Property management software development: process and costs

In the travel and real estate sectors, you need a system that can keep up. Generic, off-the-shelf software just doesn't cut it when you're dealing with so many different types of properties and unique business challenges.

What you really need is a custom solution designed specifically for what you do. This approach brings the flexibility and power to manage everything like a pro.

This guide will walk you through the world of custom property management software development. We'll explore its benefits, how it's done, and the essential features that can transform your business.

What is property management software?

Property management software (or PMS for short) is all about making your life easier as a property manager. It doesn't matter if you're handling apartments, houses, hotels, or vacation rentals — this software gives you a central platform for doing it all.

Think of it as your go-to toolkit for dealing with tasks like:

• Tenant screening: Quickly check renters' backgrounds for red flags.
• Lease management: Keeping track of lease agreements and important dates.
• Rent collection: Making it simple for tenants to make online payments on time.
• Maintenance requests: Managing and tracking maintenance issues efficiently.
• Financial reporting: Staying on top of your finances with clear, accurate reports.

The best part? Property management software automates and simplifies these processes, which saves you time, reduces errors, and boosts your overall productivity.

Types of property management systems

Hotel PMS

Running a hotel is a lot of work. You've got guests to welcome, rooms to clean, and bookings to manage. That's where hotel management systems come in. This is the ultimate control center for your hotel — it helps you handle all the behind-the-scenes stuff.

Here's how it works:

• No overbookings: Ever had two guests show up for the same room? A hotel PMS connects with all your booking platforms (like Expedia or Booking.com) and your own website to make sure every reservation is recorded and no room is ever double-booked.
• Check-ins, check-outs: The front desk can use the PMS to quickly check guests in and out, assign rooms, and process payments. This way, guests can expect no delays and positive experience from arrival to departure.
• Happy housekeeping: A hotel PMS can even help your housekeeping team stay organized. It lets them know which rooms need cleaning and when, so everything stays sparkling.
• Personalized service: Want to impress your guests? A hotel PMS keeps track of their preferences - like if they're celebrating a special occasion or have any dietary restrictions - so you can add those thoughtful touches. This is also very useful when you plan your marketing strategy.

Basically, a good hotel PMS helps you work smarter, not harder. It streamlines your operations, keeps your team organized, and frees you up to focus on what matters most: your guest.

Vacation rental PMS

The vacation rental world is booming. It's expected to rake in over $100 billion worldwide in 2024 alone. And by 2029, over 1 billion people are projected to be choosing vacation rentals. To successfully manage this demand - and the unique challenges that come with short-term rentals, from cozy apartments to luxurious villas - you need a dedicated PMS.

Here are the main benefits you can expect:

• Smart pricing: Vacation rental prices can change like the weather. PMS connects to booking platforms (like Airbnb and Vrbo) and adjusts your prices automatically. It factors things like local events, competitor prices, and past bookings to optimize rates. While Airbnb and Vrbo have their own pricing tools, a PMS offers more advanced pricing rules and wider automation across multiple platforms.
• Guest сommunication: From the moment a guest books, PMS keeps the conversation flowing. It automatically sends booking confirmations, payment reminders, and check-in instructions. Plus, you can use it to answer questions, provide recommendations, and even handle those late-night "how do I turn on the hot tub?" inquiries.
• Easy maintenance: Leaky faucet? Broken toaster? No problem. PMS helps you stay on top of maintenance requests. Guests can easily submit them through the system, and you can track their progress, assign tasks to handymen, and even schedule regular inspections so your properties stay guest-ready.

For busy property managers and real estate professionals, a vacation rental PMS is a game-changer. According to Skift, good pricing, smooth interactions with the host, and top-notch amenities are key factors in creating that "wow" experience for guests. Deliver that, and you'll turn them into repeat customers who rave about your properties, bringing in even more business through word-of-mouth.

Commercial PMS

Commercial property management is one of the most demanding areas of real estate. It involves handling the ins and outs of large properties like office buildings and retail spaces. In this high-stakes world, efficiency, expertise, and adaptability are key.

A commercial property management software can provide all of these advantages. Here's what it can do:

• Document management: Say goodbye to those dusty filing cabinets overflowing with lease agreements. A commercial PMS puts you in complete control. Track lease terms, automate rent collection (no more chasing down late payments), and even calculate those tricky common area maintenance (CAM) costs with ease.
• Happy tenants: Build stronger relationships with your tenants via online portals and mobile devices. Empower them to submit maintenance requests on their schedule, access important documents, and stay informed about building updates. Less hassle for them, more time for you.
• Hidden profits: Want to make smarter decisions that boost your bottom line? A commercial PMS gives you the insights you need. Get a clear picture of your property's performance and optimize rental rates, minimize those costly vacancies, and keep your properties in tip-top shape.

And here's something to keep in mind: in the first few months of 2024, a whopping 20% of office space was sitting empty — that's higher than the year before and a historically high number.

While some office spaces are outdated and the rise in remote work takes its toll, the office itself isn't going anywhere. It just means it's more important than ever to have the right tools and strategies to adapt and succeed.

Residential PMS

You know what residential properties are: apartments, houses, condos — the places people call home. When you've just got one or two to manage, it might feel manageable to handle everything yourself. But as your portfolio grows, keeping track of everything can quickly become overwhelming.

Ready to trade chaos for calm? Here's how a residential PMS can simplify your life:

• Perfect tenants: A residential PMS helps you screen potential tenants with background checks, credit reports, and rental history verification. You can even set up online applications to make the process simpler for everyone.
• Lease management: Create, sign, and manage lease agreements entirely online. Your PMS keeps all your documents organized and easily accessible, all in one secure place.
• Rent collection: Automate your rent collection process and watch the payments roll in on time, every time. Also, set up automatic late fee reminders to keep everyone accountable.
• Data-driven insights: Make smarter decisions with powerful reporting and analytics features. Track your rental income and expenses, monitor property performance, and optimize your strategies.

The numbers don't lie: the residential property management market is on the rise. It's projected to hit US$0.60 quadrillion by 2029. That means investing in a top-notch residential PMS isn't just a good idea — it's a smart move for the future. The right PMS will pay for itself, helping you maximize returns and stay ahead of the curve.

Industrial PMS

Industrial properties - we're talking warehouses, factories, logistics hubs - are the backbone of the economy. That means they're constantly hit with regulations and pressure to keep operations running smoothly. And when it comes to keeping these massive assets in prime condition, a regular property management system just won't do it.

You need a specialized solution built to handle the heavy lifting, like:

• Compliance issues: Environmental laws, safety regulations, and building codes — this is overwhelming, everyone will agree. Your PMS keeps you on track with automated inspections, scheduled maintenance reminders, and detailed record-keeping, so you can stay compliant and avoid costly penalties.
• Assets lifespan: Industrial equipment is a major investment. A PMS helps you check equipment life cycles, anticipating potential issues, and bringing timely repairs. You can even manage spare parts inventory, so you're always prepared.
• Energy consumption: Energy costs can eat into your profits. A PMS gives you the tools to track energy usage across your properties, identify where you can do better, and implement energy-saving measures.

The industrial real estate market is facing challenges. In the U.S. alone, rent growth has slowed to 5.2%, and there's a massive 1.9 billion square feet of industrial space up for grabs. To get ahead in this environment, you need every advantage you can get — like investing in industrial property management systems that will help you stand out and succeed, even as the market shifts.

Mixed-use PMS

Picture this: you walk out of your apartment and grab a coffee downstairs. Later, you hit the gym, grab groceries at the market, and meet friends for dinner — all without leaving your building. That's the charm of mixed-use properties. We're talking apartment buildings with street-level shops, office complexes with restaurants and gyms, or even developments that combine residential, commercial, and retail spaces.

You can do much better handling these real estate operations with a PMS. Here's what you get:

• Customized approach: Residential tenants need quiet living. Commercial tenants need foot traffic. A mixed-use PMS lets you handle each tenant type, with customized workflows, communication tools, and service offerings.
• Fair billing: Splitting utility bills, maintenance costs, and other shared expenses across different property types can be a headache. Your PMS automates these calculations, ensuring accurate billing and minimizing disputes.
• Better organization: Juggling leases, contracts, and legal documents for multiple property types is a recipe for disaster. A mixed-use PMS keeps all your documents organized, with automated reminders to ensure you never miss a deadline or risk a penalty.
• All in one place: Large, mixed-use properties often require multiple property managers, each specializing in different areas. A centralized PMS can give you better coordination, with everyone accessing the same real-time information and tenant data.

Mixed-use properties are here to stay. Millennials love the walkable, amenity-rich lifestyle they offer, and even baby boomers are trading in their suburban homes for the convenience of urban mixed-use developments.

These tenants expect the same level of sophistication from their property managers. They don't want unnecessary headaches or outdated processes. A mixed-use PMS helps you meet those expectations, demonstrating that you're just as modern and efficient as the properties you manage.

When do you need a custom PMS?

Unique property types

Got a one-of-a-kind property? Think vacation homes, boutique hotels, even treehouses or houseboats. Regular rental property management software often falls short for those. You need something built just for you — a custom solution that can handle specific challenges and run things behind the scenes.

Specific business processes

Property management companies all have their own ways of doing things. But sometimes, regular software doesn't fit those unique workflows. That's where a custom solution can be a game-changer. This way, you can work like you want to, avoid headaches down the road and maximize operational efficiency.

Integration with existing systems

Running a travel business means juggling a lot of different tools — your booking engines, channel managers, revenue management systems, etc. Your property management software needs to work in tandem with all of them — no manual entries or non-matching data. With custom software development, you can be sure that everything stays connected and nothing gets left behind.

Scalability and growth

As your real estate business grows, you'll need software that can grow with you. A custom property management system is built to scale right alongside you. More properties? More guests? No problem. You'll be ready to grab every opportunity and adapt to any changes in the travel industry.

Compliance with regulations

In the real estate industry, there are a lot of rules - local, national, taxes, health and safety - and breaking them can cost you. A custom solution can be built to handle those rules, so you can protect your business and its reputation.

Data security and privacy

8 out of 10 real estate companies had security gaps that hackers could slip through. With a custom property management system, you're in control of security. You can tailor it to specific data protection laws, protect your business from breaches and build trust with your guests — because they need to know their information is safe with you.

Property management software development process

If you're thinking about building property management software, remember — it's a big task that can change entire operations for your business (and if done right, for the better).

What you need: careful planning, serious technical expertise, and a dedicated software development team. What we have: all of the above and a proven process for making it happen in the property management sector. Here's how it works:

1. Product discovery

• Understanding your vision: The journey begins with in-depth discussions to understand your specific needs and goals for the software. What are you hoping to achieve? Who will be using the software – property managers, property owners, or even guests? What are the absolute must-have features?
• Market research: We're always up-to-date on the latest trends and best practices in the property management tech world. We'll make sure your software is innovative and competitive.
• Technical deep dive: We'll analyze all the technical aspects, like which systems your software needs to integrate with (think payment gateways, booking platforms, etc.) and how to make those connections seamless.

2. Design

• Mapping the user journey: We'll create visual representations of how users will navigate your property management app, ensuring it's intuitive and easy to use.
• Wireframes and prototypes: Then, it's time to build interactive mockups of your software, so you can see how everything will look and feel before we start coding. Your feedback is essential here.
• Polishing the look and feel: We'll create a visually appealing and user-friendly design that aligns with your brand and makes using your software a breeze.

3. Development

• Bringing your vision to life: Our skilled developers will write clean, efficient code to develop property management software, brick by brick.
• Seamless integrations: We'll make sure your software seamlessly connects with all the other tools you use in your business, from payment gateways to channel managers.
• In-depth testing: We're obsessed with quality. Our QA team will test every aspect of your software to ensure it's bug-free, secure, and performs flawlessly.

4. Release

• Data migration: Effective tools and scripts are used to move your existing data to the new custom property management system, guaranteeing it remains accurate and consistent. This guarantees a smooth switch without losing or damaging data, so you can continue your operations without interruption.
• User training: Detailed training sessions and resources are provided to make sure all users can effectively use the new system. This training helps users quickly become familiar with the software and take full advantage of its features.

5. Maintenance

• Ongoing support: We're here for you long after your software launches. We provide ongoing support to answer any questions and address any issues that may arise.
• Regular updates: We'll keep your software up-to-date with the latest features, security patches, and industry best practices.

Essential features for custom property management software

While every custom PMS has its own unique software architecture, some features are absolute must-haves for any rental business. This is your guide to the essential features that will supercharge your landlord game as you build your perfect custom solution.

1. Tenant and guest management

At the heart of any rental property business are its tenants and guests. Your customized property management system should offer:

• Tenant hub: All your tenant info (contact details, lease, payments) in one secure spot.
• Digital leases: Create, sign, and manage leases online — no more paper chases.
• Tenant communication: A dedicated space for tenants to report issues, get updates, and find documents.

2. Financial management

Cash flow is king. Ensure your custom solution streamlines every aspect of rent collection and financial management:

• Online rent payments: Make it easy for tenants to pay on time with secure online options.
• Financial insights: Generate income reports, track expenses, and sync with your accounting software.
• Automated late payments: Send reminders and calculate late fees automatically — and forget about awkward conversations.

3. Maintenance management

You need quick and reliable maintenance to keep your property in shape and receive great reviews from your guests. Look for:

• Repairs tracking: Create, assign, and track repair requests.
• Tenant repair portal: Tenants can submit and track repair requests online.
• Vendor management: Manage your trusted repair pros and communicate with them seamlessly.
• Repair history: Keep a detailed record of all repairs for each property.

4. Property and unit management

Your properties are your assets. Equip your custom solution with tools to manage them effectively:

• Property profiles: Store all the important details and photos of your properties in one place.
• Vacancies management: Track property availability, update listings, and advertise on multiple platforms automatically.
• Move-ins, move-outs: Streamline inspections and document the condition of your units.
• Key & access control: Manage keys and access codes securely.

5. Document management

No more paper piles — just a secure, organized digital document hub:

• Digital file cabinet: Store and organize all your important documents in the cloud.
• Secure sharing: Share documents with tenants and staff while controlling access.
• Automated reminders: Get reminders for lease renewals and other important dates.
• Version control: Track changes to important files like lease agreements and contracts.

6. Reporting and analytics

Knowledge is power. Leverage the power of data to make informed decisions about your rental properties:

• Custom reports: Get insights into your finances, occupancy rates, and more.
• Performance dashboard: Track key metrics in real-time to see how your properties are performing.
• Data export: Export your data for further analysis or integration with other tools.

7. Security and access control

Protect the sensitive data. Your custom solution should prioritize security at every level:

• Role-based access: Control who has access to what information based on their role.
• Secure payments: Securely process payments and protect sensitive data.
• Activity tracking: Track all user activity for accountability and peace of mind.

8. Integrations

Expand the capabilities of your custom software by integrating with powerful tools:

• Screening: Background checks and online applications? Done automatically.
• Marketings: List vacancies on popular rental platforms without manual posting.
• Custom connections: Integrate with other property management tools to create a fully customized and interconnected ecosystem.

Of course, this is just the starting point. The beauty of custom property management software development is its adaptivity to your exact needs.

What are the costs?

You're probably wondering how much custom property management systems actually cost. It's a bit like asking "How much does a house cost?" — there's no one-size-fits-all answer.

The price depends on how complex the software is, how many features you need, and how long it takes to build. Be wary of companies that promise you complete software solutions for a low price without even knowing what you need — that's usually a red flag.

But to give you a general idea, here's what we've seen for custom property management systems costs based on our past projects:

• Simple projects typically cost between $50,000 and $100,000 and take around 3-4 months to complete.
• Moderate projects often fall in the range of $100,000 to $200,000 and require 4-8 months of development time.
• Complex projects can cost upwards of $200,000 and take 8 months or more to develop.

To get a real sense of what your property management software will cost, it's best to talk specifics. Instead of relying on general estimates, book a consultation with our expert team.

We'll use that time to look into the details of your project, discuss your specific needs and goals, and give you a clear, personalized cost estimate. That way, you'll know exactly what it takes to build property management software that perfectly fits your business.

Technologies used in custom software development

In our recent project, we chose a set of advanced technologies to create a strong, scalable, and high-performing PMS solution. Let's look at some of the main ones we used.

Backend development

NestJS

We chose NestJS, a modern Node.js framework, to build the server-side part of our property management system. NestJS uses TypeScript and has a modular design similar to Angular, making it great for creating scalable and easy-to-maintain backend applications. With features like dependency injection, decorators, and a powerful CLI, NestJS helped us develop an efficient and reliable server-side codebase.

Frontend development

React.js

We utilized React.js, a powerful JavaScript library, to build the dynamic and interactive user interface of our custom software. Its component-based architecture and virtual DOM (Document Object Model) enabled fast rendering and seamless integration with other libraries and frameworks used in the project. React's declarative syntax and unidirectional data flow made it easier for our developers to understand and manage the application's state and behavior.

Database

PostgreSQL

For better integrity of the data storage, we chose PostgreSQL, a well-known open-source relational database system. PostgreSQL is trusted for its reliability, rich features, and good performance, making it ideal for our property management system. Its support for advanced data types, indexing, and query optimization helped us create a solid base for managing data.

DevOps

Docker

Docker lets us package our application and its dependencies into small, portable containers. This ensured consistency across different development setups and made deployment simpler. With Docker, we could easily scale our application and manage its runtime environment effectively.

AWS EC2

To host our property management software, we used AWS EC2, a cloud service that provides scalable computing power. EC2 instances let us easily adjust our application's capacity based on demand, ensuring good performance and cost savings. Thanks to EC2's robust infrastructure and numerous configuration options, our application is both reliable and always available.

AWS Route 53

We used AWS Route 53 to manage our application's Domain Name System (DNS) and ensure user requests are directed effectively. This scalable and reliable DNS web service allowed us to set up custom domain names, manage traffic distribution, and provide quick and dependable access to our property management system software. Route 53's advanced options, like health checks and failover mechanisms, also made our application more robust.

Our experience

We recently worked with a big-time property management company in Dubai. They handle over 150 properties — everything from vacation rentals to hotels. But they were stuck managing their finances with spreadsheets and emails, which was leading to mistakes, wasted time, and even lost money.

They came to us for a better solution. We started by digging into their current processes — what worked, what didn't, and what their dream system would look like. We then used that insight to design and develop a brand-new, custom software that was efficient, easy to use, and way more reliable.

The new PMS acts as a central hub for managing all aspects of their multiple properties. It handles every detail — transactions, service records, payments, contracts. With advanced tools for tracking funds and analyzing profits, the client now has full control and insight into their finances.

Plus, the software is incredibly user-friendly, and it automates a ton of tasks, which means fewer errors and way more free time — no more endless hours wasted on manual data entry.

By providing modern, custom software that tackles their specific problems, we helped our client improve their property management, make informed decisions, and achieve greater success in their business.