Most don't have the systems and processes internally that institutions require.  

Upgrades include a fully remodeled kitchen, renovated bathrooms, new durable flooring, contemporary fixtures, and efficient heating and cooling systems.

Once you feel you've built a strong team with your first property and have solid systems in place, I would then start buying more aggressively and taking on bigger projects.I suggest reading this BP article on the core 4.https://www.biggerpockets.com/blog/core-four-real-estate-team

Your first hire is unlikely to work out though, was you won't have a good hiring system in place. - So, recommend having that first hire document the crap out of what you want them to do.

Is there a software system to track everything and notify the owner?

A tenant doesn't qualify for a S8 voucher by making good financial and life decisions, so what quality of people do you think the system is dealing with?

But, for instance, I sent them a notice of rent increase effective February 1 and needed them to confirm that they have accepted the new payment terms through our electronic payment system, and even after repeated notices, they are not responding.

It was one of my first claims and I learned how their claim system works and never failed again. 

A third party company that integrates with our system.

Most are folks that have the emotional control of a 5 year old, controlling attitude, an omniscient narrative in every thread & topic, act like an online hall monitor, and constant attention seeking.