If you manage a real estate business in Canada, you might run an office that specializes in multi-family rental properties on the outskirts of town. Maybe you lease industrial spaces or handle warehouse construction fueled by the e-commerce boom. Perhaps you focus on trendy rentals or condo sales in center city locations favoured by millennials. And there’s always the staple of buying and selling properties for people finding their forever home. Each complex transaction requires robust software. Understanding the benefits of good real estate accounting software can improve your business.
Customer Relationship Management Software
Your real estate business thrives on contacts who connect you with potential sales, customers, and income. Without real estate customer relationship management (CRM) software in Canada, potential customers may fall through the cracks. A versatile CRM software suite lets you input customer names, contact them easily, and receive alerts when your contacts have gone stale.
With CRM software, a clear and concise computer record enables you to email a potential client with just a few clicks after you’ve entered the person’s contact information into your database. Even if it’s just a quick “Hello, are you still interested in the house on Mayberry Place?” CRM software allows you to spend just moments on emails, keeping you connected while saving you time to work with clients face to face.
Software to Manage Rental Invoicing and Payments
Have you ever had a customer miss a rental payment because they forgot when the rent was due? It sounds like a no-brainer, but chances are good that someone, somewhere, may make up that excuse. CRM software helps you eliminate any guesswork, mess-ups, and forgetfulness.
Intuitive software such as QuickBooks Online allows you to send great-looking invoices to renters as well as vendors such as maintenance companies and other vendors. When rent is due, simply type in the customer’s name, fill out an invoice template, and send it through email. When you send an invoice, you can easily attach a copy of the rental agreement for your tenant to reference.
Pair your online invoicing with online acceptance and processing of payments to streamline the payment process. Receiving online payments is quick, easy, and secure, and it removes the perennial excuse of “The check is in the mail.”
Once you’re handling all your document management digitally, there’s no accidental misplacement of a paper file, and you always have an accurate record of every contact with your renters and other customers. If your tenant is going to pay rent late, or if they’re concerned about repair issues, they can reply to your regularly emailed invoice to let you know what’s going on. In addition, sending an invoice electronically creates a time-stamped digital trail in case you have to litigate any rental issues.
Real Estate Accounting Software
Real estate accounting software helps you manage finances, pay employees, and see how your cash flow looks from week to week. Are you spending too much time trying to find customers for your investment properties? Are you focusing too much on properties that just aren’t selling? Real estate office accounting software can help maximize your efforts.
Say you have five investment properties, all with potential tenants. Three of them have crews making improvements. One of the contractors decides to drop your property and delay work for a week to take care of a more lucrative project. You show up at the property to find no one is there hammering, sawing, or putting in new kitchen cabinets. You have no idea what happened, and you need that work done ASAP to make the sale go through.
You can take steps to remedy this awkward (and potentially costly) situation using your real estate accounting software. This software can help you compare the costs of switching to a new contractor, compare bids from various contractors, and determine the best course of action. This type of program can also make it easy to deal with any problems you find within the contract with the renovation company you hired since, with cloud accounting software, you can call up that document at any time and from any location
Real Estate Transaction Management Software.
Real estate software for agents makes the process of tracking your investments more efficient. You don’t have to crunch cost and loan numbers manually, thanks to the software’s functionality. In addition to tracking investments automatically, you can preview what happens if, for example, you raise the rent. The report can quickly show you how soon you’ll recoup your investment and help you determine what the most advantageous sale price is, should you choose to divest yourself of the property.
The best real estate transaction management software analyzes and organizes data to show you what a transaction does to your overall bottom line. Instead of spending hours in front of a calculator to figure out if your debt load can take another $500,000 retail space, run the numbers through your software to weigh all the pros and cons.
Real estate software also assists with your marketing efforts. Creative templates speed up the time you need to design marketing materials to hand out at open houses or publish online, and lead generation elements allow you to keep expanding your pool of potential clients.
The customer database in QuickBooks also comes in handy for marketing purposes. Add every person you meet to your database, and take brief notes on their potential for becoming a customer. Perhaps you meet someone at a charity event who mentions they hope to move in six months. Without an easy-to-use database, you might lose that lead forever. Instead, with your CRM and marketing software, you get a reminder to reconnect just in time to land them as a client.
Marketing automation features make it easy to tap into your existing customer database to send targeted emails when new properties come available. Your monthly email blast to your top customers lets them know you acquired a new investment property in a posh part of town. Even if they’re not in the market, they may be able to connect you to your future buyer.
Marketing expenses also include advertising, creating real estate signs for yards, and buying snacks for open houses. Real estate accounting software allows you to easily create expense reports that analyze money spent on marketing and calculate your return on investment.
Other Practical Uses for Real Estate Accounting Software
Real estate accounting software is useful for everyone in the real estate industry, not just for brokers. If you’re a real estate appraiser, send out an invoice made in QuickBooks after each appraisal to speed up payment and keep your cash flow healthy.
Real estate accounting software also helps you track the time you spend on your various endeavours. Use it to help you focus less on mundane, everyday tasks so you can devote more energy and effort to your core business model of buying, selling, or renting properties. Tracking your employees’ time, in addition, can show you ways to increase efficiency as you look to save money throughout your busy office. Every little bit helps, especially when you have a busy weekend of showing properties ahead of you.