The Ultimate Guide to Multifamily Property Management Software

Historically, the commercial real estate industry has been slower than most to adopt new technologies, often relying on traditional methods long past their prime. This reluctance to innovate has disadvantaged many as the industry evolves and competitors decide to adapt quickly and pull ahead. The reality is stark: clinging to past ways will soon no longer yield success. Delaying implementing technology solutions hampers your current operations and risks leaving your properties lagging in a competitive and rapidly advancing market.

A range of multifamily property management software can greatly improve tenant happiness, increase operational efficiency, and substantially raise profits. To avoid letting your property fall behind the curve, let’s bridge that gap by exploring the transformative power of multifamily property management software. 

Why You Can't Afford to Ignore Multifamily Property Management Software

The gradual integration of digital solutions into property management has transformed real estate over the past decade. Despite this ongoing transition, many digital advancements remain underutilized or unknown to many property managers. 

By 2024, overlooking these technological advancements is seen as a gap in operational tactics and a major oversight in a building operator's duties. In some situations, failing to investigate and adopt these digital innovations can result in a decrease in trust from both the owner and tenants towards the property managers, highlighting the essential role of technology in contemporary property management.

Imagine your tenant needing to come to your office each month with their rent check or mail in a service request. These are (hopefully) extreme examples, but if your company never adopted email, tenants would be severely annoyed. 

Adopting digital tools has become a must-do for property management. It brings big benefits, like smoother day-to-day operations and better resource allocation, which helps properties do better financially. Using new tech in property management is not just a nice extra—it's necessary for long-term success and growth.

Types of Multifamily Property Management Software and Their Benefits

Leasing and Tenant Screening Software

The phase of leasing and screening tenants is crucial in managing multifamily properties, as it determines the quality of tenant relationships and the financial well-being of the property. Advanced software tools such as Buildium and AppFolio have revolutionized this part of property management, introducing levels of efficiency that were once out of reach.

Here’s how adopting leasing software helps: 

• Automated Listing Distribution: One of the standout features of these platforms is their ability to automatically distribute rental listings across a wide array of websites, including top real estate platforms and social media sites. This broad exposure ensures that vacancies reach the widest possible audience, significantly increasing the chances of finding qualified tenants quickly. For property managers, this means no longer having to manually post listings on multiple sites, saving hours of work and ensuring that their properties are marketed efficiently.
  
  
• Streamlined Application Process: These systems enable potential tenants to submit applications online, offering the flexibility to apply for housing from anywhere at any time. This approach not only betters the application process but also quickens the collection and analysis of applications. Additionally, the shift to online applications removes the hassle and potential delay linked to paper applications, which applicants might never return, thus avoiding possible loss of interest from prospective tenants. Property managers can use a centralized platform to evaluate applications, weigh candidate qualifications, and make quicker, more informed leasing decisions.
  
  
• Comprehensive Background and Credit Checks: Perhaps the most critical feature is the automation of background and credit checks. Buildium and AppFolio integrate these checks directly into their platforms, allowing property managers to initiate screenings with just a few clicks. These checks delve into credit history, criminal records, past evictions, and employment verification, providing a comprehensive view of the applicant's reliability and financial stability. This thorough vetting process is key to minimizing the risk of problematic tenants, which can lead to unpaid rent, property damage, and costly evictions.
  
  
• Enhanced Communication with Applicants: These software solutions facilitate better communication with applicants throughout the screening process. Automated notifications keep applicants informed about the status of their application, any additional information needed, and the final decision. This transparency and regular communication improve the applicant's experience and reflect well on the property’s management practices.
  
  
• Efficiency and Compliance: By automating these tasks, leasing, and tenant screening software accelerate the leasing process and help ensure compliance with fair housing laws and other regulatory requirements. Property managers can set standardized criteria for screening, reducing the risk of discrimination and ensuring a fair process for all applicants.

Maintenance and Work Order Management Software

Efficient maintenance and repair management is crucial in preserving the value of multifamily properties and maintaining tenant satisfaction. Software platforms such as Maintenance Connection and Property Meld have revolutionized this aspect of property management by simplifying the coordination of repairs and maintenance tasks. These platforms enhance the maintenance workflow, from request submission to job completion, in several key ways:

• Centralized Work Order Management: These systems provide a centralized platform where all maintenance requests are logged, assigned, and tracked. Property managers can easily prioritize tasks based on urgency, assign them to the appropriate maintenance staff or contractors, and monitor real-time progress. This organization streamlines the maintenance process, ensuring that no request is overlooked and that all tasks are completed in a timely manner.
  
  
• Real-time Communication: A standout feature of these platforms is their ability to facilitate real-time communication between property managers, maintenance teams, and tenants. Tenants can submit maintenance requests through an online portal or mobile app, including photos and detailed descriptions of the issue. Property managers and maintenance staff receive instant notifications of new requests, can communicate directly with tenants within the platform to clarify issues or provide updates, and mark tasks as completed once resolved. This immediate and transparent communication greatly improves response times to maintenance issues, directly impacting tenant satisfaction.
  
  
• Automated Scheduling and Dispatch: Maintenance Connection and Property Meld automate the scheduling and dispatching of maintenance tasks. Based on the nature of the request and the availability of maintenance staff, the system can automatically assign tasks, optimizing the workflow and ensuring that issues are addressed as efficiently as possible. For properties that use external contractors, some platforms can even integrate with contractor schedules, further streamlining the repair process.
  
  
• Maintenance Tracking and Analytics: Beyond just organizing tasks, these platforms offer valuable analytics on maintenance operations. Property managers can track the frequency of issues, the time taken to resolve them, and the cost of repairs. This data is crucial for identifying patterns (such as recurring problems with specific appliances or systems), planning for preventive maintenance, and budgeting for future repairs and upgrades.
  
  
• Tenant Satisfaction and Retention: The efficiency and transparency provided by maintenance and work order management software directly contribute to tenant satisfaction. Quick and effective responses to maintenance requests make tenants feel valued and well-cared for, which is a significant factor in their decision to renew leases. Happy tenants are likelier to speak positively about their living experience, aiding the property’s reputation and marketing efforts.

Financial Management and Accounting Software

Navigating the financial complexities of multifamily property management demands precision, efficiency, and transparency. Software solutions like Yardi Voyager and QuickBooks for Real Estate offer a comprehensive suite of tools to streamline financial operations from rent collection to financial reporting. These platforms bring a new level of sophistication to financial management, significantly impacting daily operations in several ways:

• Automated Rent Collection: One of the core features of these software solutions is their ability to automate the rent collection process. Tenants can pay their rent online through secure portals, reducing the need for manual checks and bank visits. This convenience improves the tenant experience, ensures timely payments, and reduces the incidence of late or missed rent. For property managers, automated reminders and notifications help keep track of payments and outstanding balances, making it easier to manage cash flow.
  
  
• Budgeting and Expense Tracking: Yardi Voyager and QuickBooks for Real Estate provide robust tools for budgeting and tracking expenses. Property managers can set detailed budgets for different categories, track actual spending against these budgets, and adjust forecasts based on real-time data. This level of detail and flexibility aids in controlling operational costs, identifying savings opportunities, and making informed financial decisions.
  
  
• Comprehensive Financial Reporting: Generating accurate and timely financial reports is crucial for evaluating the performance of multifamily properties. These software solutions offer a range of reporting features, from income statements and balance sheets to custom reports tailored to specific management or investor needs. The ability to quickly generate detailed financial reports supports strategic planning and simplifies compliance and tax preparation.
  
  
• Ensuring Financial Accuracy: Ensuring accuracy is paramount with the complex array of transactions involved in property management. Financial management and accounting software reduce the risk of errors associated with manual data entry and calculations. Automated reconciliation features, for example, help verify that all financial transactions match bank statements, ensuring the integrity of financial records.
  
  
• Streamlining Administrative Tasks: Beyond the major financial operations, these platforms also streamline many finance-related administrative tasks. The software reduces the administrative burden on property managers, from managing vendor payments and tracking insurance policies to calculating and distributing utility costs among tenants. This efficiency allows them to focus more on strategic initiatives and less on day-to-day financial administration.

Tenant Communication Platforms

In multifamily property management, fostering a strong sense of community and maintaining open lines of communication with tenants are pivotal for retention and satisfaction. Platforms like Buildium and Zego have significantly advanced tenant-manager interactions by providing comprehensive communication tools beyond simple dialogues. 

These platforms enrich the tenant experience and operational efficiency in several meaningful ways:

• Centralized Communication Hub: Buildium and Zego are centralized hubs for all tenant communications, consolidating messages, announcements, and documents in one easily accessible location. This centralization ensures tenants receive timely updates about property news, maintenance schedules, and community events, fostering a sense of belonging and community among residents. For property managers, it simplifies sending out mass communications and tracking responses, ensuring no tenant is left uninformed.
  
  
• Streamlined Rent Payments: These platforms offer integrated systems for online rent payments, providing tenants with a convenient and secure way to pay their rent. The ability to set up automatic payments further enhances this convenience, reducing late payments and streamlining cash flow management for property managers. This feature improves the financial operations of property management and adds a layer of service that tenants appreciate.
  
  
• Efficient Maintenance Request Submissions: A key component of tenant satisfaction is promptly and effectively resolving maintenance issues. Buildium and Zego allow tenants to submit maintenance requests directly through the platform, including the ability to attach photos and provide detailed descriptions of the issue. This direct line to the maintenance team accelerates the response process, ensuring issues are addressed quickly and efficiently, increasing tenant satisfaction and trust in the management team.
  
  
• Enhancing Tenant Engagement: Beyond the operational benefits, these platforms offer tools for enhancing tenant engagement and building community. Features like community forums, event calendars, and classifieds encourage tenants to connect, share resources, and participate in community events. This engagement fosters a strong sense of community, making the property more than just a place to live but where tenants feel at home and valued.
  
  
• Feedback and Surveys: Another significant advantage is collecting tenant feedback easily. Buildium and Zego facilitate the creation and distribution of surveys, allowing property managers to gather valuable insights into tenant satisfaction, concerns, and suggestions for improvement. This feedback loop is critical for continuous improvement and can guide strategic decisions to enhance tenant satisfaction and property appeal.

Smart Heating Controls

Smart heating controls transform the management of heating your multifamily properties with automation, online management, and a robust temperature and humidity sensor network. Runwise is the leader in this arena. This system enables precise control over indoor temperatures, giving property managers visibility into each apartment’s temperature.

• Personalized Comfort and Efficiency: Smart heating controls enable tenants to adjust their heating settings via a user-friendly app, allowing for customization based on personal preferences, occupancy schedules, and weather forecasts. This level of personalization ensures that tenants enjoy optimal comfort without wasting energy on heating unoccupied spaces or during warmer weather. For property managers, this significantly reduces overall energy consumption, lowering utility costs and contributing to the property's sustainability goals.
  
  
• Remote Monitoring and Control: One of the key features of Runwise is its remote monitoring capabilities. Property managers can oversee the heating system of the entire property from a centralized dashboard, making adjustments as needed to ensure efficient operation. This allows you to correct any heating issues without needing to be at the building itself and before the heat complaints roll in - great for property managers who don’t like to interrupt their sleep.
  
  
• Enhanced Tenant Attraction and Retention: By offering advanced smart heating controls, properties equipped with Runwise become more attractive to prospective tenants, particularly those who prioritize environmental sustainability and modern conveniences. This technology not only serves as a differentiator in a competitive market but also enhances tenant satisfaction and comfort, factors that are crucial for retention. Tenants appreciate the ability to control their environment and the cost savings associated with more efficient energy use, making them more likely to renew their leases.
  
  
• Contribution to Sustainability: Implementing Runwise is a tangible step towards reducing a property's carbon footprint. By optimizing heating usage, properties can significantly lower their energy consumption, contributing to broader environmental sustainability efforts. This commitment to green technology can enhance the property's reputation, appealing to a growing demographic of environmentally conscious tenants and stakeholders. It also aligns your property with climate regulations like Local Law 97, thus avoiding fines, and qualifies your property for National Grid rebates, among other financial incentives.
  
  

• Cost Savings and Value Addition: Beyond the environmental and comfort benefits, Runwise offers financial advantages. Reduced energy consumption lowers utility bills, directly impacting the property's bottom line. Additionally, the modernization of heating systems can increase property values and attract a premium on rental prices, offering property owners a compelling return on investment.

By incorporating these digital solutions, property managers can leverage technology to enhance efficiency, improve tenant satisfaction, and ensure the financial health of their properties. 

Benefits of Using Software for Property Managers

Modern multifamily property management software can easily modernize how your properties are managed, offering unprecedented efficiencies and vastly improving tenant experiences compared to the analog days of the 80s and 90s. These digital solutions bring about cost savings in hundreds, if not thousands, of different ways while significantly enhancing the quality of service provided to tenants.

• Cost Reduction Across the Board: Time is money. Property managers can dramatically reduce the time and labor traditionally required by automating routine tasks, translating into substantial cost savings. For example, digital lease signing eliminates the need for physical paperwork and in-person meetings, saving on printing costs and administrative time. Similarly, integrated maintenance request systems reduce the need for call centers or dedicated staff to handle tenant issues, further cutting operational costs.
  
  
• Enhanced Tenant Experience: Today’s renters seek convenience, transparency, and responsiveness. Platforms that offer online rent payment, digital maintenance requests, and real-time communication channels provide services that the majority of renters would expect when considering a building. These features make life easier for tenants and foster a sense of community and belonging, enhancing overall satisfaction and loyalty.
  
  

• Strategic Growth and Decision Making: With comprehensive analytics and reporting capabilities, property management software provides insights that can significantly change the profitability of your properties. Managers can analyze trends in occupancy, rent collection rates, maintenance costs, and more, enabling informed strategic decisions. This data-driven approach allows for identifying areas for growth and improvement, leading to better property performance and profitability.
  
  

• Improved Financial Operations: The precision and efficiency afforded by modern software ensure a higher degree of financial accuracy. Automated billing, rent collection, and budgeting tools reduce the likelihood of human error, ensuring that financial records are meticulous and reliable. This accuracy is crucial for budget forecasting, tax preparation, and financial reporting, ultimately supporting more robust financial health for the property.

Multifamily property management software has become essential for effective property management, driving transformation rather than merely overseeing operations. Ignoring this shift and clinging to outdated methods is a short-sighted approach that overlooks these technologies' undeniable benefits and efficiencies.

Choosing the Right Multifamily Property Management Software

Pinpointing the perfect software for your multifamily properties can appear daunting in an era when the market is flooded with property management solutions. However, focusing on several key considerations can streamline this decision-making process, ensuring that your chosen software meets your current needs and supports your future growth. Here’s how to navigate the selection:

• Scalability for Growth: The real estate market is dynamic, and your property management needs will evolve as your portfolio grows. Selecting software that can scale with your business is essential. Look for platforms that can handle increasing units without compromising performance, offer additional modules or features that can be added as needed, and support expanding into new markets or property types.
  
  
• Ease of Use and User Interface: The best software in the world won't help if it's too complicated for your team to use effectively. Prioritize solutions with intuitive interfaces and straightforward workflows. Ease of use ensures that your team can leverage the software to its full potential, enhancing efficiency and reducing the learning curve for new staff.
  
  
• Integration Capabilities: Seamlessly integrating with other tools and systems is invaluable in today's interconnected digital landscape. Whether it's accounting software, payment processing platforms, or marketing channels, choose a property management solution that plays well with the other technologies you rely on. This connectivity ensures streamlined operations and minimizes the need for manual data entry or duplication of efforts.
  
  
• Quality Customer Support and Training: Robust customer support and comprehensive training programs are the backbone of successful software implementation. Look for providers offering responsive customer service, extensive training resources, and ongoing support to ensure you maximize your investment. Quality support can significantly impact your team's ability to resolve issues quickly and utilize the software effectively.

Implementing Multifamily Property Management Software

Rolling out new property management software across multifamily properties is more than just a technical upgrade—it's a strategic initiative that can significantly impact your operations and tenant experience. To ensure a smooth and effective implementation, consider the following steps as part of your strategy:

• Prepare Your Team: Change management begins with your team. Before introducing new software, communicate the reasons behind the change, its benefits, and how it will affect daily operations. Getting buy-in from your staff early on can alleviate resistance and foster a positive attitude towards the new system.
  
  
• Plan for Data Migration: Moving data from your old system to the new software is a critical step that requires careful planning. Assess the data quality and cleanliness, decide what needs to be transferred, and use this opportunity to clean up any outdated or incorrect information. Work closely with the software provider to ensure a seamless migration process that minimizes downtime and data loss.
  
  
• Configure the System to Your Needs: Customizing the software to fit the unique requirements of your properties is crucial. Take the time to configure settings, preferences, and workflows that align with your operational procedures. This might include setting up custom reports, tenant communication templates, or maintenance scheduling systems. Proper configuration ensures the software works for you, not vice versa.
  
  

• Phased Rollout and Training: Consider a phased approach instead of a full-scale implementation. Start with a pilot program on one or a few properties to identify potential issues and gather feedback. This strategy allows for adjustments before rolling out the software across all properties. Concurrently, invest in comprehensive training for your team to ensure they are comfortable and proficient with the new system. Effective training is key to maximizing the software’s potential and achieving a high adoption rate among staff.
  
  
• Gather Feedback and Optimize: After the initial rollout, actively seek feedback from your team and tenants about their experience with the new software. Use this input to make necessary adjustments and improvements. Continuous optimization based on user feedback ensures that the software evolves to meet the changing needs of your properties and stakeholders.

Multifamily property management software is pivotal in pursuing operational excellence, tenant satisfaction, and financial success. The strategic investment in suitable software can redefine property management, setting a new standard for efficiency and profitability.

Enhancing your property management practices begins with exploring and implementing the right software solutions. Explore how our Runwise can elevate your property management efforts and drive higher profits by booking a demo with us today.