Software Advice

Property management survey

By Leah Etling on Sep 25, 2013 in Technology | 5 Comments

When it comes to property management software, every company’s needs are unique. But one thing many companies have in common, according to a recent survey by a software review website, is a desire to increase the operational efficiency and effectiveness of their properties through smart software solutions.

Companies across many industries are finding that that their technology goals are more easily achieved when working with fewer vendors. Saving time and money and increasing productivity and efficiency are motivating factors for such a shift, not to mention that single stack technology solutions are integral to building useful databases, better serving customers, and producing dynamic business intelligence.

A recent survey from software review provider Software Advice provided insight into what needs and expectations property managers have from industry-specific software.  The company’s website provides detailed reviews, comparisons and research to help property managers choose the right software.

Aundraya Ruse is an Editorial Coordinator for Software Advice. She helps manage Software Advice’s content and primary research across six enterprise software markets, including property management and construction. She answered a few questions for us about overarching trends in property  management software, as revealed by the summary report findings.

1. What overall conclusions can you make about the state of the property management software industry based on the results of this survey?

Ruse: We found the majority of property management software buyers in our sample are looking to improve the efficiency and effectiveness of their property management operations. This was by far the most common reason buyers purchase property management software (based on responses from our full report).

Reasons for Purchasing – High Level Overview

 

We also learned most of these buyers were using spreadsheets or other manual methods to manage their properties, while buyers already using property management software didn’t cite this as often. This suggests property management software helps property managers improve their efficiency and effectiveness.

Profile of Buyers Seeking to “Improve Efficiency/Effectiveness”

 

2. Was there anything about the survey results that especially surprised or intrigued you?

Ruse: We were surprised to see  a drop in the percent of buyers requesting Web-based software. So far this year,  a large percentage of buyers have cited no preference for their software deployment method. This is odd when comparing deployment preferences over the last few years. There is a visible upward trend in preference toward Web-based systems, and we would expect to see this trendline continue.

Deployment Preferences

 

We were also surprised to see that the average size of buyers managing commercial properties has increased considerably. Here we display buyer size based on the square footage of commercial property the buyers manage.

Average Buyer Size for Commercial Property Management Software

 

While this growth was surprising, it aligns with the National Association of Realtors’ (NAR) recent finding that the commercial property market is in a period of steady, moderate growth. The NAR’s latest Commercial Real Estate Outlook forecasts vacancy rates to decline by 0.2 percent in the office market, 0.6 percent in industrial, and 0.6 percent in retail over the next year, indicating that commercial buying activity is on the upswing. This very well could be contributing to the increase in commercial property management buyer activity that we’re noticing.

3. What is the No. 1 innovation that properties seem motivated to move forward with in the coming year?

Ruse: In our report, we found tenant and lease tracking is the number one application requested by property management software buyers.

Applications Required by Software Buyers

Meanwhile, other outlets such as the National Real Estate Investor have reported that mobile support for property management software is in demand as well. The ability to access information from a smartphone at any time is becoming an expectation for property managers, as it helps them communicate quickly and effectively. Moving forward, according to the article, property managers will likely expect all property management applications to support mobile devices as they look to manage all aspects of a property — from HVAC systems to lighting — from their smartphones.

4. The article on SoftwareAdvice.com singled out Point2 Property Manager’s listing feature. What highlights of this tool are especially relevant to the trends you identified in the survey?

Ruse: Point2 Property Manager’s listing feature is a great example of software that helps property managers improve the efficiency and effectiveness of their operations. For instance, Point2 Property makes listing vacant properties on sites such as Craigslist and Rentals.com more efficient by using the property information (e.g., floor plans and photos) already in the system. This reduces the time it takes to list a property and makes it easier to fill vacancies quickly.

Meanwhile, Point2 Property also makes it easier for potential residents and tenants to communicate with property managers. Potential residents can submit their lease applications directly online and tenants can make their rent payments  via the tenant portal. Allowing this communication to take place online removes the need for paperwork processing and makes these tasks easier to manage.

Point2 Property Manager also has a useful tenant and leasing tracking system, which more than 98 percent of property management software buyers we spoke with required. With this system, property managers can view and renew tenant leases, track payments and balances, schedule move-ins, move-outs and showings.

Finally, Point2 Property Manager system offers property managers mobile access to important information such as maintenance histories and unit availability. It can also be used to send emails to residents or applicants. We believe this function is important for property managers who need to conduct business away from the office and still have the ability to perform these necessary tasks.

What are your goals for your property management software in the coming year? What internal improvements do you hope it can help you achieve?