What is a Cloud Based Property Management System?

The property management industry is at a crossroads. Traditional methods of managing properties—using spreadsheets or local property management systems (PMS)—are becoming outdated and inefficient.

According to a survey, 68% of property managers in North America have now adopted property management software, and most are using cloud-based systems.

Why? Because cloud-based property management systems (CBPMS) offer unparalleled flexibility, cost savings, and the ability to access critical data anytime, anywhere.

Let’s dive into the intricacies of CBPMS and explore how it can transform your operations. But first, let’s quickly take a look at what property management systems are.

What is a Property Management System?

A property management system (PMS) is software or any system that helps property managers and real estate professionals handle various tasks related to managing properties.

These tasks include:

  • Rent collection

  • Maintenance tracking

  • Tenant communication

  • Lease management

  • Financial reporting

PMS solutions can be local or cloud-based, with cloud-based systems offering greater flexibility, remote access, and scalability. Recent studies have also confirmed that many managers now prefer cloud-based property management systems because of their ease of use and mobile accessibility.

Property Management System

 

How Does Cloud-Based Property Management System Work? (And What It Is)

A cloud-based property management system (CBPMS) operates on remote servers hosted on the Internet, which allows you to access the system from any device with an Internet connection.

This architecture of a CBPMS also means that the software can integrate with other online services, such as payment gateways, maintenance scheduling tools, and third-party accounting software.

Data security is a priority with cloud-based systems, offering robust encryption and multi-factor authentication. As a result, property managers can store sensitive information like tenant details and financial records without worrying about security breaches.

In essence, a cloud-based PMS streamlines the property management process, automating time-consuming tasks and providing real-time data access to improve decision-making. Popular examples include Yardi, AppFolio, and Buildium.

Let’s explore the key features to look out for in cloud-based property management systems.

Useful Cloud Software Features

The core benefits of a cloud-based property management system revolve around automation, real-time access, and centralization of tasks.

But what makes these systems so powerful are the individual features they offer:

  • Tenant and owner portals: Cloud-based systems allow tenants and property owners to access key information through web portals, reducing the need for face-to-face communication.

  • Automated rent collection: Payments are streamlined, with reminders sent automatically and payment histories tracked digitally.

  • Maintenance management: Track work orders in real-time, assign tasks to maintenance staff and communicate with tenants regarding maintenance updates.

These features simplify day-to-day operations and allow property managers to focus on value-added tasks, like improving tenant retention or expanding their property portfolio.

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Why Switch to a Cloud-Based Property Management System?

Switching to a cloud-based property management system offers numerous advantages, from enhanced mobility to significant cost savings.

The 3 major reasons why you should make the switch are discussed below.

1. Streamlined Communication

One of the most challenging aspects of property management is effective communication between property managers, tenants, and owners. A cloud-based property management system solves this issue by creating a unified platform where all parties can communicate transparently and in real-time.

Property managers can post announcements, track maintenance requests, and even provide updates on critical repairs. Tenants can raise issues and resolve them, while owners can access performance data without needing to contact the management team directly.

Cloud-Based Property Management System

 

2. Mobile Accessibility

Mobile accessibility is one of the strongest selling points of cloud-based systems.

Property managers can access all essential tools from their mobile devices, allowing them to work remotely without missing a beat. Given that 85% of property managers report that using technology has increased their efficiency and productivity, this flexibility is crucial.

From managing rental applications to addressing maintenance requests, CBPMS’s mobile functionality ensures that you can manage your business from anywhere.

Tenants, too, benefit from mobile accessibility. They can use their smartphones to pay rent, request maintenance, and check their account status, making it far more convenient for them to stay connected with their property manager.

3. Cost Savings

One of the biggest benefits of moving to a cloud-based property management system is the potential for cost savings. Traditional on-premise property management software requires significant investments in hardware, software licenses, and IT support. Cloud systems eliminate these upfront costs by operating on a subscription model, which generally includes updates and IT support in the price.

In the long term, this model can save you both money and headaches. By reliable estimates, switching to a cloud-based PMS can reduce property management costs by up to 30%. With fewer maintenance requirements and no need for physical servers, cloud systems offer a scalable, cost-effective solution for property managers of all sizes.

Calculate Your Potential Savings with a CBPMS

Enter your current annual spending on property management:

 

Actionable Steps to Implement a Cloud-Based Property Management System

When you’re ready to make the leap to a cloud-based property management system, follow these steps to ensure a smooth transition:

Steps

Details

1. Research Available Options

Explore different cloud-based PMS solutions that fit your portfolio and operational needs.

2. Trial a System

Take advantage of free trials offered by vendors like Yardi and AppFolio to see which system works best for you.

3. Implement with Expert Support

Contact vendors to set up the system with the help of their expert support teams to ensure a seamless transition.

Moving to a cloud-based system doesn’t have to be daunting, especially when you follow a structured approach.

The Benefits of Using Cloud-Based Property Management System

The advantages of using a cloud-based property management system are extensive and go beyond just cost savings and mobile accessibility. Here’s a look at the key benefits:

Benefit

Description

Scalability

Easily scale the software as your portfolio grows without needing to invest in new infrastructure.

Real-Time Updates

Access real-time information on rent payments, vacancies, and maintenance requests.

Data-Driven Insights

Utilize reporting features to make informed decisions based on property performance and occupancy rates.

Enhanced Security

Cloud-based systems employ enterprise-grade security, protecting sensitive tenant and property data.

Integration with IoT Devices

Seamlessly integrate with smart devices to monitor energy usage, security, and other building metrics.

By using a cloud-based system, property managers are not only improving operational efficiency but also future-proofing their business for technological advancements in the industry.

If you’re still using spreadsheets or a local property management system, consider switching to a cloud-based system. The advantages are clear, from streamlined communication to cost savings and enhanced security.

As the market continues to grow and technology evolves, cloud-based systems will become not only useful but necessary for efficient property management.

Upgrade to a Cloud Based Property Management System

Upgrading to a cloud based property management system helps you facilitate communication, streamline administrative tasks and save money during these tough times. ICC Property Management has relied on cloud technology for years, delivering unmatched customer-focused property management services to clients throughout North America.

If you’re ready to take the next step, contact the experts at ICC Property Management on property management services.

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CloudSecureTech: Your Fastest Route to Connecting with Leading IT Experts

If you’re ready to take the next step and explore cloud-based property management systems, contact CloudSecureTech. We specialize in helping property managers find the right cloud solutions provider, ensuring that you reap all the benefits technology has to offer.

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FAQ

What Is the Difference Between Local PMS and Cloud-Based PMS?

A local property management system operates on servers within your company’s physical location. In contrast, a cloud-based PMS is hosted on remote servers accessible via the Internet. Cloud-based systems offer greater flexibility, mobile access, and scalability without the need for expensive hardware.

What Is a Cloud-Based Building Management System?

A cloud-based building management system extends the concept of cloud-based property management by incorporating control over building infrastructure such as security systems, lighting, and HVAC through remote access and automation.

What Is an Example of a Cloud-Based System?

Cloud-based systems include widely used platforms like Microsoft 365 or Google Drive, where users store and access data over the Internet. Yardi and AppFolio are popular examples of cloud-based management systems in property management.

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