Now that we’ve tackled the what and why of lease management software, let’s break down the specific features to look for when comparing your options.
For the sake of this guide, we’ll be delving into great detail on inspections, rent payments, and overall property marketing. These can all be considered parts of the leasing lifecycle and some of the more comprehensive software options on our list excel in these areas, but they also are complex enough, with a large enough variety of purpose-built software to warrant their own guides.
Luckily, we have posts available that explore each of these categories:
- The 5 best property management inspection software options in 2024
- Some of the 6 best property management marketing tools and software in 2024
- The best rent payment app in 2024: Comparing 8 online rent payment systems
Rental Listings and Showings
Lease management software that contains rental listing tools can give your properties a leg up in the rental market. With integrated tools for listing creation, property managers can input property details, upload high-quality photos, and craft compelling descriptions within a single platform. The best software lets you post these listings across multiple listing sites and digital channels simultaneously, expanding the property’s visibility without requiring additional effort for each posting. On-platform management allows for real-time updates across all sites, so you can keep information up to date and make changes to listing details as needed. When it’s time to relist a property, you’ll have all the relevant information on hand to save even more time.
Beyond simply creating listings, lease management software can streamline showings for both property managers and prospective tenants. Interested applicants can view available showing times and book appointments directly through the software, often with automated confirmation and reminder emails or messages sent to both parties. This reduces the burden on property management staff, avoids scheduling conflicts, and enhances the overall experience for prospective tenants.
Many software solutions offer virtual tour capabilities, as well, allowing potential tenants to explore properties remotely. By facilitating easier access to property showings—both in person and virtually—lease management software sets the stage for your ideal renters to take the next step and submit an application.
Online Rental Applications
Online rental applications significantly reduce the burden on property management teams, while giving renters a way to submit their information securely and conveniently from anywhere, at any time, through an online platform. For potential tenants, this convenience is an expectation.
Typically, online application software provides one or several standardized application forms that a property manager can customize to include specific requirements or questions relevant to the property. This speeds up the review process and lets you tailor applications to get all the information you need.
Software can automate communication with applicants, sending acknowledgments of application receipt, updates on application status, and eventually, approval or rejection notifications. This level of automation and efficiency in handling applications not only saves time for property managers but also improves the experience for prospective tenants, making the property more appealing and competitive in the market.
Tenant Screening
Once applications are submitted, property managers can access, review, and compare them easily within the software platform. Many lease management systems integrate with background check and credit report services, allowing for fast, thorough screening with comprehensive, consistent, and legally compliant screening criteria.This feature should integrate seamlessly with the application process, enabling property managers to initiate background checks, credit assessments, and even rental history reviews as soon as an application is received.
By consolidating these checks into a single, streamlined process, the software reduces the time and effort required to vet applicants, while standardizing the screening process to ensure fairness and compliance with housing regulations.
The automation of these checks ensures a consistent screening process for every applicant, eliminating human bias and enhancing the integrity of the selection process. Taken together with rental application tools, you can use screening technology to find and approve your ideal tenants, minimizing turnover and associated costs.
Document Storage and Management
Lease management software should include customizable lease templates that provide property managers with the flexibility to tailor lease agreements to meet specific needs and comply with local legal requirements. This functionality allows for the creation of a base template that includes standard lease terms, conditions, and clauses.
From there, property managers can modify and add specific details relevant to each property or lease scenario, such as rent amount, lease duration, security deposit details, and policies on pets or subletting. This customization capability lets you align each agreement with your policies and local laws.
Many lease management software platforms include electronic signature (eSign) capabilities, so relevant parties can send, sign, store, and access agreements digitally. Having your leasing documents available at any time lets you draft new agreements more quickly, reducing the potential for error. You can organize these documents within your software platform for easy reference whenever you need them.
Tenant Communication
Lease management software should offer a variety of tenant communication features that facilitate efficient and transparent interactions between property managers and tenants. One key feature is an integrated messaging system, which allows for direct, instant communication within the platform. This often includes email and SMS functionalities.
Another important feature is a notification system, which should automatically alert tenants about upcoming rent due dates, lease renewal reminders, and scheduled maintenance or inspections, for example.
Your lease management software should include a tenant portal, as well, offering tenants a self-service option where they can view their lease documents, pay rent online, submit maintenance requests, and access a history of their payments and communications. This portal gives them control over their rental experience and reduces the administrative burden on property managers by automating routine tasks.
Pro Tip: You can also use a portal to collect tenant feedback through surveys or feedback forms.
Analytics and Insights
The best lease management software comes equipped with advanced analytics features to provide property managers with data that helps them make informed decisions. These features typically include financial analytics, occupancy rate analysis, and lease expiration tracking.
Financial analytics tools offer a comprehensive overview of the property’s financial performance, tracking income from rent and other fees, and monitoring expenses such as maintenance and operational costs. This enables property managers to assess profitability, identify trends, and make adjustments to improve financial outcomes.
Occupancy rate analysis helps in understanding the property’s rental demand by showing the percentage of occupied units over time, allowing managers to gauge the effectiveness of their marketing strategies and tenant retention efforts.
Lease expiration tracking ensures that property managers are aware of upcoming lease renewals well in advance, enabling them to strategize on lease negotiations or prepare the unit for re-listing.
Lease management software can even incorporate predictive analytics to forecast future trends based on historical data. This can include predictions on market rent changes, identifying potential vacancies before they occur, and suggesting optimal lease renewal rates. These insights can help you make decisions that improve occupancy rates and increase revenue.
