Landlord accounting software for property managers can make or break a real estate business. Real estate investors know that, whether they hire a property manager or manage their properties themselves, that pen-and-paper bookkeeping will get you nowhere fast -- especially if you have a large number of properties. Thankfully, using landlord accounting software for property managers can provide you with a number of important advantages. Here's what you need to know about what these software programs can accomplish for your own real estate holdings.
Landlord accounting software goes by many names. Sometimes it's called investment property accounting software, property management software, or many other similar terms. However, whatever it's called, landlord accounting software for property managers is a collection of different applications that work together to keep property managers informed as to how a rental property is managed. These applications can do any number of things including keep up-to-date occupancy records, rental payment and other accounting matters, pending and completed maintenance requests, and lots of other related things.
When it comes to choosing which software package is perfect for you, there's no lack of options. There are professional and enterprise-level software services that are ideal for large-scale rental properties, though these software suites, such as Buildium and AppFolio, are usually only cost-effective when you have a very large tenant base. Other systems that are more affordable may lack some of the feature sets of the big players, but software packages like RentTracker and Cozy are advantageous in that they're free to use and open source -- and thus ideal for a real estate investor with a smaller tenant base.
Landlord accounting software for property managers is developed specifically to make it easy for a property manager to look after every aspect of a rental property, no matter the size. Not every type of software will be ideal for your properties, of course, as a residential rental software program won't be as useful for someone who's managing a commercial office building, for instance, but as long as you do choose a software program that's appropriate for your business type you'll get the soup-to-nuts of property management, all under one roof.
In fact, many of these software suites can help you attract new tenants for vacant units through the ability to draft and post listings online. These same systems help process rental applications, organize units that have been vacated and are ready for renovating or repair work so that new tenants can move in at a moment's notice. Finally, knowing which of your tenants pay their rent on time every time and which are a few days behind is important information for your property manager to possess if you want to keep your rental property profitable.
Investment property owners know the importance of organization. Having a property manager take on those responsibilities is an important step towards keeping organized, but you also need to provide them with the right tools for the job. This doesn't change if you own a single apartment, an entire housing complex, or anything in between: you need to have information regarding your tenants available at a moment's notice.
Taking the time and energy to create custom spreadsheets and databases -- or asking your property manager to do so -- is simply a waste of time and resources. Use landlord accounting software for property managers to reduce the impact of organizing and managing your rental properties, as this makes staying organized a snap. You'll sleep better at night knowing that your property manager has the best tools at their disposal to ensure your investment property is running successfully.