Rental Property Management Software

Rental property management software consists of applications designed to serve landlords, property managers, and estate agents as they list, market, and manage properties made available for lease or rent. Closely related to software categories like lease management, vacation rental, and real estate management software, these tools can also perform other tasks. With their help, users can manage maintenance work, track expenses, collect rent, and process payment from tenants, who often have portals of their own on these platforms.

Rental property management tools are developed to help landlords, brokers, estate agents, and property managers to centralise their data and workflows. They aim to attract, convert, manage and retain their most valuable assets- the tenants. Since neither landlords nor tenants can be expected to have programming skills, these tools are user-friendly and have end-to-end solutions by design. They often come as web-based platforms and apps with custom dashboards for various types of stakeholders. This includes landlords, estate agents, property administrators, handymen, tenants, and back-office workers like accountants and HR staff.

They benefit property owners, managers, resident associations, and investors in the residential, industrial, and commercial real estate industry. With these tools, users can manage properties intended for conventional single-family, multi-family, or mixed-use. They can also manage shared living properties, houses in multiple occupations (HMOs), co-living spaces, flat-sharing blocks, lodging spaces, and self-storage facilities. As they incorporate all the residents and housemates into their workflows, they can also help manage larger estates. For instance, rental property management tools can be used with affordable housing, military accommodation, student housing, vacation properties, and senior or retirement housing.

Also, they share some of their functionality with other tools that could be classed as Property Management Systems (PMS), residential property management applications are similar and linked to Lease Management Software, Real Estate Property Management Software, and Commercial Property Management Software. However, it could also be said that they benefit from the functionality of other types of software, such as Vacation Rental Software and Hospitality Management Software. Also, for some resident communities and tenants’ associations, rental property management solutions can feature some of the functionality of Homeowners Association Software used abroad.

Rental property management tools are different from one another in many ways. Their infrastructure, design, ease of use, security, accessibility, and features vary depending on the industry verticals they were developed for. But most users can expect their applications to be capable of performing these types of tasks, at the very least:

• Create, customise, and manage rental property listings on a platform or dedicated website
• Manage vacancies, viewings, maintenance work, and property outgoings
• Track, score, and screen tenant applications
• Track payments, set up collection, and chase up rental arrears.
• Provide a tenant portal or dashboard for access to application status, online payment, and communication
• Facilitate signing, sharing, and storing of contracts, deeds, and other property documents

What is Rental Property Management Software?

Rental property management software are web-based platforms, portals, and apps designed to provide property management companies, landlords, and investors assistance with property, tenant, and payment management. They can be used to process tenancy applications, collect rental payments, track tenancy performance, monitor vacancy, visualise expenses, and engage with tenants individually or through online communities. Their functionality overlaps with that of lease management, vacation rental, real estate property, and resident association software.

Property owners, managers, developers, leasing agents, post-sales service providers, and investors with property portfolios in the single to triple digits can use these tools. They can help them keep their edge in the highly competitive rental property sector and maintain their net operating income (NOI) growth. With professional-grade websites, built-in screening tools, virtual inspection, e-signing, and other time-saving features, these tools can streamline their operations and minimise cost.

Thanks to capabilities like automated reminders, integrated bank feeds, performance reporting, and financial data sharing, these tools speed up workflows and minimise waste for property owners as well. By helping coordinate maintenance tasks, procurement, and contracting, rental property tools reduce costs for the owners and maintain the market value of their investment property. They also ensure safety and compliance by securely storing and sharing sensitive information like title deeds, development plans, land registry data, and contact information for both landlord and tenant.

Rental property and finance management solutions often come in the form of fully integrated websites. Tenants can use them to book viewings, e-sign lease agreements, and commit to renting flats, houses, commercial premises, and self-storage units online. Given access to individual accounts, they can also use the apps and web-based portals to pay their dues securely online. Built-in communication tools can also enable text messaging, emailing, chat support, and forum contributions for tenants, as well as invoice reminders and late notices.

Depending on their intended use, rental property software tools can also feature a private extranet for multiple staff access. They can come with task management tools for assigning, monitoring, and assessing estate agents' performance. Some property managers choose to monetise their tools by featuring cross-selling ads for insurance, key cutters, parking companies, storage facilities, removal companies, gardeners, etc.

Operating rental property management software involves storing, transferring, and sharing vast amounts of data, including property listings, virtual tours, video footage, inventory checks, and sensitive documents like rental agreements, floorplans, and employment contracts. So, using this type of software calls for reliable internet connectivity and substantial bandwidth and throughput. Companies can set up their rental property management software on-premise as part of their software stack. They can also outsource storage to a Software-as-a-Service (SaaS) provider, enabling users to access the platform via the Cloud from virtually any device, location, or time zone. Where possible, property management companies can also opt for a hybrid setup, preserving the integrity of their data while also ensuring fast and reliable data transmissions.

What are the benefits of rental property management software?

Property managers, estate agents, and landlords carry out many daily tasks, such as applicant screenings, routine inspections, contacting tenants, vacancy listing, and payment tracking. Rental property management software can help automate and speed up a large portion of these tasks. With as little human input as possible, using these tools can lead to cost savings and efficiencies for all those involved in managing the property portfolio. Here are some of the benefits of rental property management software:

• Automatic tenant screening: Assessing tenant applications is integral to successful property allocation, but it’s a time-consuming process. Rather than outsource to screening specialists or waste valuable time handling it personally, property managers can rely on a rental property management tool to streamline these operations. Using built-in algorithms and the company's predetermined rules, the tool can sift through hundreds of applications, scoring and comparing them based on the tenant's age, marital status, income bracket, credit history, occupation, or other criteria. With access to police, bank, and tax records and databases, some tools even can run background checks to protect landlords from fraudulent applicants.
• Bidirectional communication: Rental property management is a two-way street. Both the owner and the tenant must be willing and able to collaborate, communicate, and contribute to the relationship. Rental property management software applications are often dual-purpose platforms that grant access to both the owner and the tenant. In effect, they work as an interface between these two entities. They facilitate payment, notifications, document filing, application submissions, and two-way communication. With tools such as these, property owners keep in touch with their tenants, become aware of their concerns in real time, and can respond to their demands instantly rather than let the situation escalate.
• Payment processing: Rental property managers have many responsibilities, but accounting, payment processing, and bookkeeping are not part of their job descriptions. With the appropriate property management application, they can facilitate online payments, while also invoicing, printing receipts, and storing direct debit agreements and sensitive financial information for landlords and tenants automatically. By exporting and sharing transaction data or feeding it into the company's accounting system, they can also reduce double-entry errors. They can also reduce reliance on accounting service providers, especially during tax season, which can lead to additional savings.
• Centralised management: Managing portfolios of tens and hundreds of rental properties goes beyond the remit of a landlord, family-run estate agent business, or small property management company. But with a rental property management tool, rental operations can work like well-oiled machines, whatever the size of the portfolio. With all the information they need at their fingertips, often rendered with rich imagery, eye-catching graphs, and engaging visuals, even inexperienced landlords can take and maintain control of their rental operations.

What are the features of rental property management software?

The features of rental property management software tools are predicated on the assumption that they will be deployed for property portfolios that are either residential, commercial, industrial or a mix of these. For instance, tools specialising in industrial facility rental may generate and display interactive plant floor maps. Those designed for commercial property could focus on custom website building to better showcase the location and amenities of an office building or retail space. But no matter how complex the project and whatever the size of the portfolio, users can expect to count on these basic features from their rental property management tools:

• Property listing: Create and manage property listings either on a platform or a dedicated website. Most rental property management software tools come in the shape of a web-based platform with single sign-on or multiple user access, where property managers can list countless assets from various clients and portfolios. But some services enable users to create individual websites for each property. This applies mainly to commercial and industrial assets. Whatever the type of listing, they must be able to feature photographic, video, and audio content, virtual tours, and floorplan uploads, at the very least. They must also be able to sync availability, rates, and listing content across platforms if needed.
• Data management: Create and store rental property and tenancy information securely, in such a way that all stakeholders can access it. Rental property software stores must be able to store property listings, virtual tours, inventory checks, video footage, and important documents like title deeds, rental agreements, council letters, planning and building control papers, and floorplans. They must also be able to store employment contracts, credit checks, DBS checks, and other sensitive tenant documents securely, in line with legislation. Some tools enable landlords to draft their documents from scratch, make them legally binding using e-sign technology, and file them with the relevant authorities. But most importantly, the software tool must be able to make this data accessible to stakeholders when needed.
• Tenant portal: Manage the entire customer experience for tenants, from the start to the end of their tenancy. Rental property software must be able to assist the tenant from the moment they browse properties online and through to the end of their rental contract. This includes booking a viewing, submitting an application, supplying documents, negotiating, signing an agreement, arranging a deposit, paying rent, contributing to repair costs, communicating with the landlord, and handing in their notice.
• Lease management: Monitor rental and lease agreements and keep track of renewal deadlines. Rental property management software can be set up to monitor contract renewal terms, break clauses, and end dates for fixed-term and rolling tenancies. This comes in especially handy for houses of multiple occupations (HMOs) offered on a shorthold basis, where the tenants' circumstances are more likely to change than they are for single-family residential or commercial tenants.
• Tenant support: Provide tenants with the means to submit their queries and communications to property management staff or landlords. According to the English Housing Survey, nearly two-fifths of English households live in rented accommodation, be it private or social. Yet, many of these renters have little or no positive interaction with their landlords, must resolve their queries with estate agents via email or phone, and often complain of poor communication, slow responses, unannounced visits, and lack of empathy. Rental property management tools can help address some of these concerns and improve relations with tenants by helping them reach their landlord's ear more quicker.
• Occupancy and vacancy tracking: Track the occupancy status of several property units at once. With rental property managing tools, landlords and their agents can monitor occupancy, visualise vacancy rates, and take steps to minimise them for several properties at a time. They can also use this information to assess demand, tweak prices, compare NOI across properties, and forecast rental performance.
• Customer support: Access the support of a customer success team or a dedicated technical account manager. Software-as-a-Service (SaaS) providers often offer their services to professional property managers, investors, and other clients throughout their client lifecycle.

Capterra's software directory features tools with all these features and more. Readers are welcome to browse and find out more about the rental property management software tools featured here in the hope of using these insights before they invest in one. With filters based on features and highlights, narrowing down the list of preferences and finding a good match for their business needs is that much easier.

What should be considered when purchasing rental property management software?

When purchasing rental property management software, landlords, agents, and property managers need to take a few factors into account. While they may not have major implications for NOI or the company's bottom line, they can affect the owner and the tenant's experience, performance, and company image. Here are a few essential questions to ask before deciding on a rental property management application:

• User-friendliness: Neither landlords nor tenants should be expected to undergo training to use the application. The application should be easy to use, with an interface people of all abilities can navigate well at first sight, and with a mobile-friendly display. It's never a bad idea to request a free trial or a live demo from the developer before committing to any one tool.
• Deployment: Cloud-based, on-premises, and hybrid systems have their respective benefits. With cloud-based systems, the hosting infrastructure is relatively simple and maintenance-free. Despite the sometimes high subscription costs, cloud tools are scalable, adapting seamlessly to changes in demand and productivity. For on-premises solutions, there are up-front setup costs to consider as well as upkeep, updates, upgrades, and overheads. Also, scalability is entirely dependent on the size of the investment, and any malfunction would be the property management company's responsibility. But this option comes with complete control over data security and compliance.
• Helpdesk availability: For cloud-based software tool users, being able to reach the vendor's technical experts is a must. It's not just the type of customer success representative vendors can place at the user's disposal that matters. It's also their availability throughout the day or night and the communication channel. Aside from email and phone service, users should look for vendors who can offer customer service via chat through proprietary chatbot systems or popular chat apps of their choice.
• Portfolio management support: Estate agents must be able to manage a variety of properties at the same time. This may include co-living spaces, flatshares, lodging spaces, houses in multiple occupations (HMOs), single and multi-family units, offices, shops, self-storage spaces, industrial facilities, and mixed-use spaces. It may also include gated communities, housing estates, military accommodations, vacation rental properties, student housing, and retirement flats. Whatever the size and diversity of the portfolio, the rental property management application must be able to cater for it.

What are the most relevant rental property management software trends?

The most relevant rental property management software trends gravitate around increased demand, higher consumer expectations, and the challenges they bring. Good software tools will anticipate some of these challenges but also monitor other emerging trends and provide users with the flexibility they need. Forward-thinking property management companies, estate agents, and landlords should watch out for these rental property software trends:

• Virtual reality (VR): More and more property listings incorporate some form of VR technology to enhance the tenant’s experience. As it becomes affordable to companies of any size, VR implementation can help property managers set up virtual tours, create interactive experiences for tenants, reach out to younger generations, and showcase their properties' features and drawbacks to reduce disappointment.
• AI chatbots: The uptake of AI-powered chatbots has grown in scale in recent years. As prospective tenants more readily use chatbots on first contact with an estate agent or property manager these days, it should come as no surprise that landlords seek this feature from their software vendors. Unlike the canned responses of yesteryear, AI chatbots can answer tenants' queries in real time, taking note of their online profile, shopping behaviour, GPS location, built-in commands, and talk triggers to make their replies more relatable and relevant.