With the many property management softwares available on the market today, it can be confusing to understand the differences between them all. Which one is the most useful for you? Which is the most cost effective? Today, we will compare the Yardi family of products and RAAMP.
Yardi property management software was released in the ’90s, so many companies have been using it for quite some time. With clients in North America, the Middle East, Asia, Europe, and Australia, Yardi has quickly gained influence across the globe. Yardi’s mission statement is: “Take care of our clients, take care of our employees, take care of our communities, stay focused, and grow.” Yardi has tried to live up to its mission by evolving its software. The software has evolved to include more features, although some are less frequently used. Yardi offers a few different programs for users: Yardi Voyager, Yardi Breeze, and Yardi Breeze Premiere. Yardi Voyager is their full-featured, original product, while Yardi Breeze is a scaled back version of the software intended for lower-end users.
When is it best to implement Yardi solutions for your business? Yardi is best for those working in the real estate industry. Yardi was designed for property managers with 100-plus properties to manage. This software would be ideal for property managers that evaluate commercial operations and basic property management. This web-based platform for the real estate industry helps with accounting, resident management, property management, workflow automation, alerts and notifications, and a centralized database.
Yardi was designed to be used for any size business, whether you are running a family business or a corporate operation Yardi was designed to help residential management run a residential portfolio of any size.
Those who have used Yardi as their property management software often reported how easy to use the software was once it had been properly configured. This is a major pro for the company because they have created software that is user-friendly. However, many users also reported that there was a steep learning curve when it comes to learning how to use the Yardi systems. This can be a bit of a downfall for the users due to how much time it takes to learn how to use the software.
The downside to selecting Yardi as your property management software is the annual contract. When you sign up for the program you are locked in for a year. This would not be ideal for someone that just wants to see if the software is suited for their company.
In addition, many users were disappointed that Yardi does not allow unlimited users. Not allowing unlimited users is a major inconvenience for businesses that want to purchase rent management software and have multiple people utilizing the program at the same time. This can cause many frustrations for users considering the price they are paying for the software. Not allowing multiple users does not allow for easy access to shared documents that your whole team might need. Another downfall of Yardi is that they don’t offer a variety of different types of services. For example, Yardi does not offer lease abstracts, dynamic rent rolls, CRM, or unlimited users.
Overall, Yardi users from their global client base reported they had a “real struggle” making the program work for their company. Many users have reported that it is a very time-consuming process to learn the software, understand how to configure it to one’s liking, and is overall a quite stressful experience.
Pricing varies depending on what Yardi program is used. For example, Yardi Voyager costs $250 per user per month plus additional setup fees. Yardi Breeze charges $1 per unit per month for residential properties; $1 per unit per month for manufactured homes; $.50 per unit per month for associations; and $2 per unit per month for affordable housing and commercial properties. Both of these programs have a monthly minimum of $100. The monthly minimum for self-storage is $200. With all of this being said, the Yardi cost can range anywhere from $100 a month or $250 a month plus additional setup fees. Additionally, Yardi Voyager can range anywhere from $250 to $10,000 or more per month, plus setup fees.
|Software||Lease Abstract||Dynamic Rent Rolls||CRM||File Mgmt.||Notebook & Task mgmt.||Unlimited Users||Tenant Portal||Property Analytics||Accounting||Insurance Compliance|
RAAMP is an innovative property management software. RAAMP is a lease-centered operational suite that offers a number of services giving customers the ultimate experience. For example, RAAMP offers tools for property management, accounting, customer relationship management (CRM), lease abstracts, lease docs, rent tolls, accounting, and insurance compliance. All of these robust features that RAAMP offers helps them to stand out among competitors. RAAMP single connected solution works as a valuable tool for those who manage multiple properties and want to keep all of their information in one place.
RAAMP is built to increase revenue, help meet customer needs, and provide a seamless, affordable, and easy-to-understand experience. By integrating RAAMP into the day-to-day operations of your property management business, you’ll be sure to see how the software acts as a vehicle to drive revenue. RAAMP works as a flexible workspace solution for all of its users, helping to increase efficiency by removing the excess manpower required for typical tasks such as accounting. RAAMP does a great job of using cutting-edge software to knock down any obstacles you are facing and improve your property management business.
Who is RAAMP best for? RAAMP would work best for any commercial real estate (CRE) professionals. This software is best suited for someone with many properties because it will help CRE professionals keep all of their information organized. RAAMP will help your business resolve issues faced in the day-to-day of your company.
RAAMP offers a robust set of features for its users by helping their businesses generate revenue. The first pro is the dynamic lease abstraction. Dynamic lease abstraction is an important part of what RAAMP has to offer. Lease abstraction allows a space for leases to be reviewed and uploaded. Leases can often take a lot of time when it comes to completing day-to-day tasks, so the lease abstractions feature can save you hours. Leases are the driving force behind increasing revenue so it is critical that space is provided for these important documents.
Portfolio size and portfolio types are other benefits of using RAAMP. RAAMP offers an integrated platform for all portfolio sizes and types as long as the property manager has a minimum of 10 properties.
Property management is a very critical tool that can be helpful when looking for property management software. RAAMP’s property management software is extremely useful. The property management feature on RAAMP’s software can be used to manage documents such as maintenance requests or seeing when rent was last collected from a tenant.
File management can be very useful when one is managing multiple properties. Having the file management feature that RAAMP offers allows for all files to be stored to make them accessible and easy to locate.
Customer Relationship Management (CRM) is another important feature that RAAMP offers. CRM is what will help drive revenue for the business. Maintaining relationships with tenants is a critical piece of driving revenue for those who manage properties.
The accounting feature on the RAAMP provides users with a valuable asset when a business is looking to drive revenue. This feature will not replace a company’s accountant but will allow accountants to focus their attention on other day-to-day tasks. When it comes to the day-to-day tasks RAAMP also provides a task management feature. This feature allows your team to stay on task when it comes to working with clients.
Smart notifications and reminders can be very useful when looking for property management software. These notifications and reminders can be helpful for the whole property management team when it comes to tasks such as remembering to submit a lease agreement or paperwork.
Property analytics play a critical role in property management so it is great that RAAMP makes having a space for property analytics a priority. Property analytics allows the property management team to see how each property is doing when it comes to rent payments, lease agreements, or even making sure their property is insured.
All of these solutions increase efficiency for businesses that manage multiple properties including commercial, multi-family, student, or even single-family housing.
The one con of RAAMP is that it is not well-suited for short-term lease operations like vacation rentals and storage units. With that being said, RAAMP would be a great software to revisit in the future if you begin to expand your property management business with longer-term tenants.
RAAMP believes in being fully transparent with its customer base when it comes to pricing which is a nice surprise compared to competitors. RAAMP’s pricing starts at $98 a month for unlimited users. RAAMP does not require businesses to pay for each user, meaning that a business with 50 people can all use the software and still only pay $98 a month. RAAMP is also different from its competitors because they do not apply any additional fees for installation, etc. RAAMP stands out among competitors when it comes to offering the best service for the best price. These lower costs are some of the best you will get and it can help lower expenses for your company.
Figuring out what property management software is the best entirely depends on your business goals, but for companies interested in maximizing their profitability, RAAMP is the only solution built to solve the key issues surrounding finances. Incorporating property management software won’t be an immediate fix for your business, but it is a step in the right direction to help generate revenue. RAAMP will offer key insights about leases, option periods, property analytics, and dynamic rent rolls to name just a few of the key features that are tied directly to revenue. RAAMP will help save your company time on tasks that would normally be a manual process. Additionally, there are savings in the form of reduced payroll costs due to increased staff productivity and overall increased job satisfaction for team members in the ease of completing their day-to-day tasks.
Free rent, or rent abatement, is a common and widely used concession in many commercial office leasing and residential property transactions. Landlords are offering free rent to entice tenants to sign leases and to assist with economic hardships that their tenants might face. And it’s almost exactly what it sounds like: rent that you don’t have to pay, but how does it work? Who really benefits? Are there pitfalls to consider?
The benefit of free rent for landlords is that it drives business. Many urban areas have seen people leaving amidst the pandemic and many businesses closing. Major benefits of free rent for tenants include saving money and overall satisfaction. Another benefit is also finding places tenants might not have been able to afford beforehand, offering free rent can significantly reduce the burden of cost for some tenants.
Offering your tenant free rent is not the same as offering a free ride. Free rent can be a great incentive to attract businesses while still maintaining your cash flow and business viability. It can show a property as being occupied to draw other prospective tenants. It can help a newly established, but promising, business to get on its feet; thus, ensuring a future positive and profitable relationship. Free rent can be a competitive advantage when enticing tenants to use your property, as opposed to other properties. It can also maintain property values by having a higher rent profile on the books so as not to devalue the total property.
Think of free rent as being similar to tax abatement policies used by cities to attract new business. This tactic has proved very successful for multiple cities around the country. Similarly, it has proven successful for many property owners and landlords. Not only can they give you the competitive edge, but you can place requirements on them such as length of lease and operating expense reimbursements.
Are there drawbacks to free rent (rent abatement)? Certainly. When offering a rent abatement, property owners should make sure that the discount will not cut into their ongoing property expenses such as: Common Area Maintenance (CAM); property taxes; maintenance fees and insurance. You don’t want your enticement to lead you into the red, so ensure that the tenant is still responsible for their pro rata share of the operating cost, even if they have a gross lease.. Furthermore, while it may be advantageous to offer such incentives to promising growing businesses, offering discounts to struggling businesses without clear plans for their growth can be disastrous — both for you and the business, which may have unrealistic expectations about its ability to grow. In fairness to your tenant, it is advisable that they make sure their sales will support the arrangement. Tracking tenant’s sales can be difficult, but with RAAMP’s tenant portal, tenants can report their sales and you as the landlord can monitor their sales performance easily.
In spite of the name, free rent does not have to be free. It is not intended to take money out of your pocket. It is a tool that can be used to attract a new business and be the start of a promising relationship. It can be structured in many ways so as not to make it financially disadvantageous for the landlord. Any potential financial losses, or cash flow issues, can be recouped through the structure of the lease by clearly defining the exceptions to the free rent and the tenant’s obligations under the lease..
A gross lease and a net lease are two different lease structure landlords can use for their tenants. A gross lease often include all operating expenses in the rent, so the tenant just pays one lump sum per month. A net lease usually doesn’t include operating expenses as part of the rent agreement, so the base rent is lower, but the tenant is expected to pay the additional operating expenses separately.
Consider offering free rent while adding in the lost value over the course of the lease (I.E., a higher rent than the market value to offset the initial discount). Another option is to extend the length of the lease so that the property owner is ensured to recover income over the life of the agreement. This could help extend the relationship between the property owner and the tenant. The lease should also be structured to include tenant-responsible expenses that the landlord would otherwise assume a gross lease or net lease.
To remain competitive in today’s real estate market, property owners must make use of all the tools in their toolbox. Think of free rent, or rent abatement, as one such tool. It is similar to those used across industries: coupons, discounts, even tax abatement.
An index lease is a type of clause in a lease agreement that is often used in commercial real estate. Index leases, unlike traditional leases or graduated leases, don’t have a set predefined increase over time .
The term “index lease” can be explained in the same way as an adjustable-rate mortgage. Just like an adjustable-rate mortgage there can be variations in index leases. These variations usually use the consumer price index to account for the cost of inflation.
Four pillars make up index leases: base rent, common lease indexes, a rate of increase, and a growth cap. They all serve a unique function to help create an index lease. Base rent is the minimum amount the lessor will charge for rent. An index of use is a metric that changes at the same rate as the index. A rate of increase is a constant amount that will be added to the base rent. A growth cap is how much the base rent can increase each year.
Base rent is often used to describe the minimum amount of rent that’s charged on a space with variable rent. In the case of an index lease, this is typically the same as the amount charged for rent at lease commencement or the previous term. However, with other types of leases, it’s possible to have a base rent be paid in addition to operating costs or, in the case of retail, a percentage of sales.
Prime used as an index is the interest rate that banks will charge their clients with the best credit ratings.
CPI stands for consumer price index. CPI shows tenants how much their rent will increase annually. Rent tends to increase annually as property prices also increase. Leases should indicate what the annual CPI index is being used and the adjustments made to the rent amount. CPI can be seasonally adjusted and adjusted by region. It is important to know which region and indexes are being used.
The producer price index (PPI), published by the Bureau of Labor Statistics (BLS), is a group of indexes that calculates and represents the average movement in selling prices from domestic production over time.
LIBOR or London Interbank Offered Rate is a globally accepted benchmark rate. LIBOR is used by major global banks to lend to each other in the international interbank market for short-term loans. This index is being deprecated as more institutions move to other indexes.
Rent increase frequency refers to how often your variable payments are set to increase. The most common types of rent escalations occur on an annual or biannual basis.
When calculating an index lease that in itself is not a percentage such as “Prime”, the formula is (Current index value – Base index value) / Base index value. You’ll want to make sure to use this formula as a tenant or a landlord so you know how much rent to pay or collect. Let’s see how we use this equation with our own numbers.
Let’s say the current index value is 206.7 and the base index value is 201.5.
The equation for the rent increase would be as follows: (206.7 – 201.5) / 201.5 = 0.0258
After calculating the percentage of the rent increase, add it to the base rent in the following manner: $30,000 x 2.58% = $774
Using an index lease to determine the monthly rent allows it to be based on an independently published index and is less likely to be disputed by tenants. Due to the fact that everything is detailed in the published index for the tenant to review before signing the lease, they should have a very good understanding of the lease agreement. Ultimately, this will result in less problems for the tenant and the landlord.
It’s important to look at the whole picture when using an index lease. Increases should be based on the cost of inflation to the landlord’s expenses. If the landlord wants to continue making a profit they must understand how their expenses are going to change based on inflation. The CPI index is not always accurate. When creating the lease the landlord might set the CPI, however if the cost of living increases more than expected, then the CPI will not be accurate, resulting in a loss for the landlord.
Property management software is designed to replace outdated and analog processes that are time-consuming and fraught with the risks of human error. It allows property owners to manage leasing, invoicing and payments, maintenance requests, repairs, files, and more. Depending on what you’re looking for, the software you choose can cost you anywhere from a couple of hundred dollars to a couple thousand, based on the level of features and ease of use you need. If you manage more than one or two properties you really need to take this decision seriously. Key functions of Property Management Software solutions include lease abstracts, dynamic rent rolls, customer relationship management, file management, task management, a tenant portal, property analytics, accounting, and insurance compliance tools. This information is stored in a team-shared environment designed to replace disparate spreadsheets and cumbersome legacy accounting software. Incorporating this modern software will allow expenses to be better managed and could lead to increased revenue. But what businesses would benefit from investing in Property Management Software?
Property management firms can utilize Property Management Software to provide property owners with a portal, keeping track of property analytics.
Independent owners with multiple properties would also benefit from implementing Property Management Software for a handful of reasons. The first being the amount of time and money it would save. Being an independent owner with multiple properties often leaves people feeling overwhelmed and easily unorganized. With the help of Property Management Software, independent owners will have the opportunity to have a one-stop-shop to access all of their files, leasing, invoicing and payments, expense management, and so much more.
Real Estate Investment Trusts would benefit from investing in Property Management Software because it would allow them to keep all of the information on their properties organized and they would be able to access all of the information in one spot.
Businesses that have already implemented Property Management Software in their daily operations have used it to help with their lease abstraction, CRM, accounting, property management, notifications, file storage, and more. Not all Property Management Software is the same, however, some property management software does not include: CRM, file management, e-signatures & task management, SO if buying anything other than RAAMP you will need to purchase these solutions as well to run a business.
45% of property managers want to improve efficiency and Property Management Software solutions solves that very problem. Property Management Software can help organizations save time and money. The Return on Investment through time saving and less employee oversight allows for fewer people to work on the project. Before implementing Property Management Software you might be relying on a single individual for answers about a property. Now with Property Management Software, you can have more input that will allow your business to grow. Property Management Systems gives you answers; removing the burden on your key employees, allowing them to do their jobs, and saving money on expenses. The Return on Investment also prevents lost revenue.
Property management software solutions can help relieve organizations from the day-to-day stress allowing employees to do their jobs. Property management software also helps ensure that organizations are not missing out on potential revenue. Property Management Software significantly decreases the amount of time to abstract a lease and cuts the time from abstracts to rent-roll down to zero. Once a lease is abstracted, dynamic rent-rolls are instantaneous.
What should you be looking for in Property Management Software? Well, that depends on what kind of software you’re looking for. No two software programs are created the same.
Some important features for residents include a tenantcloud giving residents access to tools such as maintenance requests.
Important features for landlords include a place to collect rent for residents and manage rental properties.
When looking for a Property Management Software, you’ll want to keep in mind all of the features that come along with it. For example, some software might include lease abstracts while others might include insurance compliance tools. Another valuable feature is a free demo. Some property management software solutions will come with a free demo for users to show different functions of the software
|Software||Lease Abstract||Dynamic Rent Rolls||CRM||File Mgmt.||Notebook & Task mgmt.||Unlimited Users||Tenant Portal||Property Analytics||Accounting||Insurance Compliance|
Yardi was initially released in the 90s, so many companies have been using it for quite some time. The software has evolved over time to include more features, although some are less frequently used. Yardi Voyager is their full-featured original product, while Yardi Breeze is a scaled-back version of the software intended for lower-end users.
The best way to think about Yardi Voyager is as accounting software that also does property management. That is how the product was designed and has evolved over time. Yardi can be used for all kinds of commercial real estate businesses and use cases. They also address a global market
The Yardi Breeze product is mostly a skin of the more robust Yardi Voyager product. It has a more simplified feature set and user experience for use by smaller enterprises.
Also released in the 90s, MRI has been around for quite some time. Their platform has largely grown through acquisitions and they have many industry partners. Most users find MRI less user-friendly than Yardi and other competitors.
Propertyware is a part of RealPage, a publicly-traded company. It is less robust than RealPage and users often upgrade to RealPage to get the functionality they desire.
Appfolio is a publicly-traded company that originally was an abbreviation for “Application Portfolio” their software is best known for its focus on multi-family units.
Released is primarily for Office and Multi-Family, they are more of a task management system and a Re-Tenanting organizer.
Part of the CoStar family, they incorporate their data from LoopNet to offer more insightful property management software. They are mainly focused on large corporate investment firms.
PropertyBoss specializes in student housing and is designed to be a rental property management software.
RentManager is best suited for residential properties and offers accounting, reporting, and business operations features.
The main focus of Leasecake is managing leases. The software includes notifications for key dates.
Buildium is designed for use with residential properties in particular.
RAAMP is the only property management software platform that is lease-centered and serves as a complete operational suite for commercial real estate (CRE). The source of revenue in CRE is the lease, thus RAAMP is designed to help real estate professionals capitalize on what matters most, revenue.
Property Management Software is priced based on the kind of package and features your business needs. For example, buying a higher tiered package might be best for someone who manages multiple properties or types of properties. It’s also key to pay attention to the services offered. If the software suite doesn’t meet all your needs there will be additional costs in the form of add-on products or additional software applications from other vendors. It’s important to know how different software packages are hosted. Some applications exist only on your own server or local computer, while others exist entirely in the cloud. Many of these Property Management software platforms come with apps that are on only available as cloud-based software. This software allows you to access the app from any web browser.
It’s important to keep an eye out for the hidden costs. Some software requires additional fees to maintain the software meaning you might have to pay just to update the software in order to keep using it. In addition, the software might not come with customer service depending on the package you purchase. This could leave you on your own to troubleshoot the software and any problems you might encounter.
What Questions Should I Ask Vendors When Evaluating Property Management Products?
What Are Some Drawbacks I Should Watch Out For?
How Does Property Management Software Work?
How Much Does Software Cost?
Does QuickBooks have property management software?
How do I Choose The Right Software For Me?
Businesses actually need more than just property management software. In reality, you need a full operational suite. You could cobble together a dozen different apps or pieces of software along with spreadsheets and cabinets full of paper files, OR you could have everything in one place–ONE single source of truth.
We’ve all been there: you have a million things to do and you decide to purchase a property management software suite to make life easier for you and your organization, but you’re not sure what to get. You do a little Googling, and you’re no closer to knowing where to even start. These are the things you need to know.
Property management software is designed to replace outdated and analog processes that are time-consuming and fraught with the risks of human error. It allows you to manage tenants, leasing, invoicing and payments, maintenance and repairs, manage files, and more. The software you choose can cost you anywhere from a couple hundred dollars to a couple thousand, depending on the level of features and ease of use you need. If you manage more than one or two properties you really need to take this decision seriously.
Here’s what we recommend: a lease-centered approach to property management software. After all, the very source of your revenue are the leases, EVERYTHING ties back to the lease. All the leases for the properties you manage need to be tracked, understood, and leveraged intelligently, and this is where RAAMP comes in. We have the ONLY software that understands this critical profit center in your business.
The right property management software will save you and your company time and money while ensuring you spend less time on crisis management and more time focusing on growing your business. While it can’t “put out fires” for you, it will help prevent those fires from starting. That is best accomplished with an all-in-one platform providing you and your business with one single source of truth.
When it comes to your finances, choosing the right property management software matters. There are several options to consider, and you must choose the right one for your individual needs. Below are some of the different types of property management software.
When choosing a property management software solution it’s smart to think about your day-to-day challenges. What things are taking up lots of time or causing lots of stress? Are there repetitive tasks that software can take off your plate? What are your business goals? Do you have time to work toward them, or are you so busy working in your business that you don’t have time to work on your business? Here are some key things to look at as you make this decision:
Consider this: your business has changed. Everything has. Have your operations and processes been able to keep up? The truth is this — we all are bound by one, immovable limitation: TIME. While your business adapts, grows, and progresses you still have 24 hours every day, and you’d probably like to spend some of those hours doing something outside of work. Your business can grow without the growing pains if you have the right tools. You should be thinking about scalability when choosing a system that will grow with you as your business expands. Ask yourself these questions as you evaluate your options:
Whether you’re renting, or managing rentals, you want to make the most of your time and money, and property management software will help you do just that. After all, managing a property is a full-time job, so you can’t afford to invest in an inferior system that requires more work and has hidden costs. The wrong property management suite can put you at risk rather than helping you avoid it. Some potential pitfalls include:
The good news is that there is a better way to help property managers and owners run their businesses more efficiently. So, whether you need to take on a new project, create new processes or just update your current setup, let us help you choose the right software for your needs.
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