The tenant onboarding process is an opportunity for property management companies to establish positive expectations and create an excellent resident experience.
It’s one of the most opportune moments for resident education – in other words, to help them understand key responsibilities and the information they’ll need to take care of the home and their side of the lease, in tandem with investor and property manager responsibilities.
It’s also a process with a number of different steps – many of which have traditionally involved cumbersome, manual processes.
In today’s post, we’ll examine tools that alleviate these processes, and identify some of the top performers on the market.
Note on language:
"Tenant onboarding” is an industry term used from time to time. But we here at Second Nature are trying to evolve the word "tenant." We’ve seen the incredible work property managers do day in and day out to make renters feel like they’re so much more than just tenants – they’re residents. Making renters feel like residents isn’t just philosophical, it also encourages them to invest in care for their home and add value to the property. This is why, at Second Nature, we prefer to call tenants “residents.” Like you, we think of them as people first – making your property their home.
It’s important to dispel the notion that “tenant onboarding software” is a monolithic category of software applications. There really is no such category, as no single rental property management software will cover everything you need to address.
Instead, property management companies are using disparate software tools to solve different pain points during the onboarding process.
Indeed, the tenant onboarding process can present a multitude of pains for both property managers and tenants. Below are just a few examples.
Filling out paper applications, manually processing documents, and chasing signatures can eat up valuable time.
Back-and-forth messaging, calls, and emails regarding lease agreement details and payments are inefficient and can lead to misunderstandings.
Traditional methods that use physical documents pose a risk of data insecurity or outright data breaches.
Accurately tracking onboarding tasks such as key handover, utility activation, or maintenance checks can be difficult without proper tools.
Uncertainty about application status or lease details can be frustrating for new tenants.
Tenant onboarding software tools alleviate challenges such as these by offering features that translate into a smoother experience for everyone involved, saving time, reducing errors, and fostering better communication.
There are several attributes that you should expect to find across tenant onboarding software tools, regardless of the specific platform or category. Here are some of the key features:
Clear instructions and intuitive functionality should enable property managers, potential tenants, and tenants (as well as property owners, in some cases) to use the software easily.
In today's mobile-first world, the ability to access the software and complete tasks like online applications, payments, or maintenance requests on smartphones or tablets is crucial.
The software should ensure that all sensitive applicant and tenant PII (personally identifiable information) is stored securely with encryption and suitable access controls. This is particularly important for SaaS-based applications.
Features like automated application processing can significantly streamline the onboarding process.
The ability to integrate with other onboarding tools, accounting software, or background check/tenant screening services in real time can create a more unified workflow.
Property managers should be able to generate reports on application trends, rent collection rates, or tenant feedback to gain valuable insights.
The onboarding software provider should offer comprehensive resources to support property managers in their usage of the software. This may include tutorials, webinars, or dedicated customer support representatives.
From the initial applicant screening stages through to move-in and the tenancy period, we’ll take a look at each step of the tenant onboarding process and popular tools in each category.
Property managers often use tenant screening services such as Plaid, Finicity, Pinwheel, and others to conduct rental screening and replace manual document upload and review.
As identity fraud becomes more prevalent, identity verification tools are also becoming more sophisticated. Note that Second Nature’s Resident Benefits Package includes a $1 million identity protection program and credit building for tenants. These programs protect your tenants and help draw people who want to build responsible financial security.
Property management software solutions like AppFolio or Buildium often include features for lease creation, storage, and e-signing within their suite.
Platforms such as DocuSign, PandaDoc, or Dropbox Sign enable property managers to then send lease agreements electronically for secure online signatures. Pay attention to the differing pricing models between these platforms, as they can vary substantially.
For rent collection, PMs typically require certified funds and will accept ACH/debit, or leverage a service like PayNearMe, where residents can pay cash at a local Walmart or convenience store location (while on the PM side, the process remains completely digital).
Payment processing is typically handled by property management accounting software, although third-party tools like Zego are used in the SFH space.
In addition, tools like EliseAI (a chatbot-type tool for use cases such as leasing, among others) are innovating in this space.
Platforms like AppFolio, Buildium, Propertyware, or Rent Manager provide a central tenant portal to access lease documents, pay rent, submit maintenance requests, and communicate with property managers.
As for task management, Tools like Leadsimple, Aptly, or Monday.com can be used by property managers to track and assign move-in tasks, ensuring a smooth transition for new residents.
For instance, the onboarding process may include tasks such as orientation calls and/or enrollment of the resident into ancillary products and services such as Second Nature’s Resident Benefits Package (RBP). Second Nature also includes a move-in concierge as part of its RBP.
Tools like Grade.us, opiniion, and Birdeye can be used to gather feedback from tenants after move-in, helping property managers identify areas for improvement.
The specific tools you use will depend on your requirements and processes. However, by and large, any of them can be used to transform the tenant onboarding process from a paper-heavy slog into an efficient digital experience.
Remember, the onboarding process is the ideal mechanism for enhancing communication, establishing expectations, and creating a positive resident experience.
Our top recommendation for ensuring a world-class onboarding and resident experience is to build a resident benefits program. Second Nature has pioneered the only fully managed Resident Benefits Package for single-family property managers.
Learn more about resident experience management in our State of Resident Experience Report.