Did you know that individual investors own more than 71% of all rental properties and units in the United States? Taking care of rental properties can be a serious challenge if you do not have the right tools for the job. If you do not have good software or an app to help you, you will quickly get left in the dust. Fortunately, AppFolio can help. But how much does AppFolio cost? What is AppFolio exactly, and how can it help you with your rental property endeavors?
Keep reading and learn more about the cost of AppFolio, its benefits for rental property owners, and why it is one of the best things you can try to help manage your properties.
What Features Should Your Property Management System Have?
There are many types of property management software out there. So what makes AppFolio unique?
What features should you look for in property management software, and how do the elements in AppFolio stand out? How do you know that no other software is better than AppFolio and achieves the same results?
Online Rental Payments
First, you should know that good property management software allows you to collect rental payments online.
In the past, rental property owners would have to collect rent the old fashion way and go door to door with their tenants. Some rental property owners still do this. But, as you can imagine, it is very inconvenient and wastes time.
Instead of wasting your time and energy, it is best to collect rent online. Many rental property management systems have this option, but some are more convenient to navigate than others.
For example, some only allow you to collect rent online in specific ways. Others, however, are more lenient and allow you to collect rent via direct deposits, debit cards, credit cards, and other online payment options.
Payment Automation
Another vital feature to look for in your software is automatic payments. Traditionally, tenants not paying their rent on time is a serious problem.
If your tenant is not paying their rent, you will have to take measures to get him to pay. Meanwhile, you are missing out on a significant chunk of your income due to this problem. Automatic payments are the perfect solution.
Such a system makes it much easier for tenants to pay rent on time. The system will also remind tenants if their rent is about due or if they are late with their payments. This, of course, makes your job much easier.
Rental Unit Tracking
Finally, look for a property management system with a feature that allows you to keep track of all your rental units.
Such a system will make it much easier for you to keep up with vacant units, occupied units, applications for new tenants, and everything in between. As long as you have all of these features in a property management system, you should be good to go!
The problem is that not many property management systems have all of these features. Fortunately, AppFolio has everything you need. But what is AppFolio exactly?
What You Need to Know About AppFolio
AppFolio is a kind of property management software. But it is not just any old property management software! On the contrary, it is unique compared to its competitors due to its numerous convenient features and ease of use.
Rental Unit Management Made Simple
It is perfect for landlords that have a lot on their plates.
For example, suppose you are trying to manage several rental properties simultaneously. Standard rental management software may complicate this scenario because most software of this type is only designed to handle one (or at most, two) properties. Any more than that and the system would quickly get overwhelmed.
But one of the many benefits of AppFolio is that it works whether you have a large or small number of rental properties. Plus, there are many advantages of AppFolio that you can dig into as soon as you gain access to it. For example, this software comes with helpful features like lease optimization and collecting rent payments online.
Next, you need to know that this software makes it simple to market your vacant rental units. Instead of going through all the trouble of listing your vacant units online all by yourself, AppFolio can do most of the work for you. For example, once the software notices that units are available on your property, it will list the unit information on various rental websites.
This is important because leaving units sitting around vacant will lose you money due to maintenance and other fees. AppFolio also makes it straightforward to see the status of each vacant unit and whether or not one or more of those units have been filled.
Screening Tenants
AppFolio even lets you screen tenants.
If you do not screen tenants before allowing them into your rental property, you have no idea about their background. For all you know, they could have a dangerous criminal past. Alternatively, they might have a history of being late on rent or kicked out of rental units.
The process of screening tenants was once quite inconvenient and time-consuming. However, with AppFolio, the process is easier than ever before.
You can simply and quickly screen tenant applications online with the help of the software. It will help you complete a deep dive into the backgrounds of your potential new tenants to see if there is anything that might disqualify them from renting your property.
The software allows you to check a tenant’s credit history and learn whether or not the tenant typically pays rent on time. It also lets you see where any given tenant has resided before and if that tenant has a criminal history.
Maintenance Requests
AppFolio also makes maintenance requests a breeze.
If your tenants are having trouble with some of the appliances in their units, AppFolio makes it easy to set up a maintenance schedule. That way, everything will be kept in tip-top shape.
This makes AppFolio perfect for the management of all sorts of rental properties. Whether you are dealing with student housing, residential or commercial units, or any other property type, AppFolio will help you keep things under control.
Now, you might be sold on everything this software offers, but how much does it cost? Is AppFolio worth the subscription fee?
How Much Does AppFolio Cost?
Of course, sophisticated software costs money to create. In other words, AppFolio does not come for free.
As with most quality property management systems, you must pay a specific price to use the software. Usually, the cost of using this software is $250 per month.
The Cost Explained
This might sound like a lot of money, but consider all you gain with this software.
Without all the features that AppFolio offers, you would waste far more time and money, in the long run, trying to manage your rental properties. AppFolio, in contrast, makes the entire process very easy.
Many people find that the ease of the software makes it well worth the price.
However, keep in mind that the price is not always a solid $250. Certain factors may raise the price. For example, in some cases, you might spend as much as $1,500 per month, if not more, for this software.
What might cause the cost of the software to rise? It all depends on the type of property you are dealing with.
If you are only managing a relatively small rental property, you likely will not have to pay all that much. On the other hand, if you operate a substantial rental property, you will have to pay much more.
However, because the cost of the software correlates with the size of your rental property, the price usually is not as bad as it sounds. While you will have to pay more for the software if you are managing a large property, the rents you collect from all the rental units on that property should cover the extra cost.
Additional Costs
The cost of the software will also depend on what version you decide to get. The basic version of AppFolio is called AppFolio Property Manager. This is the best option for rental property owners who do not have extensive properties.
As mentioned before, the cost is only around $250 per month. This is a flat fee; the total price will usually be more than this. This is because you also need to calculate the cost of individual rental units.
For example, one individual residential rental unit costs $1.25. Depending on your number of units, you may spend quite a bit more than the flat fee for the software. Commercial unit prices are 25 cents more than residential units.
The upgraded version of AppFolio is called AppFolio Property Manager Plus. As mentioned before, you will pay a flat monthly rate of $1,500 for this version. This software version is best for those with many large properties to manage.
This software version is more expensive, but it has several additional features to make managing many properties (or an extensive single property) more straightforward.
The extra cost can also be partially attributed to the slightly higher price of individual units. For example, a separate residential rental unit costs $3.00, but a commercial unit costs the same.
Is AppFolio Worth It?
After learning about the cost of this software, you might be wondering if it is worth the money. Read a few AppFolio reviews online, and you will quickly learn that most people who use it love it. They certainly believe that it is worth the money.
Stand Out Features
Before you decide whether or not this software is right for you, you need to consider what you need from your property management software.
As we have already seen, AppFolio has plenty of essential features that make your job as a property owner or manager effortless. For example, the software can help you automate payments and collect them at a specific time. This makes your job easier, and paying rent is also easier for your tenants.
The AppFolio app also makes it simple to communicate with your tenants online or via your mobile device. This way, you do not have to waste time writing emails, making phone calls, or knocking on your tenants’ doors.
The software also provides you with all sorts of metrics to make it easy to keep track of your rental units and properties.
The Cons
Managing and filling vacant units and managing occupied units is easy with AppFolio.
There are, however, a few downsides to the software. For one, the monthly subscription cost for the software can be expensive for some rental property owners, whether you pay for the basic or upgraded version.
This, of course, is the most apparent issue with the software. However, if you can afford to subscribe to this software, you will find all the time-saving features worth it. Another downside is that some users say the customer service support is lacking.
Overall, these downsides are relatively minor. AppFolio is likely the perfect property management system for you.
How Much Does AppFolio Cost? Answered
So, how much does AppFolio cost, you ask?
To recap, the entry-level cost of this software is $250 per month, but in some cases, it may cost more than $1,500. The price depends on what version of the software you subscribe to and how extensive your property portfolio is. Whatever the cost, this software is the perfect tool for keeping whatever rental property management business running efficiently.
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