# Property Management Software Benefits and Challenges | Capterra > Use insights from property managers, Capterra advisors, and 450+ systems in our database to understand the returns from investing in property management software. Source: https://www.capterra.com/resources/property-management-software-benefits --- Real Estate # Do the Benefits of Property Management Software Outweigh Its Challenges? A Property Consultant Speaks Written by: Amita Jain Amita JainAuthor Senior Writer Experience I've been writing for Capterra since August 2021, with the goal of becoming a trusted voice in the finance technology market. I have... [See bio & all articles](https://www.capterra.com/resources/author/ajain/) and edited by: Rina Rai Rina RaiEditor Rina is a senior editor at Capterra. She has close to a decade of experience creating and editing content, especially for the IT, software, and finance domai... [See bio & all articles](https://www.capterra.com/resources/author/rina-rai/) Published July 22, 2024 9 min read Table of Contents - [Benefits of using property management software](#benefits-of-using-property-management-software) - [Challenges of using property management software](#challenges-of-using-property-management-software) - [Need help choosing property management software?](#need-help-choosing-property-management-software) ## Insights from property managers, Capterra advisors, and 450+ systems in our database to help understand the returns from investing in property management software. A growing number of landlords and property managers are turning to property management systems to maintain tenant relationships and run operations smoothly. Last year alone, Capterra received 3,587 calls[\*](#methodology) from potential buyers looking for property management software and 2,846 verified reviews[\*\*](#methodology) from users who’ve tried the software. And while property management systems are widely used, finding the right one requires a careful assessment of the pros and cons. We'll help you figure out if the benefits of purchasing the software outweigh the challenges through an analysis of user reviews and insights from property investment specialist Joe Martin-Bindley.[\[1\]](#sources) **What is property management software?** Day-to-day management of rental properties takes a lot of work. [Property management software](https://www.capterra.com/rental-property-management-software/) helps property managers, landlords, and investors keep track of all tasks—from rent payments to maintenance and lease management—and moves the bulk of tenant relationship management online.  There are many types of property management systems, and all cover accounting, lease management, and tenant management in one form or another.  **_Learn more about_** [**_property management software_**](https://www.capterra.com/resources/what-is-property-management-software/)**_._** ## Benefits of using property management software As you delve deeper into the functionality of online property management software, you’ll understand how these tools streamline rental operations. Bindley says, “It frees up my time to focus on finding new tenants and growing my business.” Let’s read about some of the most frequently mentioned benefits in user reviews that make these systems invaluable for property managers. ### 1\. Automates rent collection and speeds up payments Property management solutions simplify rent collection by making it easier for your tenants to pay rent online and for you to track due payments. This reduces the time you spend on tracking and collecting rent in person. Bindley explains, “Landlords who encourage tenants to switch to online rental payments get quicker payouts and have fewer late payments.”  Here are some ways property management software streamlines rent collection, along with excerpts from related user reviews on Capterra: Use case Description Review excerpt Pay rent online  Tenants can pay rent online through secure channels, leading to faster transactions and reduced administrative burden. _“I like that the tenants can also access the portal to view what they owe and make payment online.”_ – _Natalee M., rental agent, real estate_ Track the payment status Property managers can monitor rent payments in real time, identifying who has paid and who hasn’t. They can then send reminders for missed payments. _“It’s a great system that allows you to track all tenants, easily move between units, and send receipts for payments.”_  _– Darya R., director of tenant operations, real estate_ Levy late payment charges automatically The software automates the application of late fee charges, making it easier to enforce payment rules. _“I like the way that late fees are automatically calculated and added.”_ _– Cory D., owner, real estate_ Enabling tenants to pay rent online is one of the most in-demand features mentioned by reviewers. Property management software offers a dedicated tenant portal where occupants can pay rent, check due dates, and even set up automatic debits. The online portal enhances the payment experience for tenants and reduces late payments for your property management company. _Tenant payment experience in property management software_ [_Entrata_](https://www.capterra.com/p/20372/Entrata/) Tips to maximize ROI from this benefit - Choose a system that offers a secure online payment portal with various payment methods, automatic rent reminders, and real-time payment tracking. - To determine whether automated rent collection is financially benefiting your business, check if the on-time payment rate has increased and the number of defaults has reduced. ### 2\. Handles maintenance issues and manages compliance A big part of the tenant experience is the quick redressal of maintenance issues. Property management software allows tenants to submit maintenance requests 24/7 through an online portal. The submitted requests enable your property managers to track items that need work and schedule contractors remotely.  The software also keeps track of compliance certificates, such as fire and gas safety certificates, and sends reminders for renewals. Bindley shares, “At the start of every month, it tells us what certificates need to be updated, helping us proactively keep properties in good shape and maintain compliance.”  Here are some ways online property management software handles maintenance issues, along with excerpts from related user reviews on Capterra: Use case Description Review excerpt Submit maintenance requests 24/7 The software enables tenants to submit maintenance requests through an online portal, ensuring issues are reported and addressed promptly. _“The best feature is repair request from the tenants which makes for seamless updates and resolutions for both tenants and owners.”_ _– Tii-Aana A., owner, real estate_ Automate task assignment and notification The software creates work orders for reported maintenance issues, allocates them to contractors, and notifies the contractors through the portal. _“I love that I can quickly view which inspectors I have scheduled, make any changes on the fly, and the fact that everything is automated!”_ _– David J F., head of marketing and rental operations, real estate_ Track progress in real time The software provides ongoing updates about scheduling, task progress, and completion of maintenance tickets to both tenants and managers. _“I love that I can add photos to the work orders when completing and link the payments directly to the property and the contractor’s profile.”_ _– Teresa E., portfolio manager, real estate_ Streamlining maintenance tasks helps you enhance tenant satisfaction through timely issue resolution and frees up time to focus on business growth. “After we assign priority to an issue, contractors deal directly with tenants. This allows us to work on the business rather than in it,” says Bindley. _Work order assignment in property management software_ [_AppFolio_](https://www.capterra.com/p/92228/AppFolio-Property-Manager/) Tips to maximize ROI from this benefit - Choose software that supports 24/7 maintenance request submissions, automates task assignments, and facilitates communication between tenants, contractors, and yourself. - Monitor improvements in your response time, tenant satisfaction, and number of staff hours saved to see how the software is contributing to operational efficiency. ### 3\. Improves communication with tenants  As a property owner, communicating with tenants across multiple platforms can become chaotic and overwhelming. The software centralizes communication so you can not only respond to tenants in a timely and efficient manner but also get much-needed breathing room. “Tenants want to be kept in the loop about their properties. Whether you’re planning roof replacement at a multifamily apartment or scheduling repair work at an individual tenant unit, the software enables you to communicate clearly—in group and one-on-one—while creating a professional distance between you and your business,” Bindley mentions. Here are some ways a property management system enhances tenant communication, along with excerpts from related user reviews on Capterra: Use case Description Review excerpt Send mass messages to tenants Built-in text and email messaging lets property managers send group messages to keep everyone informed about scheduled maintenance or share tips, such as how to maintain the property in extreme weather conditions. _“The ability to blast out instant communications to many has been very well received by residents.”_ _– Brennah H., director of condominium management, management consulting_ Centralize direct communication  The software offers a chat platform to handle daily inquiries, issues, or concerns without overloading personal channels for property managers. _“The chat function serves as a helpful alternative to telephonic communication.”_ _– Trayshonda J., administrative assistant, real estate_ Send push notifications The software delivers updates or alerts about repairs, safety concerns, and rent reminders directly to tenants’ mobile screens. _“Notifications make it very simple for me to make sure a message goes out to my residents quickly.”_ _– Kathleen R., property manager, real estate_ Efficient communication helps you proactively address issues and find resolutions, leading to happier tenants. Regular updates about maintenance work orders and upcoming inspections show tenants that you care about their comfort and well-being, making them more likely to stay longer at your property. _Integrated text messaging in property management software_ [_Propertyware_](https://www.capterra.com/p/25491/Propertyware/) Tips to maximize ROI from this benefit - Choose software with strong communication features, such as chat channels, group messaging, and push notifications. - Measure tenant retention rates and time saved in managing communication before and after implementing the software. ## Challenges of using property management software Selecting software isn't just about functionality—it's about aligning features with your business goals and avoiding common mistakes that can lead to post-purchase regret. To shed light on the challenges faced during different stages of acquiring and using a property management system, we consulted Emma Mayes,[\[2\]](#sources) a software advisor at Capterra who has guided hundreds of small and midsize businesses (SMBs) in finding the right software. ### 1\. Difficulty choosing the right software option Capterra lists over [450 options](https://www.capterra.com/rental-property-management-software/) for property management software. When evaluating these options, narrowing down the best choice can be challenging, and researching and comparing features across products can take weeks.  According to Capterra’s 2024 Tech Trends Survey, nearly all software buyers (98%) create an initial shortlist of vendors, from which most (89%) make their final purchase. However, 62% of these buyers also regret their purchase decision.[\*\*\*](#methodology) This high regret rate often stems from relying on shortcuts for information—mainly Google searches and vendors’ social media posts. These unreliable sources often result in buyers prioritizing systems seen in advertisements, even if they may not be strong products. Tips to search for software strategically [Capterra Shortlist](https://www.capterra.com/rental-property-management-software/shortlist/) offers a snapshot of not only the most popular products in any given software category but also the ones most highly rated by actual users. Start with this report to explore top-rated options in the property management software category. From here, you can learn more about specific products, compare alternatives, and read customer reviews to understand other users’ experiences. ### 2\. Higher-than-expected total cost of ownership  The number one cause of post-purchase regret among software buyers is higher-than-expected expenses.[\*\*\*](#methodology) The initial price you see often covers only the basic software, but you should be mindful of the additional costs, which usually include setup, data migration, user training, and ongoing customer support.  Property management systems are typically priced on a “per month” or “per property” basis, with starting plans ranging from $1 to $52, which can rise with extra modules or features you add. Also, higher-priced options generally cost upward of $479 per month and support more property listings, better functionality, and advanced integrations.[\*\*\*\*](#methodology)  Bindley says, “These systems are not cheap, but the idea is that in the long term, they pay for themselves by serving your existing clients well and allowing you to win more business.” Tips to avoid cost-related surprises Have both a lower and upper budget range in mind. Many property management systems come with integrated features such as accounting, online payment portals, and marketing modules that facilitate property listing on multiple platforms. These integrated features reduce your need for additional tools, such as accounting, allowing you to spend more.  “If the software enables you to step back and let your property manage itself, it’ll be worth investing a bit more,” says Bindley. We suggest accounting for data migration costs, as shifting data from your old system can be time-consuming. Many vendors offer this service, either for free or for a fee, so be sure to check beforehand. **_Check out our article on the_** [**_true cost of owning business software_**](https://www.capterra.com/resources/business-software-cost/)**_._** ### 3\. Snags in software rollout Another cause of post-purchase regret among software buyers is related to implementation. Nearly a third (33%) of buyers report that slow implementation is a key source of their dissatisfaction.[\*\*\*](#methodology) A smooth rollout involves more than installing the program; it requires adequate training and support for end users. Common implementation issues include inadequate onboarding processes, insufficient technical support, and lack of ongoing training, all of which can lead to user frustration and decreased productivity. Having your team in agreement is also equally crucial. If your staff or tenants aren’t willing or able to use the new software for some reason—could be they’re resistant to learning how to use it or doubtful of its efficiency—then no matter how advanced the system, it won’t make much of a difference. Tips to avoid implementation troubles Start with an honest and in-depth discussion with vendors about your specific needs. Take multiple demos, and use them as a chance to understand what you’re getting into. Assess if both the software and its vendor fit your needs. “Don’t settle after just one demonstration. Two, even three demos, are common among buyers who feel satisfied with their purchases,” says Mayes. Once the demos are done, sign up for free trials, if available. This will give you hands-on experience with the software, reduce potential user resistance, and help gauge its compatibility with existing devices and tools. If you have questions after the trial, set up another round of discussion with the vendor. Also, check if the vendor provides self-training materials, such as video tutorials, for your staff and tenants to learn the system and offers customer support when they feel stuck. ## Need help choosing property management software? Capterra offers various resources to help kick-start your property management software search. You can check out our list of over [450 property management software products](https://www.capterra.com/rental-property-management-software/) and filter the options by price, features, deployment options, availability of free trials, and more. You can also use our [comparison tool](https://www.capterra.com/resources/capterra-software-comparison-tool/) to weigh different product options from the same software category.  **Still can’t find a product that meets your needs or overwhelmed by the number of options?** [Schedule a free 15-minute consultation](https://www.capterra.com/our-story/#:~:text=CREATE%20PROFILE-,Contact%20us,-Need%20help%20finding) with a Capterra advisor. “We condense weeks of research into 15 minutes, offering five personalized recommendations to start your software search,” says Mayes. * * * **Survey methodology** **\***Findings are based on data from telephonic conversations that Capterra’s advisor team has with small-to-midsize businesses seeking property management tools. For this report, we analyzed phone interactions from June 13, 2023, to June 13, 2024. The findings represent buyers who contacted Capterra and may not be indicative of the market as a whole. \*\*We collect reviews from verified users for individual software products. For this report, we analyzed reviews data from June 13, 2023, to June 13, 2024. Additionally, for each software category, we ask reviewers to rate—on a scale of “low importance” to “critical”—how important different features are for that software. \*\*\*Capterra’s 2024 Tech Trends Survey was designed to understand the timeline, organizational challenges, adoption and budget, vendor research behaviors, ROI expectations, satisfaction levels for software buyers, and how they relate to buyers’ remorse. The survey was conducted online in July 2023 among 3,484 respondents from the U.S., U.K., Canada, Australia, France, India, Germany, Brazil, and Japan, with businesses across multiple industries and company sizes (5 or more employees). Respondents were screened to ensure involvement in software purchasing decisions. \*\*\*\*Only products with publicly available pricing information and qualified software products within the category, as of June 6, 2023, are included in the pricing analysis. We summarize publicly available pricing sources, including vendor websites, beginning with the lowest monthly pricing (not considering annual discounts) for packages that include the core functionality for the software category. We also list pricing for more advanced packages (per user, when available) that include these core software feature(s). Individual software buyers’ specific feature needs may differ, and final pricing will vary. **_Note:_** _Review excerpts are passages extracted from longer reviews written by verified reviewers. We obtain these excerpts by applying an algorithm that considers factors including, but not limited to, word count and topic coverage. Excerpts are not edited for clarity or grammar._ Sources 1. [Joe M.](https://www.linkedin.com/in/joe-m-396a76143/), LinkedIn 2. [Emma Mayes](https://www.linkedin.com/in/emma-mayes-a81b60186/), LinkedIn * * * Looking for Property Management software?Check out Capterra's list of the [best Property Management software](https://www.capterra.com/rental-property-management-software/) solutions. ### Was this article helpful? * * * ## About the Authors [### Amita Jain](https://www.capterra.com/resources/author/ajain/) Amita Jain is a senior writer for Capterra, covering finance technology with a focus on expense management and accounting solutions for small and midsize businesses. Her work has been featured in Careers360, among other publications. [### Rina Rai](https://www.capterra.com/resources/author/rina-rai/) Rina is a senior editor at Capterra. She has close to a decade of experience creating and editing content, especially for the IT, software, and finance domains. Passionate about minimalist storytelling, she prioritizes breaking down complex industry jargon into engaging stories accessible to all readers. Rina holds a postgraduate degree in mass communication and journalism and a bachelor's degree in English literature. She started her career as a features writer for The Times of India, India’s... ### RELATED READING - [How AI Scheduling Software Helps Restaurants Reduce Overtime and Boost Staff Satisfaction](https://www.capterra.com/resources/ai-employee-scheduling-software-for-restaurants/) - [Why Use Accounting Software? Buyers’ vs. Users' Priorities](https://www.capterra.com/resources/why-use-accounting-software/) - [Real Estate Project Management Software: Why You Need One](https://www.capterra.com/resources/project-management-software-for-real-estate/) - [How Compliance in Inventory Management Impacts Your Business](https://www.capterra.com/resources/impact-of-compliance-in-inventory-management/) - [CRM Software with AI Features in 2026: Benefits, Features, Costs, and FAQs](https://www.capterra.com/resources/crm-software-with-ai-features-guide/) - [Contact Management in CRM: Features, Benefits, Best Practices, and FAQs](https://www.capterra.com/resources/contact-management-in-crm-guide/) - [How Much Does Accounting Software Cost in 2026? Real Buyer Budget Data](https://www.capterra.com/resources/accounting-software-cost/) - [What’s Really Slowing Your Team? 5 Project Management Challenges to Fix](https://www.capterra.com/resources/project-management-challenges-faced-by-project-teams/) - [Accounting Software by Industry: What to Look for Based on Your Business Type](https://www.capterra.com/resources/accounting-software-by-industry/)