There are a number of reasons property management professionals choose to forgo the use of software. Perhaps it’s too complicated, or seems like too much of a financial investment. Maybe you’re just starting out and figure you can handle the day to day tasks on your own, without the need for software. The truth of the matter is, regardless of the age, size or budget of a property management company, operating without the help of a specially designed software solution will almost certainly cause more harm than good. Here’s how.
Tenant Selection/Turnover Rate
Choosing a bad tenant is one of the most costly mistakes a property manager can make. Not only does it put you at risk of things like property damage and late or missed rent payments, but it can also increase your turnover rate, which is expensive in and of itself. This is why proper screening is so important, and property management software can help make this task simple and straightforward. Simply put, if you’re handling this task on your own, you’re increasing the risk of bad apples slipping through the cracks.
Lack of Important Information
Understanding how your business operates and what matters most to your tenants can help you optimize both your internal and external service levels. Likewise, having on-demand oversight into the condition and status of your properties and units is essential for success. If you’re not leveraging this critical information about your business, you risk losing ground to your more tech-savvy competitors. Unfortunately, gathering this data manually isn’t just incredibly difficult, it’s nearly impossible. This is where intuitive, data-driven software can be an absolute game changer.
Cash Flow Problems
If you are still collecting rent payments by check, you are placing your property management business in a poor financial situation. Waiting for checks to arrive by mail, manually batching and depositing them and waiting for them to clear all result in delayed access to your money. Not to mention the fact that modern tenants prefer the convenience of paying online. With property management software, you can collect payments electronically, saving time, improving cash flow, and enabling your tenants to pay the way they most prefer.
If you’re still using antiquated and standalone tools, like spreadsheets and accounting programs, you are most certainly falling behind your competition. You’re also leaving yourself vulnerable to costly human error due to manual data entry. The right software solution can automate most accounting tasks and make balancing the books, running reports and tracking essential things like income, expenses, assets and liabilities an absolute breeze. This will eliminate human error and dramatically improve efficiency.
Poor Tenant Engagement
Tenants that have positive connections with their landlords or property managers tend to stay on longer, which reduces costly turnover. But staying on top of tenant communication can be incredibly challenging – especially if you’re managing multiple properties with many tenants. Property management software can automate much of these communications while online tenant portals provide an easy, convenient way for both parties to remain in contact.
It may seem tempting to cut corners and try to handle things on your own, especially if you’re just starting out in the business or are dealing with a limited budget. In reality, however, the decision to forgo a tool like property management software can actually result in more problems, including increased costs, lost revenue and unhappy tenants.
To experience how property management software can help you up your game and turn an investment into real, sustainable returns, schedule a free product demo today.