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Advantages and Disadvantages of Property Management System in Hotel

You may have observed that you have a lot going on when it comes to managing your property, whether you are a franchisee for a big chain hotel or the owner/operator of a small independent hotel or bed and breakfast. You undoubtedly spend a lot of effort just keeping yourself organized, from managing inventories to assigning personnel.

If you’re still using pen, paper, and file folders for your operations, buying a property management system may be a simple method to digitize them. This is because it allows you to combine all of your procedures into a single application. Employees can complete duties more quickly and easily while working for hands-on owners and managers who can manage the property and reservations from anywhere.


Maintenance Management & Tracking

Building upkeep is the one factor that contributes the most to customer pleasure, as was already mentioned. The higher tenant retention rate you achieve, the less time and money you’ll need to invest in finding and retaining new renters. This also gives you more freedom as a property manager.

schedule and maintenance management programs make sure that your regular maintenance duties don’t get neglected. All open and upcoming maintenance work orders should be easily visible so that you can schedule them in correctly. Many renters will just take a photograph of their problem and send it to you thanks to the development of mobile technology, particularly the simplicity with which photos can be sent and received. These are gathered in a central maintenance file repository.

For a more streamlined process, PMS systems frequently compile maintenance-related records including estimates, quotations, receipts, invoices, and communication histories into an one spot.

Tenant Applications & Screenings

The ideal tenant will greatly improve your management experience, but you should always be ready for unforeseen events. With effective tenant screening tools, you can make sure that you keep good renters.

Many PMS solutions assist you in weeding out candidates who are less eligible by providing resources like reference verification tools, background checks, and tenant histories that reveal whether the applicant can be relied upon to pay their rent on time. Background checking features are built-in or accessible through third-party integrations, and they might raise concerns if there is any information that applies to a potential landlord.

For additional piece of mind, it is undoubtedly a good idea to keep a look out for property management packages that feature credit check functionality.

Online Payments

You’ll spend less time looking for late payments the easier you make it for your tenants to pay the rent on time. The greatest option to simplify rent payment for your tenants is through online payment processing because they can do it from the convenience of their own homes.

Many PMS programs also provide rent tracking features, allowing you to see who has paid up to date and who has fallen behind right away. Some systems also provide built-in late-fee estimators.

Landlords can benefit greatly from using online tenant portals. These portals allow your clients to pay rent and also provide them with 24/7 access to data like communication logs, rental receipts, and maintenance requests. A thorough tenant portal will not only ensure that you are paid on time, but it will also reduce your administrative workload and boost client satisfaction.

Contact Management

Any landlord will tell you that managing a property properly requires a large team, and that lengthy contact lists may easily become disorganized and unkempt. You can arrange your contacts more effectively and spend less time looking up phone numbers and emails thanks to comprehensive contact management features.

For a more efficient contact management procedure, you can even combine renters, maintenance staff, landlords, suppliers, and other business partners.

While vendor databases make it simple to rapidly receive the service you need, tenant databases let you get in touch with customers. To make sure that your properties are always completely occupied, lead management capability is frequently included in PMS packages.

Advertising & Marketing

A thorough promotion and marketing module will assist you in spreading the news about your openings, which will help you keep your buildings occupied. Utilizing website management tools gives you the chance to present your rental information in a simple and understandable way, and social media integration can assist you in reaching a wider audience with your advertising.

A well-designed website is a wonderful place to display all open positions, both present and future. You can market desirable properties like holiday rentals or student housing, complete with online booking possibilities for optimal ease, depending on the nature of your business.

Another effective strategy is to include a customer review section on your website. This will allow current and previous tenants to attest to the appeal of your rental—especially if you consistently achieve high customer satisfaction rates. You’ll start to get more qualified candidates once they can see that you are a dependable landlord that manages a well-kept property.

Financial Management

Property management is no exception to the rule that successful business owners must maintain strict control over their money. The top property management tools will enable you to optimize revenue while lowering your out-of-pocket expenses.

By giving you a thorough overview of your financial situation, expense management functions can help you maximize the use of your operational budget. While bank connectors speed up the reconciliation process, tax management options assist you in staying compliant with local tax rules.

It’s also important to note that many premium property management apps come with powerful business intelligence (BI) features. They examine a variety of financial parameters, such as income, expenditure, and upkeep, and provide the results to you in an understandable manner.


Even though a property management system could ultimately make your company function more efficiently, it’s crucial to weigh the downsides to see if it’s appropriate for your property before making an investment.

You’ll be reliant on a single merchant.

You may connect every part of your business with property management systems using a single application. However, this can make it more challenging to employ other third-party solutions that might be more advantageous to your company, such accounting or payroll software.

Even while some property management systems permit connection with third-party products, the process is not always straightforward and may result in operational problems for both products. If you wish to add services that your software vendor doesn’t provide, such self-check-in kiosks, email marketing databases, or guest communication platforms, you might need to buy extra items in the future. If you choose separate vendors for these items, you’ll have to handle multiple systems once again rather than just one for property administration.

Cost can initially be an obstacle.

It can be challenging to find the money for an all-in-one property management system right away if you run a small, family-run business in a non-tourist area. These solutions eventually pay for themselves through time savings and an increase in bookings, but you’ll want to be sure you pick the proper one for your line of work.

You might be compelled to give up on your property management system if it doesn’t work for you or spend more money looking for a more suitable option because the software is frequently proprietary and may not accept or play well with other tech products.

All-in-one is not always best.

Relying on property management software that promises to do everything can be a nuisance for larger hotels and may actually need the acquisition of additional goods or services. Software solutions often excel at one to three primary tasks. As an illustration, your preferred property management system might be particularly effective at gathering and arranging reservations, allocating workers, and maintaining a current, rotating log of maintenance needs.

The same system, however, might not have the best accounting software or might not even have a marketing role. You will need to either buy additional software or hire more staff if these duties are crucial to your company’s operations, which they frequently are for very large or highly busy locations.

Features of Hotel Management System

Reservation and front-desk operations

The online booking engine and other distribution channels should be coupled with the reservation service, which holds all inventory information and dates. The administration of the hotel may see the existing and upcoming reservations on practical and user-friendly dashboards. They can maintain track of reservations and visitors, verify the status of rooms, and transfer people around as necessary. One secure system is used by this module to check visitors in and out, issue key cards, manage room-related requests, track room allocation, process payments, provide guests receipts, do night and shift audits, and more.

Distribution channel management

Businesses in the hospitality industry need to be visible across a variety of internet distribution channels to reach their target customers. Bookings can be made through a hotel’s website, travel portals, mobile applications, business clients, airlines, and other channels. Using hotel property management software, a company may manage several channels and increase its online presence. It permits the listing of rooms and pricing on numerous channels and through third-party booking partners, and it interfaces with online travel agencies (OTAs) and global distribution systems (GDSs).

Direct sales are handled by a central hotel booking engine, and distribution channels are managed online. This function streamlines booking-related transactions and aids in the elimination of manual management. The program offers a single interface for managing and distributing stocks across all channels and integrates directly to the reservation system. All reservations are coordinated, and all channels receive real-time updates on the status of available rooms. Additionally, it guarantees stability in the hotel’s tariffs and promotions.

Housekeeping & maintenance management

The management of room statuses, cleaning task allocations, and task tracking are all included in housekeeping functionality. The module connects cleaning employees to the front office and automates management responsibilities. Rooms that need to be cleaned or readied for the upcoming guest should be flagged by the program, and chores should be delegated to the appropriate staff members. A front-desk manager can keep tabs on the condition of every room and arrange maintenance logs. When everything is finished, housekeepers can update the status of their chores or rooms on their smartphone or tablet thanks to cloud-based hotel PMS. The personnel can also upload pictures of any problems so that the maintenance division can promptly evaluate and fix them.

A maintenance management system helps plan and organize maintenance operations, record hotel disruptions and repairs, manage maintenance reports, and track maintenance requests and update their statuses. 

Revenue management and strategy

To track, manage, and analyze payments, a hotel revenue management system offers a simple and secure interface. 

Online payments are accepted, credit/debit card information is promptly verified, and in the event of non-payment, it assists in managing outstanding charges.

The use of flexible, data-driven revenue management tactics is made possible by hotel property management software. They monitor important performance factors like occupancy, RevPAR (revenue per available room), and ADR (ADR). To help find the best prices, special algorithms use past data as well as information on the rates of competitors, the weather, or nearby events. Hotel management can set restrictions, automatically modify room prices across all distribution channels, create packages and special offers, and more with the use of dedicated pricing tools. Systems for managing revenue also assist hoteliers in changing procedures to improve outcomes and maintain financial control.

Customer data and customer relationships management

Customer communication should be possible with hotels before, during, and after a guest’s stay. Guest contact information and other data are gathered and organized from these sources by a CRM that is integrated with the front-desk and reservation systems. For more individualized visitor experiences, hoteliers can create membership and loyalty programs with the aid of a guest information database. Additionally, hotel PMS systems offer a thorough capability for managing customer feedback. The data may be utilized on the hotel’s website, surveys, and online and mobile travel agencies.

Reporting and analytics

For the hotel industry to expand, reporting must be thorough and fast. Hotel PMS systems can produce a variety of automated reports, depending on the program, including night audit, shift audit, room and tax reports, departure/arrival, housekeeping, and other continuing reporting. Below is an illustration of a report on previous reservations.

This module makes it easier to keep track of sales, reservations, and inventories and offers insightful daily data, occupancy rates, ADR, and RevPAR into hotel performance. The proper hotel PMS also assists in adhering to local tax reporting laws and regulations.

Back-office management

This module helps streamline, improve visibility, and optimize back-office and administrative hotel operations. It may include the following functions:

  • Human resources management, including shift management and staff invoicing
  • Reviews management
  • Event management and catering
  • Conference room, spa, and gym management
  • Sales and catering execution for group bookings
  • Assets management
  • Inventory analysis
  • Consumption costs and hotel spending analysis
  • Sales and management of promotional campaigns

The back-office module may offer internal messaging, reports of guest’s arrival times, the ability to manage campaigns, send emails, and sometimes, basic accounting.

Point-of-sale (POS) services

In addition to restaurants, banquet and conference rooms, gyms, day spas, and gift shops, many hotels also feature other facilities. On the guest folio, they can also list additional fees or discounts for food and drink, room services, mini-bar products, TV, or Wi-Fi. The POS function of hotel operating systems automates transactions, maintains data centrally, and aids in managing all payments taken through several point-of-sale terminals.

Function of Hotel Management System

Efficiency-oriented solutions

The daily procedures and processes that hotels use to run their businesses are becoming more complex and time-consuming in today’s fast-paced hospitality industry. They can be automated by hotel property management systems, giving staff members the chance to provide superior services to visitors and guests. Implementing a hotel property management solution enables hoteliers to focus on the wider picture by handling a significant portion of the job and, in certain circumstances, reducing or eliminating time spent on labor-intensive tasks and operations.

Transparency-based communication

Communication based on transparency between various hotel departments is absolutely necessary. To best serve the guests, they must cooperate. A property management system makes it possible for all departments to communicate clearly and easily with one another, guarantees that they are all working successfully and efficiently, and saves time while giving visitors and guests a better, more individualized experience.

Channels of distribution

It is quite advantageous to integrate a property management system with a channel management function. Hoteliers can promote through a variety of channels, including small retail travel agents, large online travel agencies (OTAs), and global distribution systems (GDSs). Your staff can handle all reservations made through various third-party channels (OTAs, GDSs, social media, and metasearch) using a single system, preventing costly errors that might have a detrimental effect on the guest experience.

Save time on admin tasks

The time you spend on manual administrative activities would be significantly reduced with the correct hotel management software. The majority of the labor is handled by the program, which frees you up to focus on other crucial activities like serving your guests.

A hotel management system will have a greater impact on all of your property’s departments than any other type of software you utilize. housekeeping, front-of-house, and revenue management In practically every aspect of your organization, you may save a lot of time by choosing the correct solution, which will also increase employee happiness and productivity.

Develop strong relationships with your guests

Your guests will be happier if the check-in and check-out processes are more efficient. And that’s just the beginning; everything from enhanced communication to the provision of new services will increase customer loyalty. The best property management software will probably result in higher levels of worker and guest retention.

Increase your online visibility

Choosing the correct software is crucial to building your internet presence. Your website design can incorporate customer-facing tools, such as hotel booking engines, chatbots, and a guest portal, allowing you to rapidly accept online reservations and giving visitors confidence in their decision to book directly with you.

Websites with a better user interface and journey will rank higher on Google searches and other search engines since Google prioritizes and evaluates the user experience on websites.

Implement an effective revenue management system

To maximize revenue, the majority of hotel management systems have capabilities for pricing and other features.

The days of having only a peak season price and a low season price are long gone. If you aren’t arranging prices in a more sophisticated way, you’re missing out on bookings and not maximizing the number of guests who do book. The ability to develop and modify product rates, rate dependencies, and unique offers and policies like package rates should be available.

Manage distribution functions

A modern hospitality cloud should be able to quickly connect to a channel manager, allowing you to market your company through a variety of platforms and OTAs and third-party booking systems.

It offers real-time data that can assist you in increasing the amount of reservations and promoting your property.

Increase bookings

Every function in your hotel management system ought to increase the total amount of reservations you receive. The ideal software system is all about maximizing and optimizing what you can accomplish, whether your goals are to expand into new markets or increase bookings during off-peak periods.

The obvious tools that will assist you in this area are revenue management and a direct booking engine, but everything from integrations to intelligent reporting and automation will ultimately help.

Accurate daily reports

Thanks to data-savvy hotel management software, the revenue, finance, and management teams will have access to precise daily earnings reports.

You and your team will be able to make dependable, data-driven decisions throughout your whole company with the aid of operations and marketing reports.

If everything is in the cloud, these invaluable metrics are at your fingertips whenever you need them, without the need for time-consuming manual exporting and compiling.

Prevent double bookings and manual errors

Software for managing the hospitality industry is designed to prevent multiple bookings and overbookings. They also assist front desk workers in preventing mistakes while entering crucial customer information like name, passport information, and card numbers thanks to job automation.

Better customer service (no awkward follow-up conversations asking for their exact details), more staff time to focus on their crucial tasks, and more trustworthy business data and reporting are all results of this.

Analyze your customer base

A good guest management software system will also allow for market and visitor segmentation. With crucial demographic breakdowns like age, gender, and nationality, the GM and Marketing Managers can keep track of the various visits.

You can use this information to decide on your marketing plan with knowledge. enhance your company’s long-term sales patterns, etc.

Sophisticated revenue tactics

Hoteliers can use property management tools to create efficient data-driven revenue management methods, but doing so necessitates monitoring key performance indicators (KPIs). Hoteliers can develop a more successful revenue plan by monitoring measures like average daily rate (ADR), revenue per available room (REVPAR), and gross operating profit per available room (GOPPAR). Additionally, they can evaluate and compare performance over time with the aid of actionable performance data and reports, which enables them to improve business mix decisions and increase revenue.

Streamlined check-ins/outs, bookings and billing

There is nothing more annoying than having to wait a long time to check in or out; these procedures should be quick and simple to offer customers a smooth experience. Hotel personnel may easily complete duties and operations including check-in/check-out, guest requests, cleaning status, room maintenance, bookings, and payment options with the use of a hotel PMS solution. Most of these procedures and duties, which boost productivity and provide visitors and guests with a wonderful experience, can be quickly carried out by hotel management.

Real-time monitoring

Property management systems offer fantastic opportunities for flexible remote access from anywhere and at any time, which is ideal whether your hotel business is year-round, requires a 24-hour commitment, or you’re a hotelier looking to better govern your enterprises. This implies that a hotel owner or management can keep track of the progress of each reservation, modify or change tariffs, and evaluate performance data whenever and wherever they want.

Property Management System

Software for property management maintenance is used to automate work orders, track asset data, and create cost-effective maintenance budgets.

It’s also known as property management software, facility management software, and building maintenance software. Despite the fact that the phrases are frequently used interchangeably, there are important distinctions between management maintenance software and property management software.

The former is a program that gives landlords and property managers control over their rental homes, tenant data, and financial records. A strong property management software also makes it easier to expedite operational procedures like electronic payment transfers and tenant application processes.

On the other hand, maintenance-related procedures are the only focus of property management software, also known as computerized maintenance management system (CMMS) software.

Who Uses it?

The following roles often benefit from using property management maintenance software:

  • Landlords and Property Managers: By automating maintenance management procedures, this team may significantly save time expenditures. Commercial spaces, commercial buildings, residential areas, dorms for students, gated communities, and apartments all have a variety of assets that need time-consuming maintenance to keep them operating efficiently. A good example is the 20 maintenance management hours per week that MaintainX customers reportedly save after converting from analog scheduling techniques to the mobile maintenance management software.
  • Renters: Through requestor portals coupled with maintenance management software, facility users submit work requests. They can utilize it to communicate with management conveniently about inbound shipments, facility notifications, and time-sensitive issues.
  • Real Estate Asset Managers: Real estate asset managers are in charge of managing investment portfolios at the property level. The expected useful life of assets used to improve financial assessments is shown by historical maintenance data.

Features to Prioritize

The primary benefit of property management maintenance software is centralized organization. The appropriate platform gathers several O&M management tasks into one location. Managers can easily access all they need to oversee various projects and associated data points without having to switch between numerous spreadsheets, calendars, and paper work orders.

Applications for property maintenance software frequently include a number of useful features in addition to typical work order management. Of course, which ones are best to buy will depend on the particular requirements of a maintenance crew. However, we advise giving the following priority:

1. Preventive Maintenance Scheduling

The primary function of a maintenance software platform is the creation of work orders. It makes it simple for management to plan, delegate, and oversee preventive maintenance tasks. In result, this proactive maintenance strategy improves responsiveness to emergency repair requests when they do occur, reliability, and client experiences.

Additionally, job priority labels, various calendar views, asset, location, and parts details, as well as PDF uploads for maintenance manual attachments, are features of the top work order systems.

Running successful preventative maintenance plans to lower the incidence of inconvenient, unforeseen breakdowns requires property management maintenance software.

2. Work Request Integration

Rapid communication between tenants and management can increase resident loyalty, improve the reputation of the property, and lessen disagreements brought on by misunderstandings. The greatest software alternatives allow users to combine data from several applications through API interfaces. Application Programming Intermediary is referred to as API. APIs essentially enable programs to “speak” to one another.

Managers can connect maintenance software to internet portals where renters can make work requests by using work request APIs. Maintenance managers can accept or reject the automatic work requests generated by the software. Following approval, management schedules work orders for maintenance workers or outside contractors to complete. On this point, it should be noted that MaintainX has a requestor site of its own, eliminating the need to integrate third-party software.

3. Maintenance Inventory Management

Successful maintenance management depends on maintaining optimal levels of parts. Tenants anticipate that broken down property assets will be fixed quickly. Critical components must therefore always be available.

Rush ordering parts is problematic not only because management may have to wait for supply-chain delays, but also because expedited delivery costs are high. Spending money on bloated supply closets is problematic, though. The correct software will offer low-inventory alarm options to help with this conundrum. Management avoids both overstocking and understocking areas in this way.

4. Asset Management 

Software for managing property upkeep should also have an asset database that is indexed. When creating digital work orders, management should have the ability to tag asset entries.

With the help of this tool, professionals may keep maintenance records close at hand. For instance, a thorough asset entry should describe any prior work performed on an asset, the parts used, the amount of time invested, and the overall maintenance expenses.

5. Advanced Reporting

Resource optimization depends on keeping track of an asset’s long-term performance, any associated maintenance costs, and the number of technician hours. Select a platform that can combine data elements into clear reports to aid in making budgeting decisions.

In order to assess the health of an O&M program, management can analyze maintenance metrics including mean-time-to-repair (MTTR), planned maintenance percentage (PMP), and schedule compliance. Most importantly, navigating shouldn’t require extensive instruction!

6. Secure Cloud Storage

Without cloud storage capabilities, no program for property administration in the current day is complete. Organizational data is stored online by means of third-party storage providers using cloud storage techniques. You are already familiar with cloud storage if you have ever used programs like Google Business, Facebook Messenger, or Dropbox. Real-time data access, collaboration, and storage are all made possible.

With the help of this functionality, CMMS users can utilize their mobile devices to view work order and asset data from any location. Cloud-based software solutions give property managers the benefit of increased agility in addition to the ability to scale as they grow and pay per user per month.

7. Mobile App

Finally, we advise giving “mobile-first” platforms, notably software solutions with mobile applications, priority. Mobile-first design refers to an application that was created from the ground up with tablet and smartphone users in mind.

Mobile-first platforms are “cleaner” coding-wise and created with the mobile interface in mind, in contrast to software packages that engineers later modify for mobile compatibility.

As a result, they are occasionally more dependable, user-friendly, and quick than their hybrid counterparts.


Even though a hotel’s property management system frequently outweighs any drawbacks, it’s crucial to carefully analyze your operational practices and long-term expansion goals before making the investment. While early costs could be a worry, if you can use all the revenue-boosting options the program offers, it usually pays for itself very quickly.

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