The Best Property Management Software for Multifamily Investors in 2024

Choosing the best property management software for your real estate business can be a complicated process - every bit as tough (and just as important) as choosing a good CRM system. The features, integrations and pricing structures offered can differ significantly depending on the provider, and because of the switching costs associated with property management solutions, making the wrong choice could set you back quite a bit.

This article covers the key features we'd recommend looking at to identify the right solution for your business, as well as our Top 5 Property Management Software Recommendations for multifamily investors and property managers in 2024. Happy investing!

What is Rental Property Management Software?

Property management software is designed to assist landlords and property managers in efficiently managing their rental properties. It streamlines various aspects of property management, including tenant management, financial accounting, maintenance tracking, and rent collection. The software typically offers features for tenant screening, property marketing, and generating detailed reports, making the management process more organized and effective.

How to Choose the Right Property Management Software

Choosing the best property management software for your real estate business can be complicated - here are some of the things we'd recommend looking at specifically (these are the same criteria we used to rate each product for this post):

1. Determine Your Specific Needs: Before looking at software options, clearly define your property management needs. Which types and sizes of properties do you manage? How many units do you manage? Which tasks do you need the software to handle (e.g., rent collection, maintenance requests, tenant screening)? All important questions to ask to help compare options efficiently.‍
2. Key Features: Look for "table-stakes" features like tenant and lease tracking, accounting, maintenance management, and online payment processing. More advanced features might include integrated marketing tools, owner and tenant portals, and robust reporting capabilities to help track KPIs across a growing portfolio.‍
3. Ease of Use: The software should be user-friendly, with an intuitive interface that makes it easy for you and your team to navigate. A steep learning curve can lead to inefficiencies and frustration, which can cause increased turnover rates (in an industry that already has pretty high turnover rates).‍
4. Integrations: The product you choose should integrate seamlessly with other tools and systems you already use, such as accounting software, email platforms, and payment processing systems. Strong integrations can streamline workflows and improve efficiency, while lack of integrations can actually create more work for on-site teams.‍
5. Scalability: Consider whether the software can grow with your business. It should be flexible enough to accommodate an increasing number of properties or changes in your business model.‍
6. Cost and Pricing Structure: Understand the pricing structure of the software. Some may charge per unit, while others have a flat monthly fee. Be mindful of additional costs for extra features, tech support, or training.‍
7. Customer Support and Training: Exceptional customer support is so important, and too few providers offer it - especially in the early stages of software implementation. Look for companies that offer comprehensive support and training resources.‍
8. Security: Make sure the software complies with relevant regulations and laws, especially regarding data protection and financial transactions. Robust security measures will help protect sensitive tenant information.‍
9. Reviews: Check out reviews from other users, particularly those managing similar types of properties. User reviews can provide valuable insights into the software’s performance and reliability.‍
10. Trial Periods: In 2024, and good software products should provide a free trial. The software you use to run your business is such an important decision that good providers should let you test the software’s functionality on your own properties before you commit.

The best property management software for you will depend on your specific business requirements, the size and complexity of your portfolio, and the level of support and customization you need. Single-family rental (SFR) operators will need different technology than condo/HOA managers or managers of large apartment buildings. With this in mind, we put together this list specifically for multifamily property managers to narrow the scope a bit.

The Best Property Management Software for Multifamily Investors in 2024

In 2024, several property management platforms stand out for their features, user-friendliness, and specific use cases. Here's a breakdown of some of the best options, including pros and cons, pricing (where available), and some of the best use cases for each:

1. AppFolio

AppFolio is a cloud-based property management software designed for managing residential properties, commercial properties, and community associations. It's suitable for businesses managing anywhere from 50+ units to thousands of properties/units. The software includes a range of features such as marketing and leasing tools, online maintenance management, workflow management, automated accounts payable, smart bill entry, virtual showings, and an AI leasing assistant named Lisa​​.

Pros of AppFolio

1. Modern, Clean, and Intuitive UI: AppFolio has a user-friendly interface that is easy to navigate.
2. Advanced Accounting Features: It offers sophisticated accounting capabilities, although these might require some accounting background to fully utilize.
3. AI Leasing and Accounting Features: These cutting-edge features can significantly improve efficiency when implemented properly.
4. Universal Search and Mobile App: The software provides a universal search feature and has mobile apps for iOS and Android.
5. Customer Support: Users have found the customer service team to be responsive and attentive to feedback and support needs​​.

Cons of AppFolio

1. Pricing: AppFolio's pricing can be a significant con, especially for smaller portfolios. It's more expensive than many of its competitors, with a minimum monthly fee of $280 for the core plan, and goes up to $1,500 monthly for the Plus plan.
2. Limited Integrations and No Full Open API Access: The software offers limited integrations and does not provide full open API access, which can be a drawback for those looking for a highly customizable solution.
3. Accounting Complexity: The advanced accounting features may be challenging for those without an accounting background.
4. Mobile App Limitations: Some users have mentioned that the mobile app has limited functions, particularly for property managers​​​​.
5. Portfolio Size: Entrata now requires a minimum portfolio size of 50 units (previously 25)​​​​​​, meaning some smaller landlords won't be able to use it.

AppFolio has been praised for its user-friendly interface and robust set of tools, making it a suitable choice for efficiently managing multifamily portfolios. However, its higher price point and limited integrations might be a drawback for some users, especially those managing smaller portfolios or requiring extensive customization. If you're considering AppFolio, it's important to weigh these pros and cons in relation to your specific property management needs.

2. Buildium

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Buildium offers a range of features suitable for both commercial and residential properties. It's known for its full bookkeeping and accounting capabilities, including the handling of 1099s, and offers a customizable marketing website. The software is available as a mobile app for both iOS and Android devices, and provides data migration assistance.

Pros of Buildium

1. User-Friendly Interface: Buildium is considered user-friendly and intuitive, making it accessible for users without a deep background in bookkeeping or accounting.
2. Public Website: It offers a free public website that is customizable and mobile-responsive.
3. Advertising and Leasing Tools: Simplifies the process of advertising properties, screening tenants, and creating/renewing leases.
4. Accounting and Payments: Intuitive and easy to use, allowing for electronic handling of payments, rent collection, and paying vendors and owners.
5. Maintenance Management: Efficient handling of maintenance requests, allowing for easy communication and management of work orders.

Cons of Buildium

1. Additional Charges: There are several additional charges, including feature setup fees and per-item costs. For example, setting up bank accounts incurs a fee.
2. Support Limitations: The basic plan does not include live support. Higher-tier plans offer better support options, but at an additional cost.
3. Complex Tenant Onboarding: Some users have reported that tasks like onboarding tenants can be unnecessarily complex and difficult to navigate.
4. Issues with Accounting Features: Some users have encountered problems with the accounting features offered by the software.
5. Expensive Plans: The pricing model of Buildium is on the higher end compared to other property management software, and some features that are standard in other software, like live phone support and onboarding, come at a steep premium.

Buildium Pricing

‍As of this post's publication date, Buildium's pricing is feature-based, with the Essential plan starting at $52 per month. The Growth plan starts at $166 per month, adding live phone support and property inspections, while the Premium plan is priced at $479 per month, including waived EFT transactions and priority support.

Overall, Buildium offers a comprehensive range of property management features that are particularly beneficial for mid-sized rental management companies. It's important to account for the additional costs of certain features though, as well as the steep learning curve for some aspects of the software.

3. Avail

Avail is a property management software designed primarily for DIY landlords and small rental businesses. It offers various features including rental listings, tenant screening, digital leasing, and rent collection.

Pros of Avail

1. Remote Property Management: Avail allows landlords to manage properties from a distance, including advertising vacancies, accepting applications, performing background checks, creating and signing leases, and collecting rent online.
2. User-Friendly Interface: The software is known for its ease of use and is especially beneficial for small landlords managing a few properties.
3. Good Customer Service: Many users have reported positive experiences with Avail's customer service, finding them helpful and responsive.
4. Online Tenant Portal: Avail includes an online tenant portal for rent payments and maintenance tracking.
5. Integration with Listing Sites: It integrates with several listing sites like Realtor.com and Apartments.com, helping to widen the reach for property listings.

Cons of Avail

1. Initial Setup Issues: Some users have reported difficulties during the initial setup for tenant payments, although these issues seem to be resolved with customer support assistance.
2. Limited Flexibility in Billing: There have been comments about the billing system's inflexibility, particularly in handling offline payments like checks.
3. Ease-of-Use Concerns: Some users find the software to have a steep learning curve and encounter issues in communication with prospective tenants due to the software's restrictions on contact information in listings.
4. Lack of Certain Features: Avail doesn't include renter's insurance, property message boards, or a virtual showings tool, which might be necessary for some landlords.
5. Additional Fees: In the Unlimited Plus plan, tenants have to pay an additional fee with each transfer, and the tenant screening service does not include previous address history and terrorist alerts.

Avail Pricing

‍Avail offers a free plan for landlords with unlimited units. The Unlimited Plus Plan starts at $7/unit/month and includes features like next-day rent payments, waived ACH fees, custom applications and leases, and a property website​​​​​​. It is well-suited for small-scale or independent landlords seeking an all-in-one solution for managing their rental properties remotely. While it offers several convenient features, users should consider the software's limitations and additional costs when making their decision.

4. Entrata

Entrata is a comprehensive property management software that has been serving the real estate industry since its inception in 2003. It offers a wide range of features to facilitate various aspects of property management, including accounting, invoice processing, lease management, and more. The platform is particularly known for its strong integrations and robust reporting tools, making it a popular choice among property managers and real estate professionals.

Pros of Entrata

1. Ease of Communication: Entrata enables effective communication with residents via email marketing, text, and web messaging, which is particularly beneficial for managing student housing properties.
2. Integration with Listing Services: It integrates with listing services like Zillow and Apartments.com, simplifying the process of advertising and leasing properties.
3. User-Friendly Interface: The software is generally user-friendly, which makes navigating through various functions and finding necessary information efficient.
4. Robust Reporting Tools: It offers robust reporting tools that help in keeping track of various aspects of property management.
5. Marketing Suite: Entrata includes a Marketing Suite offering tools to connect with prospects and generate leads.

Cons of Entrata

1. Pricing Transparency: The pricing for Entrata requires a consultation call, and there's no free plan or trial available, which might be a barrier for some potential users.
2. Customer Support Issues: There have been reports of delayed customer support responses and difficulties in getting action taken from support once contact is made.
3. Potential for Software Bugs: Frequent software updates might make the system prone to bugs, and some features might be challenging to learn.
4. Dependency Issues: Since Entrata consolidates many functions into one platform, any issues or downtime with the software can significantly impact daily operations. Users have reported that when problems occur, they can sometimes take a while to be resolved
5. Intuitive Interface Concerns: Although generally user-friendly, some functions and tools may lack an intuitive interface, and users might encounter difficulty with certain tasks like transferring residents.

Entrata is considered to be a net ROI positive as it consolidates various software needs into one platform. It's suitable for medium-sized to large companies and has been positively reviewed for its comprehensive feature set and ease of use. However, like any software, it has its drawbacks, particularly in terms of customer support responsiveness and the intuitiveness of some of its features. Entrata is a well-rounded property management solution, especially for those who manage large portfolios and require a software that offers a broad range of features and robust reporting tools. However, potential users should consider the aspects of customer support and pricing before making a decision.

5. TenantCloud

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TenantCloud is an all-in-one rental accounting and management software designed to assist landlords. It's known for its versatility and can be used effectively by landlords with just a few properties or those with hundreds of properties.

Pros of TenantCloud

1. Maintenance Requests and Scheduling Tools: TenantCloud provides efficient tools for managing maintenance requests and scheduling.
2. Online Payment Accessibility: The platform allows for easy and accessible online rent payments.
3. Basic Accounting Features: It includes basic accounting functions which are essential for property management.
4. Customizable Lease Agreements: The software offers a lease builder, although it is noted as being a bit clunky.
5. Ease of Use: Users find TenantCloud to be user-friendly and intuitive, making it easy to onboard new users.

Cons of TenantCloud

1. Limitations of Free Version: The free version of TenantCloud is limited to managing 75 units.
2. QuickBooks Integration as a Paid Feature: Integration with QuickBooks for advanced accounting needs is available but at an additional cost.
3. Challenges with Lease Renewal Feature: Some users have reported issues with the lease renewing feature not working as expected.
4. Basic Accounting Capabilities: For growing companies, the basic accounting features may become insufficient over time.
5. Occasional Glitches: Users have experienced occasional technical glitches, such as server downtime.

TenantCloud offers different plans suitable for various portfolio sizes, with the Starter plan beginning at $17/month for small portfolios. The software's pricing and features make it a strong choice for those seeking a comprehensive property management tool at an affordable price point.

Key Takeaways: Selecting The Best Property Management Software in 2024

Deciding which property management software to use is every bit as important and as complicated as selecting a CRM system for property managers. It encompasses a range of functions including tenant management, financial accounting, maintenance tracking, and rent collection, with features like tenant screening, property marketing, and generating detailed reports.

The factors you consider should include your specific needs based on the property types and sizes in your portfolio, the availability of core features like lease tracking and maintenance management, ease of use, integrations with other systems, scalability, cost, customer support, security, user reviews, and the availability of trial periods.

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In 2024, our picks for the best property management software solutions for multifamily investors include:

1. ‍AppFolio - Known for its user-friendly interface but with higher pricing
2. ‍Buildium - Offering comprehensive features with additional costs
3. ‍Avail - Ideal for DIY landlords with some limitations in flexibility
4. ‍Entrata - Recognized for its strong integrations and robust reporting capabilities, but with occasional customer support issues
5. ‍TenantCloud - Versatile for different portfolio sizes but with some limitations in its free version

These platforms cater to different needs, and you should align your choice with your specific management requirements, portfolio size, and budget constraints.

Happy New Year to everyone in multifamily from Tim, Nico and Marc at HelloData.ai!