How to Measure Property Management Software ROI
Measuring your property management software return on investment (ROI) can be easier than you think. You just need to look at the right factors. This will ensure you maximize your companies gains or justify the purchase of a new property management software platform to stakeholders.
The Formula to Measure Property Management Software ROI
ROI = (Gains – Cost of Investment)/Cost of Investment x 100
In the ROI calculation gains are any result of increased revenue as a result of your investment in a new property management platform. This could be as a result of software functions that improve processes or even from integrated resident funded programs which may offset cost associated with the platform. Ultimately your property management company needs to evaluate functional requirements and needs as well as determining how those will benefit the bottom line.
This is where you can make a case for the benefits you expect. Ask yourself, what are the pain points for my business and my staff? Are you looking for something that is easier to use or maybe your current solution requires constant technical support, which is costing both time and money?Evaluating Your Property Management Companies Pain Points and Needs
Here are some factors to consider:
– Are you working in multiple systems?
– How efficient is your staff with your current process and system?
– How difficult is it to onboard and train new staff on your current system?
– How much is technical support costing in both time and money?
There’s no set rule regarding what gains should be considered in an ROI calculation. Maybe you prefer to stick to concrete revenue gains from efficiency gains or from resident funded programs like Credit Builder. However, you can also consider opportunity costs as well, ultimately, it’s up to you and your stakeholders to decide what value means to your organization.
Determining the Cost of Your Pain Points and Translating Them to Gains
There are many different reasons for switching property management software. For some it is to increase productivity or maybe you are spending too much time and money on technical support for your current solution. Translating these gains to your bottom line will be essential for your ROI calculation.
For instance, if your staff is currently working in multiple platforms determining the amount of time, they spend each day between systems, then translating that time to either saved payroll or determining opportunity cost of the lost time will give you a concrete potential gain from working in one holistic ecosystem like ResMan.
Finding the property management platform that not only covers the needs of your organization but also creates efficiencies that translates into gains is easy when you know what to look for. Here are the most valuable features a property management software can have, and how those features improve ROI.
Making Your Purchase Decision
Once you have the ROI calculation for the property management software of your choice, you can eliminate the options and begin the decision making process. By taking the time to evaluate the features of property management software and by making a solid calculation, you’ll be able to compare the benefits of upgrading your current property management software to an integrated management platform like ResMan. You’ll also be prepared to make a strong case to your stakeholders about why your choice is the best route for your company.
Whether you define ROI in time savings or as a hardline number, the property management software platform you choose should have quantifiable benefits that you cannot gain from your previous solution.
Don’t gamble on a solution that only meets part of your needs. Discover a solution that increases your ROI and more.