What is Real Estate Accounting Software?
With property accounting software, it’s easy to securely share key business information with stakeholders and owners wanting information about their investments. In addition to a robust set of features and functionality, real estate finance software also helps you monitor the progress of ongoing development projects and property maintenance. Financial information can be grouped by property, development, or unit.
In this guide, we'll cover the following:
- Functionality to be on the lookout for when evaluating accounting software for real estate businesses;
- Best practices for evaluating these systems; and
- The biggest trends to be aware of in the real estate accounting software market.
Real Estate-specific Functionality
In addition to core capabilities, commercial real estate accounting software typically includes the following:
|Communication & Contract Tools||Templates that automatically generate contracts and communications with buyers, sellers, other agents, investors, banks, brokers, title companies, and more.|
|Monitor Real Estate||Keeps tabs on the progress of housing and commercial developments, as well as individual houses.|
|Mobile Access||Ensures that you can access real estate financial software from anywhere.|
|Commission Calculation||Helps you easily and automatically calculate agent commissions and fees.|
|Work Order Management||Uses your system to monitor the status of repairs and upgrades. Also tracks time and costs accordingly.|
Real estate accounting programs can streamline many of the essential day-to-day tasks, freeing up extra time for more strategic work. The system can automatically send email notifications to agents, calculate commissions, and generate listing forms and welcome letters. Well-organized solutions can also record and sort all transaction information for a given contract.
When evaluating property accounting systems, buyers should consider the following:
- Does the system need to be able to support several different agent pay rates?
- Does the user need software that can handle a high variety of properties?
- Should the program include online communication tools?
- Does the user handle many different transactions on a regular basis?
Conversations in the Market
When managing multiple properties or development projects, having a reliable system that can streamline processes and finance flow is is essential for buyers and property managers. These are just some of trending topics within the market that could affect a buyer’s decision when evaluating real estate finance systems:
- Mobile apps. Mobile apps are becoming popular across many industries. Vendors are innovating to bring their real estate solutions to mobile devices. For example, on May 9, 2012, Lucernex Technologies released Lx Retail Mobile, a complete solution that brings listing, maintenance ticketing, workflow functionality and more to iPads and other mobile devices.
- Changes to capitalization tax law. In December 2011, the Internal Revenue Service (IRS) released changes to tangible property regulations. The update will affect expenses for companies every time property is acquired or remodeled. The changes require property owners who make structural changes or remodel their spaces to re-assess how their upgrades should be expensed or capitalized.