Property Management Software

One of the major challenges experienced by property managers everywhere is the process of rent payments and collection, particularly when the property is present at a distant location. As a result, property management firms and property owners often look to implement an automated system that can streamline the rent payment process without creating many hassles to either the tenant or the property owner. In this regard, one good alternative is to sign up for an internet-based property management system that provides online rent payment facility.

There are multiple advantages of offering tenants an online rent payment solution. While one can drastically decrease the administrative costs and time, online rent payment systems can also reduce the payment errors that usually happen during rent collection. Moreover, with such a system in place, property managers can perform better without worrying about collecting rents. All they need to do is coordinate with the tenants to make payments. Even for tenants, option of online payments is convenient as one can pay rent without needing to step out of the home.

There are different modes of online payment options property managers can choose from and implement them in their property management systems according to the convenience. These options include

•    Automatic Transfer of Funds – Also termed as automatic electronic funds transfer or recurring debit payments, this is one of the foremost online payment options that can be made available by property managers with ease. In this method, funds get debited from the tenant’s checking/credit account automatically on a fixed date of every month. In right terms, this option cannot be categorized under online rent payment systems. However, it does offer certain advantages.By allowing an automatic transfer of funds option, tenants no longer have to worry about forgetting rent payment.

Secondly, the option does not cost much. There are also quite a few disadvantages of recurring debit. Foremost, the tenants have to forego the control exercised on their checking accounts. Secondly, this system allows only fixed withdrawals every time. However, the amount tenant has to pay might vary when it rent also involves utility billing. Keeping track of the balances and running after tenants to have the dues cleared can be problematic for property managers. In such situations, recurring debit might not be a right solution for both the property managers and for the tenants.

•    Credit/debit card payments- With the advent of advanced technological applications such as internet and e-commerce, the usage of credit and debit cards for purchasing goods on the internet has increased tremendously over the last couple of years. Interestingly credit/debit cards can be used for paying rents. Unlike recurring debit option, credit/debit card payment is a dynamic withdrawal system, particularly beneficial in situations where rent amounts vary each month.

One of the disadvantages of paying through credit cards is that the option is a bit expensive as credit card companies charge a certain fee for every online transaction made by the customer. These charges are usually 2-3% of the transaction amount. Secondly, property managers do have to face the risk chargebacks in case of any fraudulent transactions from the residents.

•    Resident-initiated fund transfer – This is the most convenient option for both the tenants and the property managers, usually using a property management software. In this online payment option, the tenant can sign up into the secure payment gateway provided on the community’s website, enter his/her checking account details, type in the payment amount and other details and click on the submit button. There is another alternative in a resident-initiated fund transfer. In this, the resident can sign-up into his online checking account, submit the payment details of the property manager including the checking account number and name,  enter the payment amount, specify the date on which payment has to be made and click on submit.

On the specified date, specified amount of money would be debited from the resident’s account and deposited into the checking account of the property manager. Advantage of this system is that the resident does exercise complete control on the checking account, payment amount, and the date on which rent has to be paid. Secondly, this is a low cost option, is flexible, and allows payments to be made from anywhere and anytime. Even the funds are delivered without much delay.



By: Sarah Rockler

Why should you pay for a property management company? The answer is determined by one word: time. Real estate investors turn to a real estate management company when they are no longer have the time to manage their properties themselves or it is more cost-effective to utilize their time on finding deals instead of fixing toilets. When you reach that point you decide to employ a professional property manager, what do you expect for their services? At a minimum a real estate property manager should provide the basic services of filling vacancies, handling repairs, and collecting rent.

Filling Vacancies
Property management companies will be able to analyze market rents in your area to determine the best rental price for your property. If local market conditions dictate the practice, they will notify the property owner if offering concessions is required to attract potential tenants.

Once the price is established, the property manager is responsible for advertising your property effectively. Property management companies are able to advertise on different web sites, the local newspaper, regional newspapers like Creative Loafing, and they can maintain professional yard signs. The key to effectively advertising a property is to measure the dollar amounts spent on the advertising and compare it to the pool of potential renters it generates. If an advertising method is not cost effective then the management company should explore other methods.

Property managers are responsible for finding the best qualified tenant for a property. This is accomplished through effective tenant screening. The real estate management company should verify current rental history, determine if there are any judgments, collections or evictions from a previous landlord, and verify current employment. The company should also be able to pull a credit report and conduct a criminal background check.

Handling Repairs
Property management companies should maintain a list of competent and reliable maintenance workers who can handle any maintenance requests from tenants. The company is responsible for scheduling maintenance workers and then verifying the work was completed successfully and within a reasonable cost. The property management company should have established relationships with vendors which allow them to maintain the property at reasonable prices. Maintenance is the true key to a successful relationship among tenants, owners and management.

Collecting Rent
Rents are usually due on the first of the month and you may provide short grace period. If prior arrangements have not been made with the management company, all non-paid rents should be addressed immediately. The company can attempt to contact the tenant through phone calls, emails, letters and property visits. If contact is not made with the tenant then the eviction process should begin immediately. The management company is responsible for timely collection of rents and evicting the non-paying tenants.

Word of mouth referrals are usually the preferred way to find the best real estate management company. Ask fellow property owners for recommendation and then interview these companies. A good property management company can typically keep the units rented at market rents, keep vacancy as low as possible, and handle repairs. Since real estate management companies handle the dirty work, you are given the one item you deserve – time.



By: Jennifer Minge