After many conversations with property management professionals, it is clear that there is concern in whether to use a web based rental property management software system due to the data being put on a third party server.  I can relate with this concern.   Years ago, I had the option to use a service to sync my PDA phone with my desktop.  The service would first sync the data to their servers and then sync to my PDA phone over the Internet.  For some reason, I felt uncomfortable with the thought that my data was being stored on a third party server, so I chose not to use the service.

Today I use a hosted Exchange service to handle my email, calendar, task, and contact management synchronization to my desktop and PDA phone.  They deal with all of the upgrade headaches, support of the software and servers, and have prompt and friendly service when I have issues.  And I get all of this for just a few dollars a month.   What changed?  My paradigm changed.

A couple of years ago, the town that I live in had what was later called the 100 year flood.  Homes in my neighborhood got two to three feet of water in their basements.  Just six months prior, we had set up offices in our basement for a recording studio business my children operate and offices for my wife and me.  We had never had a drop of water in our basement for 15 years.  So we put our computers on the stands close to the floor (not the best decision).  We were fortunate in that we only got 4-6 inches of water.  However, it was just enough to harm every computer we had.   So even though we had backed up each computer to the others (what were the chances that all of the computers would fail), the worst scenario possible occurred.  We were fortunate in that the hard drives were recoverable.  If we had gotten 6 more inches of water, that would not have been possible.

Today, I firmly believe that my data is safer when stored on reliable third party servers.  They have business level data redundancy and recovery procedures, secure environmentally controlled facilities, and secure data transfer from the web browser to their servers.  And it is very affordable.

Property management companies or landlords doing their own management no longer need to worry about these issues.   By using an online property management software program, all of the data and software issues are managed by the software company, in a safer and more reliable environment, allowing you to focus on your core business, managing properties.   Just look at the growth in popularity of Google’s offering of calendar and document services.  Businesses are learning that it cost less and is more reliable to use someone else’s servers than having their own.

Should you put your property management data online?  The answer is yes.

Rob Crichlow
DIY Real Estate Solutions

Back in the 90’s, when the use of a professional consulting firm to help a company choose the right property management software system was pretty much the standard, it amused me that the cost of the consulting project was typically three to four times the cost of the software being purchased.  I used to joke, “Why doesn’t the company simply purchase and compare the top three programs and throw away the ones that don’t work out?  It would actually cost them less money.”  Now of course, it was a joke, since the reasoning behind the need for the project was valid.  All of the top products looked the same on the surface, so it was hard to tell what was really there unless you reviewed the software.

Well today, we have newer platforms (online property management systems), lower cost delivery choices (using the web browser on one’s desktop computer), better and more sophisticated databases (SQL Server), but has the actual problem of choosing a system gone away?  Actually I believe it has.  Let me explain.

Yes, in many ways, the top products still look the same on the surface, which is not surprising since they are addressing the common needs of the residential property management industry. However the differences are there and make a big difference in the productivity of the users and ROI received from using the software.  So what is different today?  It is the Internet.

I promised my wife a new dishwasher for Christmas.  I know, very romantic.  So how do we determine which one is best for our family?  We go online, do a simple comparison by browsing a few popular websites, and narrow the selection by price, features, and customer reviews.  By looking at pictures, checking out colors, and specifications we find the one we are looking for.

Today, you can do the same thing for web based rental property software.  You can look at features and benefits, check out pricing, look at online software demos, and even try out a free trial version.  The good news is that with this method of comparing software, the cost of the solution is reduced.  It allows the software companies to deliver enterprise level systems to smaller organizations for a fraction of the cost.  So now, lower cost does not mean poorer quality, but a more efficient method of delivery of the software.   The key is what is in the product and how does it make the user’s job easier and more productive.

Since software support is also a key component, using a free trial allows you to test the water on customer service.  You can see how timely the support is, how they understand your issue, and are they able to answer the questions.  I have found that this may be one of the biggest differentiators of products today.

So how do you pick the right property management software?  You use it.  It can’t get better than that.

Rob Crichlow
DIY Real Estate Solutions