How are good Property Managers using Accounting Systems to make 10% more revenue per year?
Even if you work with a professional CPA or tax advisor, managing your accounting and book keeping as a rental property owner can sometimes be a challenge. While most owners understand the importance of documenting income and expenses, putting a system together that helps you analyze your investment performance isn’t always easy. Property Management business is rather unique as the cash flow cycles can vary from the conventional. Clients can pay in a variety of ways –cash, online, credit etc. The timing of the cash flows can be different –before booking, during and post booking. Also expenses can be both capital (for the property) as well as operational in nature (for staff, supplies etc). So people in this business tend not to focus as much on the financial aspects of property management.
But Cashflow management for property owners is critical
When you want to maximize your return on investment, you need to invest in an accounting system that will help you track income and expenses as well as plan for future expenditures. With the right financial reporting, you can make smart investment decisions that will help you earn more and spend less on a single property or an entire portfolio. 70% of property entrepreneurs rely on their own source of funding – that’s profit generated. So, its imperative to have a strong handle on the cashflows. Most property businesses like guest houses, hotels, hostels and apartments have similar kind of cash flow cycles.
Property Manager or Investor – Know what drive cashflows for your business
Whether you’re an investor who only wants to see the bottom line on a quarterly basis or an involved landlord who studies the numbers every month, an efficient property management software can provide the right tools to help you with the process. That’s where Nodal PMS steps in. Nodal Direct is a SaaS platform, offering a financial self-sufficient PMS for hotel websites and travel companies. It is a one stop solution that lets property owners and travel businesses maximize their direct online bookings and revenue generation.
Most property owners don’t know when and how their cash flow cycle works – and every month is a struggle to collect payments and make all the payments. Whatever little is left is barely enough to cover repairs and maintenance – let alone business expansion!
Integration is the critical – PMS, Website, Channel Manager, Financial System should all be integrated
Its estimated that moving everything into the cloud saves an average 30% of cost and improves efficiency by 50% (compared to legacy).Further more – integration of all systems leads to a further 3X efficiency in terms of time saved and errors avoided. So in essence – 1 property manager can easily manage 5 separate properties in 30% of the earlier time. One person can handle everything from booking to billing, to guest check in to cashflow and accounting – isn’t that astonishing!
Our solutions are all based on one simple metric – fully integrated property and finance management platform. Our products are being used by clients across categories and all continents! Easy to use backend and a guest web-app to sell your products & services directly to guests, Nodal PMS is at the top of its game.
So how much can an integrated PMS + Finance Solution + Guest App save you?
Our Property Management System is usable across all Travel Sector Businesses. Hotel, Bnb, Vacation Rental, Real Estate, Tours &Travel Companies can use the Nodal Direct Website Platform & PMS. Apart from all this, Nodal PMS offers its users a list of benefits that helps them stay ahead in the business:
· 70% less time Spent On Administrative Task and eliminate Paperwork
· Eliminate paper menus, check in – this saves an estimated $1000 per average property in a year
· Change rates dynamically everywhere in one go –website, PMS, channel manager
· Accounting & cashflow calculations done in real time – this saves 50% of an accountant’s cost
· GST net payable calculation done across channels in one go
· Bigger Online Presence as your guests receive alerts on Whatsapp, SMS and also you have your own E-commerce app to sell things like tours and travels / F&B
· Flexible Rate Management
· 3X Increase in The Number of direct Bookings as guests can book direct with you and avoid OTA commissions (10-15%)
· Your marketing spend can be reduced by 50-70%as you are using remarketing and cross marketing to your old guests and clients
· Manage your business seamlessly with the Nodal PMS (free for single unit properties).
When you’re managing your own rental property, a simple spreadsheet might seem like it’s doing the job. But, you could be missing out on so many aspects of running your business that you might as well be using old style pen and paper!
Nodal PMS enables property managers to manage external investors easily
With Nodal PMS, you can expect to receive financial information that reflects the performance of your property investments – pretty much real time. You’ll be able to make adjustments as needed to increase your ROI and reduce your expenses.
For example– most properties have multiple sources of bookings – long term, short term, monthly etc. – as well as many sources of receiving payments. Now all this can lead to delays in reporting, missed bills, bad debt (especially if giving credit to corporate clients) as well as general investor unhappiness. You could instead give your investors a real time dashboard where they can see exactly how the ARR, Occupancy rate, bad debt levels and cash collections are going. This is a wow factor for them and even banks now take the Nodal PMS feed before extending credit to some of the real estate companies (like hostels and PGs for instance).
The decisions you have to make will depend on having access to good information, and you should never settle for anything less. So, connect with Nodal PMS today!