You may be wondering why you can’t stick with traditional methods of managing your leases. Typing and filing physical leases have worked for a long time, so why change the system? First of all, with the emergence of technology, lessees expect more than they did in the past. They want to make payments online, submit online maintenance requests, and maintain an online profile of their property and lease agreement. This makes things simple for tenants. Additionally, employees want to manage leases more efficiently by maintaining a paper-free office. As times change, so must our approach to administering leases. Of course, these programs do come with a price tag, and so you may be asking whether lease admin software is worth the cost and time commitment?
Option 1: On-Premise Software
This type of software is installed on each of your company’s computers and integrated within your internal network. It usually comes with free technical support from the provider as well as free updates and upgrades. It provides a wide range of advanced features for organizing and managing leases, contracts, licenses, and other documents. It would require formal training with your employees, but once the system is learned, it will provide all the functions you need to run your business, saving you significant time in the long run. This software even generates reports to provide status updates and to comply with tax/audit needs.
Costs of such software vary. Landlords with 5-20 units may obtain such software for less than $500. Property managers with 300-1,000 units may pay between $2,000 to $8,000. Large companies that manage thousands of commercial properties will pay tens of thousands of dollars.
Option 2: Web-Based Software
Web-based lease admin software can be accessed from any computer with an internet connection and is managed by an off-site company. Smaller businesses tend to prefer this option because it does not require extensive technical support and is simpler to use. Fewer features are provided than those of on-premise software, although web-based programs have different capabilities that should be further explored.
A monthly cost is usually charged for web-based software, usually between $15 to $300. Sometimes a one-time fee is also charged to set up the account.
How to Choose Your Software
Your decision regarding Option 1 or Option 2 depends on your company’s needs and budget. If you have an in-house IT department, you may prefer Option 1, which allows for greater control over the system and more features. Both options will save your company time by simplifying the contract management process. In this new age of technology, embracing an online solution is a necessity.
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