Whether you’re a landlord or real estate investor with one unit or dozens of units, you understand the responsibilities that come with taking care of rental properties. From listing properties and collecting rent to managing tenant maintenance requests, this job can quickly become a full-time job.
Rental property management software makes it easy to prevent this part of owning a property from taking over your life. When you first start using rental property management software, it often requires some upfront work because you have to use it to understand how well it will work in your specific situation.
However, once you start using quality software, you may find yourself and your team having to spend less time dealing with the issues that often come with managing your rentals. You’ll also have peace of mind knowing that you have a system that can help you handle the unexpected.
13 features in rental property management software that will make your life easier
Rental property management software can include a wide range of features. The basic software will allow you to list properties, manage leases, and collect rent.
More powerful software will allow you to manage hundreds of units simultaneously and facilitate communication with tenants and team members.
These are important features that you may want to see in your property rental software.
1. Listing services
When one of your modules is available, you want to be able to easily insert that module. A good rental property management software will allow you to upload photos, craft a compelling description, and clearly state the applicant’s requirements.
Once you’re ready, your listing will be sent to several major online listing services. This is an important advantage for all owners, even those with only a few units.
2. Collection of applications
Most property management software allows you to create, submit, and collect applications online. If you need to charge for your order, the management software will also charge the fee. We recommend that all owners give priority to this function.
3. Screening capabilities
Every landlord needs to screen tenants. Good property management software will allow you to run rental history, criminal history, and credit history checks on potential tenants. Any potential issues will be reported so you can make better rental decisions.
4. Collecting rent
Many platforms allow tenants to pay their rent online. They also allow you to track deposits when tenants prefer to pay with cash or checks. If you have more than one or two units, you will definitely need this feature in your management software.
5. Pay bills
When you need to pay plumbers or property managers, property management software can help you pay bills and account for spending appropriately. If you manage dozens of units, an integrated bill payment system is a valuable feature. Landlords with fewer units may decide that a business checking account is good.
6. Signing the lease contract
Many property management software packages integrate document signing capabilities built into their offerings. This can be especially valuable if you have multiple leases that need to be managed.
7. Organizing documents
Property management software often allows you to organize photos, maintenance requests, applications, leases, and other important documents in cloud software.
8. Communicate with the tenant
Tenants need a way to ask questions and report problems. Landlords who are hacking homes or have a small number of tenants may give out their personal cell phone numbers, but this is a system you will likely outgrow.
Your property manager likely has a system for managing this communication, but your property management software may also facilitate this type of communication.
9. Communicate with the team
As your rental portfolio grows, so will your team of associates. These people can include property managers in different states, maintenance, and business associates. Real estate rental software can facilitate some or all of this communication and help you collaborate so multiple people can see if a task is complete.
10. Maintenance reports
Maintenance issues are a frequent headache for property owners who don’t have a system. Property management software can relieve headaches by making it easier for tenants to report issues and share photos. Landlords or property managers can sort out the issues and hire a suitable repair person to fix the problem.
11. Accounting
Almost all property management software makes it easy to report rental income. Some packages also contain full accounting software and the ability to calculate depreciation and distinguish capital investments from maintenance expenses.
12. Banking services
Real estate software that integrates business screening and lending can help you simplify a landlord’s administrative burden. This can be especially important for small landlords who don’t yet have a team to help with bookkeeping and other administrative tasks.
13. Lease contract and form creation
Many of the more powerful software packages include the ability to create leases and leasing agreements to fit legal requirements that vary by state.
When your property management company creates legal leases, you don’t have to worry about legal issues. This is great for medium-sized landlords who cannot yet afford their own legal advice.
The following highlights recommended property management software based on the size of your rental portfolio and the features you’re likely to need given your size.
Best software if you own only a few units
If you’re just starting out in real estate investing, you’re probably still learning what you can outsource versus what you can’t. These software products automate many of the administrative tasks associated with finding tenants, signing leases, collecting rent, and bookkeeping.
At this stage, we recommend prioritizing listing, order collection, screening, rent collection, and basic accounting features. You probably don’t need to prioritize tenant and team member communications or the other features mentioned above.
Without these features, you may need to send texts about leaky toilets from time to time, but these tools reduce the time you spend managing your property at minimal cost. These are our top three recommendations for small property owners.
Two puzzles
Baselane is a free property management software that integrates with a business checking account. For a free service, Baselane offers a surprisingly powerful system that manages basic bookkeeping, rent collection, and other aspects of financing rental properties. (Baselane makes money by charging tenants a processing fee (2.99%) and by selling premium products, such as tenant screening.)
However, it does not provide application management or menu services. Combining Baselane with a free service like Apartments.com can allow you to manage multiple units well.
Stesa
Stessa is another free accounting software designed for small landlords. The company is affiliated with Roofstock, a turnkey property rental company.
When you combine Stessa with Roofstock’s powerful property management options, your landlord experience can be relatively passive.
TurboTenant
TurboTenant is a property management system that includes rent collection, tenant screening, listing services, maintenance request tracking, and other key features.
The free version is a solid option to start tracking your properties and simply managing your listing. This version is what most small landlords will need to keep track of their holdings and manage payments. You can upgrade to Pro or Premium if you want more advanced options (including waiving ACH fees).
Best software if you own a dozen or more units
If you are in this category, you definitely need help from other people. These software suites allow you to communicate with a team and manage a portfolio of rental properties.
These property management software products have all the bells and whistles of professional management products. The difference is that both of these packages are more affordable for landlords with units in the low double digits rather than the hundreds or thousands.
Rentek Direct
Rentek Direct It is a full-service property management software that integrates banking, rent collection, and communication with tenants. Starting at $45 per month (as your number of modules increases), the program includes an app.
The app can do everything from helping tenants report problems to helping landlords market their properties. It also comes with powerful accounting software designed specifically for DIY landlords.
Read our full Rentec review here.
Tenant cloud
Tenant cloud It offers a range of rates and features that will help small and medium-sized landlords manage and scale their rental portfolio in the future. It starts from $0 to $40 per month and also offers customized pricing for businesses.
E-signing capabilities, QuickBooks synchronization, and lease creation capabilities are a unique value-add for landlords seeking to grow from a few units to dozens or more.
Best software if you have dozens of modules to manage
With so many modules, your management software needs to integrate seamlessly with your team’s rhythms. It should serve you, property managers, maintenance teams, and tenants.
Given the size of your rental property business, you may want to choose a premium software package that allows for an unlimited number of properties.
Appfolio
Appfolio It is a premium property management software that manages everything from accounting and communications to team management. The software has a powerful workflow that can help owners with hundreds of units manage their businesses efficiently.
They charge fees ranging from $1.40 per unit to $3 per unit per month.
Read our full Appfolio review here.
Yardie Breeze
Yardie Breeze Manages marketing, rental collections, websites, communications, accounting, and more. With modest costs per unit, this is a great option for landlords with a large portfolio.
Yardi charges anywhere from $1 per unit to $400 per unit per month.
Why should you trust us?
I have been covering real estate investments for 10 years. I have personally owned single family, multi-family, and more. I am well versed in the investment side and tax side of these products and services.
Furthermore, we have our own compliance team that regularly checks and updates the facts related to our reviews.
Property management software that suits you
Depending on how many rental units you have, find out what software might best serve your needs so you can automate as much as possible. Maybe you’re looking to expand your rentals and buy more. If so, rest assured that your software can grow with you.
Even if you’re not looking to grow, having the right software to help you communicate with your tenants and your team can make your daily life smoother and hassle-free.
