Wondering how much a property management software costs and why its prices vary every time? This is the common question that arises among every landlord.
Real Estate Property Management Software
Landlords often feel overwhelmed when they compare different property management software as their pricing never aligns at any point.
Some platforms would just cost $10 for some landlords, while the same platform can cost thousands of dollars to other landlords. So, here is the complete breakdown of how much a property management software actually costs.
Factors Affecting the Property Management Software Costs
Before we jump into the actual cost of property management software, it is essential to have a glimpse of the factors that influence the property management software. So here’s a look at all the different factors.
1. Number of Units
The number of rental units is the most important factor that influences property management software cost. The more rental units you have to manage, the more you will usually have to pay.
This is because most property management platforms run on a “per unit” model, which means each rental unit adds to the overall software cost. This becomes affordable for smaller landlords with 1 or 2 rental units. However, the costs are obviously rising once the number of units increases.
2. Features and Tools Involved
Today, you will find numerous property management software solutions in the market. However, each software varies based on the features it has. And with this, the cost of property management software also varies.
Software solutions with basic features like rent collection, tenant application management, and maintenance tracking cost less. Platforms with advanced features like reporting tools, accounting systems, and marketing automation cost more.
3. Property Type
A property management software costs less to residential property landlords compared to commercial property owners. You might wonder why.
Well, managing commercial properties is tougher as it involves several advanced operations like CAM reconciliation, generating detailed financial statements, and multi-year lease structuring. This automatically increases the overall cost.
4. Pricing Model
Every property management software follows different pricing models. This is how the pricing model becomes another essential factor that affects how much a property management software costs.
Some property management software charges a single flat fee, while some use a per-unit pricing model, and other software solutions follow a subscription model. Different pricing models impact the cost differently depending on your portfolio size.
Cost Breakdown for Property Management Software
Although every property management software costs differently, its pricing is greatly influenced by one common factor, which is the portfolio size. Usually, the overall property management software costs between $10-$2000+ per month based on the portfolio size. Here’s the complete breakdown of how much a property management software costs exactly.
Small Landlords
Landlords having 1 to 20 rentals to manage need basic tools allowing online rent collection and maintenance tracking. This is why property management software with basic features and functionality becomes perfect for small landlords.
The cost of property management software with basic features falls in the range of $10 to $50 per month.
Medium Portfolios
Landlords having 20 to 200 rental units have to manage numerous property management workloads like tenant background checking, timely rent collection, and more.
This is why they need a property management software that could include advanced features like accounting features, late fee reminders, leasing, background checks, and overall maintenance management.
Since property management software handles a larger number of units, it usually costs in the range of $50 to $200 per month. However, additional charges may apply if landlords with
medium portfolios want advanced automation and workflow management in the software.
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