Introduction
Single family homes comprise approximately 35% of all rentals making them the fastest-growing sector of the American housing market. Research by the Harvard Joint Center for Housing Studies indicates that single-family rental home construction reached a record high in 2022 with over 80,000 units built.
In today’s thriving single-family rental market where investor interest continues to soar, property managers face a pivotal challenge: delivering exceptional value to tenants while maximizing cost efficiency across their operations.
This article explores single-family rentals as ideal real estate investments and why the best property management software for single-family homes is crucial for seamless management.
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Here are best property management software for single family homes
1. RentPost™
Description:
RentPost ™ caters specifically to landlords and managers handling diverse residential portfolios, including single-family homes, multi-family properties, apartments, and condos. Its core functionality streamlines operations across tenant screening, online rent payments, maintenance coordination, and accounting.
User-friendly interfaces for landlords, tenants, and vendors facilitate seamless communication and task management. Flexible reporting tools provide real-time insights into occupancy rates, income, expenses, and more.
RentPost ™ is highly scalable, adapting to portfolios of any size without compromising on features. With competitive pricing and a focus on residential property management, RentPost ™emerges as an ideal solution for landlords and property managers seeking efficient oversight of their mixed residential assets.
Key features:
- Dedicated online portals providing access for property owners and tenants
- Comprehensive tenant screening capabilities integrated into the platform
- Streamlined rent collection through ACH or credit card payments
- Real-time visibility into payment statuses and pending cases
- Efficient tracking and management of maintenance requests
- Accounting features for income, expenses, and financial reporting
- Secure document storage for leases, invoices, inspection reports, images, and more
- Intelligent filtering technology for narrowing search results from thousands of records
- Customizable workflows to align with unique business processes
Free version: None – but offers a 30-day FREE trial
Pricing: $29 per month + $1 per unit (no minimum)
2. PropertyBoss
Description:
PropertyBoss is a comprehensive property management software designed for mid-sized to large property managers across various sectors, including affordable housing, apartments, manufactured homes, military housing, residential, self-storage, senior living, and student housing.
Available as a web-based or on-premise solution compatible with Macs and PCs, PropertyBoss offers customizable features that allow property managers to tailor the software’s functionality according to their business requirements, while also providing standardized out-of-the-box features for those seeking a ready-to-use solution.
PropertyBoss boasts feature-rich offerings tailored to the needs of both landlords and property managers. As an Intuit (QuickBooks) Gold Developer with over 15 years of industry experience, PropertyBoss provides a comprehensive solution for streamlining property management operations.
Key features:
- Tenant application and screening
- Online rent payment
- Unit and lease tracking
- Property accounting (general ledger, accounts payable, gain/loss analysis)
- Vacancy planning
- Budgeting and forecasting
- Work orders and building maintenance
- Inventory management
- Task scheduling and prioritization
Free version: None
Pricing: $1.25 unit/month ($100 minimum)
3. Buildium
Description:
Buildium is an all-encompassing property management software tailored for residential and commercial properties. It automates key tasks like rent collection (via credit cards, ACH), expense tracking, bank reconciliations, and financial reporting.
The maintenance module allows for creating work orders, attaching documents, assigning to vendors, and tracking status updates. Buildium’s robust communication tools enable individual and bulk emails, letters, and SMS to tenants and vendors.
The tenant portal lets residents pay rent, view histories, and submit maintenance requests with photos. Buildium provides training resources, including ticket support, live assistance for higher plans, onboarding sessions, and on-demand tutorials through Buildium Academy.
Key features:
- Mobile-responsive tenant portal for online payments and maintenance request submissions
- Mobile-responsive owner portal for easy access to financial reporting
- Comprehensive tenant screenings include criminal, credit, and eviction reports
- Maintenance management (work orders, vendor payments, and property inspections)
- Marketing and leasing tools ( listings, syndication, applications, showings, and eSignatures)
- Accounting, expense tracking, and financial reporting
- Online 1099 eFiling for hassle-free tax management
- Ticket support and live phone support
Free version: None – but offers a 15-day FREE trial
Pricing: Starts at $55 per month for up to 20 units
4. Propertyware
Description:
Propertyware is designed for single-family property management companies and offers extensive customization options, including custom fields, dashboards, and reports. Propertyware features an open API that allows integration with other property management apps or custom-built solutions through two-way data exchange.
The software provides portfolio-level accounting and reporting capabilities, along with a unique solution for multi-regional operations. This solution enables property managers to monitor local operations easily while accessing holistic reporting across regions through a single sign-on.
Developed specifically for the single-family rental industry, Propertyware has been in the market for nearly 20 years. It is currently used by some of the largest and most successful single-family property management companies in the industry.
Key features:
- Owner and tenant portals
- Highly customizable fields, dashboards, and reports for staff, owners, and investors
- Open API for integrating third-party apps or building custom property management apps
- Accounting tools
- Maintenance management tools
- Lead-to-lease management
- Multi-location management capabilities
- Maintenance contact center
- Owner and resident insurance offerings
- Portfolio-level accounting and reporting
- Unified platform for multi-regional operations with holistic reporting and single sign-on
Free version: None – but offers a limited-time FREE trial
Pricing: Starts at $1 per unit/month ($250 minimum)
5. ManageCasa
Description:
ManageCasa is designed to cater to various property types, including residential, commercial, associations, self-storage, student housing, and marinas. The software offers tailored services for landlords, small to medium businesses, and enterprise-level property management firms.
ManageCasa provides a suite of tools covering accounting, maintenance management, lead-to-lease processes, owner and tenant portals, digital rent payments, and listing syndication.
Property managers can set up unlimited user accounts, capture detailed information for owners and properties, customize accounting workflows for rent collection and recording, and generate budgets and forecasts for managed properties.
Key features:
- Tenant and owner portals
- Online tenant application and screening
- Online lease tracking
- Custom property websites and online listings
- Online rent collection and payment
- Automated late fees
- Online maintenance request tracking
- Full accounting capabilities
- Rental reports
- Vacancy posting
- In-app communication
Free version: None – but offers a 14-day FREE trial
Pricing: Starts at $1 per unit/month ($100 minimum)
Why Single Family Homes are Ideal Rental Investments
The allure of a single-family home lies in the sense of sovereignty it bestows upon its residents, allowing them to reign over their personal domain. This housing type reigns supreme in the United States, accounting for the majority of occupied units – a staggering 82 million out of the total 129 million in 2021.
While homeownership remains the prevailing tenure, a significant portion – over 20 million – of these single-family dwellings are occupied by renters. With an impressive annual occupancy rate of 95%, this housing segment has captured the attention of millennials, who emerge as the largest contingent of renters in this market.
High demand for single family rentals
Inflation, surging construction costs, raised mortgage rates, and year-on-year house price increases over the past decade have made homeownership harder for the average American. Nowadays, owning a home is more difficult, especially for first-time buyers.
Single-family rental homes have become the best option for many—the allure lies in their ability to provide the coveted features of a traditional house while eliminating the burdens of ownership. Instead of being tied to mortgage payments, home repairs, or lawn care, renters have more flexibility to devote their time and energy to pursuing personal passions.
The rise of remote work and work-from-home arrangements has also contributed to an increased demand for single-family rental properties, as people seek more spacious living accommodations with dedicated home office spaces.
Long-term appreciation potential
Owning the land under a single-family home provides an inherent appreciation advantage over condos and apartments where land is shared. Supply and demand dynamics also favor single-family homes, with higher demand from families seeking space and privacy.
Additionally, single-family homeowners can freely renovate, expand, and customize their properties to increase value, whereas condo/apartment owners face restrictions. Furthermore, they qualify for more favorable financing terms, attracting a wider range of buyers.
The long-term appreciation potential of single-family homes is clearly validated by recent investor activity. While investor share experienced a temporary post-pandemic dip, it rebounded to around 27% in Q1 2023. Notably, in January 2023, investors purchased 23% more single-family homes compared to 2019, whereas non-investors made 27% fewer purchases during the same period, indicating a significant shift in demand dynamics.
Lesser tenant turnover and better cash flow
Typical renters of single-family homes seek more stable and long-term living arrangements, reducing tenant turnover. Fewer vacancy periods minimize expenses like preparing the unit for new tenants, such as cleaning, repairs, and marketing costs.
Conversely, high turnover in apartments or condos can lead to more wear and tear, requiring regular updates and costly renovations that can strain cash flow. Additionally, long-term tenants are more likely to take better care of the property, reducing extensive maintenance or repairs, further contributing to consistent cash flow.
By providing a living environment conducive to long-term occupancy, single-family rental homes offer landlords the potential for stable, predictable cash flow, making them an attractive investment option for those seeking reliable passive income streams.
Demographics and lifestyle inclinations
Changing lifestyle preferences among younger generations, such as millennials and Gen Z, have also played a significant role. Many in these demographics prioritize mobility and seek the freedom to relocate for career opportunities or personal reasons, making the long-term commitment of homeownership less appealing.
Renting a single-family home provides the desired space and amenities without the financial burden and maintenance responsibilities associated with owning a property. For this reason, single-family rentals are the best choice for growing families.
The Challenges of Managing Single Family Rentals
Owning and managing single-family rental properties can be a lucrative investment, but it also requires a lot of legwork. From addressing tenant matters and maintaining individual properties to navigating legal and financial complexities, landlords often need to juggle multiple responsibilities.
Finding and screening tenants
Thorough tenant screening is crucial to avoid costly problems like non-payment of rent, property damage, legal disputes, and criminal activity. Comprehensive background checks, employment and income verification, credit score checks, rental history reviews, and in-person interviews are essential.
Scrutinizing each applicant helps weed out potential troublemakers and find reliable, long-term tenants who will respect the property and pay rent on time.
Collecting rent
Landlords must outline clear policies on rent due dates and late fees. Payment methods should be established, while documentation and record-keeping of all rent payments are also essential.
For property managers, reporting to owners in a transparent and timely manner is critical. This includes providing monthly financial statements detailing rent collected, expenses paid, and any issues that transpired.
Diligent rent collection and thorough reporting to owners ensure a smooth rental experience and help maximize the property’s profitability.
Maintaining properties
Landlords must ensure single-family rentals are habitable by promptly addressing issues with plumbing, heating, and other essential systems. Regular upkeep like cleaning, lawn care, and preventative maintenance is also required.
When repairs are needed, landlords must respond promptly and hire qualified contractors. Keeping detailed records of all maintenance and making necessary repairs can prevent further damage and potential legal issues with tenants.
Keeping up with legal regulations and compliance
Landlords should regularly review local, state, and federal guidelines to ensure their practices, documentation, and properties meet all mandated standards for rental housing.
Rental laws on fair housing, security deposits, evictions, and property maintenance may occasionally change and failure to comply can result in hefty fines or legal action by tenants or authorities.
The Solution: Best-in-Class Property Management Software for Single Family Homes
Property management software offers a comprehensive solution to tackle the challenges of managing single-family rentals. These digital platforms consolidate every aspect of rental operations, from tenant application and screening to rent collection, maintenance coordination, and financial reporting.
Let’s look into the key features every dynamic and all-around property management software should have.
Tenant application and screening
Property management software offers a seamless and efficient solution for handling tenant applications and screenings, consolidating a process that can be time-consuming and prone to errors when done manually.
- Online rental listings and applications
- Automated tenant screening (credit, background, eviction checks)
- Centralized applicant tracking and management
- Customizable screening criteria and approval workflows
- Digital document collection and storage
Rent collection
Gone are the days of manually issuing rental statements and collecting rent checks from each tenant household, thanks to the advent of property management software that automates the entire rent collection process.
- Online tenant portals for secure rent payments
- Automated rent reminders and late fee tracking
- Multiple online payment options (ACH, credit cards, etc.)
- Centralized record-keeping of all rent transactions
- Real-time updates on rent receipts and outstanding balances
Repairs and maintenance
With property management software, renters can simply go online to report a repair or maintenance issue through a tenant portal. Landlords can use the same centralized platform to coordinate with service providers and repair personnel.
- Online tenant maintenance request portals
- Automated notifications to landlords/property managers
- Centralized tracking of all maintenance issues
- Vendor management and job assignment tools
- Real-time updates on job status and completion
- Integrated invoice processing and payment
Financial and portfolio performance reports
With property management software, landlords need not wrack their minds crunching numbers and complex financial analysis as these platforms generate comprehensive financial reports and provide in-depth assessments of portfolio performance through intuitive dashboards and metrics.
- Rent roll reports detailing collected and outstanding rent
- Income and expense statements for profitability analysis
- Cash flow statements showing net income
- Occupancy rate and vacancy tracking
- Average rental rate and capitalization rate calculations
- Portfolio-level performance dashboards and analytics
Compliance with rental regulations and processes
Property management software assists landlords in maintaining compliance with industry regulations and rental laws. This helps mitigate legal risks and avoid potentially costly violations related to fair housing, evictions, security deposit handling, and more.
- Automated screening processes to prevent discrimination based on protected classes
- Customizable lease templates with compliant clauses and addendums
- Guided processes for proper security deposit handling and accounting
- Digital record-keeping of all tenant communications and documentation
- Standardized eviction workflows aligned with local landlord-tenant laws
- Notifications and reminders for adhering to statutory requirements
Unlock the power of streamlined property management with RentPost! Sign up now for a 30-day FREE trial.
Tips for Selecting the Best Property Management Software for Single Family Homes
Leveraging technology is essential for successfully managing single-family rentals at scale or on a limited scope. Hence, finding the best software that suits the unique requirements of your business is vital.
But before discussing how you can zero in on the best software for your rental properties, let’s first look into some interesting industry statistics.
- 40% of single-family rentals are owned and managed by “mom and pop” or individual landlords
- Landlords typically have three rental properties to their name
- Nearly half of rental property owners hire a property manager
- Only 2% of single-family rentals are owned by institutional investors
I mentioned these statistics to stress the huge value of dynamic but affordable property management software for small landlords managing a few properties and property managers overseeing a larger portfolio.
Now, let’s be clear – we’re not talking about the fancy, custom-built software institutional investors have at their disposal. No, we’re talking about the accessible, user-friendly tools designed specifically for the everyday property juggernauts among us.
So, let’s dive into some key steps when choosing the best property management software for single-family homes. Experts emphasize the importance of a methodical approach – defining needs, getting team alignment, thoroughly vetting options, strategic implementation, and continuous monitoring for successful software adoption.
1: Identify your issues.
Define specific problems you want property management software to solve—this is a crucial first step. Don’t just dive in blindly. Take the time to understand the unique challenges you encounter. The best way to do this is by creating an “issues list.”
2: Consult with your team.
If you work with a team, gather them and openly discuss the daily pain points and inefficiencies they face. What tedious manual tasks eat up valuable time? What processes are disjointed or prone to errors? Where do communication breakdowns happen? Listen closely and document everything.
3: Tap into tenant perspectives.
Don’t stop with your team—also solicit feedback from your tenants. Are there recurring complaints about maintenance response times or billing issues? Understanding frustrations from both sides is key.
4: Pick software based on real challenges.
With a clear issues list guiding your evaluation process, you can cut through the sales pitches and zero in on solutions purpose-built for your specific challenges. Prioritize your initial selection based on factors like cost/revenue impact, customer satisfaction, and employee morale.
5: Insist on a software test drive.
Ask each software provider to give you a “try before you buy” opportunity. This is like a test drive where you can fully use the software, not just get a quick demo or sales pitch. Play around with all the features and see if it really works well for your specific needs.
6: Seek straightforward user feedback.
Talk to other people who already use that software. But don’t just ask the folks the vendor refers you to – they’ll probably only give glowing reviews. You want to hear from unbiased users to get the full picture, warts and all. See if you can find some who chose not to use it after trying it out and ask why.
7: Adopt a phased rollout strategy.
When implementing new software, take it step-by-step instead of overhauling your entire tech setup at once. Identify the key problems you need to solve first and gradually build up from there as needed rather than trying to adopt an entire new tech stack simultaneously. A strategic, focused rollout is smoother and more manageable.
8: Designate an inhouse “software guru.”
It’s also a good idea to pick someone on your team to really learn the ins and outs of the new software. That way, there’s an expert you can all go to with questions as you’re getting used to it. This person can make sure everyone is trained properly.
9: Continually evaluate software performance.
Just like you evaluate an employee’s work, you should regularly assess whether the software you paid for is doing its job effectively. Don’t just install it and forget it. Track metrics to see if it’s genuinely solving the problems it was meant to address and making your operations more efficient.
Try RentPost™ Property Management Software for Single-Family Homes for FREE
Let me paint a picture for you. Imagine juggling multiple properties, each with its own set of tenants, leases, and maintenance needs. Things can turn chaotic as effective property management requires precision, organization, and mental bandwidth.
That’s where dynamic and affordable property management software comes in, acting as a trusty sidekick to save the day for solo landlords and property moguls alike.
Whether you’re a mom-and-pop landlord just starting out or a seasoned property manager overseeing a large portfolio of single-family rentals, RentPost™ has powerful user-friendly tools you need to streamline operations and maximize profitability.
But don’t just take our word for it. Experience the power of RentPost™ for yourself with a free 30-day trial. During this no-obligation trial period, you’ll have full access to our comprehensive suite of features, allowing you to see first-hand how RentPost™ can revolutionize your property management workflow.
Claim your free trial today and join the thousands who have simplified rent with RentPost™.