|
By Steve Lloyd, President and CEO, DIY Real Estate Solutions
It’s long been understood that as your real estate portfolio grows, the need for sophisticated reporting and
forecasting systems increases as well. Historically it’s been the desire for more in-depth financial
information that drives a landlord to leave behind pen and paper or basic accounting software for a
specialized property management software system.
Yet today new factors are at work that make it more important
than ever for independent rental property owners
to use the same kinds of systems as the larger regional and national real estate firms. These include: greater
pressure to find reliable, rent-paying tenants; the real possibility of increased bad debt and the need for
collections; and the ever-looming threat of litigation and regulation.
Given today’s economic outlook, the need to qualify your prospective
tenants is of tremendous
importance. Today’s online tenant credit screening services allow you to access
information in minutes. With a complete property management software program, you
can then integrate that information into your tenant
records. Later, you can review tenant payment history and maintenance history and make smart decisions
about renewing that lease.
With bad debt potentially on the rise, automated
debt collections tools will also prove invaluable to
landlords. The right web based software offers integrated access to national debt
collections firms. These are the same systems that larger management companies have been using for
years.
Of course, some of these online tools are available separately from a property management system. Yet
integrating all of these services with one point of data entry can protect you from another, even more
alarming threat—litigation. No matter how unjustified, the mere whisper of a lawsuit is enough to terrify
any property owner. While litigation is a serious concern for real estate firms of all sizes, it can be particularly frightening
for the smaller property managers and landlords who lack the legal team of a regional or national firm.
Here again, tenant credit screening services provide a valuable tool by serving as a consistent, accepted
process for making decisions. When you can show the use of quantitative tools for rejecting a
tenant,
you can be more confident in the decisions you make. More importantly, having one point of data entry
will help ensure all data is captured and no mistakes are made.
What about cost? Historically cost has been a barrier to the kinds of technologies used by larger
property management companies; today the Web makes access to new solutions much more affordable. In many cases these
online services— as well as services like Internet advertising and electronic banking – can be included
in one low monthly fee. Hardware, server, upgrade, extra license, and other costs are eliminated as well,
leading to considerable savings.
As the Internet has been the great leveler across many
industries and businesses, the independent rental
owner and property manager can now afford the systems that larger real estate companies have been using for decades. The affordability
of online property management software is a trend with a positive impact on
the independent owners. Property management systems no longer have to be reserved for the larger companies with deep pockets. They
can be used by anyone who wants to protect their real estate investment.
About the Author
Steve Lloyd is CEO of DIY Real Estate Solutions. DIY is the developer of web
based property management software designed specifically for the independent property
owner and manager of apartment units or single-family homes. DIY's
Online
Property Management Software is delivered over the web,
reducing complexity and the cost of software ownership while increasing functionality and ensuring
affordability for customers.
|
Printable Version 