7 Ways the Cloud-Based Property Management Software Changes Real Estate Operations

Around 2 AM, the phone rang, and Michael woke from sleep. Night calls are usually emergency calls as a 37-unit property manager spread over three counties for him. That time, it was a pipe burst in his downtown apartment building, and water was apparently already dripping into the unit immediately below. Five years earlier, he would have rushed through the files and made things worse. Instead, Michael lifts his tablet from his nightstand and opens his cloud-based property management software, and only a few seconds later he has all he needs: the contact details for the affected tenant, building maintenance history, the number of the 24-hour plumber, even where the main water shut-off valve is. At 3 AM, the leak was fixed. At 7, the restoration team was already working.

This is what bubbles up as the exact scenario that makes the need for PM software for landlords another necessity for all the real estate professionals alike. Properties are now being managed in a different way, and leases are being tracked differently. Proven practices for real estate business and new insights that are leading to cloud-based property management software.

This is an essential tool for today’s professionals in the competitive market that streamlines workflows and raises returns. Why is this technology a game changer for property management right now is what is discussed in this blog.

Why Property Management Software in this Tech Era?

Things have certainly changed in the property management industry. From the basic digital spreadsheets to the advanced cloud-based systems that have penetrated every aspect of the real estate business. The worldwide market for cloud-based property management software hit $5.51 billion in 2023. According to the experts from the Grand View research group, this one will grow by 8.9% to 10.78% annually until 2030. This is happening for several reasons.

• Better management of bigger property portfolios

• Tenants wanting more digital services

• A need to work from anywhere

• More data use should be focused on making choices

• Greater demand for better ability to handle leases all the way through their lifecycle

The reasons why we need better solutions are these driving forces. Here are some key ways cloud-based property management software creates meaningful improvements.

How Cloud-Based Property Management Software Are Transforming Real Estate

Cloud-based property management software is a tool used in real estate. Businesses leverage the power of the cloud to change the workflow to be on the move, leading to smarter, more connected property management solutions. As it provides,

1.       An Easy Access That Completely Changes How We Work

The best cloud-based property management software has important information from everywhere, anytime and on any device. And this easy access does mean a lot for property managers, for

• Being able to handle emergencies without having to be at the office

• Chase between sites and handle properties

• It enables team members to work together from different places

• It gives owners an instant framework for property

A 2024 study found that property managers who work in the cloud are better off with their life balance. This is because these real estate business tools give more freedom compared to old-school software.

Full-cycle Lease Software Management Reduces Vacancies

The new cloud-based property management system is designed to simplify the entire end-to-end life of the lease from marketing vacancies. In 2023, the National Association of Residential Property Managers reported that. Tasks such as listing vacancies, screening applicants and processing applicant applications can be aided by these systems. A good lease management software will make your processes faster and more efficient. These systems enable,

• Syndication of the listing to multiple rental platforms via automation

• Integrated tenant screening and application processing

• Digital lease signing and storage

• Automated renewal reminders and processes

• Move-out inspections and deposition returns are streamlined

The financial implications are significant. Consider reductions in vacancy for 100 units where average rents are $1,500 per month, just a three-day reduction per unit per year translates into an extra $15,000 in annual revenue.

An Efficient Commercial Lease Tracking Maximizes Revenue

Commercial property managers face the difficulty of lease tracking with commercial lease terms. Specialized tools for transforming this process are available from cloud-based solutions. 

According to a 2024 commercial real estate benchmark study, properties using commercial lease tracking software specialized in such features managed to secure 11.3% more escalation clauses and recoverable expenses in comparison to general management software. These systems provide,

• Automatic calculation of complicated rent escalations

• Tracking of tenant improvement allowances 

• Administration of common area maintenance (CAM) charge

• Key dates to both monitor in terms of renewals and options

• Publishing lease expirations and portfolio exposure

Also, one of the most useful attributes is that a property manager can do a 'what if' analysis of lease renewals. It helps to determine different scenarios and select appropriate renewal terms between cash flow and tenant retention.

Financial Management Drives Profitability

The sophisticated financial tools that property economics transform into have crossed the line away from the traditional paper ledgers and into the cloud.  A 2024 comprehensive analysis of 5,000 properties revealed that ones that are run with advanced PM software for landlords have operating margins that are 9% higher than similar sizes that are run on legacy systems. These financial advantages stem from,

• It automates the rent collection, which reduces the late payment rate by 46%.

• More accurate tracking of expenses and allocations

• Better forecasting of maintenance reserves

• Simplified tax preparation and reporting

• Integration with accounting platforms for seamless reconciliation

But what these systems most provide is real-time financial visibility. Instead of having to wait for monthly or quarterly reports, property owners can gain up-to-date information on performance, so that the issues can be addressed more quickly when they pop up.

Extending Asset Life Maintenance Management

One of the most major operational problems in property management or lease lifecycle management is maintenance management. This aspect is then transformed.

• Online maintenance request submission by tenants

• Automated dispatch to appropriate vendors

• Mobile documentation of issues with photos and videos

• History of repair by unit, building or property

• Preventive maintenance scheduling and reminders

Comprehensive maintenance tracking through cloud-based systems has 23 percent less repair costs and a 15 percent longer equipment life span, as 2023 industry benchmarks indicate. It really affects the organization’s bottom line.

Data Analytics for Smart Decisions

Cloud-based property management software allows for the scale of data capture, analysis, and action on that data, which is likely the most transformational aspect. With modern systems we have analytics better than we would have had with manual processes. It includes,

• Portfolio-wide performance benchmarking

• Predictive maintenance modeling

• Tenant behavior analysis for retention strategies

• Price comparing tools for maximum prices

• Calculations of return on investment of property improvements

These analytics make property management less about guessing and more about using data. A 2024 real estate technology impact using these capabilities.

Integration Capabilities

Few modern cloud-based property management software works in isolation. Instead, it is the central hub for a set of interrelated real estate business tools. These integrations might include,

• QuickBooks or Xero type of accounting platforms 

• Customer relationship management (CRM) systems

• Smart building technologies

• Electronic payment processors

• Marketing platforms and listing services

• Background screening services

According to the various industry surveys, the average property management company employs 5–7 different software solutions. Robust integration capabilities of the cloud-based platforms lower their data entry duplication to 78% and administrative errors to 65%.

Cloud-based property management software brings about revolutionary changes. What comes next is how technology is enhancing the possibilities of the future of property management, and today’s challenges are addressed with these solutions. The industry is headed in emerging trends that will help it to take new heights of efficiency and innovation. 

How Will Property Management Tech Transform the Future?

Some of these trends are already emerging and will provide further levels of service to help both lease lifecycle management and property operations. These are going to enhance efficiency and thought processes throughout the real estate business.

• Real-time monitoring of smart building systems on the Internet of Things (IoT) improves efficiency and sustainability.

• Technology such as immersive property tours and easier walkthroughs of maintenance troubleshooting brings innovation to virtual and augmented reality.

• A blockchain technology assures secure, transparent, and tamper-proof transactions for leases and documents.

This brings out the importance of technology in PM software for landlords. Thus, they must embrace them to remain competitive and accommodate industry demands. There is no doubt that the future is digital, and you need to move right now.

Conclusion

Property managers and investors can find cloud-based property management software to help streamline operations or improve return on investments. This is especially true as tenant expectations change, along with better decision-making and stronger financial performance. Therefore, the emphasis is on choosing the best solution and shortly implementing it to stay in the competition. Challenges are there to be overcome, and the right solution will enable you to get there.

Find out what HomeLeads can do to make property management a lot more manageable with its state-of-the-art solutions. Contact us today and transform your operations to obtain the highest ROI.