Digitization has transformed several global financial services, banking, industrial, real estate, etc. industries. Online tools are now a part of sales, operations, management, customer care, and financial management processes.
When discovering the implications of digitization in the property management sector, we see renters preferring online tools for property searching and rent payment, while landlords and property managers are automating their management tasks. Here is a glimpse of how digitalization is revamping the real estate industry.
- The net worth of the global real estate management software market was close to $3 billion in 2021 and will likely reach $4.7 billion by 2031.
- 36% of the Gen Z population is interested in buying a house online.
- 80% of global payments (in all business sectors) will go digital by 2024.
Such a remarkable transformation of digital channels has forced landlords to switch to digital rental management tools.
In this article, we will discuss the following:
- Why is real estate investment management software helpful for your real estate business?
- Five essential rental management software for efficient and automated property management.
Five Benefits of Using Property Management Software
More Efficient Management
According to some studies of the property management market from 2018:
- Almost 35% of property managers handle 101-500 real estate units
- 30% of managers take care of 26-100 property units, while
- 20% manage up to 25 real estate properties.
It is only possible to efficiently manage this workload with multi-function rental management software.
Easy Maintenance Monitoring
Studies show that 80% of property managers actively perform maintenance/repairs, rent, and fee collections. Rental management tools help landlords seamlessly keep track of repair/maintenance requests from tenants. They can also assign tasks to on-site managers or vendors and track the progress of these tasks.
Faster Tenant Applications
A simplified rental application process is a critical element of your marketing strategy. It is vital to have a digital way of receiving rental applications to attract potential renters, especially Zoomers. Property management software allows potential renters to apply online and get the desired information in real-time.
Better Communication and Data Management
Rental property management software automates communication between tenants and owners. Owners can quickly access email chat history and get instant notifications on activities (in the software) by tenants. Similarly, rental management tools work as a central data repository for storing tenants’ data in one place.
Online Rent and Fee Collection
Modern-day rental management solutions allow plug-ins and third-party integrations. Partnering with a payment processor enables you to collect rent and property fees online. Renters prefer safe and fast digital payments.
Top 5 Rental Management Software for Property Managers
CRM (Customer Relationship Management) Tools
Customer relationship management software helps real estate owners and managers create a client database to collect, organize, manage, and share data whenever needed. A central database allows property managers to access tenants’ data from anywhere, anytime.
Landlords may also use CRM for potential renters’ data to better understand the prospects and have more informed communication with them. Some of the best CRM software for property managers include HubSpot, Leadsimple, Entrata, and Knock.
Email Management Tools
An average office worker sends and receives 123 emails daily. Property managers increase their productivity multifold by using email management tools for easier classification and segregation of essential emails from tenants. These tools help you:
- Organize your emails according to your preferred criteria and easily access any email immediately.
- Send important notifications to your coworkers and tenants with a single click.
Accounting Software
Accounting software is mandatory for any business, let alone real estate management. It automates multiple processes such as invoices, payment reminders, data import, etc. High-end accounting solutions like QuickBooks allow payment processing integration as well.
Accounting software also:
- Simplifies the tax filing process by storing income statements, invoices, and receipts in one place
- Generates income statements automatically
- Categorizes all accounting records in respective sectors
Reservation Software
Reservation software is handier for managing recreational short-use properties like cottages, garages, parking, hotel rooms, etc. These solutions help property managers:
- Close/finalize reservations in real-time and update data immediately
- Send emails or text messages within the platform
- Receive payments by integrating payment processing solutions.
Payment Processing Solutions
The global digital payment sector was projected to reach $8.49 trillion in 2022. Renters are keen on adopting contactless payment solutions for rent and fee payments, increasing the need for the integration of secure payment processing and property management software. Payment processors save time and ensure faster online rent collection while giving your tenants a wide range of payment options.
Landlords or property managers can collect rent and fees online through different options, including:
ACH Transfer
Managers can collect rent via online ACH. The tenant can initiate an ACH debit transaction, or the owners/landlords can request the payment with an ACH credit entry. ACH is suitable for recurring payment scenarios such as insurance, rent, and lease payments.
Text Invoicing
Text invoicing is one of the simplest ways of collecting rent online. Using this technology, property managers can create an online payment link and send it to tenants through text message. The tenant can either click on the link in the text to pay online on a hosted payments portal or use SMS prompts to select another preferred mode for payment.
Money Transfer Apps
If your rent collection methods don’t include money transfer apps, you create problems for Gen Z and millennials. Trusted money transfer apps include Venmo, Google Wallet, PayPal, iCG Pay, and Remitly. The funds’ clearance process may take time, but it is one of the most preferred options for younger audiences.
Email Invoicing
Email invoicing is a better option for renters and managers who prefer keeping things official and maintaining payment records. This technology allows property managers to automatically generate and share custom payment links through email for hundreds of renters. An email management tool is handy for periodic emails/payments.
Other digital rent collection channels include IVR payments, hosted payment portals, credit card payments, and virtual terminals.
Become a Partner with iCG, a Nacha Preferred Partner
The property management market, which is rapidly going digital, in the United States was worth $101 billion in 2021. Moreover, 80% of the renters in 2021 were keen on renting property rather than buying a house. That means the industry is not only going digital, but people have shown interest in rental properties—a promising sign for landlords.
However, standing out in the competition is only possible by facilitating customers in every aspect. iCG provides landlords the luxury of streamlining the rent collection process in a highly secure, fast, and cost-effective manner.
Feel free to schedule a call with our representative today or request a quote to know more.
