Getting started with property managing
I am just getting started managing 7 units. What sites/software does anyone recomentd to collect rent, anyone have like a template of an excell sheet I can use to get organized? I feel like I'm kinda chasing my tail here. Any thoughts or suggestions are welcome! I'm really excited to start my journey with investing!!
Hi Jason,
Depending on the property size there is different software. For only 7 units, you may be best off with just Excel. You could also use quick books. If you’re planning to scale you can look into larger ERPs like Buildium or Yardi.
Excel works fine for tracking expenses with minimal units. I use Turbotenant for collecting rent and electronic lease signing and it's been great. I use Zillow for property marketing and applications.
So far that combo has worked on the 6 properties that I self manage.
@Jason Hanson
Rentredi is easy & worked for us until we got over 150 units.
Software is a common question on BiggerPockets. Here are some things to consider:
- Most investors don't need software until they have 5-10 rentals. All you need is a single place to track tenant information, payment history, maintenance, and other things. You can easily do this on a spreadsheet and it will take less time to track than find and learn a new software. If the software is not simplifying your life or making you more accurate, you shouldn't use it.
- Software does have extremely helpful features like online payments, marketing syndication (click a button, and your property is advertised on multiple sites), electronic document review/signing, maintenance tracking, and owner reports. But do you need that for your one rental?
- There's no perfect software out there. Every system you try will have flaws or you'll salivate over a feature that shows up in other software.
Some familiar names you'll see thrown around a lot: Stessa, Apartments.com, RentRedi, TenantCloud, Innago, RentManager, Avail, Rentec Direct, Doorloop, etc.
I recommend you search for each app online and see what they offer, how much they charge, etc. Make a simple spreadsheet or written list with the features of each and see which ones appeal to you most. Try to narrow it down to your top 3-4. Once you have a short list, get an account with each one and run them through the wringer to see how they function. Do one task at a time in each app to compare apples to apples.
- Load a property with pictures and details.
- Market that property.
- See what your marketing looks like from the public's perspective.
- Submit a fake application to see how easy the process is.
- Run a credit/screening report on yourself.
- Enter a maintenance request, assign a vendor, and attach a fake invoice.
- Enter charges to the tenant's ledger.
- Enter recurring charges and automatic late fees.
- Sign documents electronically.
- Run owner reports.
After testing a few apps, one should stand out for you. Choose that one and use it. No system is perfect, so don't waste time chasing after the next shiny object. You should only have to change when your current software has a flaw or lacking feature causing you to spend too much work on a work-around. Then you can consider researching and finding something that meets your needs better.
Thank you!
@Jason Hanson I highly recommend you don't use excel as it sounds like you have a decent sized portfolio and are likely to scale. Get on a great PM software like TenantCloud or Buildium NOW to save yourself the hassle of trying to onboard everyone further down the road. The extra $50 for TC's top subscription is 100% worth it. I also recommend you start a QuickBooks subscription NOW. Again you do not want your BK to build up down the road, and end up costing you more to unravel then if you had just onboarded to a great software in the first place. Good luck!
Congrats on starting your investing journey! It's great that you're thinking ahead on how to optimize your systems.
If you plan to grow, it may be worth upgrading from the excel spreadsheet now to save yourself the headache later. There's nothing worse than trying to learn a new software while you're in the thick of it with a growing business.
It's also a good time to consider what will work best for you when it comes to bookkeeping. Most of my property management clients use a PM software as well as QuickBooks, but RentManager seems to be a good option with both.
Quote from @Jason Hanson:
I am just getting started managing 7 units. What sites/software does anyone recomentd to collect rent, anyone have like a template of an excell sheet I can use to get organized? I feel like I'm kinda chasing my tail here. Any thoughts or suggestions are welcome! I'm really excited to start my journey with investing!!
Small ventures, Buildium is great! Collecting rents, getting tenant requests done and much more.
#2 Managing Your Property Contributor
- Property Manager
- Royal Oak, MI
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#2 Managing Your Property Contributor
- Property Manager
- Royal Oak, MI
@Jason Hanson depends on if you are managing your own properties or managing properties for others...
We started with Buildium.
Welcome, Jason! I suggest checking out RentVine. Set yourself up for portfolio growth and a strong start. I have a basic template I'm happy to share; just shoot me a message. Good luck and happy investing!
