It may surprise you to learn that there are approximately 50 million landlord-owned rental units in the United States. Regardless of how much your property is worth, renting out others can help you establish a powerful stream of passive income.The most important obligation to have as a landlord is property management. This involves fulfilling certain landlord duties in maximizing the tenant experience. While this responsibility can seem complicated at first, using property management software can streamline the process.
Not everybody knows where to start, though. Let's explore the best property management software for small landlords.
Developer Reputation
Before making your decision, it's essential to consider the developer's reputation. This plays a large role in the results you'll get from working with them. See what other people have to say online about the software's functionality and usability.You should also pay attention to how the developer responds to criticism. If they get aggressive or defensive against negative feedback, this could be a sign you'll deal with the same behavior.
The last thing you want is to be left to deal with issues on your own. Fake reviews are important to consider, as well.
These are often posted in batches and contain many identical keywords. They can be positive or negative, and it's imperative to ignore them when assessing the software's reputation.
Pricing
Not all property management software is created equal. It's best to avoid the cheapest options you find during your search. Rock-bottom rates could indicate that the developer cuts corners and won't be able to meet your needs.However, you don't need to spend as much money as possible when budgeting for this product. There's a point of diminishing returns regarding how much you spend on landlord technology.
Somewhere in the middle of the price range can meet your needs without stretching your budget. Pay close attention to the developer's pricing structure.
Can you purchase the software with a one-time payment, or do you need a monthly subscription? This plays a large role in how much money you'll spend.
Tenant Screening
The software you choose must have streamlined tenant screening functionality. Users should be able to easily run credit and background checks on potential tenants.Ideally, you'll find software that you can easily integrate with reliable services. In context, this could involve using software that connects to reputable databases to see if prospective tenants meet your needs.Renting to the wrong individual comes with no shortage of consequences. Some of the most notable are the potential for late rent payments and property damage.
Proper tenant screening also minimizes vacancies. Even a single month of vacancy at your rental property can cost you thousands of dollars.
Rent Reminders
Sending rent reminders is a great way to minimize the number of missed or delayed rental payments. Even though your lease will clearly outline rent due dates, it's not uncommon for people to get caught up in life's other obligations.If someone doesn't have autopay set up, there's a chance they can simply forget to pay rent. These reminders are often sent seven days before rent is due so tenants have time to get their finances in order.Maintenance Request Management
The least efficient way to handle maintenance request management is to have a tenant contact you directly. There's a chance you will be unavailable, which could delay repairs. Instead, they should be able to electronically submit maintenance requests through the software you use.This can expedite how fast jobs are completed. It can also reduce your overall burden as a landlord and eliminate stress.
Accounting
Look for software that offers streamlined accounting integration. Features like income and expense tracking, tax-ready statements, and customized reports are crucial.The more tools the software offers, the easier it will be to manage your finances. This will prove to be a substantial boon when it comes time to pay your taxes. They can also provide insight into your business and help you reach your target metrics.Lease Management
Handling leases is one of the less enjoyable aspects of becoming a landlord. Not only are these documents long and convoluted, but they can be difficult to understand.Using the right property management software can make this responsibility easier than ever. Reputable applications can generate state-specific leases.
They can also allow the involved parties to use e-signatures to sign documents. Features like these can make signing and reviewing leases simple and unimposing.
Customer Support
No matter how well you prepare for issues on your own, there's a chance problems will manifest in the future. The last thing you want is to have to deal with them on your own.This is often inconvenient, and it can be impossible in certain cases. The software you choose should have a robust customer support policy.It is not uncommon for developers to offer some form of 24/7 support. This often exists in the form of outsourced employees or chatbots.
Frequent Updates
Never use software that the developer doesn't frequently update. Outdated software can be clunky and inconvenient to use.There's also something to be said about the security issues that can arise. Hackers are constantly looking for ways to procure sensitive data.Property management software contains plenty of valuable information, such as social security numbers. Scenarios like these are why the cybercrime industry is estimated to cost the world over $10 trillion annually by the end of 2025. The only way to protect against situations like these is by pushing constant updates.