How to automate lease management with a property management software?

A typical lease agreement usually includes:

• Rent amount,
• Indexation agreements,
• Starting- and ending dates,
• Renewal conditions,
• Security deposit,
• Terms and conditions.

How property management software helps with lease management:

1. Automated rent collection

You can generate and send out invoices straight from a property management software, meanwhile all your terms for rent price are taken automatically into account. 

For example, you have an agreement that tenant pays less rent in winter months and more on another months. Then you just have to set up these conditions and the property management automation tool does the rest. What’s most important, is that these special conditions are not forgotten, tenant pays, and you receive correct amount of rent. 

Some property management platforms even offer the solution, that tenant can log into your system and pay the rent.

With Hausing you can determine special price conditions and generate invoices accordingly. If the invoices are done, then with one click and you can send them to tenants. With another click you can send them to accounting, if you have the required integration. 

Read more about integrations benefits and possibilities here.

2. Tracking important dates is made easy 

There are a lot of important dates, regarding a lease:

• Signing date,
• Starting or move-in date,
• End date,
• Room release date,
• Security deposit end date,
• Termination deadlines, 
• Inspection dates etc.

Second option is to put them all in an Excel table, but Excel doesn’t send out notifications for important dates and looking for information can take time (if you have already more than 20 leases to manage).

Third option is to use lease contract management software, where you can keep every important date in reach of a couple of clicks. Use it to your advantage, to set up reminders for yourself and tenant prior lease end date. This way both sides are informed in a timely manner and there is less chance for forgetting.

With Hausing you can list all the important dates with reminders in a lease. We also have a feature, where you can see all your lease startings, endings and indexations in one convenient calendar view. This way you don’t have to check every object and their tenants separately but can see what changes are coming in all of your houses in upcoming months.

3. Automatic indexations

Hausing, as a property management automation software, has three options, how to raise rent with indexation:

1. Fixed amount,
2. Fixed percentage, 
3. Consumer Price Index.

You can choose the indexing date, amount and if it’s done automatically or if you want to check it out beforehand, you can do it manually.

4. Historic data can help with decision making

If all the information about leases is kept in one place, then there will be a lot of data to analyse. Having the analysing abilities means that decisions can be data-driven to optimize your property's performance. You can have:

• Insights into occupancy rates,
• Revenue trend and prognosis,
• Average square meter prices,
• Historic rent prices per room.

For example, you have a new tenant coming in, but every current tenant pays a different price per square meter. You can determine the rent price either by looking for this building’s average square meter price or you can look into this rooms previous rent prices to make the right call.

With Hausing you can see statistics for vacant/rented rooms per object, have rent-roll, revenue and turnover prognosis reports. In addition, all historic data is kept and you can look even years old leases.

"Before Hausing we were using multiple Excel tables and the data was different in each file. It was hard to understand how well our rental business was going and which data was correct," said Merle from Palmgrupp.

Conclusion

The key benefits of using property management automation software for lease tracking:

• Automated rent collection,
• Data-driven decision making,
• Tracking dates and indexations is made easy.

Making less errors with financial details contributes to better tenant-manager relationship.

Want to have a closer look into lease management with property management software? Schedule a call with us and discuss how we could automate your lease management.