As an owner of a small rental business, you may wonder whether the good-old, manual way of managing your rental assets is better for you than switching to digital rental management software systems. Both choices have their positives, but which one is more suitable for your needs and targets?
The rental industry is growing, so keeping up with the ever-growing demand for rental services can be difficult, especially for small businesses. Sticking to the traditional way of doing things may feel like a safe option for small businesses, but sometimes they need to step out of their comfort zones and explore more efficient alternatives.
Let’s take a look at how small rental businesses usually operate in traditional ways and how digital rental software can help.
Traditional vs digital
First, let’s dive deep into how a small rental business typically operates when it opts for the traditional route.
Sticking to traditional ways
Typical rental management is the old-fashioned method of managing rental assets that are mainly manual and on-premise processes including paper applications, cash or check payments, phone calls and emails, and work order or ticketing systems.
For small businesses, traditional rental business management may involve hiring people to take up various job roles—this can be expensive because of the limited capital they have. Also, sticking to traditional methods means slow response times to orders and other problems, like fatigue and burnout for staff members.
Going digital
Digital rental management software is the type of software that automates and smooths different aspects of rental businesses, including payment processing, availability checking, maintenance tracking, administration, and business insights.
The rental software utilises online platforms and mobile applications to give a smooth and hassle-free experience to both the property owners and the tenants.
Benefits of choosing digital rental software over traditional means
Here are some of the benefits a small business can expect from this software solution:
Efficiency
Rental software is more efficient than traditional rental management. Rental software can make your life easier by automating and simplifying many processes that would otherwise need a lot of manual work and coordination. This software enhances efficiency by allowing:
Fast payment processing: This lets you collect payments and security deposits online using different payment options including credit cards, debit cards, or bank transfers. You can also keep track of and control your income and expenses effortlessly.
Availability checking: You can monitor and update the availability of your rental assets in real-time, through the use of online calendars and booking systems.
Maintenance tracking: Maintenance requests can be received and responded to online with a centralised dashboard or app. In addition, you can also assign and track the progress of contractors, vendors, or staff who are involved in the work of fixing the issues.
Effective administration: The software lets you carry out all of your administrative procedures online, including creating and signing contracts, generating and sending invoices and receipts, filing taxes, and storing documents. You can also access and control your data from anywhere using any device.
One of the benefits of using rental software is that it minimises the paperwork, phone calls, emails, and physical visits that are associated with running a rental business. Additionally, you can avoid errors, delays, and miscommunication caused by human factors. This allows you to enhance your productivity, profitability, and work-life balance.
Cost
One of the other important points to take into account in comparing digital rental software and traditional rental management is cost. The expenses associated with managing rental assets are dependent on the size, location, condition, occupancy rate, and the level of services and support required. Here’s a look at how this software can help keep costs down:
Staff salaries and benefits: You won’t have to hire or pay many staff, since the rental software can handle most of the tasks on your behalf. You’ll only need to hire a few employees to monitor this part of the business, or you may be able to handle it all by yourself, depending on the size and complexity of your business.
Office rent and utilities: Your small business can eliminate the need for a physical office space to be rented or maintained, as the rental software allows you to work from anywhere, including your home or other places. You may also save money on electricity, water, internet, and so on, which are part of office expenses.
Marketing and advertising: You may not need to allocate too much funds for marketing and advertising your rental assets as rental software can help you post and distribute your listings to multiple online platforms and get a bigger and more diverse audience of prospective customers. Additionally, the software will also allow you to pick up and show reviews, ratings, and testimonials from your old or present customers, which can help you construct your reputation and credibility.
Maintenance: More time and fewer costs might translate into increased revenue that you can then invest into your small rental business. For instance, you may spend less money on maintenance and repairs. Then, rental software can help you prevent such issues or deal with them faster and more efficiently. Also, you can use the software to monitor and manage the performance and condition of all of your rental assets.
Naturally, rental software is not free; you will need to pay for the software itself. So being able to spend less money on costly repairs can make investing in the software easier.
Scalability
The last thing you need to consider when comparing rental software and traditional rental management is scalability. Scalability is important for any small business that wants to succeed and thrive in the long term, especially in a competitive and dynamic market, like the rental industry.
Rental software lets you grow and diversify your rental portfolio, by adding more rental assets and niches to your business, without having to worry about the increased workload, complexity, or risk. You can also use the software to test and validate your ideas and measure and improve your results.
By using rental software, you can increase your flexibility and agility, and be ready to face any challenges or changes that may occur in the rental industry. You can also achieve your growth and development goals, and take your small business to a whole new level.
Find the ideal digital rental software for your small business
Rental software and traditional rental management have their own advantages, and the best option for your business may depend on various factors, such as your budget, goals, preferences, and needs. However, if you are looking for a more efficient, cost-effective, customer-friendly, and scalable way of managing your small rental business, digital rental software is the way to go.