Property management software is landlords’ best tool for running a successful business. However, navigating through platforms and features might leave you with more questions than answers.
Whether you already use software or are new to the game, you may be confused about local vs. cloud-based software. What’s the difference? Local software, like Microsoft Word, saves and stores your data on your computer and does not require an internet connection. Cloud-based software, such as Google Docs, saves and stores your data on the web.
Evaluating different software options is especially pivotal for you, since you will rely on the platform to successfully run your rental business. For this reason, you should understand and compare local vs. cloud-based software before you make a selection.
Based on the following comparison of local and cloud-based property management software, you will hopefully understand why landlords tend to choose cloud-based platforms for their rental businesses.
Local Software
Pro: No Internet Connection
The greatest advantage of local software is that it doesn’t require an internet connection. You don’t need to worry about connectivity issues or remote locations—your software is installed directly on your computer’s hard drive and always available.
If you’re primarily interested in software for personal accounting or tenant information management, local software might serve this purpose. However, if you’d like to communicate with tenants and share documents on the platform, you’d be better served using software like QuickBooks for your personal record-keeping.
Pro: Security
You might be worried about the security of information on internet-based platforms. If you and your tenants enter sensitive information on a web-based application, how do you know it’s being stored safely?
Despite the rarity of digital theft on property management software, one benefit of local software is that security is less of a concern. You might feel safer knowing that contact databases, birthdates, and identifying information are only stored on your local hard drive.
Con: Limited Accessibility
Local software’s major drawback is its limited accessibility. You can only view and manipulate your software on the computer to which you originally downloaded the software. This means you can’t travel with your business management system or view any files while you’re away from your computer.
Cloud-Based Software
Pro: Multiple Devices
In contrast to local software, cloud-based software offers maximal accessibility. You can access your software from any computer or device with an internet connection. This means you can take a guilt-free weekend trip or vacation without abandoning your tenants—you can still monitor rent payments and communicate with tenants wherever you are.
Many cloud-based property management software companies also offer a mobile landlord app. Your software is now portable. You can also enable push notifications on your smartphone for the most consequential or time-sensitive messages, such as an alert that a tenant signed a lease.
Pro: Multiple Users
Cloud-based software supports not only multiple devices, but also multiple users. If you have additional team members, you might want them to access the software features they need.
With cloud-based property management software, you can give your maintenance staff account logins to view and respond to maintenance tickets. Likewise, your accountant can access payment records, and your property manager can oversee leases and rental insurance.
Pro: Document Signing and Sharing
On cloud-based software, sharing and signing leases is effortless. Enter the emails of the signers, and your software will automatically send signable copies to each tenant in the unit’s lease.
You can also share lease addenda, amendments, or property guideline documents in the same way.
Con: Requires an Internet Connection
All these first-rate features require an internet connection to use. While this can be inconvenient, wherever you typically manage your business—whether at home or in an office space—probably already has WiFi. Don’t forget, you can also use cellular data on your phone to access cloud-based software even without WiFi.
Cloud vs. Local: Which Do Landlords Prefer?
Due to its increased convenience, accessibility, and flexibility, cloud-based software tends to be the preferred option. The ability to collect rent online and share or sign lease documents is invaluable for rental businesses, which need those features to function properly. This also explains why there are significantly more cloud-based property management software companies than local ones. If you’re looking for an upgrade, consider cloud-based software to enhance and advance your rental goals.
