As the world becomes more technological, property managers are finding different types of software that help give them an edge against the competition. Below is a guide to the different types of software available for property owners.
Many people believe that there is only one type of property software. In reality there are several different types. If you’re a property owner you may need one of these or are all of these. Unfortunately to this date there does not appear to be a comprehensive package that includes all of the different modules.
Commercial Property Management Software
Commercial management software is probably the most used software by property owners. Thus, we will spend a little more time talking about it. Usually when people in the industry discuss commercial software they are talking about software that helps them with tenant and lease management.
Features of this type of software include tracking all of the tenants’ leases. This in itself can be a real life saver as it can be a headache to try and track all of the information with a paper and pencil. Another really cool feature here is the ability to integrate a rent collection system. With this software you can track all of the payments in order to gather very important financial information like who is paying on time and who isn’t. There is also software available in this category that aids you in screening tenants and planning for vacancies. This type of software is a must-have for those who rent or lease to multiple end users.
When we discuss tenant management software it is only fair that I mention some slight differences between commercial-type software and residential software.
Residential Property Management Software: This type of software is usually used by land-lords who own apartments where multiple people rent from them. This software should be designed to manage a large number of clients because some landlords own multiple apartments and each apartment could have hundreds of clients.
Some features you should look for in the residential software area include a tracking system for all of your clients, a repairs section to keep track of all of the maintenance that will need to be done, a rent collection process, and an online rental payment process. Note: With the online payment process you will likely have to use your own website and find a way to integrate it with your software.
Commercial software will often be more sophisticated because of the leasing agreements and the reports that need to be generated. Look for good report generation features as well as a good tracking system when searching for software in this area.
Property Accounting Software: This type of software may or may not come with some integrated package. You’ll need to check before purchasing because some companies sell this separately. This type of property software allows owners to generate financial reports that may be critical for their loan covenants. Banks often want to see the financials before they are willing to offer loans or any other assistance.
One unique feature to accounting software for property owners is that it should be able to create individual statements for an individual tenant. This allows the owner to determine profitability in a much more disaggregated way. Think of this as a way to try and weed out your unprofitable customers.
Property Investment Software: This type of software is very different than the software we have discussed above. Investment software for properties is not about managing tenants, it is about trying to decide which properties to buy and sell. Basically the software is designed to aid real-estate investors in their conquest of buying and selling properties in order to make huge gains.
Investment software works as follows: First, the interested investor enters the property’s information. The software then calculates your estimated cash flow and return on the property. If you like what you see, then you can buy the property; otherwise you can hold on or sell it.
Property Tax Software: The final type of property software we will mention today deals with taxes. Unfortunately, if you are a business owner you will have to pay for them. Every year for those who live in the United States, your beloved government will send you some paper work asking for the value of your property so that you can be taxed for it. This can be a real hassle each year if you don’t have some way to keep track of everything.
Unless you’re a tax guru, I would recommend some form of property tax software to help you comply with the law. This type of software can help you save time when complying and it can also help you pay the minimum, correct amount of taxes.
**Update May 20, 2010***
After researching a bit more and hearing from some of the experts in the industry I’ve realized that online property software may an excellent solution for some of the landlords out there. Using online software, tenants can make payments and enter repair requests online. This type of software still has all the normal functionality, but everything is done online.
Who would have thought that were so many different types of property software? Hopefully this list gets you started. In summary there is software for property owners to manage their tenants, their accounting, their investments, and their taxes. Make sure you get the type of software that matches your needs.
