By Curt Blakeney

Most manufactured housing community owners begin their real estate investing with one property. Some owners are comfortable doing the record keeping manually with a pencil, pad and calculator. As their business grows, however, the complexity rises, and tracking rent collections, other income and bad checks becomes increasingly difficult.

As the number of homesites and properties increase, the decision to computerize operations becomes clearer. Every property manager knows how labor-intensive and time-consuming it is to process resident receivables and late charges. Automating operations not only improves efficiency and accuracy, but also has the potential to increase profits.

Fortunately for the community manager, there are plenty of computer programs available to reduce the paperwork and simplify repetitive tasks. Spreadsheets, such as Microsoft’s Excel, can handle basic financial data and comparative analysis. General purpose accounting programs, like Intuit’s QuickBooks and Peachtree Accounting, are extremely popular. But most are generic products that were not designed with property management in mind.

Several vendors have developed software for rental property owners/managers, and specifically for manufactured housing communities. Property management software is more resident—or property-oriented than the general accounting packages. Most programs will streamline office functions and enhance efficiency, taking the chore out of tracking rents due, late penalties for overdue rent, and maintenance charges. Which software package is right for you? That depends on many factors and there is no easy answer.

First, clearly define our business objectives. What do you want the software to do? Next, do your homework, not one system is right for everyone. Compare features as well as price. The cost of property management software can range from $500 to $3,000. Ease-of-use is perhaps the most sought-after trait in computer software. Many vendors will let you try before you buy. Check out the company’s website for a downloadable trial version.

“A manager should be comfortable with the user friendliness…often referred to as the user interface… of the product,” says Steve Sturgeon of AVM Technologies. “It should look and feel easy to use. On-site training should be available and ongoing support for the first few months is usually critical for answering questions and ensuring a successful start-up.”

The reputation of the vendor is important. Some companies provide business references or testimonials from customers who’ve used the product firsthand.

“It is very important to look at the company’s track record and history,” says Fred Goodman, vice president at Management Reports International. “ Make sure they’ll be around to support you after you buy. Always work with someone you can count on to take care of you.” Keep in mind, real estate investment trusts and other large organizations will have different software needs from an individual community operator. For most small- to mid-sized operations, a stand-alone package will suffice, while larger management companies will need to network the flow of information.

“From a technical standpoint, larger organizations require scaleable performance and connectivity,” says Jeff Lixie, vice president of Key Information Technologies. “With a large number of users, a true client/server application is required to assure the efficient processing of the high volumes of data associated with these environments. In addition, with today’s demand for immediate access to mission critical information, users need connectivity to database servers from remote locations. Web-enabled software utilizes the Internet to facilitate this cost-effectively. Client/server solutions with N-tier programming methodology allows applications to access databases via a browser in addition to the traditional interfaces.”

Most vendors offer network kits for multi-user operations. Some vendors are application service providers. Users can access their financial database via the Internet. Clients are charged on a per-user or per-connection basis. This arrangement is convenient for REITs or owners of numerous properties.

“If your goal is to get up and running quickly, gain affordable access to new technologies, and keep community management staff focused on effectively managing their communities rather than technology hassles, then application hosting from an experienced technology outsourcing provider may be the smart choice for you,” Goodman says. “The combination of web and Windows technology is making this very easy today.”

Some software companies bundle rental operations, accounting functions, utility billing and word processing in one convenient package. Networking issues become less of a factor when software is integrated. Managers who don’t want to give up their copy of QuickBooks can opt for a non-integrated software package—one that interfaces with other accounting programs like QuickBooks and Peachtree.

Some software packages are geared specifically for the manufactured housing community segment. Ask the manufacture if it offers an MHC module.

You should consult with a software vendor to address your specific requirements. On the following pages is a sampling of the top property management programs available.