The property management landscape is constantly changing. Landlords are expected to be more efficient and transparent to meet tenant expectations. The key is not just to survive, but to truly grow a property management company. Manual processes are a thing of the past and will hinder the growth of a property management business. That’s where Property Management Software comes in.
Property Management Software is a critical tool designed to streamline numerous facets of your property company. From rent collection to managing maintenance requests, property management software can free up a lot of time allowing you and your team to focus on strategic initiatives and expansion.
This comprehensive guide will outline all the benefits and features of property management software.
Online Rent Payments
Perhaps the most significant advantage of adopting a property management software is the integration of online rent payment systems. In the past, rent payments involved manual checks, trips to the bank, and chasing down late payments. In today’s world, tenants expect the convenience and efficiency of online payment options.
Property management software can allow you to accept a variety of payments through the platform. A few of these may include:
- ACH transfers (also known as e-checks)
- Credit Cards
- Debit Card
- Wires
- Check Scanning
- Cash
Even if a PMS (Property Management Software) platform does not include check scanning or pay by cash options, rent payments can still be recorded in the software. This flexibility caters to diverse tenant preferences while also accelerating the payment collection cycle.
The benefits of online rent payment systems are clear:
- Improved Cash Flow
- Reduce Administrative Burden
- Fewer Discrepancies
- Automated Reminders and Payments
- Documented Transactions
Tenant Screenings
The foundation of a successful property management business is built on securing high-quality, reliable tenants. This is where the “Tenet Screening” features within a property management software provide indispensable results. Manual background checks are slow, prone to error, and often fragmented.
A comprehensive property management software integrates third-party data providers to perform instant, standardized screenings that are legally compliant. These automated checks create a clear and consolidated report that typically includes criminal background checks, credit history, and eviction history.
Through automation, property managers save countless hours of administrative work and reduce vacancy times. Perhaps most importantly, the screening criteria is fine tuned to be fully compliant with fair housing laws.
By screening for high-quality tenants, managers can enjoy a lower risk of eviction, create fewer maintenance issues caused by irresponsible renters, and receive higher rates of on-time payments. All of these benefits will directly translate to more favorable profit margins and a more attractive portfolio.
Document Management
It can be very easy to drown in property management paperwork. Leases, applications, inspection reports, and vendor contracts can quickly overwhelm the management team. Paperwork clutter can lead to wasted time, especially if important documents go missing. Mismanagement of sensitive data poses a security and compliance risk.
Property management software addresses all of these concerns directly by utilizing a robust document management system. A centralized digital repository can easily replace bulky filing cabinets. Property managers can now easily store, categorize, and retrieve documents with just a few clicks.
The software ensures that documents are organized logically, linked to relevant properties, units, or tenants. Digitalizing documents significantly reduces the risk of lost or misplaced paperwork. This will greatly enhance audit readiness.
E-Signatures
In the never-ending pursuit of efficiency, E-Signatures prove to be a helpful tool for growing a property management business. E-Signatures seamlessly integrate into property management software, eliminating the need for printing, scanning, and mailing physical documents. These benefits drastically accelerate the leasing lifecycle.
E-signatures can be used on a host of documents:
- Lease Agreements
- Move-in Checklists
- Move-out Checklists
- Renewal Agreements
- All other official documents
You can use e-signatures, to finalize agreements in minutes. The reduction in friction enhances the speed of transactions, ultimately reducing vacancy times. Additionally, e-signatures within a property management software provide robust audit trails, complete with automatic recording of the date, time, and IP address of every signature. When needed, this provides greater legal enforceability and security than traditional paper copies. With e-signatures, managers no longer need to focus on wrangling signatures, copying, and scanning documents.
Workorders
Maintenance is the backbone of tenant satisfaction and asset preservation. As such, work orders are a key feature within a property management software. In the modern renters market, tenants expect to submit maintenance issues easily and receive quick updates. A centralized work order system delivers on this expectation.
An effective work order module empowers tenants to submit maintenance requests directly through an online portal or app. Tenants will be able to provide photos or videos of the issue at hand. This allows for clear communication regarding the issue.
Underneath the hood, the property management software automates the entire lifecycle:
- Tenants submits the workorder
- Management is notified
- The appropriate staff or vendor is automatically notified
- Staff and vendors update the software on repair status and costs
- Management can oversee the entire lifecycle in real-time
With this centralized process, managers have a tremendous amount of visibility and control over the work order lifecycle, making it easy to track costs, response times, and completion times. This optimization slashes turnaround times, enhances resource allocation, and increases tenant satisfaction and retention.
Messaging Systems
Every business needs efficient and swift communication. This is especially true for property management. In the past, most managers would rely on a clutter of digital communication from emails, text messages, messenger apps, and phone calls. But organizing communication is much easier with messaging systems found within a property management software.
These messaging systems allow managers to communicate instantly with tenants, owners, vendors, and staff all within the platform. Some platforms may allow correspondence related to a specific lease or work order to be automatically tagged and stored within that record, ultimately eliminating the need to search through external inboxes.
Features often include threaded conversations, in-app notifications, and bulk messaging for important announcements. By streamlining internal and external communications, property management software helps resolve issues faster, increases transparency, and builds stronger relationships. This efficient, professional communication will enhance a business’s reputation, making it easier to attract new tenants and retain existing ones.
Grows a small Property Management Business
For small property management firms, scalability is key. The adoption of specialized software is the clearest path to scaling without proportionate increases in costs or employees. A property management system acts like a multiplier. Everyone on your team can work more efficiently as repetitive tasks become automated. With centralized management within the software, a small team can manage more units without needing more employees.
Statistics show that property management software can help in three key areas:
Adoption Rates
There is a strong momentum behind Property Management Software. Its increasing adoption rates are a clear indicator that even small property firms are enjoying the benefits provided by the software. As tools become more accessible, the strategy shifts from “nice to have” to competitive necessity. Smaller firms that embrace the technology position themselves better for market leadership.
The growth trajectory of this technology is easy to quantify. According to Research Nester, the property management software industry is projected to be valued at $7.36 billion in 2026, growing at a compound annual growth rate of over 9.5% between 2026 and 2035.
The significant and expected market expansion confirms that digital tools will become the standard for managing properties, regardless of portfolio size. Non-adoption is likely to create a critical barrier to competitive growth.
Retention Rates
High tenant turnover is one of the greatest challenges for any property management business. Turnover causes lost revenue, marketing costs, deep cleaning, and lost time to administrative processing. A property system directly addresses the challenges of tenant turnover.
With property management software, the maintenance process is streamlined. A tenant can submit a request, vendors can be notified, and repairs can begin in earnest. This streamlined process is crucial in keeping tenants. Per a report from Corcoran Jennison, tenants who are happy with their maintenance experience are 25% less likely to move. Efficiency is key to satisfying tenants in regards to maintenance issues.
The same report found that communication and transparency is another crucial factor in attracting tenants. Renters who are satisfied with communication are four times more likely to recommend the property company to other renters. As property management software features a centralized communication system, keeping renters informed is an easy task.
Savings
The financial benefits of adopting a property management software is crystal clear. According to a report from IOT Business News, property management software can save costs in two main categories:
- Reduced Administrative Labor Costs. When you automate tasks such as lease renewal reminders, operators can streamline the leasing process. This significantly reduces the time and administrative costs associated with the manual paper workflows. The benefit is critical for small firms, as they won’t need to hire more administrators as they scale.
- Maintenance and Asset Retention. Technology can easily shift maintenance from reactive to proactive. Property management software can easily be deployed to utilize predictive maintenance. Automatic reminders can be triggered when it’s time to do check ups or routine maintenance work. This helps prevent major maintenance failures, protects asset value, and keeps tenants satisfied.
The decision to adopt technology isn’t a cost, it’s an investment in your company’s capacity. Start managing your property business on Prisma today.
