Whether you’re a new landlord just starting out or an experienced landlord trying to grow your business, maximizing rental profits is essential. It can be difficult to know how best to do this, but we have a secret to jumpstart your rental profits: property management software.
For those who are unfamiliar, property management software is typically an online platform that helps landlords streamline their processes. From online rent collection to managing maintenance requests, property management software is specially designed to help your rental business succeed.
Below, we go over 7 ways property management software will jumpstart your rental profits.
#1 Collect Rent Efficiently
Writing receipts, counting cash, processing card payments in person, and depositing checks all takes time and manpower. With property management software, tenants can make payments from home and all you have to do is wait for the funds to deliver to your account. This not only saves time, but it also allows you to focus on improving your business in other ways. Online rent collection makes life easier for both you and your tenants.
#2 Sign Leases Online
Signing leases can be a time-consuming process that delays a tenant’s move in. And as any landlord knows, the quicker you can get tenants moved in, the sooner you can start collecting rent payments. Property management software enables tenants and landlords to sign, review, and store leases online, making the process quicker and easier. By spending less time setting up meetings and coordinating schedules, you can prioritize other matters.
#3 Reduce Late Payments
Rent payments are the primary source of income for most, if not all, real estate businesses. As such, no landlord can afford late payments, especially not one just starting out. Because property management software offers a convenient method for paying rent, tenants are less likely to be late on payments. Tenants can also set up recurring payments, so they don’t have to remember to pay each month. Their payments will automatically process, and you don’t have to worry about your cash flow.
#4 Review and Organize Applicant Profiles
When you’re trying to fill a vacant unit, there are lots of things to keep track of. You’re giving showings, holding open houses, collecting applications, screening renters, and more. It can be hectic, but it’s what must be done to fill units and turn a profit.
To make your job easier, property management software organizes all of your applicant’s profiles. It may seem like a small thing, but it allows you to easily review applications and make sure you’re choosing the most qualified renters.
#5 Enforce Late Fees
It can be difficult to enforce late fees when you handle payments face-to-face. This is especially true for less experienced landlords who aren’t as comfortable dealing with upset tenants. With property management software, you can customize the rate and grace period for your late fees, which will then automatically apply to your tenant’s account. Innago takes it a step further and prohibits tenants from making any further payments until their late rent and fees are settled. All of the hard work is done for you so you can focus on growing your business.
#6 Screen Tenants Quickly and Effectively
High quality renters are the key to a successful rental business. They pay on time, cause minimal damage to your property, and are open to renewing when the time comes. High quality tenants don’t just save you money — they make you money.
In order to find the best renters for your units, you must thoroughly screen all of your applicants. The best property management software platforms offer tenant screening services that automatically integrate into your applicants’ profiles. Many platforms also make it easy to pass screening fees off to your applicants, furthering improving your profits.
#7 Receive Payments as Quickly as Possible
Depending on the method you use, online payments can take a long time to process. Property management software, however, delivers payments into your account as quickly as possible. Innago, for example, processes payments in as little as one business day. If you’re managing a mortgage or have a small profit margin as a new landlord, those few extra days can make a huge difference.
Property Management Software is a Must
Generally, the key to maximizing profits is lowering expenses and streamlining your operation. As a landlord, property management software is the most effective way to jumpstart your rental profits. In other words, property management software is a must.