How to Automate Your Rental Business with Property Management Software

For most businesses today, automation is key. Technology has progressed beyond handling small, repetitive tasks and is now capable of helping you manage even the most involved, tedious of duties. 

Technology for rental businesses is no different. Top Pproperty management software, designed specifically for landlords, can automate many of your everyday responsibilities. Software simplifies larger tasks like tenant screening or acquiring new units.

Other property management software features are designed to accommodate an entirely hands-off approach. If you have a day job or other responsibilities, managing an entire rental business plan manually can simply be too much. Software with automated features eases your daily stressors. 

Here are a few ways to automate your rental business with property management software.

1. Use Online Rent Collection

Rent collection is an essential feature for all property management software platforms. Online rent collection eliminates the inefficiencies of cash and check payments. Instead of waiting to receive mailed payments or making monthly trips to the bank, rent collection features automatically transfer your funds from your tenants’ bank accounts to yours. 

Property management software also automatically generates payment records. This means there’s no need to mail or email your own receipts to each tenant individually. 

Instead, the software records the time and amount the tenant paid each time they make a payment. If there are any questions later, both you and your tenants can view past months’ bills and payments.

2. Encourage Tenants to Use AutoPay

Online rent collection features typically allow tenants to pay by debit, credit, or ACH Transfer. All three of these options offer AutoPay. If tenants opt in to AutoPay, the software will automatically withdraw funds from a designated account each month when rent is due.

AutoPay eliminates the risk of late fees for tenants while ensuring you never receive late payments.

3. Automate Communication

Do you send your tenants regular messages of any kind? Maybe you send rent reminders, late fee warnings, notifications about lease renewal, or other messages. With property management software, you can automate all these messages.

Your software is even smart enough to know which tenants need the message and which ones don’t. If a renter has already paid rent or renewed their lease, they don’t need reminders to do so. In fact, your tenants will probably be annoyed by unnecessary spam.

Because you manage your rental business on the software, it already knows who has paid rent and who could use that gentle reminder.

4. Use Templates and Autofill

When you initially set up your property management software, you’ll need to upload or create leases for your units. Lease creation can be a lengthy process if you’re starting from scratch. With property management software, you never have to.

Property management software offers many online templates for documents you might need. A well-designed template can save you hours of work and frustration. Software also uses features like autofill to make lease writing faster and more efficient.

For instance, if you designate specific fields of your lease as “lease date” fields, the software is smart enough to autofill those fields with that repeated information.

5. Automate Late Fees

Accountability is essential in any rental business. No matter what a tenant’s excuses are, it’s never a good plan to let them skip rent or dodge a late fee. Doing so will only communicate that you will not enforce other aspects of the lease agreement.

Many landlords value accountability, yet still struggle to say no. They don’t want to be the “bad guy” with their tenants, especially when the situation is understandable.

Property management software solves this problem by being the “bad guy” when you’d rather not. Your software can be configured to automatically push late fees to any tenants’ accounts who haven’t paid their rent after a certain date. No matter their excuses, they won’t be able to make future payments until the previous month (and any accrued late fees) are paid in full.

Conclusion:

Automation is central to maximizing efficiency in your rental business. As a landlord, you have a lot on your plate. Even if you don’t have a day job, managing units, tenants, payments, repairs, and communication can be just too much. Property management software improves your everyday experience by automating as much as possible. With these five tips under your belt, you are well on your way to automatic success.

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