Rental or real estate management software: what is the best solution to manage your property?
Today, 74% of owners manage their property rentals themselves and are abandoning real estate agencies. Managing your rental and your tenant is, however, a time-consuming task that can quickly turn into a nightmare.
This is explained by the arrival of a new type of modern application with automated functionalities: rental management software.
Owners avoid traditional real estate, the services are not always up to par and the turnover is very high: expect on average one month’s rent per property.
Let’s take a closer look at the different options offered to landlords to make their choice easier: Real Estate or Personal Management?
Managing your property alone, a time-consuming solution
Managing the rental of your property, if carried out in isolation, can quickly absorb your time. Tenants can often disrupt their operations, even outside of convenient times, with issues ranging from Defective water heater with out of service signswondering how to prepare your pasta.
You find yourself juggling these emergencies. This is in addition to the need to ensure that tenants meet their obligations, be it noise pollution from weekly parties, property maintenance or paying rent on time.
According to a recent PAP study, 42% of landlords have had disputes with their tenants, including property damage, deposit disputes or unpaid rent.
For optimized management, you can consider several options for your rentals:
- Use nationally established real estate agencies.
- Delegate your rental management to more accessible online agencies.
- Manage it yourself via Excel or specialized rental management software.
This guide explores various rental management methods, their benefits, drawbacks, and costs.
Entrusting the rental management of your properties to a real estate agency seems sensible, especially if you are one of the 26% of owners who prefer this option:
- Your rentals may be far from your primary residence, complicating remote tenant management. A local agency can then handle the visits and inventory.
- You may have other professional or family commitments that restrict the time available to manage the administrative aspects and complications associated with renting.
Let’s explore the different property management options to help you make an informed choice.
Classic real estate agencies
Classic real estate agencies, with more than 25,000 service points across the country, offer a notable proximity advantage. They have local agents to manage tenant interactions.
It is important to note that these agencies focus on real estate transactions and not rental management. Its reactivity may therefore vary. Rental management fees are around 8% of the monthly rent. Let’s take as an example a monthly income of €800, which would be equivalent to around €64 per month.
It is ideal if:
- Your property is not nearby
- Do you want to delegate all of your rental management (preparation of legal documents such as lease, accounting, tenant relations, etc.)
- You want direct contact instead of using a digital tool
Digital real estate agencies
“Digital” agencies, on the other hand, offer comparable services at a lower cost. Its presence, however, is limited to large cities. These web platforms allow landlords to monitor rental management, including rental calls and property maintenance. Receiving rent usually occurs in the middle of the month, which can be restrictive if you have mortgage payments at the beginning of the month. The costs associated with these services amount to around 5% of the monthly income, which would be almost €40 for an income of €800.
It is ideal if:
- Your property is located in a large city
- Do you want to delegate all of your rental management (drafting legal documents such as residential rentalaccounting, tenant relations, etc.)
- You want to reduce your rental management bill
Billing for rental management in agencies
Costs associated with rental management vary depending on the real estate service provider selected to oversee your property. Different operators may apply management fees as a percentage of the rents charged or opt for a fixed, monthly or annual fee. The variability of rental management fees also depends on the scope of services provided, including legal support, renewal management or the tenant search process.
It is accepted that agency fees are generally worth one month’s rent.
The alternative to real estate agencies
The Basic Solution: Using a Spreadsheet Like Excel
Democratized several decades ago, many owners are embracing Excel. They already know how to use it and it is a very practical tool for accounting.
However, although Excel can serve as an initial solution for bookkeeping, this method has its limitations. Managing everything from rent receipts to billing adjustments, not to mention correspondence with tenants, requires a manual approach. It is also crucial to frequently check whether accounting practice complies with current regulatory standards.
A more practical solution with broad functionality: rental management software
Today, a wide range of rental management software is available to optimize the management of your property rentals. These software tools are not limited to simplifying administrative tasks such as collecting rent, issuing receipts, simplifying accounting management or digitizing inventory.
In reality, leasing can be the cause of several disputes between landlords and tenants. That’s why the best property management software goes beyond this, incorporating options like unpaid rent guarantees and legal support.
These online platforms offer a multitude of features for efficient rental management, including providing documents online, managing reviews, processing rent payments and accessing detailed reports.
Whether it is an SCI, a co-ownership or individual owners in France, these property management applications make it easy to publish rental data online, manage rentals, track expenses and respond to customer requests, thus enabling for owners to manage their properties. with more efficiency and transparency.
What features can you expect from rental management software?
When you place your property under management with a real estate agency, you no longer have to worry about anything. It’s convenient and that’s what you’re looking for in your rental management app.
O rental management software market It is vast and each app offers its share of features. To help you navigate and choose the best app for your needs, here is a non-exhaustive list of features you can expect.
- Rental management automation
- Automatic rent deduction
- Automatic sending of rent receipts
- Automated accounting management
- Automatic review of your rent: automatic calculation of new rent and tenant notification
- Operation with your:
- Legal form: First name, ICS, etc.
- Type of rental: simple rental, furnished rental, shared rental, etc.
2. Prospecting and automated relationship with the future tenant
- Submitting rental ads on listing sites
- Easy organization of visits thanks to online diaries, etc.
- Fraudulent file detection (almost 67% of rental files are falsified)
- Online preparation of compatible residential lease agreement and electronic signature
3. Legal assistance and intervention of artisans
- Legal assistance in case of unpaid rent or deterioration
- Assistance in writing legal letters
- Troubleshooting and repair assistance thanks to a network of craftsmen
- Homeowners insurance proposal:
Managerial Invoicing with Rental Management Software
Each rental management software will have its own operation on the billing side. However, you will generally find a monthly subscription per property to which you will add additional features: insurance, artisan network, legal assistance, etc.
It is accepted that rental management software is cheaper than a real estate agency
So, agency or rental management software?
Real estate, whether national or digital, offers certain advantages, you almost entirely delegate the management of the rental of your property and interact with a human being, practical when you don’t necessarily feel comfortable with the IT tool.
On the other hand, when you want to save money on management, rental management software makes sense. Good software can practically replace an agency thanks to its countless automation and document editing features. Better yet, some tools even offer insurance for landlords and merchant networks.
Real estate agency or rental management software: it is above all a question of philosophy!