Top 3 Components to Look for When Evaluating Property Management Software

Every effective property management software platform has certain features that save landlords time and money.

If you haven’t adopted free property management software yet, or are looking for a new platform, these core features should be a crucial factor in your decision. Now even renters can use software like Funnel Leasing property Management to help them with house hunting.

However, if you want a quicker way to compare the different tools, there are 3 main components you should look for when evaluating property management software: Online rent collection, tenant screening, and lease management.

Online Rent Collection 

Online rent collection will save you and your tenants valuable time and effort. Rather than a tenant writing a check and mailing it, they can set up automatic payments or pay with the simple click of a button.  

And it’s a feature tenants are asking for. According to the National Multifamily Housing Council (NMHC), almost 80% of tenants prefer to pay their rent (and other rent-related items) online. 

It’s also quite helpful for landlords. Automated reminders and payments mean tenants are more likely to deliver funds on time. You spend fewer moments looking for late payments. And you don’t need to deliver personal checks to the bank.  

With the majority of property management software, renters just enter their bank account or credit card information to start the set-up for online rent collection. The streamlined process makes life simpler for everyone.  

Tenant Screening

Wonderful renters make a world of difference, and the top way to identify wonderful renters is through in-depth tenant screening. Property management software with tenant screening features will assist you in sifting through applicants to identify excellent renters.  

Tenant screening features allow you to see crucial information about potential renters, including national data on their criminal records, credit history, and past evictions. Exceptional software, though, will go beyond these features and help you manage these potential applicants. That includes obtaining custom data (i.e., the breed, age, and weight of their dog) and managing the status of all your applicants. Many even let applicants upload more forms as a part of their application— a useful way to get pay slips or bank statements. 

Finally, make sure the screening software you select asks the questions you need it to ask—for your potential renters and for yourself. For instance, if you allow exotic pets, you’ll want to know what kind and possibly other key features. You might want multiple references. Confirm the software’s tenant screening features can handle this degree of customization. 

Note: When evaluating a platform’s screening process, take a careful look at how easy it will be for your tenants to access the application. If they can’t get to it quickly, they are more likely to apply for a different rental unit or just move on from your application. 

Lease Management

Digital lease management helps you get leases completed days before traditional turnaround times, increasing your leasing efficiency. That efficiency means fewer showings, which saves you time and money. 

Lease management features also let you organize and get to your key documents efficiently. Instead of storing printed copies, your lease agreements are in the cloud and both you and your tenants can access them on demand. 

When searching for a software platform, assess its ability to develop reusable templates. Does the software automatically duplicate key information, like lease start dates and end dates, and input that information into all the correct areas in the document? Does it have a template creator that will support you? These things help you create accurate leases much quicker than traditional paper leases. 

Note: Analyze software from the renter’s perspective as well. How straightforward is it for your least tech-savvy renters to utilize? Does it prompt tenants to put information into the correct blanks? If the software is intuitive for your tenants, it will save you time because you won’t have to teach them how to fill out the lease or constantly solve technological issues they have.

Conclusion

These three features are critical to keep top of mind as you search for property management software. Effective online rent collection, tenant screening, and lease management features can cut days off the time you spend doing tedious tenant-related tasks and improve your bottom line. 

That being said, software is not a one-size-fits-all solution. Do your own research and experiment with multiple platforms. You may have other features that are more critical specifically for your business. Re-work your list to make it make sense for you.

Property management software will save you time and money; you just need to find the right fit for you.