Investing in a rental property is a great way to earn passive income. But what you’ve likely learned by now is that managing a property is not passive at all. The financial responsibilities alone can take up most of your time. If you’re looking for a cost-effective solution, consider investing in property management accounting software.
What Is Property Management Accounting Software?
Property management software is a computer program designed to assist landlords or property managers with their day-to-day activities. There are plenty of options in the market today so the best property management software is one that meets your specific needs.
For instance, if financials are your weak spot, you can choose accounting software for property managers. However, if you need a full suite of management services, there are also more comprehensive programs available. Some essential software features include financial reporting, invoicing, online payment processing, maintenance management, and violation tracking.
If cost is a major consideration, there are also custom property management software options. You won’t have to spend on features and functionalities that you don’t need. Landlords and property managers can easily select the features they need help with.
Why Should You Use a Property Management Accounting Software?
Property management software can help you become a more efficient and productive landlord. If you need further convincing, here are seven reasons why it’s a worthwhile investment.
1. Save Money in the Long Run
Property management accounting software is no longer as expensive as before. Advancements in technology have made these programs accessible at lower price points. Even though there is still an upfront payment, you will save money in the long run. For instance, accounting software can help you with day-to-day tasks that used to take hours to accomplish. You will just need to input the numbers and the computer program will organize all the transactions. Since accounting tasks are more manageable, you won’t have to hire a bookkeeper for simple data entry tasks.
2. Reduce Accounting Errors
Property management software automates accounting and bookkeeping tasks, which means you can avoid accounting errors. Even unintentional mistakes can have costly consequences on your finances. With accounting software, landlords and property managers can be more confident with their financial records. Time saved on other financial tasks can also be spent reviewing your numbers and spotting inconsistencies.
3. Advanced Financial Reporting Capabilities
Property management accounting software comes with advanced reporting capabilities. Thus, landlords can generate monthly or quarterly financial reports for their rental properties. These reports are also easy to understand even if you don’t have a financial background. You won’t have to wait for your annual or biannual appointment with your CPA to make sense of your financials. Landlords can use these reports to keep track of their finances and make better decisions for their rental properties.
4. Accessible from Anywhere, Anytime
Choose a property management accounting software with cloud-based storage so that you can access your financials from anywhere and at any time. Mobile compatibility also enables you to see your financials from a desktop computer, tablet, and smartphone. Many landlords are hesitant to switch to online property management software because the data might get corrupted or lost. With cloud storage, though, you can have peace of mind knowing that your financial records are safe and secure. Data backup and recovery have been simplified as well so you don’t need to call a technician to access your date from another device.
5. Increased Software Security
Property management accounting software comes with security features so you won’t have to worry about confidential or sensitive data being stolen or leaked. Make sure that your chosen accounting software offers multiple layers of security such as encryption and authentication safeguards, as well as regular software updates.
6. Easy to Scale
Scalability is another top reason for using property management accounting software. The computer program can easily adapt if the landlord needs more storage or provide access to their property manager or accountant. Even as you expand your portfolio, you can still use the software to manage the financials of your different rental properties. As your property management team grows, the software can also help increase efficiency and reduce redundancies.
7. More Than Just Accounting
Just like landlords or property managers who have a wide range of responsibilities, property management software can be used for more than just rental property accounting. These computer programs have other desirable features that can make your day-to-day tasks more manageable. For instance, with invoicing and payment processing capabilities, you won’t have to physically collect rent from your tenants. You can send invoices electronically while tenants can settle their accounts online as well.
The Best Property Management Accounting Software for Your Needs
Those who are not ready to invest can choose free property management software — though the functionalities may be limited compared to paid versions. However, if you think you’ve found the best property management accounting software for your needs, most options will offer a free trial. By now, though, you have a better understanding of property management accounting software and how they can make your job as a landlord more convenient. With the software, you can really enjoy your passive income and spend more time with family and friends.
Looking for property management software for landlords? Feel free to contact the Condo Manager team today! Call us at (800) 626-1267, email us at firstname.lastname@example.org, or contact us online to learn more about our property management solutions.
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