, service calls and preventive maintenance.
5) Do You Have Too Many Vacancies?
With good property management software, you can automate the placement of your vacancy ads with sites like Craigslist and Zillow. Responses can be logged automatically so you can follow up on them at your leisure to screen new tenants. You can also program the software to filter applications based upon parameters you choose—such as income level, employment history, or the like. Management software can even be employed to request credit and background reports. Rental contracts and lease agreements can also be forwarded and accepted online. When leases are about to come due for renewal, you’ll get notifications, so you don’t have to remember which ones are about to expire.
It should be noted a good property management company could also be of great service in these areas. In fact, with the right software and a strong company working for you, managing a substantial portfolio of investment properties becomes considerably easier.