On-prem Property manager vs all-in-one management softwares

[Raj P.]

Hi, I would like to understand the pros and cons in using a property manager (live person whom I can be in touch directly) vs using all-in-one property management softwares such as rentredi, hemlane, caretaker, etc. (tenant screening, rent collection, maintenance scheduler, etc). I did research this topic and was inclined more on software-based (mainly due to price) but would like to get real-life opinion of BP community.

The main pros i see having an on-prem property manager are:

1) Ease of rent collection and managing tenants

2) Auto schedule of any maintenance and follow-ups

The con i see is the monthly payment (8-10% to property manager vs <$90/unit using software)

The key points I am trying to find are:

1) Does the above pros on having on-prem property manager same with software-based?

2) Is the huge price difference has any "catch"?

3) Am I missing any other main points ?

Thanks in advance.

[Joe Splitrock]

@Raj P. I think you are misunderstanding what all-in-one means. These are software tools for YOU or a property manager to manage a property. They don't replace the human. All that software means is YOU will become the property manager, just with tools to help you do the job. You may view it as saving money every month, but you will be trading your time. It could also cost you more to self manage through costly mistakes. A property manager has experience with hundreds or thousands of properties and tenants. That experience allows them to think critically to solve problems and avoid mistakes. 

So here is what YOU will be doing remotely:

- Taking photos of the property and loading them in software to list for rent

- Writing advertising text for the listing

- Determining rent price and approval criteria

- Applying local laws in your management

- Screening prospective tenants for showing

- Showing the property

- Verifying application information such as contacting employers and previous landlord

- Making approval or denial decisions based on applications

- Communicating with the applicant from application to approval or denial

- Setting up the lease and getting it signed

- Getting the locks changed at the property and getting the tenant their key

- Doing a move in inspection with the tenant

- Collecting rent, which is easy when people are paying. If they fail to pay rent, you need to call them or have someone stop at the property. In a worse situation you need to post notice on the door or evict.

- Inspections while the tenant lives there

- Determine validity of service requests. The tenant can report problems through a portal, but someone still needs to dispatch the appropriate service person to fix the problem. Handyman, plumber, electrician, HVAC. Some requests may be upgrades instead of repairs, so someone needs to approve maintenance requests. Large repairs need multiple bids, so you don't want software automatically dispatching people to the job site. What if the service person shows up and the tenant doesn't let them in? Who coordinates times and works through no-show issues by the service person.

- When tenant gives notice to vacate, someone needs to do a move out inspection. If items are not cleaned or damaged, someone needs to photograph and calculate costs for security deposit deductions. All these items need to be addressed prior to listing the property for rent.