In order to grow your business to the next level, you have to realize how valuable your time is. Whether you’re new to real estate investing, or already managing a few of your own or others properties, you are likely well aware that it requires a vast amount of time and effort to find good deals and clients. As you begin acquiring more properties it will take significantly more time to manage a growing portfolio, taking time away from activities that will allow you to scale. This is a giant wall that many new investors and management companies run into, and struggle to ever get past.
Unless you discover ways to systematize your business and delegate out specific jobs, you’ll fall into the trap of working in your business, rather than on it. You might be wondering, how can this be done without spending a ton of time and money hiring, and managing, people. This is where property management software comes in.
The pitfalls of property management
Managing one, two or even three rental properties doesn’t seem too difficult, right? Once you get a good paying tenant in your property all you have to do is set up a convenient schedule to pick up the rent and check on the property. You account for the finances each month, budget accordingly, and once you get the hang of things you can go find that next deal or client.
What many new investors and management companies fail to consider is that they often have to chase tenants down to collect rent checks or cash, maintenance issues can, and do, pile up if you don’t stay on top of them, and that seemingly good tenants can turn into a nightmare overnight. Tenants often start making excuses when the rent is due and don’t report maintenance issues as soon as they occur, which only makes matters worse. With many states being especially “Tenant Friendly”, even the first steps of an eviction process can eat away at your income, time and peace of mind. There are tenants that will damage the property and cost you or your client thousands in repairs, taking away your time to acquire more properties.
How can you help mitigate this? One of the easiest solutions is to collect your rent online in order to keep a detailed and unquestionable record of all your payment history, your lease documents and all communications with tenants, in one place for quick and easy reference. This will not only help you organize your business, with minimal work but will also help provide indisputable evidence if you are ever dragged into court. It also gives your tenants a place to report maintenance issues as soon as they occur and makes life easier on them by having a large part of their rental experience automated. Having your business in order will help you navigate tenant issues, and get you past blockers that stop many investors on your journey to scale.
How technology can help reduce overhead costs and save time spent managing
Technology often feels like it was made for the people that make it, rather than for the people who actually use it. This has led to many investors choosing to manage their properties in a more traditional fashion including collecting paper checks, printed bank statements, printed agreements and using outdated excel spreadsheets.
Using traditional management methods can actually be blockers that prevent you from achieving your real estate goals. New property management software, like what we have created at dwel.co, provides you with simple and easy to use tools to manage your business, your way, while saving you time and money. These tools allow you to: keep all of your documentation in one convenient place, collect rent online right to your bank to save you from wasteful and unnecessary trips every month, and communicate rules and reminders to your tenants.
Other ways property management software can help your business is by using their online screening tools to find better tenants, online applications to save you time, and automatically notifying your existing tenants that someone will be coming to see the properties ensuring that you provide them with the legally required twenty-four hour notice.
Investors and property managers everywhere are becoming smarter and using technology to entice better tenants to rent from them while giving themselves more time to find more deals. Why not use this to your advantage too? While it may seem like a big adjustment now, in the long run, you will question how could you have ever lived without it. Managing smarter, placing a real importance on your time, thinking long-term, building systems that help you streamline your business, and adopting new technologies will help you jump over every wall that others run into on your journey to scale.