10 Best Platforms for Real Estate Investment and Property Management in 2020
When it comes to using technology in the world of real estate, there’s no shortage of property management companies. I’ve been managing properties in the Los Angeles area since 2009 and it feels like I’ve tried hundreds of apps since that time in order to streamline my business and daily operations.
I currently oversee 22 rental properties and I’ve always been on the lookout for apps that could enable my team and I to be more effective. My goal is to eliminate any unnecessary downtime and inefficiency while managing income properties. Some of those apps were great while others fell short of my expectations. 2019 was an amazing year for property management tools, but as we start the new year, I’ve seen some vast improvements emerge in 2020.
All-in-One Property Management Companies
If you’re looking for an all-encompassing app for your property management needs, there are several options at your disposal. Apps such as Cozy, Tellus, AppFolio, Avail, and Buildium which offer property management solutions across the board including, rental payments, listing services, tenant screening and help finding service providers.
Cozy offers its core services to landlords free of charge with optional add-ons for a fee. It checks almost all the boxes on features, but ultimately where it falls short is the payment speed. I often ended up having to wait days after tenants pay, and they upcharge to speed up the payment.
That said, there are definitely some features Cozy does better than others. Unlike some of its competitors that are desktop only or app only, Cozy’s Web app solves that conundrum. Ultimately, I wish it were a little beefier or that they would make an app so I can use more features on the go, but it’s good enough to get the job done.
The Tellus superapp, on the other hand, takes the win! Tellus offers similar features to Cozy, plus a little more. The difference? Tellus provides the same services Cozy offers such as tenant screening, but all these features are included for free. Tellus has a handy, fully loaded mobile app, which is great when I’m on the go or just want to check in with tenants quickly. All it needs at this point is a web or desktop version.
Tellus features tools for landlords including distributing rental listings to over 16 sites, free tenant screening, tenant and landlord chat, and payment processing. At this point, I’ve got all my tenants using the Tellus superapp to pay thanks to the convenience of the AutoPay feature. Tenants are rarely late and no longer “forget” which saves me from having to chase down rent payments. I even receive most of my rental payments within one business day after rent is paid.
Another plus is my tenants have been really happy with the Tellus superapp. Because I get the tenant screenings for free, I can pass those savings along directly to them. And whenever an issue pops up, their support team is a good first line of defense, which helps alleviate some of the burden of having to divert my attention from other matters.
If you’re managing a large number of sites and rental units, AppFolio may be the property management app that’s best for your business. I personally found the overly-complex nature of Appfolio to be unnecessary for my size and the integration cost was hefty for what I need as many of the renal properties I oversee are single family homes.
However, Appfolio does feature a wide array of tools that are geared towards managing residential, commercial, student housing as well as community associations. AppFolio is best utilized within a very large organization but if your business is on a smaller side, the abundance of tools may be cumbersome and confusing.
Apps for Collecting Rent
For landlords and property managers who oversee fewer units, the entire gamut of tools that many of these apps offer may be overkill if the only goal is to manage rental income. If you’re just looking for an easy way to track cash flows, there are apps that you can use to do just that.
Zumper offers a fast and easy method for collecting rents and it’s completely free for landlords. They accept all forms of online payments including major credit cards, bank transfers and Apple Pay. However, I found this app to be less favorable amongst my renters as Zumper charges a 2.95% service fee to the renter, which is often seen as an arbitrary increase in rent when it’s not.
RentPayment may be the solution for you if you manage a large number of properties or units. This is a great app for paying rent specifically but is very one-dimensional in that sense. The support team at RentPayment took longer than I expected when issues were reported by myself or by one of my renters which was frustrating. However, the platform does offer a robust set of fraud prevention features.
Platforms for Tenant Leads
If you’re a property manager or landlord who only needs assistance in listing vacancies, some of these options might be the right fit for your operation. Back when I managed fewer units, I found that Craigslist and Zillow were very effective. In fact, I still get many of my top responses from Craigslist.
Other platforms like Cozy, Buildium, AppFolio, and Tellus push listings out to a number of sites to help fill vacancies faster, but most charge for this service with the exception of Tellus and Cozy. Tellus pushes to 16 different sites, but Cozy only lists with its own partners, so there are usually fewer applicants as a result.
Apps for Real Estate Investment
Switching gears now, I wanted to talk a little bit about the various apps that have emerged for real investing. Using these apps and platforms is a great opportunity for aspiring real estate investors to access decent returns through real estate without the hassle of having to buy a property.
Cadre allows investors to place stakes in commercial real estate projects. Cadre is a bit hefty in price as it is geared towards investors who are ready to invest larger amounts of money and who can qualify under the company’s stringent vetting process of becoming an accredited investor. Investments start at fifty thousand dollars, which is a bit beyond what I’d consider to be a “casual investment.”
Crowdstreet offers an alternative to real estate investment trusts or “RIETs” where investors can start with a minimum of $500 and place stakes in real estate projects that will pay investors dividends based on the revenue that the properties generate once the project has reached completion. This platform is a great option for investors who are looking to create residual income over the long term with investment properties but has the drawback of being an illiquid asset. My hesitation with Crowdstreet is that once the funds have been committed, I am restricted from cashing out.
PeerStreet allows investors to start investing with a minimum of $1,000 and is focused on real estate debt, both commercial and residential. PeerStreet is a good option for investors who are looking for a quick turnaround time on their investment, typically 6 to 36 months in duration with returns ranging from 6% to 9%.
While the Tellus investment platform is not open to the public yet, I’m excited to see where it goes. As an early adopter on the property management side, I got a brief preview of the platform, which seems equally loaded with features. They’re offering collateralized mortgage investments with returns up to 12% (I saw some on their platform around ~9%) that pay returns out daily. Best of all, they’re promising instant liquidity so that investors can withdraw funds at any time without penalty or restriction.
Services Platforms
Finally, real estate wouldn’t be real estate without maintenance. While I typically use my trusted handyman of over 10 years and a general contractor for bigger projects, sometimes they’re just not enough. When the need arises, I have found that Yelp and HomeAdvisor are my go to platforms for finding service providers.
Yelp takes the cake despite the extra step required to call the provider. The peer review system has helped me source a number of reliable service providers who I still use today. Separately, HomeAdvisor is another favorite of mine. HomeAdvisor provides quick quotes and generally reliable (and licensed) individuals. They have more specialized providers than TaskRabbit and I’ve found a lot more success with providers there than even budding competition from Amazon Services.
Final Thought
The landscape of real estate management tools and investing platforms is unrecognizable compared to that of 10 years ago. Whether you’re a landlord, property manager, tenant or an investor, there are some great options to help you maneuver the otherwise fractionalized world of real estate. Several companies have made tremendous leaps in crafting tools to help in the process of managing properties as well as paving new ways for individuals to start investing in the real estate asset class. It’s an exciting time to be involved in the real estate market thanks to these apps and management tools.
