February 20th 2024 11:00:00 AM
Property Management Software for Growing Market Demand
June 29th 2021 11:00:00 AM
Global Property Management Market
The following figures were provided by Fortune Business Insights:
- In 2020, the worldwide property management market was valued at US $13.88 billion. This figure represented an increase of 8.7% in 2020 when compared to year-on-year growth in the 2017-2019 period.
- The property management market is expected to jump from US $15.1 billion (2021) to US $28.21 in 2028.
- The projected level of growth is at a 9.3% CAGR (compound annual growth rate) to 2028.
- The rise in CAGR is being attributed to demand as the world’s economies reopen after the pandemic is over.
- Investment in the North American real estate market is expected to be even more significant going forward.
Property Management Software to Have a Key Role
As the real estate sector moves forward, more property managers will be adopting specialized property management software. This type of software can be used for residential and commercial real estate applications (retail, government, industrial, hotel, education, etc.).
A robust software package gives property managers the ability to perform operations related to residential or commercial properties efficiently. When a task can be performed more quickly, it follows that it saves money for the property management company.
For property managers who have to oversee several properties at once, manually trying to keep track of tenants’ rental payments, leases, lease renewals, lease document changes, repair requests, and move-in/move-out logistics can be overwhelming. Property managers also need to keep track of vacant units and may be responsible for advertising and showing the same, depending on the property owner’s expectations.
This adds up to a situation where software is a good choice for monitoring properties, their tenants, and keeping the property manager organized and on track. The software can also be used to upload standard lease documents which can then be used as samples to prepare a lease for prospective tenants.
Once the lease has been signed by a tenant, it can be scanned and stored electronically. The property management company does not have to set aside space for storing paper records, which will only take up a lot of valuable commercial real estate. Instead, these important documents will be securely stored in the cloud and can be accessed anytime they are needed.
PM2000 from Scanco Handles Multiple Property Management Needs
PM2000 gives property managers a consolidated solution that is fully capable of handling a full range of property management needs. This software is integrated with Sage 100 ERP, which means you get access to top-rated financial and management reporting tools. PM2000 also has the advantage of being customizable and scalable so it will adapt as your business grows. Features include the following:
- Flexible Lease Management
Within PM2000, the lease management system is focused on tenants. They can share units or occupy more than one unit. The software easily tracks tenant transactions, such as:
- Insurance information
- Late fees
- Lease terms
When the terms of a lease change for a tenant, the software responds by automatically setting up rate increases for each change. Property managers can schedule and track the lease changes using the calculation method of their choice: Fixed Rate, Percentage, Tenant Gross Sales, Tenant Profits, or Consumer Price Index (CPI).
- Straightforward Billing System
Using the Accounts Receivable module, property managers can bill out for lease charges quickly and easily. Any balances due are tracked in Tenant Maintenance, along with each tenant’s payment history.
Vendor charges can be allocated to tenants directly through PM2000’s Accounts Payable module on a pro-rata, square footage, or an override percentage basis. CAM (Common Area Maintenance) fees can be billed monthly or separately, depending on lease terms.
- Transaction Codes for General Ledger Accounting
PM2000’s transaction codes make it simple to post to pre-defined general ledger accounts. Income and expenses can be posted by property address or individual unit. The software can be used for property management businesses operating on either cash or accrual accounting methods.
- Advanced Tool for Calculating Management Fees
Management fees can be set up for each property in several ways, such as a percentage of the billed or collected amount or at a flat rate. The software can generate an accounts receivable invoice to the property owner automatically as well.
- Easy Financial and Operational Report Preparation
Generate financial reports by property, unit, or a combination of both. Custom financial reports can also be prepared.
This software comes equipped with the ability to generate several types of operational reports, including Aging Reports, Lease Reports, and Rent Rolls.
- Helper Utilities Streamline Everyday Tasks
PM2000 comes with several utilities that make processing and operations tasks run more efficiently. These utilities include Global Reminders, which searches for leases that will be expiring shortly and upcoming rent increases.
Another utility available with PM2000 is Moveout Wizard. It tracks tenants who are leaving a property and automatically applies any outstanding charges to deposits held for them.