Almost every business in America leverages technology to streamline operations, and property managers are doing the same. It's a smart move, considering that not doing so may leave your business outdated and behind the curve.
Like many platforms, there are certain drawbacks you should be aware of. Before going digital for rental property management, it's essential to understand these key considerations.
Key Takeaways:
- Going digital streamlines essential rental operations like rent collection, tenant screening, and maintenance requests, which improves overall efficiency.
- Property management software enhances financial accuracy and accelerates processes such as lease signing and rental listings.
- Despite its advantages, digital property management comes with potential downsides, including data security risks, limited features, and a lack of human flexibility.
- Landlords should balance technology use with personal touches and choose platforms with strong security, user-friendliness, and customizable features.
- Choosing the right software—with security, support, and scalability—can help landlords overcome most of the cons of going digital.
What Are the Advantages of Property Management Software?
Automated Rent Collection
Automated tools lessen the property management tasks you have to handle for day-to-day operations. Online rent collection itself is already a crucial feature, given that collecting rent payments in person can be time-consuming.
Streamlined Maintenance Requests
Addressing maintenance issues is at the core of property management, along with effective maintenance tracking to ensure that everything is well-coordinated. Some property management software automatically contacts assigned vendors for the needed services, reducing the maintenance management tasks that property owners need to tackle.
Efficient Tenant Screening
Online rental applications are becoming increasingly mainstream due to their convenience, especially since managing multiple rental properties can be tedious. Potential tenants can submit applications, and the tool will automatically screen them based on the criteria the software provides. Just make sure that the platform you use does comprehensive background checks for effective tenant screening.
Digital Lease Signing
The rental process can be finished much quicker when applicants can sign the lease remotely. Landlords and tenants alike will benefit from the seamless experience of an online application process. Since many devices are already capable of accepting e-signatures, you won't experience many technical difficulties on either end.
Financial Recording and Accounting
You can use accounting software to automate repetitive tasks like calculating rental income and analyzing cash flow, but there are property management software with additional features that allow the seamless integration of accounting tools. Since you are dealing with numbers, taking human error out of the equation is a huge advantage.
Expert Marketing
Marketing your rental property listings doesn't just take effort, but also expertise. You must know the popular listing sites and the effective ways to reach your target market. Digital platforms usually have an intuitive interface for listing properties, particularly what needs to be included in the listing and where it needs to be posted.
What Are the Disadvantages of Property Management Software?
Potential Data Breach
Data breaches are very common, especially with free software platforms that have weaker security measures in place. Information from receiving payments can be stolen, along with the necessary data from your tenants. While this can be avoided by keeping the platform regularly updated, bad actors accessing private data is still possible.
Limited Features
Features you can use vary depending on the software you utilize. Some come with additional costs just to access crucial features you need to manage properties, such as tenant portals or mobile apps for tenants with no personal computers. The lack of mobile access alone can already affect tenant communication.
Facing the Learning Curve
Not all platforms are user-friendly, which is common in technology. Without the user-friendliness aspect of the tool, you could throw convenience out the window. Of course, the benefits may outweigh a few days of getting used to the platform, or you can find other products that are easier to use.
Lack of Human Compassion
To software, your tenants are no more than ones and zeroes, which means that technology won't have the same considerations as a landlord or property manager. Providing grace periods for late rent payments due to job loss, for instance, is not something a software will understand. This is crucial for tenant satisfaction, and making decisions based on algorithms can be the cause of tenant turnover.
No In-Person Assessments
Online rental applications make it easier to go through several potential tenants, but nothing creates a solid foundation for landlord-tenant relations like in-person conversations. You might find things you don't like through personal meetings, like the way they respond to questions, which isn't something you can spot in online rental applications.
Conclusion: Should You Digitize Your Rental Business?
There's a reason why property managers in the rental sector already turn to technology to manage important tasks. It has become a critical step to keep up with tenants and their preferences. It's one thing to improve the rental experience for residents, but it's another to be an outdated rental business.
Real estate professionals and landlords alike are utilizing platforms to save time managing properties, including assessing rental market conditions. You can benefit from this if you know how to mitigate the negative aspects of brand new methods of property management.
For example, landlords and tenants can access tutorials to learn how the platform functions. To maintain positive tenant relations, there are several ways to demonstrate your support for them, even with digitized operations.
Turning to Professional Property Managers
Hiring a property management company can offer you the best of both worlds. PMI Georgia will assign an on-site property manager to tend to your tenants' needs, all while utilizing technology to streamline operations. You wouldn't have to compromise the advantages of one for the other.
Our services will provide you with access to an online portal, where you can monitor your business and view transaction histories for your tenants. You’ll save time as you delegate tasks, which allows you to look for other lucrative investments.
Our goal is to maximize the potential of your property, and we recognize that effective property management plays a crucial role in achieving this. Contact us today to discuss how we can achieve that together!