Tracking Rental Income With Property Management Software
In any top ten list of things that professional landlords need to know about running a property management portfolio, how to get payments from tenants in full and on time, would invariably be in the top three if not firmly planted in the number one spot.
Let’s face it, effectively tracking and managing rental income is the key to the landlord’s buy to let property’s success and failure.
Good quality property asset management software can help you to keep the money rolling in and will allow you to control the money that is leaving the business. Look for software that has taken inputs from successful professional landlords because they really do know what you need from a good quality property rental management software product. Why not benefit from their experience?
Tracking rental income should always be in the forefront of your mind as a professional property manager. Look for a product that has a comprehensive tenant payment section. Look for a product that can show you both the detail and the bigger picture overall.
Yes, it is important to know the position in relation to individual properties and tenants but it’s just as important to be able to view the financial position overall and to see projected figures for whole tenancy periods and for your portfolio as a whole. This is information that you need to have to be ahead of the game in terms of financial planning. This is particularly true in times where the markets are so volatile.
Good commercial property management software will help you track your rental income and maintain the records for commercial properties too.
These days, even the best tenants may default on rental payments and with many premises unoccupied, you need to be pragmatic in the way you deal with these situations. Look out for a residential property management software package that will help you to keep an eye on the late payers or tenants who are persistently falling into arrears.
One key feature that you should look for in a Property Management Software is the ability to enter and track ad hoc payments. Where a tenant is finding it hard to make ends meet, it is actually helpful for them to pay the rent in smaller amounts. Look for a landlord software product that will let you create and track ad hoc payments and make adjustments to the tenancy schedules.
Some businesses do fail and some may fail owing you rent. Look out for property rental management software that has a facility for earmarking bad debt. You will need to be clear about what is in fact bad debt when you are preparing your accounts.
Do your research on residential property management and when it’s possible see the product in action. Ask for a demonstration or a trial period. Do make sure it does what you need it to do before you commit to purchasing it and don’t be pressured or bullied into buying until you are ready. Choose wisely and you will be in a better position to manage and control all the important cash flow of your business. If you make a wrong choice you will have to waste your precious time and money.