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A property management system, or PMS for short, is an increasingly useful tool in the modern rental estate business that assists owners and real estate agents in various tasks. However, with more PMS software on the market than ever, it's also important to know which features matter most so you can make the right decision and increase your company’s NOI.
What is a property management system? Why do companies utilize it?
A property management system is a software solution that supports real estate, hotels, resorts, and similar properties in their day-to-day operations. This typically includes management and administrative tasks, such as payment processing, tenant billing, tax accounting, and performance analysis.
The rental sector is permanently adjusting to new innovations for getting more ways to simplify their operational activity. They can keep track of back-office activities and finances in order to optimize them with property management software.
In this blog post, we will go through the most common use cases of property management systems that can increase commercial real estate companies’ NOI.
How property management systems can increase your company’s NOI?
With requests coming in through multiple channels, pricing needs to be reasonably adjusted for revenue management purposes and proper customer service. PMS software can help overcome these challenges.
A good property management system allows real estate staff to cut down on paperwork and complete important tasks more efficiently.
Rental Payment Automation
Property management system offers different payment options. This includes payment processing options for front desk staff as well as e-payment processing for online payments made with a credit or debit card. In addition, the software is able to generate invoices or receipts for customers.
Use case: Once PMS is launched, renters interact with a payment portal and can typically automate their rent payments. This feature allows owners to protect themselves from missing important payments in the financial statements. Proper automation optimizes expenditures that negatively affect a company’s NOI.
Automated Tenant Billing
Automated tenant billing helps to forget about manual data entry and extra positions in the company to process weighty spreadsheets. Property management system can handle such settings as billing rates, schedules, monthly allowances, etc.
Use case: The PMS can be used to calculate the peak demand fee for each tenant. It can be configured once and then automatically generated when needed. If this customization is avoided, then a manager has to do it manually, which will take many times more time and create additional labor and transaction costs for the company.
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Tax Management
To maintain its position in the market and be successful, a company should carefully monitor its financial condition, including compliance with regulations and paying taxes. A well-designed PMS will be able to maximize NOI while minimizing unnecessary waste and taking into account all the nuances.
Use case: PMS takes into account the management of expenditures. You can run a comprehensive overview of your financial condition, including taxes. The tax management function takes into account compliance with local tax laws, and integration with banks helps simplify the reconciliation process.
Built-in analytics & Custom Reports
A good PMS integrates many useful tools, including analytics. Comprehensive analytical software allows business owners or real estate managers to get meaningful information on how the company pays costs, sales, taxes, payments, as well as control the available spaces.
Use case: Once launched PMS software, you can choose all the necessary data in the system and extract analytics and statistics from it. One more important point is custom reporting which allows you to easily run huge data sets. You can choose a schedule configuration of customized reports with specific dimensions and metrics for different stakeholders. By adding additional columns or arranging data by multiple variables, customs reports can be adjusted to the needs of your company.
Custom property management system development
To say that any property management system is better or worse is unreasonable. After all, the choice of software for business management entirely depends on the needs of the customer and the specifics. That is why custom property management system development is an attractive option to integrate into the PMS all the necessary functions for the real estate manager. Each owner must decide for himself what is best for him and satisfies his needs.
The PMS can include various invoice templates by providing the ability to customize the presented style and information, vast options for built-in analytics, and payment automation methods.
If you understand all the features and benefits of PMS and are looking for a development firm, then software engineers at Axon are happy to assist you.
Learn more about creating a perfect tenant experience here.
Conclusion
Property management system is a great assistant for real estate companies to rationalize their rental operations at all stages of the lease. This system can assist you in attracting, screening, and administering renters, as well as controlling and meeting their maintenance needs and conducting an account for all of the relevant costs and revenue.
Thus, the NOI of your company can be easily increased due to the automated PMS accounting and reasonable approach to the expenditures.
