Searching for Property Management Software for Landlord/Investors

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Searching for Property Management Software for Landlord/Investors

Will F.
Investor · Los Angeles County, CA · Member since 2012 · 962 posts · 279 votes

Hey I'm trying to figure out PM software to go with --Appfolio, Buildium or Rentec.

I've read a lot of posts from people saying why one is better than the other based on price, features.  What seems to be good for self-managing landlord/investor types.  Obviously a PM might prefer Appfolio over a self-managing landlord for instance.

(Background: I currently use a hodgepodge of google docs (excel), quick books, local credit checking, leases from apartment assoc etc for self-managing of 20 units and own/manage about 12 other units with hired PMs. I'm very hands on and am just as much a builder/ developer as I am an investor/landlord.  I don't enjoy bookkeeping/ taxes)

I kind of feel like the main reason I need PM cloud software is for basic online rent collecting and setting up that system. Perhaps I'll find other uses with a PM software-- like online leases, integrated background checks and everything all in one.

I want to save time and have an efficient system over saving nickles and dimes--

I'm hesitant on pulling the trigger with any one software because I feel like I will invest a lot of time into learning the system, setting up accounts with my banks and tenants, only to find that I'm not satisfied and then want to change.  


Also, I don't want to invest my time/ money into a software only to have the fees quickly uptick when I feel locked into that software.

I only self manage about 16-20 units for myself and family.  I may just stick with that for self-PM and may hire a PM as I expand but still not solid on that.  I have about 12 more units I can start self-managing and will be expanding more to possibly 40 units total. At that point I may hire more PM depending on scalability of my own system with the PM Software at that time . Rents are pretty high as they're mainly in LA so I guess a $65 (buildium) or $250 (appfolio) monthly fee will not kill cashflow.

I just want to be sure that if I spend time with a whole new system, I get my money's worth for my time in learning/ implementation.

Anyways anyone's experience would be great here, especially advice from 10-50 unit self-managing landlord/investors 

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Kaycee Miller
Professional · Grants Pass, OR · Member since 2016 · 89 posts · 77 votes
10y

As your portfolio expands, PM software is certainly the way to go - you are smart to check out your options now. All the solutions you mention have very comparable features. While the monthly fee might be minimal to your cash flow at first glance, make sure to find out what their onboarding fees and term contracts are.  Like you said, if someone makes you sign up for a year contract but you find out you don't like it, you could be stuck.  Additionally, read reviews to see what people think about the customer support - free, US-based support from people with a background in property management will be super helpful as you learn a new tool and as you need help down the line. 

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  • Dror Shmaya
    Property Manager · Bronx, NY · Member since 2016 · 69 posts · 7 votes
    10y

    Hi.

    We are using buildium with our services.

    Out call center makes a very fast introduction for our new one once they are joining us.

    So I can say that it give good service on the learning curve which is important for your peace of mind.

    Our services include mainly back office services for pm companies as wel dyi landlords.

    Good luck:)

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  • Kaycee Miller
    Professional · Grants Pass, OR · Member since 2016 · 89 posts · 77 votes
    10y

    As your portfolio expands, PM software is certainly the way to go - you are smart to check out your options now. All the solutions you mention have very comparable features. While the monthly fee might be minimal to your cash flow at first glance, make sure to find out what their onboarding fees and term contracts are.  Like you said, if someone makes you sign up for a year contract but you find out you don't like it, you could be stuck.  Additionally, read reviews to see what people think about the customer support - free, US-based support from people with a background in property management will be super helpful as you learn a new tool and as you need help down the line. 

    1Reply
  • Jason Hartley
    Vancouver, WA · Member since 2016 · 230 posts · 161 votes
    10y

    Hey @Will F. - Being a self managing landlord and having seen all three products, I would cast my vote for Rentec.  AF is gonna require 1 year contract and setup fees.  Buildium appears to be raising their prices again (3rd time in 2 years??).  Meanwhile Rentec has been consistent and their support is great and has the same core features.

    Try calling all 3, and see who you feel the most comfortable with, but be prepared to get spammed from AF daily if you give them your email address.  And at least Rentec and Buildium have free trials so you can tinker without paying up front.

    1Reply
  • Will F.
    OP
    Investor · Los Angeles County, CA · Member since 2012 · 962 posts · 279 votes
    10y

    Thanks guys

    Anyone attempting a "paperless" office system as well?  I'm thinking:

    -cloud based PM software

    -Google Drive (or Drop Box)

    -using digital signing software

    -Evernote?

    -Fujitsu ScanSnap

    Any recommendations on the above or anyone care to share their system for PM/ minimizing paper/ organization?

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  • Ryland Taniguchi
    San Francisco, CA · Member since 2015 · 786 posts · 717 votes
    10y

    Appfolio, Buildium and Rentec are built more for property managers than for self-management. I would check out Hemlane for self-management as it was created specifically for this purpose and more for investors than property managers.

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  • Nicholas B.
    Las Vegas, NV · Member since 2011 · 42 posts · 17 votes
    10y

    WIll F. (can someone show me how to link usernames properly here?), I strongly advise for the Fujitsa Scansnap, I have their latest wireless version, and had their wired version for many years before. Devonthink Pro is a fantastic software package, and a few days ago released what finally appears to be a stable sync package that allows me to have all my documents on my iphone and ipad.

    As for self-managing. I own/manage 29 units, ranging from in rents greatly (400-5000). I used Propertyware for the past several years and have had terrible experiences with the people there over the past year due to a billing issue which they admitted to but refused to resolve after about 100 emails and many phone calls.

    Buildium is a great system. I have it up and running, and would say I spent around 50 hours setting up all the vendor/banking/tenant information.

    Cost is $60/month. Setting up epay bank accounts is $99/account setup. Remote checks are $30/account setup. Premium tenant screening $99 to setup (I think? might have been more). The only other extra charge that I went for was a faster deposit time for tenant epayments. Getting them next day vs 3 days was an extra $.25/epayment.

    I never properly did my accounting on Propertyware. I basically used it to keep track of tenant payments and charges. With Buildium I've made a point of making sure all my banking is done properly, all my credit card charges for the business is entered in correctly, and all my bank balances are accurate. Vendors get paid directly from Buildium, either through an epayment directly to their bank, or the remote check system, which allows me to simply enter the details of the invoice into Buildium, and the check is sent to the vendor. 

    Part of the learning curve was familiarizing myself with these complexities, and of accounting in general. I spent about a month total entering everything into the system, and going through the help sections, as well as creating help tickets (which were always answered very quickly by tech support).

    The convenience of having everything in one place is worth more than a few dollars a month in charges. I don't think you could go wrong with either Appfolio or Buildium. Both seem like fantastic packages.

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  • Chris V.
    Rental Property Investor · SF Bay Area · Member since 2015 · 154 posts · 179 votes
    10y

    I am a Buildium user myself. It's true that it is oriented more towards property managers than property owners. Overall I am pretty happy with it and the price comes down to about $2 per unit per month with a minimum of $45 p/m. 

    I find it easy to use, support is responsive. However it is not as feature rich as you might expect, which is a bit disapointing. One example: how can ad property management software not have a historic vacancy reporting module or report, or anything. There is no way to analyze vacancies over a period of time...:(

    My new favorite feature is the online payments. I have exactly half of my tenants moved over to it, and it is SOOOOOO much easier than the alternative. Late fees are charged automatically and show up on the account right away, so no-one can ever "forget" to pay them. It costs me $0.50 per payment ($99 one time setup fee). I could charge the tenants the $0.50 cents, but I gladly absorb that. If the tentant chooses to pay by credit card they do have to pay the 2.75% processing fee. Hoever, they CAN pay by credit card:).

    Anyway, I have not really evaluated any other software so I can not say what would be better... Overall I am pretty happy with it though. I am particularly happy that I bough it RIGHT AWAY when I got into the rental business. I enter everything right away, so I am never behind, and don't have to walk a shoe box over to my accountant:).

    1Reply
  • Nathan MillerPro Member
    Property Manager · Grants Pass, OR · Member since 2009 · 429 posts · 201 votes
    10y

    Hey @Chris V. - that's awesome that you've gotten half of your tenants moved over to ACH.  We've found with our clients using ACH that their vacancy rates dropped significantly afterwards because tenants are less inclined to move when they are setup for automatic payments.  I'm curious if you see the same trend.  If you remember in about 6 months, give us an update.

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  • Chris V.
    Rental Property Investor · SF Bay Area · Member since 2015 · 154 posts · 179 votes
    10y
    Originally posted by @Nathan Miller:

    Hey @Chris V. - that's awesome that you've gotten half of your tenants moved over to ACH.  We've found with our clients using ACH that their vacancy rates dropped significantly afterwards because tenants are less inclined to move when they are setup for automatic payments.  I'm curious if you see the same trend.  If you remember in about 6 months, give us an update.

    Sure, feel free to ask me about it any time! My tenants are not necessarily paying automatic. There is a check box to make the payment automatic. However the way the portal is setup does not (in my opinion) steer the tenant aggressively enough towards  towards going that route. So far only one of the tenants has set it up that way. While you could argue that most of them don't want it setup automatically because they don't know when exactly their bank account will have the funds, I wish Buildium would take a more pro active role in steering the customer down the most desired path. Just like for example the Debit steering that the smarter POS systems do. Debit transactions have a fixed transaction fee, while credit transactions charge a percentage. So smart POS system are setup to default the transaction to credit if the percentage would be less than the fixes fee. If the credit card percentage would be over the fixed fee the POS signature capture terminal defaults to debit. The customer can always opt out of credit/debit, but most don't care that much, so steering saves the retailer a *lot* of money. Anyway, I wish Buildium would do some more of that sort of stuff, but overall I am pretty happy with it. It is super simple to use.

    I do agree with the point that for people that don't have a lot of units it is getting more expensive. Its about $2 per unit per month, but it has a lik $45 minimum... If you just have say 2 or 3 units that is a lot of money.:( My solution for this "problem" is just to grow the number of units I run:))) Once you get over the $45, $2 per unit per month sounds reasonable to me:)

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