Entering the property market is a shot at making wise investment decisions. Whether you’re flipping a house to add value or want to try your hand at the short-term rental (STR) game, managing the property requires time, attention to detail, and business savvy. If you manage multiple properties, keeping on top of all of these can be daunting.
That’s where property management software and other tech innovations have proven valuable. As you’re reading this post, you’re probably aware of the plethora of digital products out there to assist with property management.
But which ones will work for you? Keep scrolling to get a guide on which technologies will help streamline your property management operations and, ultimately, boost your business’s profitability.
Selecting the right software for your property management business
Although several solutions are available, you need to be selective when implementing them. Choosing the right property management software and tools depends on what you want to achieve. You should only ever choose a software tool that will improve how your property is run. If it’s going to make business operations more complicated, then it’s always best to leave it out.
The software you go with also depends on the nature of the rental property you run. Managing a long-term rental is a very different ballgame to running a vacation rental or short term rental. Here are some of the tools offered by property management software and the features to look out for.
Long-term property rentals
Arguably long-term rentals are an easier business than short term rentals. Once you’ve found tenants, you’ll only need to engage with the property on a monthly basis to collect rent, or when the tenant requires a manager’s attention for maintenance or modification permission. However, long-term rentals can also become administratively complicated which is where property software can help.
If you’re managing a long-term rental, look out for software that has the following features:
Rental collection assistance: Property management software can help you send out payment reminders, generate invoices, and process rental payments. It’s useful for monitoring tenants and ensuring payments are made on time according to their rental agreements.
Document management and storage: Accessing documents like lease agreements, inventory lists, maintenance certificates, and even insurance documents in one place can save you a lot of time. Easy access to documents may be necessary for any discrepancies that may arise, allowing you to quickly highlight and reference specific points. Software also allows for document sharing, so you and the tenant can remain aligned on the terms of the lease.
Financial management: Aside from ensuring rent collection, you may also need to manage security deposits, contractor payments, utility bills, and amendment replacements. Having a digital space to track all these financial aspects can greatly boost property management operational efficiency.
Getting property management software with these features can help you greatly in managing a long-term rental.
Short term rentals
Managing short term rentals is a far more dynamic practice, requiring marketing efforts, attention to price fluctuations, more rigorous maintenance and cleaning plans, and reputation building. The requirements placed on property management software in this capacity are therefore far greater.
When looking for software assistance in managing a vacation or short term rental property, keep an eye out for the following tools:
Dynamic pricing tracking: As with any business, you’ll want to stay ahead of the game. Implementing dynamic pricing is one key way to ensure your pricing remains competitive and attractive to guests. Some property management software tools can make suggestions based on current market performances and keep track of specials you may offer.
Online booking management: Getting a property noticed online is essential for driving traffic to the listing and converting visits into bookings. If you have a property listed on multiple platforms, property management software can ensure you don’t accidentally double-book by automatically blocking off dates.
Financial reporting: Property managers need to keep on top of the finances of the STR business to ensure remaining in operation is viable. Generating financial reports manually can be time-consuming and, sometimes, confusing. Automated financial report generation is therefore ideal for building reports like budgets, projections, and past performance metrics.
Guest communication: Management software can prove to be useful when it comes to automating guest communication. Ensuring that your guests get their booking confirmations, welcome messages, and any other comms is vital for building a good reputation and running and managing a successful business.
Maintenance schedule: For your STR property to thrive, property managers need to ensure that it remains in mint condition at all times. This requires a more detailed and rigorous maintenance schedule, especially if the property has several amendments and features for guests to enjoy. Having software can help you log faults, prepare a maintenance plan and track maintenance progress will greatly help STR managers.
Business performance tracking: Business performance tracking can help consolidate insights about marketing campaigns, guest reviews, and profits. Essentially, these reports provide an overview of how the business side of things is performing. It gives managers information on what’s working well, any adjustments that need to be made, and the profits made within specific periods.
As an STR property manager, you need to ensure the management software you choose has these features as they will help you optimize your operations and drive profits steadily.
Streamlining property management operations
Property management software primarily streamlines operations by providing a convenient platform for accessing all aspects of your rental property–at least from a business perspective. Here’s how it can save you time.
Enhanced and automated guest communication
Manually sending communications to guests can be tedious. They may also get worried when they do not receive a booking confirmation from you, which may negatively impact their overall stay experience. Property management software can automate standard guest communications like booking confirmations and payment notifications.
However, some also provide a communication platform that facilitates messaging, allowing you to keep in touch with your guests at all times. This makes your life a lot easier and boosts your reputation for being a responsive host.
System integration
Having software that easily integrates with other business management tools is essential. Most property management tools can integrate with accounting software, listing platforms, and payment gateways, making it easier to manage these aspects of the business.
Online booking management
Types of software can keep tabs on bookings, avoid double-booking, track which listing platforms are doing the best, and ensure all guest communications are sent out. This is particularly helpful for reducing the margin for human error and ensuring guest satisfaction,
Boosting your property’s profits
By streamlining your operations with property management software, you can unlock several benefits that will boost your profitability.
Online listing management
Some software allows you to easily manage your property listings across multiple platforms to maximize visibility and bookings. The more people see your listing, the more likely they are to make a booking. Property management software also allows you to update listing descriptions, which helps you keep up to date with optimizing your listing and providing important information guests may want to know before booking.
Trend tracking
Having an overview allows you to gain insights into market trends and pricing, which can help you make informed decisions about your rental rates and what marketing trends you may want to make use of. For example, if you see greater booking rates for properties that have a laundry facility, this may be something you, too, want to implement.
Dynamic pricing assistance
Automatically adjust prices based on demand, seasonality, and other factors to optimize revenue. Having a dynamic approach to your listing pricing, offering specials, and adapting to align with special occasions and seasonal guest influx can greatly help when it comes to turning a profit.
Improved customer service
Providing a seamless experience for guests is paramount in today's competitive market. Property management software helps you deliver exceptional customer service by automating communication, sending timely reminders, and addressing guest inquiries promptly.
By streamlining the booking process and ensuring guests have all the information they need, you enhance their overall experience, leading to better reviews and an increased likelihood of repeat bookings.
Benchmarking and forecasting
Analyzing performance data allows you to identify areas for improvement and make accurate financial projections. Property management software provides detailed analytics on booking trends, revenue streams, and expenses.
By benchmarking your performance against industry standards and forecasting future trends, you can make informed decisions about pricing, marketing strategies, and property upgrades. This strategic approach helps you optimize your operations and maximize profitability over time.
Getting the right software for your business
As you venture further into the property market, remember the importance of choosing the right software to support your endeavors. With the right tools, you can navigate the challenges of property management with confidence, knowing that you're equipped to succeed.
From managing rental collections to optimizing online listings, property management software offers a range of features designed to simplify your workload and improve your bottom line.
Whether you're tracking market trends, adjusting pricing strategies, or providing brilliant customer service, these tools can help you greatly. Individual property managers and property management companies alike need to know what to look for in property management software in order to make it work for you and your business.
