Have you ever wondered what the best software is for a rental property management business? I have been in this industry for years and have built my fair share of rental property websites. In this article, I will discuss the best software for real estate agents and managers.
What is rental property management software?
A rental property management system is software that enables rental property owners and managers to execute a considerable number of essential daily tasks–including managing and tracking tenant information, accounting and billing, maintenance, and posting vacancies online–to help all operations run smoothly for a given property. Rental property management software also generates reports on activity like monthly rent payments, income, and expenses, to help you monitor the financial health of your property.
A lot of work goes into starting a rental business, from having the initial idea to creating a business plan to finding a location and incorporating your vision. It can feel like there are a thousand steps to get through, so we knocked one of them out for you: here’s a list of affordable software applications that will make starting (and running) your business easier.
Payment Processing
There are a lot of options when it comes to payment processors, but it’s important to pick a processor you can trust. TSYS is a payment processing leader in the United States, with several EMV solutions to ensure payments are secure and fast. If you’re not in the U.S., Stripe serves Western Europe, North America, Brazil, Australia, New Zealand, Japan, Singapore, and Hong Kong, and allows you to accept payments in myriad ways.
Bookkeeping
QuickBooks is the industry standard for online bookkeeping software. The easy-to-use interface makes it simple to set up accounts and track income and expenditures and their reporting features give you confidence in knowing where your money is (and where it belongs). It sure beats an actual ledger and spreadsheets.
Internal Communication
There are a couple of great, popular, and free small-group and project management tools available. Slack provides simple internal communication that is quick and easy to manage. 10,000 messages are archived (or more, if you upgrade to paid) for easy searchability, and it integrates with other software. Asana is one of the programs Slack integrates with, and it has more robust project management abilities. You can use it for free, too, so why not use both?
External Communication
MailChimp makes it easy to connect with customers, create attractive email campaigns, and automate communications to keep your business top of mind. You’ll even be able to set up campaigns to ensure each customer gets the message they need at the time they need it, and, best of all, it’s free to start.
Pulling It All Together
Zapier automates the processes that can fill up so much of a new business owner’s time. With more than 750 apps supported and multiple automations possible from each app, you can eliminate unnecessary steps from almost any process. You can even connect several of the previously mentioned apps, and you can do it for free.
Rental/Inventory Management Software
Finally, you’ll need something to bring it all together – rental management software. With Essentials, you can manage your inventory and customers, create contracts, view bookings, run an online store, and you’ll even be able to integrate with most of the software products listed above.
With over 35 years in the rental industry, we know it can get stressful juggling so much day-to-day, that’s why we are here to help. If you have any questions about how to get started or just general rental questions, give us a call or book a demo here – we love to talk rental!
BEST OVERALLBuildium
Built by property managers for property managers, Buildium’s comprehensive service allows property owners to control every aspect of their business remotely, making it the best overall choice for both residential and association property managers.Pros
- Built by property managers for property managers
- Automatic rent collection through a tenant portal
- Online ticket support during business hours
- A lot of training materials offered
Cons
- Expensive pricing plans
- Some customer support complaints
- Not a fit for single property managers
Buildium, our overall best, is a comprehensive software that allows rental managers to control everything from online rent payments, vacancy management, maintenance cycles, and accounting. Through accounting, business operations, leasing, and community association management features, Buildium streamlines the whole property management process. It facilitates the lead-to-rent collection cycle through tenant and lease tracking, automated rent and fee reminders, complete general ledger accounting, and on-demand reports. Among its features, Buildium also has a specialized tenant portal that allows property managers to receive online payments automatically.
While there is no free version, they offer a free 15-day trial. Pricing is based on the number of units you manage and starts at $50 per month for up to 150 units. The more units you have, the lower the cost per unit with a maximum number of 5,000 units at a cost of $1,080 per month (additional units require specialized plans). Buildium also has a 10% discount for anyone that signs up for annual billing.
As it streamlines the whole process, Buildium is fairly simple to use, although basic users may not be able to maximize all of its features. To help users find their way through it easier, Buildium has a ticket-based customer support system, although there were some complaints about the slow responses clients received from it.2
To support its features, Buildium integrates with several outside software platforms, including Apartment List, Apartments.com, Forte, HappyCo, HotPads, Lovely, TransUnion, RevSpring, MSI, Nelco, Tenant Turner, Happy Inspector, PayNearMe, Trulia, Zillow, and Zumper.
The idea began between 2002 and 2003 when Michael Monteiro & Dimitris Georgakopoulos started their rental property business and realized they needed software that will help them manage their properties easier. In 2004 they founded Buildium, which quickly grew to 10,000 customers by 2014, receiving many awards and recognitions to date from G2, SoftwareAdvice, and Capterra.
BEST FREE OPTIONTurboTenant
TurboTenant’s pricing model puts all of its costs on the tenants, making it the best free option for landlords.Pros
- Free regardless of the number of units managed
- Great for DIY landlords
- 24/7 customer support through phone and online
Cons
- Tenants have to pay for it
- Limited advanced features
A lot of rental property management software platforms have free trial options, but often for only a limited number of units or a limited period of time. This is not the case with TurboTenant, which will remain 100% free no matter the number of units you manage. While many free rental property management software platforms leave a lot to be desired, TurboTenant is pretty straightforward to use with a simple interface and setup.
While TurboTenant is free for landlords, tenants pay a fee of $35 to $45 for application and screening, a credit card rent payment fee of 3.49%, and an optional renters insurance monthly fee starting as low as $8. Landlords can purchase a few optional services for a one-time fee, such as state-specific lease agreements for $29, an unlimited number of electronic signatures for $9, 45 common landlord forms for $100, and a rent estimate report that compares similar local properties for $15.
TurboTenant has several features designed to facilitate tenant management for landlords, including managing applications and screening tenants online, creating dedicated listing pages, and sending bulk tenant messages from one inbox. By integrating with Craigslist, Facebook, Realtor.com, Rent.com, Apartments.com, and other rental listing sites, landlords can advertise a vacant property with a single click across multiple platforms.
You can then screen tenants through TransUnion, send and sign all documents online via the platform, and send payment and maintenance requests online. Payments are made through ACH with no fees or by credit card for a 3.49% charge.
Although it’s a free, cloud-based platform, it has been featured and praised by Reuters, USA Today, and Forbes. Considering there are over 350,000 landlords using their software, the reliability and support provided by TurboTenant’s online tools have been proven and endorsed since their founding in 2015.
The company’s strong reputation has earned them three rounds of venture capital investment from four different firms, totaling $10 million.
BEST FOR ADVANCED FEATURESAppFolio
AppFolio, popular among landlords with large rental portfolios, offers the best advanced features to control your units remotely, and additional support and resources to grow your business and maximize its efficiency.Pros
- Pay only for the features you need and use
- Supports all types of units
- Has a mobile app
Cons
- Has a minimum monthly fee
- Not fit for a small number of properties
Besides supporting all types of units, AppFolio has developed à la carte features a landlord would need to operate and grow their business remotely, earning our top vote for best for advanced features.
Because it doesn’t have tiered pricing, but rather an onboarding fee and then a monthly fee based on the number of units, AppFolio is best for those that have multiple properties. Although each advanced feature is pay-as-you-go, there is a minimum monthly fee of $280, which means smaller property managers would have to pay a higher cost per unit if they manage fewer than 166 commercial units or 200 residential rentals.
To set up an AppFolio account, you would need to pay a at minimum $400 onboarding fee, after which the cost of each property is as follows:
- Residential: $1.40 per unit monthly
- Commercial: $1.50 per unit monthly
- HOAs: $0.80 per unit monthly
- Student Housing: $1.40 per unit monthly
AppFolio supports multiple property types, including residential properties, commercial buildings, student housing, and community associations. Each of the features is designed for the specific property type you’re using, so AppFolio has everything a landlord would need—accounting software, rent collection features, maintenance requests, marketing tools for multiple platforms, utility billing, and customizable online leases.
Optional advanced features include a leasing assistant powered by artificial intelligence, professional websites for your properties, premium leads, tenant screening, insurance for landlords and renters, online payments, maintenance contact center, utility management, automated accounts payable, and tenant debt collections.
Founded in 2006, AppFolio has over a decade of experience in providing property management services to clients. Their property management software was the first product they developed, so it’s what they take the most pride in and continuously develop. With over $140 million in revenue in 2017 and an additional $60 million of investment in 2019, AppFolio is confirmed to keep developing and growing in the future.
BEST FOR SINGLE FAMILY HOMESPropertyware
Designed with single family home landlords in mind, Propertyware has earned its place as our best rental property management software for single family homes.Pros
- Mange over 250 properties through it
- Has a mobile app
- Multiple pricing tiers
Cons
- Some customer support complaints
- Fit only for large portfolios
Focused on single family home property management, Propertyware is fairly simple to use, without complicated features commercial management software can have, making it the best choice for single family home management, whether you have few or many. You’ll benefit from Propertyware’s management features whether you are starting out with your first few single family homes or growing into a portfolio of more than 250 of them. It has everything a landlord needs including online rent collection, accounting, maintenance requests, vacant property marketing with leasing agents, marketing with listing syndication, tenant screening services, lead tracking and follow-up, and a portal for vendors.
Propertyware currently has three pricing tiers: Basic, Plus, and Premium, with costs starting at $1 per unit, 1.50 per unit, and $2 per unit, respectively. With the Basic plan, you can run reports; advertise your vacancies; manage the properties with owner and tenant portals; and streamline maintenance work orders, accounting, tenant screening, and rent payments. The Plus plan adds conveniences like two-way text messaging, eSignatures, and inspections. At the Premium level, you can manage your maintenance projects and add portals for your vendors. Each respective tier has a minimum monthly fee of $250, $350, and $450, so to optimize your unit costs, this program is best for managers of at least 250 homes.
Integrations for efficiency include Mail Merge and DocuSign, but aside from those, Propertyware has chosen an in-house approach for marketing, lead generation, and tenant screening rather than integrate with third-party software.
Propertyware is owned by RealPage, a Texas-born company founded in 1998 that currently serves more than 12,000 clients from North America, Europe, and Asia. All members of Propertyware’s management team have over 20 years of experience working in real estate, which means users get software designed by people who understand the industry and how it works.
BEST FOR FEW PROPERTIESSimplifyEm
Designed by real estate professionals, SimplifyEm offers the ideal balance of price and features, making it the perfect choice for landlords that need help managing a few properties and don’t want to pay the high cost of other software plans.Pros
- Supports one to 2,000 units
- Designed by real estate professionals
- Has advanced features
Cons
- High fees for online rent payments
- If you have more than 2,000 units, the platform can’t grow with your portfolio
While SimplifyEm supports any number of units from one to 2,000, it’s the best fit for a few properties, because you can keep your costs as low as $20 per month if you’re starting out with fewer than 10 properties.
The price starts at $25 per month for 10 units and increases by $10 for every 10 units after that. At 50 units it is $60, increasing to $75 for 75 units and 100 for $100 units. You can create a free 15-day trial account without needing to enter a credit card. It does not require a dedicated professional to manage this platform. Independent property owners should find this accessible regardless of their experience.
All packages include email and phone support, income and expense tracking, tenant and lease management reporting, and renters insurance.
SimplifyEm is designed to give a simple and easy way for landlords to manage their properties while also saving time and money. It allows users to track income and expenses, collect rent and tenant applications online, screen tenants, generate and analyze owner reports, track maintenance requests, store documents, and automate repetitive tasks. You can get started immediately because it is cloud-based.
SimplifyEm integrates with some of the leading names in the finance and real estate industry, including Zillow, Trulia, NARPM, ACH.com, Fidelity, TransUnion, and more.
Founded in 2006, SimplifyEm has a goal of utilizing the latest in user experience and web technology to develop a software solution that meets the needs of busy real estate professionals. With almost 15 years of experience and clients across the U.S. and Canada, SimplifyEm has been used to manage over $42 billion in property assets and has been verified by Authorize.net and GeoTrust, with high ratings from Software Advice and Capterra.
BEST FOR COMMERCIAL PROPERTYMRI Software
MRI Software wins our top recommendation for managing commercial properties like apartment communities with features not found in competitors’ programs like investment management, strategic planning & analysis, lease abstraction, space management, and affordable and public housing compliance.Pros
- Multiple advanced features included
- Reliable company with a long history
- Easy to use
Cons
- Works for residential properties, but not a good fit
- Some slow customer support complaints
- Can get expensive if you have multiple users, and you need to contact the company to get a price quote
Commercial properties come with greater financial complexities, and the investors who own them have different information requirements of their properties, such as investment management reports and strategic planning and analysis. MRI Software was designed to meet these needs from the start and therefore wins our vote as the best rental property management software for commercial properties.
MRI Software supports both commercial and residential properties, but because of the design of its features, it’s better suited for the commercial sector. A residential landlord would simply leave too many features paid for but unused. It’s best suited for managing more than 50 commercial units and can be installed or purchased as Software as a Service (SaaS).
As it has a wide array of services for different types of clients, MRI Software doesn’t have specific pricing tiers, but rather it tailors the price for every client’s needs. This means that users can choose what to include in their package and whether they need some or all services, such as online rent collection, lease templates, integrated accounting, maintenance requests, tenant screening insurances, multifamily insurance, resident communication, investor relations, rent and vacancy tracking, manager compliance, and credit risk management.
There is no free trial, and to get a quote you must get on the phone with them so they can interview you to uncover exactly how you want to use the software. While this is an extensive process, quite different from competitors who simply publish their pricing online, there are many reviews from commercial property managers and owners on Getapp.com, Software Advice, and Software Suggest that have rated MRI as a good value for the price they were privately quoted.
Founded in 1971 and based in Cleveland, Ohio, MRI Software started by providing property management services and has expanded to cloud-based software and an app. They’ve had over 17,000 clients from over 170 countries and more than 140 partners supporting them, a testament to the reliability and quality they provide.
BEST CLOUD-BASED SOFTWAREYardi Breeze
As a pioneer in providing cloud-based rental property management software services, Yardi Breeze has stood above other cloud-based software platforms due to the additional features it comes with.Pros
- Unique features
- Free training and customer support
- No minimum or maximum units required
Cons
- There is no mobile app
- Fit only for small to mid-size landlords
- Some customer service complaints
If you want to have access to advanced features that facilitate the usage of your cloud-based property management software, Yardi Breeze is the right choice for you.
There are no setup fees with Yardi Breeze, and every unit you add costs $1 per month, so it’s a pretty affordable property management software for all the features it comes with. While there isn’t a minimum or a maximum number of units it supports, you have to spend $100 per month at a minimum if you have residential properties and $200 for commercial properties with the basic package. There are also upgrades called Breeze Premier that cost $2 per unit per month with a $400 minimum.
The features include built-in accounting software, online rent collection, rental applications, templates and addendums, maintenance requests, automated marketing, activity calendars with tasks, renters insurance, tenant communication options, workflow sheets, and outsource payments. All these allow users to manage their properties, tenants, and finances with a few online clicks. But what separates Yardi Breeze is the unique feature that allows tenants to take photos with a smart device and directly attach them to a maintenance request on an online platform.
The system is pretty simple to understand, according to previous clients, but even for those that have problems setting it up, Yardi Breeze offers free training and customer support to set up your account in the first 30 days of purchase.
Yardi Breeze opened in 1984 to provide small and mid-size landlords a solution to streamline their processes.
What 5 key Rental Property Management Software features should I look for?
Applications and tenant information
*Tenant portals enable online rent payment, maintenance request submissions and even community forums for events or public notices to improve communication. *Customizable lease forms and easy document distribution help standardize the leasing process and make sure all required documentation is completed and archived. *Resident screening lets you evaluate applicants’ credit history, criminal activity, rent history and income by initiating these checks from within your software. *Store vital tenant information, such as resident contact information, late fee reminders and work order history.
Rent roll and payments
*Online rent payments eliminate the hassle of paper checks and trips to the bank. *Utility metering calculates and bills for tenant consumption of metered utilities so you don’t have to check and record manually. *Automatic alerts inform landlords and tenants of delinquent rent payments.
Vacancy management
*Automated vacancy postings allow new properties to be listed faster and more easily, reducing the time it takes to fill vacant units. *Automated notifications inform you about upcoming lease expirations. *Vacancy planning provides proactive identification of vacancies and under-utilized locations. *Space tracking helps manage the configuration of available space for move-ins and move-outs.
Maintenance record keeping
*Maintenance request alerts ensure all maintenance issues are taken care of promptly. *The ability to prioritize issues, work assignments, requests and other objectives that require immediate attention helps increase efficiency. *Maintenance staff management allows you to easily delegate tasks. *Service contract storage lets you easily reference records.
Financial accounting and reporting.
*General ledger, income statements, balance sheets and accounts payable and receivable help you keep tabs on revenue, expenses and the overall financial health of your portfolio. *Payroll management allows you to calculate withholdings for state and local income taxes. *Tracking budgets against actuals allows you to view current revenue and forecast future cash flow.
Benefits
Rental property software offers benefits such as cost and time savings, real-time data access, security and scalability. Landlords who are busy or reside at a different location can use these systems to manage multiple properties from their smartphones or laptops.
The software can be installed on-premise, hosted in the cloud or used on a mobile application. Cloud-based solutions and mobile applications enable owners to monitor their properties from any location. Using a single application, owners can check on multiple properties, review tenant complaints, accept payments and receive property alerts online.
Rental property software keeps a record of all communication and transactions made through the application. This can help prevent disputes between tenants and owners in situations when property owners forget to keep records about payments due, excess amounts paid previously and lease termination dates.
Rental property software also enables tenants to submit requests and track their status online. They can print and download documents, such as lease agreements, rent receipts and other account information by logging in to the client web portal. The online payment processing feature saves time and effort, both for tenants and landlords. Users can also add notes and details about offline transactions.
Finally, these systems can alert owners about issues such as pending tax and insurance payments, incomplete maintenance jobs and document renewal. This helps landlords remain compliant with all federal regulations and standards.
What Type of Buyer are You?
Before deciding on purchasing a solution, you should determine what type of buyer you are, as this will help you narrow down your requirements.
Property owners (1 – 9 units): Though managing a smaller number of properties can be done using the traditional methods, an automated system will help ensure accuracy, standardization and better maintenance of records and documents. It will also be scalable in case you plan to increase the number of units you manage in the future.
Owners and property managers (10+ units): If you are a solo owner or property manager in charge of multiple sites, rental software can help you monitor all of your properties from a centralized location, without having to visit the locations frequently. A rental management solution that supports electronic payments helps minimize difficulties related to rent collection, check processing, repair work tracking and documentation.
Property management companies/enterprise owners (50+ units): If you own a rental business and have to manage multiple residential or commercial properties, your best bet is a solution that offers a wide range of features and integrates with third-party software, such as QuickBooks or other accounting and CRM software. Such a solution will help automate important property management tasks such as screening tenants, collecting rent and managing your finances. It can also help track vacancies, manage renewals, create reports and maintain regulatory compliance.
Long-distance property owners: Rental software is especially helpful for owners who reside in foreign countries and rent out their properties. Such buyers should seek a solution that enables them to manage and track rentals, send notifications to tenants and receive payments without incurring additional travel or communication costs.
Market Trends to Understand
Integrated suite vs. point solutions. Integrated suite rental management software combines a range of applications such as accounting, record-keeping and maintenance tracking into one system. In contrast, rental property manager software point solutions serve one specific function (such as processing online rent payments) and are either used in conjunction with other software or in a standalone capacity.
Size and number of properties. Certain rental tracking software systems are better suited for a large number of units or properties with mixed portfolios, whereas others are best for single properties with only a small number of units.
Web-based vs. on-premise deployment. Web-based (or “cloud”) rental property management systems store the application and all associated data online and are accessible from anywhere with Internet access. On-premise systems require software to be installed on a computer or server in your facility.
Mobile-optimized. Some rental property manager systems are accessible via tablet or smartphone, making it easy to view, enter and track data on-the-go.
Conclusion
Well, there are various kinds of software. You can hire a rent collection service provider or you can get the online management solution for the rental business. The later one is usually cheaper and more efficient. Increased efficiency means higher profits!