Before we get to that question, let’s first find out what is Property Management System or PMS?
Online Property Management Services is an online program or software designed for managing residential or commercial property digitally. It is a systemised mechanism that oversees and coordinates the relationship between the management company, the owner of the property and the tenants. PMS act as a replacement of the traditional paper-based systems, which were cumbersome and inefficient. The whole idea of the system is to save time and money and grow your property investment or business.
Every Property Management System has different functions and features. So, before deciding on which vendor to choose, the user must have knowledge about the system, its core functions and some good to have optional ones.
So, how PMS works for Property Management Companies?
A property management system works by separately maintaining each and every client’s account for Property Management Companies.
Let’s think of Property Management System as a bank account. You keep your money and a bank together with everyone else’s. However, you just see your own debits and credits on your statement. It is the same with PMS.
The property managers issue statements and distribute the balance of funds to their clients monthly or as pre-decided by both the parties. The statement has the details of income received for the period, management expenses and other property expenses paid by the management company on behalf of the client for managing the property.
Property Management systems also keep the data of the owner and the tenant up to date and current. It helps in keeping reminders for lease expiry, rent review dates, utility bill payment dates, etc. Since a property manager has multiple properties to look after; PMS helps in keeping track of all the dates and issuing alerts for them to act on.
When handling multiple properties one of the most important tasks and most harassing tasks is rent collection. The property management system keeps track of rents paid by the tenants and paid to dates. If there is any tenant who paid late, it keeps a record of that as well along with by how many days they defaulted. Periodic property inspection dates, inspection reports and property condition reports are also kept in the system.
Which features you shall look for while buying a Property Management System?
Following is the list of features that should top your checklist:
- Monitoring Finances – With quality Property Management System you will be able to better monitor finances and they will be organised in a way that makes sense. It will also have a feature that allows the tenant to pay rent online, which makes easier for you to track your numbers and make sure that you stay within the budget
- Efficient Management – Though profitable, managing properties is not always easy. However, with the right system, you will have more efficient tools to do the jobs to make property management run seamlessly.
- Simpler Accounting – As the system helps you keep a record of your daily finances, you are always ready for larger accounting tasks like quarterly or yearly taxes. This will definitely make tax seasons a lot easier for you.
- Saves Time – Features like maintenance request tracking, automated notifications and rent reminders of a property management system are designed to save time.
- Easier Data Collection – Property Management software provides you quick access to the information you need and can access it from many devices.
- Faster Communication – The features like online rent payment, maintenance requests, tenant requests, different portals for tenants and the management team make communications faster and quicker exchange of information.
The above list is not exhaustive and there are many more features and benefits that come with property management software. Leasing and screening capabilities, details about MahaRERA registered projects are possible with the right features. Take your time, do your research and choose the right software for you.