The True Cost of Rental Property Management Software


Rental property management software (RPM) can help you keep track of your property’s inventory, rents and payments, repairs, maintenance, and more. But the cost of this software can sometimes be hard to gauge up front. Does the free version work for you? Or do you need to upgrade to one of the more expensive options? Here’s what you need to know about cost to get started with rental property management software.


Upfront Costs

The upfront costs associated with rental property management software are usually a one-time expense and include, but are not limited to, the following: 

1. Hardware Costs - The cost of the computer and/or tablet that you'll use to run the software as well as any necessary hardware upgrades (e.g., RAM). 

2. License Fees - If your rental property management software doesn't come with a free trial period, you'll need to purchase a license in order to use it. Licenses usually range from $150-$600 per year depending on how many properties you want to manage with the software. You should also be aware of potential annual renewals fees. In addition, if you're renting or leasing office space for the business's headquarters, there may be additional rent or lease expenses each month which will vary based on the location and size of the office space. 

3. System Training - Before using rental property management software, you'll likely have to attend training sessions which will teach you how to operate the system's different features. These sessions can last anywhere from two hours to three days and may cost anywhere between $500-$2,000 depending on where they're held (in person or online) and who is delivering them.


Hidden Costs

Paying for the initial cost of the software is just one thing to consider when looking at what you'll need to manage your property. As a new investor, you may not have any experience with this type of software. You may be able to find some trial versions or demos online, but if you decide that it's not the right fit for your needs, it will take time and money to switch over to something else. 

Plus, there are many other aspects involved in managing rental properties that can affect your budget and how much time you're spending on these tasks. For example, if you've decided to go with a property management company instead of using the software yourself, there are still costs associated with paying someone who will handle those responsibilities for you. And then there's always more technology coming out all the time that could potentially help make your life easier - whether it be an app or some other form of device - which could end up costing more than anticipated. These little details add up and may ultimately impact your ability to invest in additional properties because they become a larger part of your total monthly expenses. In order to keep track of everything while also keeping costs low, many investors choose paperless systems as they provide numerous benefits without adding additional expenses.


Maintenance Costs

Rental property management software is not a one-time investment. Monthly maintenance is required to keep the software up-to-date and running smoothly. These costs can include licensing fees, tech support, upgrades, and more. Often times there are setup fees as well, which are typically in the $1,000 range but may be higher depending on the company.

Rental property management software is a great way to help you manage your properties, but it does come with some costs. The cost will depend on the type of system you choose, the features available and what kind of support you need. There are three basic options for rental property management software: DIY, cloud-based, or on-premise.

For DIY systems, the only initial investment is in purchasing the software license and any additional features you may want to include. Cloud-based solutions will require an upfront cost that includes licensing fees and monthly subscription fees as well as periodic maintenance fees. On-premise systems require installation by professionals and ongoing maintenance by qualified staff members.


Upgrades and Add-Ons

1. Basic Rent Collection and Tenant Screening Package ($999) 

2. Basic Rent Collection and Tenant Screening Package ($1499) 

3. Standard Rent Collection, Tenant Screening, Lead & Background Checks, Landlord Forms & Reports Package ($1999) 

4. Standard Rent Collection, Tenant Screening, Lead & Background Checks, Landlord Forms & Reports Package with iPhone App ($2999) 

5. Deluxe Rent Collection and Tenant Screening Package ($3499) 

6. Deluxe Rent Collection and Tenant Screening Package with iPhone App ($4499) 7. Premium Rent Collection and Tenant Screening Package ($9999).

8. Premium Rent Collection and Tenant Screening Package with iPhone App ($14999) 9. Professional Services (billed per hour): $25/hour


Training Costs

Learning how to use the software is only one part of the equation. You also need to consider training costs. Training costs will vary depending on who's teaching you and where you're taking the classes. For example, one-on-one private lessons can be more expensive than enrolling in an online course. Other things to consider are materials, and whether or not they are included in your fee. If you'll need additional materials like a keyboard or mouse, this will add to your cost as well. Be sure to ask what's included before you make any decisions about which rental property management software is best for you.


Conclusion

Despite the high price tag, many investors find that rental property management software is worth the investment. It not only helps them track and monitor every aspect of their properties, but it also ensures they're in compliance with all regulations and statutes. This can protect them from any legal or financial issues that arise. For these reasons, it's worth considering a rental property management software company for your property needs. Of course, there are many to choose from so take time to research which ones would work best for you before making your decision.