End of Month and Your Property Management Software
It is a common practice for vacation rental management companies to send out a month-end report to their owners. Owners appreciate receiving these reports because it is their view into the performance of their investment. These important reports can include collected rent, deducted property management fees, itemized maintenance, and more making this a tiresome task for some. So, as a VRMC you should implement a process and also a property management system that can conduct this monthly task accurately and efficiently. In this article we will look at the value your property management software should provide during the month-end reporting process.
As stated above, these are important reports to your owners. In most cases, no two owners will want the same information and data on their report. Having a property management system that allows you to customize your reports to fulfill your goals as well as your owner’s interests is essential.
The benefit of configuration for your VRMC allows you to filter reports to show different revenue columns, dates, properties, and more which help paint a large picture for your overall company objectives. Configuration for an owner will not look the same. The value of configuration for an owner could entail the owner looking into each booking to verify dates, net rent, cleaning fee, booking fee, guest options, security deposit, tax, and total.
Lastly, it is important that your VRMC can manage owner access. The level of information provided across your owners can be chosen on a report by report basis per each owner. Your accounting department will not have to manually make any decisions at the end of the month regarding who sees the report. This directly correlates with automation being another large factor to benefit your month-end process.
If your VRMC runs 50 homes or 1200 homes, automation is ideal for the efficiency of your operations. Automation ranges from eliminating manual booking entries to automated fees which can be delegated to pass on to the guest or the owner.
Recurring fees can be set up saving you time and creating accuracy.
The month-end reports are your way of transparently showing your owners how successful their business is going (or how poorly they are doing, but let’s not hope for that). These reports need to be accurate the first time to ensure your owners continue to have their trust in you, also to avoid additional operations to correct errors.
By using a PMS which includes highly configurable reporting and automation, you are less likely to have errors. Manually entering data, your VRMC runs the risk of a mistyped number or a double entry. To help with accuracy, having a PMS which requires a single statement review is beneficial. This means at the end of each month, your accounting team verifies through a two-step system approval and processes each report individually prior to communicating them to your owners. If you utilize a bulk action you run the very high risk of sending through multiple errors that could ultimately go uncaught and lose you or your owner’s money.
Understanding that all owners have different preferences and interests revolving around month-end statements, the frequency and delivery method is also important. The average delivery of reports and statements to owners is on a month-end basis, but there are a small majority of owners that prefer bi-weekly or bi-monthly, so being able to pull these reports efficiently and automated is essential.
Lastly, find your VRMC a PMS which gives you multiple communication options to your owners. An example would be TRACK Property Management Software has 3 different channels that owners can receive their statements, by logging on to the owner portal, by email as a branded PDF, or by mail. This gives the owner the ease of mind that they can receive it how they prefer.