A Complete Guide to Property Management System (PMS)

Gone are the days when manual input was the primary intervention for business operations. Earlier, this was a challenge for firms as they had to employ traditional, paper-based methods to handle fundamental operational tasks.

Interestingly, however, things are different now! Today, we have property management systems, often known as PMS, which provide an effective way of doing things by employing automated, computerized processes.

Continue reading to learn more about property management software, its features, and how it may help you manage your properties more effectively.

What is a Property Management System?

A property management system (PMS) is software that helps organizations run more efficiently, particularly those in the hotel industry. PMS are sometimes known as hotel or real estate management systems, and many people limit their use to hotels.

However, a real estate management system may be utilized in various areas of intellectual property, including real estate, government, commercial or residential rental properties, manufacturing, and logistics.

Some individuals question what a PMS does and what benefits it provides for your business.

A PMS is a centralized online system that handles day-to-day tasks, including occupancy management, organizing, account management, scheduling, and more.

History of Property Management System (PMS)

The term ‘PMS’ refers to a property management system, which embodies several elements discussed later in this text. One notable characteristic is the reservation system.

The first reservation system was introduced into the hotel business in the 1940s, and several types of property management systems were available until the 1970s. However, software solutions were not introduced into the property management system market until the 1990s.

The 1990s and 2000s witnessed a tremendous increase in the use of technology solutions in property management, and the traditional method of PMS was updated and provided in the form of PMS software.

The first cloud-based project management system was introduced in 2010. Over a decade later, PMS continues expanding and offering property management solutions that have transformed how hotels and property managers conduct business.

Purpose of Property Management System

A property management solution is designed to streamline an establishment’s day-to-day operations.

These are the goals that a competent property management system ought to enable you to accomplish:

Improve Guest Experience

Customers expect basic service, such as hassle-free online reservations and easy communication with your team. An effective property management software makes these possible.

Contactless Service

The demand for contactless services is higher than ever, whether for making deliveries, scheduling appointments, gathering data, filing complaints, or providing feedback. This helps with customer service and increases staff accountability.

Automated Systems

One of the most essential applications of a project management system is automating work inside an organization. Regardless of your sector, regular chores will exist. These jobs include bill payment, payment receipt, property and staff upkeep, appointment scheduling, and other duties.

Proper Data Collection & Analysis

You may be able to forecast client behavior by gathering reliable data and updated reports and evaluating this information. However, accurate data collection and analysis are crucial for multiple reasons. Here are a few reasons why data is important:

• To determine the pace of task completion
• Identifying valuable trends across rivals or comparable businesses
• To quantify success
• To analyze the risks before starting a project

As demonstrated in various places, the efficient use of data leads to a significant rise in income; even tiny organizations may utilize data to raise sales.

Enhance Employee Productivity

Another advantage is that utilizing PMS software to manage your company allows you to monitor and oversee your employees’ productivity. Some PMS systems have applications that all workers may use on their devices to update the status of various operations in your organization.

Features of Property Management System

Reservation system

A reservation system is necessary in every property management software, but what is it exactly? A reservation system refers to a software that digitizes your reservation calendar and allows customers to book and pay for reservations online.

This feature is used by not only hotels, but also other businesses such as: transportation, events, health and wellness programs, excursions, and activities.

It’s noteworthy to mention that PMS simplifies your business processes for several reasons, such as:

• To prevent overbooking, the system refreshes room availability in real time.
• It makes it simple for your personnel to amend or cancel reservations according to the needs of your visitors.
• This system stores your guests’ information, allowing you to verify their contact information, specific preferences, and future loyalty awards.
• You may boost the income from your home by upselling additional services through the reservation system.
• To minimize booking mistakes, it makes it simpler for you to handle all channels and inventory through a single interface and platform.

Booking Engine

A booking engine is an application on hotel websites and social media pages that captures and processes direct online reservations. While its booking engine and reservation system are often used interchangeably, there is a difference.

Let’s check out the features in this section:

Direct Sales

A booking engine turns a hotel’s website into a self-service, round-the-clock online store, expediting the procedure and increasing direct sales.

Building Revenue

Using a booking engine to add other services to your website can improve the shopping experience and simplify your visitors’ lives.

Meeting Guests’ Expectations

Visitors anticipate a flawless reservation process. These days, before customers make a reservation, they want to visit your website, review your offerings, and consider all of their possibilities.

Personalization

Using your website, you can provide visitors with incredibly tailored service. By identifying your hotel’s target demographic, you can modify the rooms you provide, add extra services, or design packages just for them.

You may want to ensure that your messaging encourages, speaks to, and responds to the queries of your ideal visitor type.

Accounting System

Most likely, you’ve heard of well-known accounting programs like Zoho. The software package typically includes an accounting system for fully functional PMS. The more pressing the requirement for an accounting system is, the more significant the organization.

Using accounting software has been linked to a 52% reduction in financial mistakes, according to a review of over 500 organizations.

There are more advantages to having an accounting system than just reducing financial mistakes. A few of these are as follows:

Centralized Information

Accounting software maintains all your information in one place, making it easy to refer to previous transactions. You will save time sorting through documents or spreadsheets.

Automation

Automatic totals are also more accurate than manually generated ones. When the program calculates your income and expenses, it leaves less space for error. That implies you’ll better understand your company’s bottom line.

Always Ready for an Audit

Accounting software makes you appear professional and organized. Audits are often shorter for organizations with formal records than handwritten books. Instead of going through your transactions line by line, an auditor may explore numbers and reports within the software.

Importance of Property Management System

Not all PMSs offer point-of-sale capabilities; a POS system enables your company to receive customer payments and track sales.

Using a POS system to manage your transactions offers several advantages. Some of these include:

• Quick payments
• Simple invoicing
• Better security leads to more revenue

Things to Consider When Choosing a Property Management System (PMS)

Many PMSs are on the market, making it even more challenging to select the best one.

Are you trying to decide which PMS is best for your business but unsure where to start? When picking a PMS, you should always consider some crucial factors.

Things to look out for in a good property management system

Cloud-based vs. On-premise

Before selecting a PMS, you should determine if it is a traditional or cloud-based software. Most PMS will state if they are cloud-based; simply inquire before subscribing to their services.

Support System

An excellent property management system includes courteous and easily available customer service. Look for a PMS that has a track record of dependable customer service and provides specific contact information.

Easy & Simple Integration

The last thing you need is a PMS that increases your workload and causes technical complexity in your business. You require a PMS to interface with your existing legacy systems and upgrade your operations. In addition, you should search for a property management system that interacts readily with other apps and software you may require.

Transparency & Honesty

Every business values openness. Before signing up for their services, the price features and other information you need should be freely available.

It is fairly easy to identify a service that is not transparent; they provide confusing rates, uneven services, and features, and make several claims that they do not live up to. It is highly advisable to take advantage of a trial or learn more about a PMS by meeting or calling them before signing up, to determine how transparent it is.

Are You Ready to Invest in a PMS?

If you’ve made it this far, you’re ready to take the next step.

You understand the PMS’s inception and why it is required. You also understand its characteristics, benefits, and prospects for this niche.

Before purchasing any PMS from a digital transformation partner, you must understand what to look for.

You’re seeking cloud-based project management software that integrates seamlessly with your existing systems. You want an easy-to-use system with 24/7 assistance, all the required functionality, and the ability to customize.

Remember, when looking for a property management solution, one must have one that covers an all-in-one project management system. It should also have a trial period to give you more insight into its operations.

Ready to make a change? Contact us for a free demo!