If you run a property management company, you need the right software to stay on top of your finances. In particular, you need lease accounting software. Whether you choose lease accounting software for Excel or another option, here are some of the features to look for.
1. Deposit tracking
When tenants make deposits for their rental units, you have to take care of the funds. Depending on where you live, you may be required to put them in an interest-bearing account. Or you may fold the actual money into your operating budget until you need to return the deposit to the tenant.
In either case, you need lease accounting software that will track the amounts of tenants' deposits. You may also need software that can track returns on gains or help you account for damages in situations where you end up keeping some of the deposit.
2. Utility bills management
If utilities are included in the rent, you will need to make the payments, and you will need to account for these amounts when tracking your expenses and calculating your profit and loss. You need lease accounting software that can simplify this process so that you never miss a bill and always stay on top of the numbers.
3. Contractor invoicing
As a property manager, you will undoubtedly end up hiring professionals to help with the properties. This may include landscaping, cleaning, snow removal, plumbing, and other types of repairs and maintenance. To simplify the accounting for your properties, you may want your software to have built-in invoicing.
If you plan to hire maintenance people directly, you may want your software to have payroll capabilities. Most importantly, whether you work with contractors or employees, you want the ability to track how much time they spend on each property. Then, you can ensure that you're billing the property owners correctly.
4. Owner portal
Without property owners, you wouldn't have anything to manage. You need the ability to communicate key numbers and other data to these clients. To that end, you may want an owner portal integrated into your lease management software. Then, owners can check in and see the numbers and reports associated with their unique properties.
5. Accounting integration
Finally, you may want your lease accounting software to integrate with your regular accounting software. Then, you can seamlessly share information between the two systems. This saves time and reduces errors associated with manual entry.