Property management is one of the most important aspects of running a home or business. It ensures that your property is kept in good condition and meets all the needs of your tenants, guests, and employees. However, it can be a challenging task to effectively manage a property.
Property Management Problems And Solutions Pdf
Problem 1: Visitors Destroying Your Property
If you Google “Airbnb visitor trash house,” you’ll find a ton of stories written by frustrated property managers and landlords who describe how their guests left their homes in truly terrible circumstances.
Even while one advantage of managing short-term rentals is that you can monitor your property’s state and maintain it much better, some visitors may not give a damn about your property as they may just be staying for a few days. After all, they’ll depart, leaving you to clean up their mess in your house or flat.
This is the first typical property management issue that most property managers will mention if you ask them. Some property managers find the issue so vexing that they consider leaving their positions.
Now, you might think that security deposits are a good idea, but occasionally, especially now that mid- to longer-term stays have become so popular, the damages that visitors who stay in your home for a month cause are so numerous that the security deposit you initially collected is completely insufficient.
Solution: Before giving your guests access to your property, check them out.
You can become so excited whenever a booking comes in during the off-seasons or at the start of your employment as a property manager that you completely forget about this typical property management issue.
Under no circumstances should you neglect properly screening and approving your visitors before giving them the key to your biggest investment, your property.
First and foremost, don’t forget to collect payments using secure procedures that will largely eliminate the possibility of receiving chargebacks. You may find some helpful information about managing payments securely here if you’re interested in learning more.
NEVER, EVER neglect to retrieve the security deposit. It is still preferable to not have a guest than to have one who wants to stay for longer than a week.
Request their contact information and identification documents.
Additionally, if your company uses a PMS (Property Management System) and channel manager, you can profit from a booking procedure that handles all of these processes automatically. By doing this, you can be sure that everything is taken care of and that your property is only given to individuals who are qualified to check all the boxes, regardless of whether a booking originates from a channel or your direct booking website.
Problem 2: The Persistent Need to Improve Guest Experience
According to the UK Parliament, “the creation and spread of’sharing economy’ or ‘peer-to-peer’ accommodation services” has led to a significant rise in the number of short-term rentals in England in recent years.
Between July 2017 and July 2018, 223,200 active listings were uploaded on Airbnb, of which 58% were for full properties.
Any reader can see with just a glance at the data and statistics stated above how fiercely competitive this business is. Can you honestly say that, in light of this statistics, fretting continually about how to make your visitors’ experiences better isn’t your second-most prevalent property management issue?
If you don’t make an effort to improve the standard of the service(s) you offer your customers, someone else will get your potential or even current customers.
Solution: The More You Automate and Personalise the Process, the Happier Your Guests Will Be
We discussed the need of getting your guests’ contact information and other crucial information throughout the booking process in the previous section.
Your booking procedure should be as efficient as possible while still being extremely accurate. Every guest dislikes complicated booking procedures. They will quickly forget about your property, no matter how amazing it is, and choose another.
Additionally, by remaining in touch with them and providing them with the best tailored experience based on their preferences, you may establish loyalty if your booking process is set up such that you can capture the authentic email addresses of your guests.
Problem 3: Getting More Direct Bookings
Nobody can dispute the initial exposure that your business receives from channels like OTAs like Airbnb, Booking.com, Vrbo, and many more.
As long as they continue to exist, it seems impossible to think of even one prosperous property management who launched their company without the assistance of these booking platforms.
But the truth is that this exposure has a price, one that goes up every year and reduces the money you make from each booking.
We won’t explore how OTAs and direct bookings compare because we’ve already covered the benefits and drawbacks of each in a separate blog article.
There is no way to get rid of the 15–30% of your net profit that you must give to online travel agencies.
Solution: Expand Your Online Presence as Much as Possible
One of the hardest common property management issues to solve, for both experts and amateurs, is how to increase direct bookings.
The ever-rising popularity of internet enterprises does, however, pave the way in some ways. Why does that matter?
With over 50% of consumers conducting business-related searches online, there are a ton of potential visitors to whom you may market your properties—you just need the right tools:
· A Direct Booking Website
You really must have such platform in order to increase the number of direct reservations. In addition to exhibiting your homes, if your website is SEO-friendly, you can produce engaging blog pieces to attract searchers’ attention.
· Social Media Platforms
It’s time to change your attitude if you’ve been underestimating social media’s influence and the visibility it may give your company. You’ll undoubtedly lag behind the competition if you don’t.
· Google My Business
Did you realize that Google accounts for 75% of all online business searches? You will have several options thanks to the free and simple-to-use internet platform known as GMB (Google My Business). Additionally, it provides you with a website if you don’t already have our first solution, a direct booking website.
It’s not the most professional, but at least you can lead your potential guests to it.
Problem 4: Operations Management
If you simply manage one property, you have probably never had to deal with this issue. However, those who manage multiple properties frequently have the issue of handling the numerous necessary operations.
The majority of your work as a manager of a short-term rental must be done from a distance. You are responsible for renting out the houses all year long.
As a result, you must ensure that maintenance concerns are resolved, the houses are cleaned before and after each booking, and you must keep track of all the other duties you have to complete without being able to visit the properties frequently.
Even if you choose to grow your business and hire additional employees, you will still need to make more payments. Therefore, there must be a way to handle everything expertly without encountering additional complications.
Solution: Find Ways to Automate Different Aspects of Your Business
You cannot employ a suitable property management system if you are serious about removing this obstacle. Managing everything manually or expecting your workers to do so simply consumes valuable time that could be used to grow your company.
Additionally, by delegating the majority of the labor to a system, you may be confident that you’re minimizing human mistakes while selecting an effective property management software.
Imagine being able to manage every aspect of your business from a single login, including communicating with your cleaners and other employees, managing check-ins and check-outs, keeping track of housekeeping and maintenance jobs, understanding the rates and availability of your listings, etc.
This is what your PMS ought to make possible. If you’re still looking for the best PMS, you can find some helpful advice here that you should keep in mind as you make your decision.
Problem 5: Overbookings
Since you could not be in a position to solely rely on direct reservations and ignore channels and OTAs, you should undoubtedly be aware of one of the most well-known, widespread issues with property management: overbookings.
You’ve undoubtedly posted your short-term rentals through multiple channels if you’re motivated to expand your audience. However, it is a time-consuming, difficult effort to make sure that your rates and availability status are updated across all of these sites.
In addition to the time and effort it consumes from you, it might merely destroy the reputation you’ve worked so hard to establish for your brand.
Solution: Using Channel Managers
Channel managers can help you out in this situation. In fact, without a channel manager’s assistance, it is impossible to operate a business in the hospitality sector.
You are aware that there are two categories of channel managers, of course. First-class native 2-way API connectors are provided. Others, however, use iCals to sync.
When selecting your channel manager, we advise you to pay close attention to this feature because it completely eliminates the chance of overbookings when your channel management enables API connectivity and is synced to the same channels.
Property Management System Challenges
Implementation Can Be a Struggle
Your team may occasionally be resistant to change, so it’s important to let them know what the new system has going for it. Once your community has made the decision to change, it’s crucial that you create an implementation strategy. Choosing a new system expert, developing a working connection with the implementation team, and allowing lead time before completely implementing it for the team should all be part of this process. These actions speed up training and implementation while minimizing set-up problems. Make sure your new software solution has a plan of attack.
Providing Mobile and Cloud Access
You can only use your desktop or laptop computer to access some software. implying that a single device is used to store all of your data. We enable you to work wherever and whenever you want using TOPS. All of your information is available from any device thanks to our cloud-based solution. You always have access to TOPS whether you’re at home or at work because it functions on your phone, tablet, and computer. You can work more effectively and manage your community because of mobile and cloud access.
Maintaining Privacy and Security
A software system with weak cyber-security puts you and your inhabitants at danger for data loss and privacy invasion. With TOPS, you are safeguarded by our cutting-edge security, ensuring that your information is always secure. Additionally, you have access to the TOPS cloud, which backs up and stores your data to keep you safe from loss or other catastrophes. We take the utmost care with your security.
Software Becoming Out of Date
This implies that sooner or later, your program may become outdated. In order to ensure that you have the most recent system, it’s crucial to collaborate with your software provider. Whenever possible, it’s best to upgrade your software. When it comes to upgrading your system, our implementation and support staff at TOPS can assist you at every stage.
Automating Your System
The use of software to save time and generate accurate reports relies heavily on automation. You might be excluding yourself from using a crucial TOPS feature if your system isn’t automated. You may automate your reporting and payments with TOPS to save time on manual data entry. The system handles everything for you and offers the most recent data. See how automation may help your neighborhood.
Problems that Property Management Software can Solve
Property management software is also growing in popularity, and any company in this field should think seriously about investing in it due to its numerous beneficial features. Using the right property management software solutions has a variety of advantages. Every property manager faces multiple challenges at once, but with the right software solution, you can find solutions to these problems and assure the continued success of your business.
Insufficient time
The difficult task of managing a property requires a lot of time and other resources. There are instances where it is vital to address several concerns at once and time is of the essence. If only a day could be longer. Using property management software can free up some of your time so that your staff can concentrate on the most crucial aspects of the company. You no longer need to spend your time putting out fires rather than making long-term plans, finding lasting solutions, and buying new, promising properties. Because fewer resources are wasted on problems that could be handled automatically by property management software, your company will gain from this.
Increasing overheads
You must invest in and purchase additional strategic properties and real estate in order to establish the right conditions for your business to expand. However, doing so may necessitate hiring more staff, which could be costly. Because property management software makes the work easier, you won’t need to hire more employees as your company grows. It is simpler and more effective to handle automation and optimized workflow. Even a small group of knowledgeable individuals with access to effective software solutions can affect major changes and, armed with this knowledge, guide the company toward greater prosperity.
Difficult access and control over data
The most crucial factor in urgent situations is time. When it is most needed, do not waste time or money looking for documents and copying data. Data is more visible and can be discovered and used much more quickly when it is stored in a single location by well-designed property management software. This allows you to follow the investment trend. You can save all of your data in one location and have total control over it if your management and accounting systems are integrated.
Missing key dates
When there are numerous properties to maintain, it is difficult to manually manage a calendar and adhere to the dates set in the past. When does the contract expire, when are tenants expected to make rent payments, and when are maintenance tasks due? One missed date can lead to a wide range of problems. Automated daily reminders are useful because, for instance, if you neglect property care, you miss chances to address issues before they become emergencies. You can communicate with tenants and owners using a platform provided by some software solutions. Additionally, integrating this system with outside service providers makes it easier to manage upkeep and repairs quickly.
Communication breakdown
Lack of recent touch with a property management is one of the most frequent reasons that renters and suppliers become frustrated. Everyone might become irate over missed calls and emails that go unanswered. It is not simple to be available at all times as the property manager to respond to inquiries and make important judgments. Your ability to communicate with your tenants should be aided by property management software. They can contact you at any moment if they need to, so you can give them the greatest support if, for instance, they have a significant maintenance issue. Your communication can run smoothly and without hiccups using property management software. Both an owner and tenant portal should be included in your software system so that requests for repairs, maintenance, and other services may be made. To make all the communication processes simpler, you can also include a call center option that allows you to arrange calls with renters or outside businesses.
Despite the numerous issues that today’s property managers face on a daily basis, their work can now be made much simpler and easier. Your business may boost performance overall, increase market share, and save time and money by implementing a property management software solution. Even more valuable than that is the possibility of gaining devoted and content customers who can be sure that all problems will be promptly and honestly resolved.
Property Management Software
Buildium
Buildium is the greatest overall option for both residential and association property managers because its comprehensive service, created by property managers for property managers, enables property owners to manage every part of their business remotely.
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
Building managers can handle everything from online rent payments, vacancy management, maintenance schedules, and accounting using Buildium, our top pick overall. Buildium automates the entire property management process through tools for bookkeeping, business operations, leasing, and community association management. Through tenant and lease tracking, automated rent and fee reminders, full general ledger accounting, and on-demand reports, it supports the lead-to-rent collection cycle. Buildium includes a specialized tenant portal among its capabilities, which enables property managers to receive online payments instantly.
There is a free 14-day trial available even though there is no free version. The cost of the basic plan, which is based on the number of units you manage, is $50 per month. The cost per unit decreases as you have more units. However, it is evident that your overall cost will be larger. Additionally, anyone who signs up for annual payment with Buildium receives a 10% discount.
TurboTenant
The finest free choice for landlords is TurboTenant since its pricing structure places all of its costs on the shoulders of the tenants.
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
Many rental property management software platforms offer free trials, however frequently these are only available for a small number of units or for a short amount of time. This is not the case with TurboTenant, which will continue to be completely free regardless of how many units you oversee. While many free rental property management software platforms fall short in many ways, TurboTenant has a user-friendly interface and is easy to set up.
TurboTenant is free for landlords, but tenants must pay $55 for application and screening, 3.49% for credit card rent payments, and as little as $8 per month for optional renters insurance. Some optional services, such state-specific lease agreements for $39, an infinite number of electronic signatures for $9, and 32 standard landlord forms for $145, are available to landlords for a one-time cost.
Landlords may handle applications and assess tenants online with the help of TurboTenant’s services, which also include making specific listing pages and sending bulk tenant messages from a single inbox. Landlords may market a vacant home on various platforms with a single click by integrating with Facebook Marketplace, Realtor.com, Rent.com, Apartment List, RentPath, and other rental listing websites.
After that, you may use TransUnion to check potential tenants, use the platform to send and sign all papers, and submit payment and maintenance requests online. ACH payments are free, however credit card payments have a cost of 3.49%.
Although it is a free, cloud-based platform, Forbes and Inc.com have both featured and complimented it. Since TurboTenant’s launch in 2015, the dependability and assistance offered by their online tools have been demonstrated and endorsed by the over 400,000 landlords who use their program.
AppFolio
Landlords with big rental portfolios frequently choose AppFolio, which provides the most cutting-edge capabilities for remote control of your units as well as additional assistance and resources to help you expand and run your business more effectively.
Pros
- Plans for residential landlords, community associations, and commercial real estate landlords
- Supports all types of units
- Has a mobile app
Cons
- Has a minimum monthly fee
- Not fit for a small number of properties
AppFolio has created a wide range of capabilities for landlords who need to run and expand their businesses remotely in addition to supporting all unit kinds, earning it our top pick for the greatest advanced features.
For residential landlords, AppFolio offers two alternative plan tiers, in addition to plans for community associations and commercial landlords. There is a per-unit price for the plans, but there is a minimum. The monthly minimum for residential landlords for the core plan is $280.
Propertyware
Propertyware has established itself as our top single-family rental property management software because it was created with landlords of single-family houses in mind.
Pros
- Manage large portfolios
- Has a mobile app
- Multiple pricing tiers
Cons
- Some customer support complaints
- Fit only for large portfolios
Propertyware, which focuses on managing single-family homes, is the ideal option because it is straightforward to use and lacks the sophisticated features that commercial management software can have. Propertyware’s administration tools will be useful to you, especially if you rent out just one or two houses. It includes online rent collecting, accounting, maintenance requests, marketing for vacant properties with leasing agents, marketing with listing syndication, tenant screening services, lead tracking and follow-up, and a gateway for vendors. It also offers everything a landlord could possibly need.
Currently, Propertyware has three pricing tiers: Basic, Plus, and Premium, with prices per unit starting at $1, $1.50, and $2, respectively. You may manage the properties with owner and tenant portals, run reports, market your job openings, and streamline maintenance work orders, accounting, tenant screening, and rent payments with the Basic plan. Conveniences like two-way texting, eSignatures, and inspections are added by the Plus package. You can add portals for your vendors and manage your maintenance projects when you are at the Premium level. This program is suitable for managers of at least 250 houses because each corresponding tier has a minimum monthly fee of $250, $350, and $450.
DocuSign integrations are available for efficiency, however Propertyware decided against integrating with third-party applications for marketing, lead generation, and tenant screening.
SimplifyEm
SimplifyEm, created by real estate experts, is the best option for landlords who need assistance managing a few properties but don’t want to pay the exorbitant cost of other software solutions. It strikes the optimal mix between price and features.
Pros
- Supports one to 2,000 units
- Designed by real estate professionals
- Has advanced features
Cons
- If you have more than 2,000 units, the platform can’t grow with your portfolio
The greatest fit for SimplifyEm is a small portfolio of properties since, if you start out with less than 10 properties, you can keep your costs as low as $25 per month. SimplifyEm supports any number of units from one to 2,000.
Starting at $25 per month for 10 units, the cost. Afterwards, the price is $35 for 20 units and $45 for 30 units. It costs $60 at 50 units, $75 at 75 units, and $100 at 100 units. You are not required to input a credit card when setting up a free 15-day trial account. To manage this platform, no specialized professional is needed. Regardless of experience, independent property owners should find this simple.
Each package comes with email and phone support, tracking of expenses and income, reports on tenant and lease management, renters insurance, and more.
With SimplifyEm, landlords can manage their rental properties quickly and easily while also saving time and money. It enables users to keep tabs on their earnings and outgoings, collect rent and rental application information online, screen potential tenants, produce and review owner reports, keep track of maintenance requests, save documents, and automate repetitive chores. Due to its cloud-based nature, you can start using it right away.
MRI Software
With features not found in competitors’ programs, such as investment management, strategic planning & analysis, lease abstraction, space management, and affordable and public housing compliance, MRI Software receives our highest recommendation for managing commercial properties like apartment communities.
Pros
- Multiple advanced features included
- Reliable company with a long history
- Easy to use
Cons
- You need to contact the company to get a price quote
The financial complexity of commercial properties is higher, and the investors who hold them have various information needs for their assets, such as investment management reports and strategic planning and analysis. The best rental property management software for commercial properties is MRI Software because it was created from the ground up to fulfill these demands.
MRI Software supports both commercial and residential properties, however due to the way its features are built, it is more appropriate for the commercial sector or companies with substantial residential property holdings. Simply said, a smaller residential landlord would pay for too many items they would never utilize. It can be installed or purchased as Software as a Service and is best suited for managing bigger property portfolios (SaaS).
MRI Software doesn’t have set pricing tiers because it offers a wide range of services for various clientele kinds; instead, it customizes the cost to each client’s requirements. Users can thus decide what services they want to include in their package and whether they require all of the services offered, 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, or just some of them.
There is no free trial and you must call them for a quote so they may speak with you over the phone and find out exactly how you want to utilize the software. Despite the lengthy process—which sets it apart from rivals who merely post their prices online—many commercial property managers and owners have regarded MRI as a fair value for the price they were privately priced on Getapp.com and Software Advice.
Yardi Breeze
Due to the extra features it offers, Yardi Breeze has distinguished itself as a leader in the provision of cloud-based rental property management software services.
Pros
- Unique features
- Free training and customer support
Cons
- There is no mobile app
- A few customer service complaints
Yardi Breeze is the best option for you if you want to have access to cutting-edge features that make using your cloud-based property management software easier.
Yardi Breeze has no startup fees, and with the less expensive residential plan, each additional unit is $1 per month. Considering all the features it offers, this property management software is quite economical. If you own residential properties, you must spend at least $100 monthly ($1 per unit), and if you own commercial properties, you must spend at least $200 ($2 per unit). Additionally, there is a second residential package called Breeze Premier, which has a $400 minimum and costs $2 per unit per month.
Online rent collecting, rental applications, templates and addendums, maintenance requests, automated marketing, activity calendars with tasks, renters insurance, tenant communication options, workflow sheets, and outsourcing payments are among the features. With only a few web clicks, customers can manage their homes, tenants, and finances. However, Yardi Breeze stands out due to its special function that enables users to capture images immediately from a smart device and add them to a maintenance request made on an internet platform.
Advantages of Property Management System
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.
Conclusion
Property management is a critical part of any business. By keeping your property management system running smoothly and updating it as needed, you can keep your business running smoothly and efficiently. Additionally, using technology to improve your system can save you time and money. Overall, managing your property is important for any business.