Technology moves quickly, and adopting the right tools or processes when they become available is often the difference between insolvency and market leadership. That statement will come as no surprise to seasoned property managers.
The boom in your industry has generated a host of innovations that not only streamline your operations, but also contribute to your bottom line. Review this guide to learn the latest tools and techniques that can improve your property management operation.
Property Management Software Streamlines Operations and Provides Valuable Data
Perhaps the most important piece of technology for your business is property management software. You’re likely already using one of these packages, but it makes sense to reevaluate your options. Cloud-based software design is driving rapid innovations in these tools, so there may be valuable new features that your current system is lacking.
There are many robust property management software options in the marketplace. To find the right package for your company, you need to consider several factors including the number and type of units you manage, cost, and available features. The most popular applications will include essential features such as accounting, billing, maintenance tracking, an online tenant portal, and tenant screening. In addition to these features, top software providers will offer in-depth data to help you maximize profitability.
Valuable Data Analytics
Data from your property management software provides insights into your business such as tenant feedback, occupancy rate, tenant turnover, maintenance costs, and rent collection efficiency. These data points help you analyze the profitability of specific properties and make better decisions in the future.
In addition, some tools offer benchmark data to compare your properties to the local competition – allowing you to identify valuable data such as pricing discrepancies that can increase profits. Together, the various insights from your property management software can help you make decisions that drive profitability and tenant satisfaction.
For more information about property management software, download our whitepaper: Overcoming Property Manager’s Top 5 Challenges.
Financial Services for Property Managers Reduce Risk and Improve Returns
Property management has historically been a labor-intensive endeavor, and the financial aspect of the business was no exception. Fintech changed this fact by introducing new avenues to improve returns and safety for cash while reducing work.
Deposit Management Keeps Cash Safe and Earning a Competitive Return
Many property management firms have increased their cash holdings in the past year, and they need these funds to remain safe while generating income. Some of the factors that have influenced cash needs are:
- High renovation and maintenance costs. Construction costs have begun to moderate, but still remain high for property managers engaging in renovation and maintenance projects.
- High borrowing costs. Interest rates remain at their highest level since 2001, making borrowing more expensive. High loan costs have led many property managers to fund projects with cash.
- Geopolitical risk. The uncertain geopolitical climate has led many property managers to hold more cash to hedge against risk.
Historically, property managers kept reserve cash in a local bank account to cover day-to-day operations, maintenance, and emergencies. They sometimes received a small return on the cash balance, but it usually was not worth the effort to constantly shop rates and move funds in search of optimized returns.
Now, you can earn nationally competitive returns on reserve cash, without the hassle, through deposit management services. This innovative service offering also means property management firms can access optimized returns without sacrificing liquidity or safety – with a single account.
Learn more about deposit management for property managers with these resources:
- Don’t Leave Your Property’s Investments to Chance
- Idle Cash Equals Lost Profits for Property Managers
- Property Managers: How to Get Better Returns on Your Reserves
- 5 Property Management Challenges and How to Overcome Them
Reduce Risk with Business Escrow for Property Managers
In recent years, large renovation and expansion projects have been challenging, because contractors and suppliers are still struggling to meet demand following the disruptions earlier in the decade. This has left many property managers holding the bag. Fortunately, business escrow is incredibly useful in mitigating the risk surrounding these transactions.
Escrow reduces transaction risk by having a neutral third party – the escrow agent – hold funds or other assets until the terms of the sale are met. The escrow agent ensures the property management firm receives what they are owed before the counterparty is paid and vice versa. If the counterparty does not uphold their obligations, the property manager can recoup their funds according to the terms of the contract.
To learn more about business escrow services, review these resources:
- Business Escrow in 2024
- Advantages of Business Escrow Services
- Business Escrow for Mergers and Acquisitions
- Escrow Accounts for Business Transactions
- Escrow for the Purchase or Sale of a Business
- Business Escrow Accounts: Everything You Need to Know
- How Escrow Compliments Enterprise Risk Management
- How to Open an Escrow Account for Business
Property Managers Earn More, Risk Less® With ADM
At the American Deposit Management Co. [ADM], we have the tools and technology to help your property management firm succeed. Our fintech-powered deposit management solutions keep your cash safe without sacrificing returns or liquidity. Additionally, our business escrow services provide unparalleled protection during risky transactions.
Best of all, our innovative technology is backed by a friendly, knowledgeable customer service team. We have vast experience helping property managers improve their cash management and we can even customize solutions to meet your unique needs.
To learn more about how ADM helps property managers, contact us today.