Selleo Labs spółka z o.o.

I possess over 9 years of professional experience working with many clients and developers from all around the world. I have a variety of front-end programming skills and a vast knowledge of code styles. I enjoy sharing my skills and knowledge with others by contributing to the Open Source community and mentoring new developers.

Dariusz Pieńczykowski

I'm a front-end React.js developer who enjoys being a part of what's happening in the JavaScript ecosystem. Developing user-centered online experiences I rely on a common-sense approach to web usability and facilitate good UX practices.

Łukasz Walczak

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All my travel memories begin from searching something on Booking.com. I can still remember my first booking experience, 5 years ago. I was a bit sceptical at first but was quickly pleasantly surprised.

From creating an account, finding an apartment to finalizing the transaction and payment was amazing. **Everything was super intuitive**. Since that day, I have used the website 25 times and even though some things had changed, I still enjoy using it.

But what if you want to create something similar to this but even better? How do you go about it? If those are the questions you keep asking yourself, this article is for you!

<YoutubeShort src="https://www.youtube.com/embed/G_J3x-HoYiA" title="Discover the easy path to creating your booking website" />

## What is Booking.com?

**Booking.com was founded in 1996 in Amsterdam as a small Dutch startup.** Geert-Jan Bruinsma notice a gap in online hotel reservations and decided to create a travel metasearch engine.

Booking.com’s mission is to ‘make it easier for everyone to experience the world’. [It is available in 43 languages and offers more than 28 million accommodation listings](https://www.google.com/url?q=https://en.wikipedia.org/wiki/Booking.com%23cite_note-about-3&sa=D&ust=1590765700180000&usg=AFQjCNGkuKDinDgROI7_oIyYjFvKZajlBg). Apart from hotel booking, booking.com also offers a wide variety of flight tickets, car rentals and taxi services.

### How does an online booking system work?

![How does an Online Booking System Work](https://a.storyblok.com/f/86602/870x463/afe4ec3d39/how-does-an-online-booking-system-work_2.jpg)

An online booking system provides platforms for users to search for and reserve accommodation services. The system uses a database to store information. An online bookings system allows for configuring, managing and reviewing reservations and accommodation availability. Users can input search criteria such as location and date to find available options that match their needs. The system is typically integrated with payment gateways, inventory management systems and customer relationship management (CRM) software to facilitate payment processing and customer data management.

## How is the reservation market doing?

The revenue of Booking Holdings from 2007 to 2019 shows that they experience [steady growth](https://www.statista.com/statistics/225455/booking-holdings-total-revenue/). In 2019 they **generated $15.07 billion in revenue** and if you compare it to 2007 it is nearly a $14 million difference. The ability to make hotel reservations and other travel-related services online has made travel planning much simpler and faster.

![](https://s3.amazonaws.com/a.storyblok.com/f/86602/820x500/e594eb7dbf/booking-holdings-revenue.png)

## What are the core features of booking platforms?

Generally speaking, we can divide those features into two categories: those dedicated to customers who want to rent accommodation and the ones for the owners of those apartments / hotels.

![What are the core features of booking platform: contact page, booking form e.g.](https://a.storyblok.com/f/86602/870x463/fc39a99dc6/listy-01.jpg)

### Customer features

When you first visit booking.com, you will see features like:

- **sign in / sign up -** you can register / log in via e-mail or 3rd party accounts Facebook, Google or Apple.
- **personal information / dashboard -** user profiles display basic information like profile picture, name, age and county. Your personal dashboard stores information about your latest reservations, payment information and reviews
- **search bar -** the core functionality of the website, which allows you to search by the name of the hotel or by city. You can add to your searches the number of people you want to book for or the number of rooms. Additionally, you can filter the results by price, ratings, meals etc.
- **geolocation -** the map displays the location of the accommodation and can measure the distance between different places like train stations and landmarks.
- **booking form** - a core functionality of websites that allows users to make online reservations. It is an interactive form that collects data from the user, such as date of stay, room type preferences or the number of quests and then transfers information to the booking system. With a booking form, customers can conveniently and quickly make a reservation without the need to contact staff or fill out lengthy form fields.

![](https://s3.amazonaws.com/a.storyblok.com/f/86602/820x500/5fc429308e/map.png)

- **ratings and reviews -** after each reservation you can answer some questions about your stay. Booking.com gives you the ability to rate staff, facilities, cleanliness, comfort etc. You can add photos and other comments to your review.
- **mobile application -** booking.com’s mobile application allows you to rent an apartment, get directions and plan your trip including popular tourist attractions.

![](https://s3.amazonaws.com/a.storyblok.com/f/86602/800x451/55dbdb444b/booking-mobile-app.jpg)

### Hoteliers features

- **property management -** you can register your property with a few simple clicks. Owners can add details like the number of rooms, beds, parking, meals available etc.
- **booking management dashboard -** if your property gets rented you will be informed via e-mail. Bookings can be confirmed or cancelled from the renter dashboard.

## How to make money on a booking site?

There are three main business models used to generate revenue in travel agencies: advertising business model, merchant business model and agency business model. You can choose a dominant one, but also make use of others like Booking.com.

### Advertising business model - TripAdvisor

In the case of TripAdvisor, the revenue is based on cost-per-click advertisements that are displayed on the website. Advert owners pay TripAdvisor a fee when a user clicks on the link, which redirects him/her to the advertiser’s website.

![](https://s3.amazonaws.com/a.storyblok.com/f/86602/800x500/20b4ad95ce/tripadvisor.png)

### Merchant business model - Expedia

In this model, the travel website is a merchant and the **bookings are made on the website itself.** Those types of travel agencies buy a large number of hotels or hotel rooms to resell them from their website or application.

![](/uploads/expedia.png)

### Agency business model - Booking.com

Booking.com is an example of an agency business model. In this model, **the travel website is a connector between travellers and service providers** and charges a commission for every transaction. Booking.com charges from 10% to 30% of each transaction made.

Booking.com bases 74% of its revenue on the agency business model, but also incorporates the merchant business model and advertising business model with 19% and 6.6% of revenue respectively.

![](/uploads/booking-com.png)

## What you should know before starting building a booking system?

When you are thinking about a new booking system you should first start with some investigation of the competition. You need to know what people want and what the market is lacking. Maybe travellers need more hotel rooms that allow pets? Or have special requirements when it comes to hypoallergenic beds?

![Step by step guide: Before You Start to Build a Booking System](https://a.storyblok.com/f/86602/870x463/7e2747f37c/listy-02.jpg)

<Baner name={software-development} />

### Know your competitors

The current travel market has lots of solutions similar to Booking.com so you need to find a good niche to target. Booking.com currently competes with giants like TripAdvisor, AirBnB, HomeAway or Trivago.

You need to **know your customers** in order to succeed. This will help you find a group of people with similar needs. With knowledge like that, you can build the right marketing strategy and beat the competition. Maybe the target clients look for hotels with hot tubs? They can use HotelJacuzzi Or want to explore a particular region - they can go to Visit Australia or Life Elevated?

*“Success consists of going from failure to failure without loss of enthusiasm”* - Winston’s Churchill

### Validate your idea

Having a startup may seem risky, but you should **always have faith in your product**. It will surely help to validate your idea before starting out and create a business plan. Some startups decide to outsource the development of their solution. An experienced team of engineers can definitely help you figure out the details. By contacting our Selleo team, you will gain answers to burning questions and get the estimation of the development time.

![](/uploads/validate-idea.jpg)

### Offer discounts

When starting out, you will definitely face the problem of not having enough reviews and ratings. Most users like to use websites that have some credibility. Personally, I think a good idea is to **offer premium access** for the first few weeks or months with extra functionalities. You can also offer discounts and lower your prices. This will give you an opportunity to attract users and gain their trusts and loyalty.

### How much does it cost to create a website like Booking.com?

This is a question that does not have a straightforward answer. The price depends on many factors like tools used, design, functionalities. The more complicated the website, the more hours will your developers spend creating it.

In addition to the complexity of the website, there are other factors that can affect the price of development. These include the experience level and location of the developers, as well as the size and scope of the project (e.g. booking software)

### Why do startups fail?

Statistics show that startups fail within just 20 months. I am not saying this to scare you, but rather raise awareness about some of the most common issues.

An obvious reason for failure is the lack of innovation in your product. As I mentioned above, the market is full of booking solutions, so you have to **come up with something one-of-the-kind**. The second problem is a lack of money. This can also be fixed by preparing a business plan and a rough estimation of time and resources needed to build the final product.

Another issue that causes failure is poor marketing and having a user-unfriendly product. Your website should be easy to use and all marketing strategies should align with your business mission.

Ultimately, they key to building successful online booking systems is to provide a seamless and user-friendly experience that meets the need of both customers and businesses. By conducting thorough research, keeping up with industry trends and prioritizing customer satisfaction, you can develop a system that drives revenue and establishes a strong reputation in the travel industry.

## Is it worth creating an online booking system?

Creating your own booking website can bring many benefits to a company, including:

- Enabling customers to make easy and convenient bookings online, which can contribute to increased sales;
- automating the booking process can streamline the work of staff, reducing the time and costs associated with manual data entry;
- 24/7 availability of the system allowing customers to make bookings at a convenient time, with the company's services;
- the reservation system allows for collecting customer data, which can help create more effective marketing strategies and better tailor offers to customers' needs. This can, in turn, lead to increased company profits.

In short, an online booking website is a good solution for everyone in the hospitality industry. A booking website system or a mobile app is a must-have for most companies and small-business owners and the benefits are promising.

If you're considering creating a booking website, think of the benefits you can get. Having a booking website can streamline the booking process for customers, making it easier and more convenient for them to reserve your services or products. This can result in increased sales and customer satisfaction.

## Should I create my own booking system or outsource it to a software development company?

Whether you will create an online booking website on your own or outsource it to a software development company depends on a variety of factors, including your budget, time constraints, technical experience and specific requirements.

Creating your own booking website can be a challenging task that requires a significant investment of time, money, and resources. You will need to have a team of skilled developers and designers who can build and maintain the system, as well as an understanding of the technical requirement and industry standards for reservation systems. Additionally, you will need to consider the ongoing costs of hosting, maintenance and upgrades

Outsourcing the development of your online booking system to a software development company can be a more efficient and cost-effective option, especially if you do not have the necessary technical expertise in-house. A reputable software development company will provide you with a team of experienced developers and designers who can create a custom reservation system tailored to your specifications. They can also provide ongoing support and maintenance to ensure the system remains up-to-date and functioning properly.

It may be beneficial to consult with a software development company to get an idea of the costs and feasibility of building your own website versus outsourcing. Ultimately, the decision will depend on your unique situation and priorities.

## How to create a booking website for the travel industry in 4 steps?

![How to Make a Booking Website For the Travel Industry in 4 Steps?](https://a.storyblok.com/f/86602/870x463/c7edcbc8e5/listy-03.jpg)

### Step 1: UX/UI

An interesting, yet easy and intuitive UX/UI is crucial in a good booking page. In this step, you should know your expectations. When talking to a development company they will definitely ask you to provide detailed information about your idea. Then you will create a mockup based on it.

### Step 2: Back-end coding

A back-end developer will talk to you about the general architecture of the website. You should tell him about the features and fields necessary for making a reservation. The developers will create models/graphs of how everything should work. After your feedback and approvement, the coding will start. Although, the back-end is the part of the website that is not visible to the end-user it is crucial. Server validations, routes between pages, fields and security concerns. At Selleo, we are working based on Scrum - that way you will be regularly informed about the progress.

### Step 3: Front-end coding

While the back-end is in progress (or even is done) and the design is ready, the front-end team will move the design into the code. Developers work closely with the graphic design team in order to deliver the best product possible. The code will be tested in the newest and most used browsers to ensure there are no bugs and problems with your product.

### Step 4: Release time

When an application is done it will be pushed to some hosting (ie. AWS, Heroku) and your clients can start using it. Of course, the work does not end here - there is a lot of places what can be improved.

You should always strive to improve your website to keep up with the trends and answer your customers’ needs.

## Conclusions

Creating your own “booking” page can be a daunting process but even with the amount of competition present on the market, new startups are constantly appearing.

There are three models of how you can earn money through travel websites: **advertising, merchant, and agency**. Of course, you can combine them in the same Booking.com is doing it.

Online booking systems should primarily feature a friendly and easy-to-use interface, a clear reservation system, easy filtering of options, as well as a high level of security for personal data and online payments. Additionally, it is important that the reservation system is scalable, meaning that it can be adapted to changing business needs and requirements.

Choosing one of the models will help with the development estimation and also give the development team some spectrum knowledge of your proposal and how to help you.

The Selleo team can create a fully working, great travel website for you from scratch. Our [fully-fledged team of engineers](https://selleo.com/custom-software-development-company) can handle the front-end, back-end, UX/UI, QA, etc while giving you time to focus on other business processes.

**Feel free to contact us and book a call!**

Wondering how to create a booking website like Booking.com? Check out these tips for creating a successful booking website.

How To Create A Booking Website Like Booking.com?

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Not everyone in the world can own a car. If you own a car, there are still many issues you might face in big cities like New York and London. Due to endless problems with traffic, parking, and car maintenance, most people prefer to hire a taxi then owning a car. Based on these facts, we can say that on-demand-ride-hailing services like Uber will find their users all over the world, which leads us to a simple fact that this is an attractive niche for many entrepreneurs.

COVID-19 has immensely affected this niche over the last few months and in less time than a year, the profits have decreased from [$302.2 million to $192.3 million.](https://www.statista.com/outlook/368/100/ride-hailing-taxi/worldwide) This year has seen a 36% decline in profit for ride-hailing services. Looking at the pace of growing cities, it is expected that these services will cope with the crisis, and revenues will reach all-time highs in 2023 ($334.5 million).

If you are looking to invest your time and money in building a taxi booking app then this article is for you. To build a taxi booking app, first, we need to understand how it works and what its basic building blocks are.

## How Does Ride-Hailing (Uber) Application Work?

An on-demand ride-hailing or ride-sourcing service like **Uber acts as a connecting bridge between the consumer (rider) and service provider (driver).** It is a marketplace that provides an opportunity for the consumer to book a ride and a service provider to earn money. The application is designed on a basic 5-steps foundation. These steps made a revolutionary change in the market of ride-sourcing services.

**Here’s how a ride-hailing app model works.**

![Img](https://a.storyblok.com/f/86602/779x169/a0a6f7dde5/uber-design1.png)

### **Step # 1 – A Consumer (Rider) Request a Ride**

Consumer requests for a ride using the app from a specified current location. The request is sent to the nearby drivers through the app.  
**Step # 2 – Matching of Rider and Driver**

App sends the ride request to nearby drivers within specified miles. It is up to the driver to either accept the bid or reject it.

### Step # 3 – Confirmation of Ride

As the driver accepts the ride, the consumer gets a notification of ride confirmation with an estimated arrival time. A consumer can track the movement of the driver through the app in real-time.

### Step # 4 – Ride Ends

After the driver’s arrival, the consumer can check the details on the app, and once confirmed, he/she can sit in the car and ask the driver to start the ride. Once the consumer reaches their destination, the driver ends the ride. The estimated payment amount has already been shared with the consumer which the consumer can pay using cash as well as other cashless payment methods. In many countries, Uber only allowed payment via cashless methods such as credit or debit cards.

### Step # 5 – Ratings

Both rider and the driver have the opportunity to rate their experience. The rating factor is significant as it brings trust and reliability among riders and drivers.

Here you must be wondering when the rider is paying the driver the fare of the ride, then how come Uber-like apps are making money. Well, let’s have some detailed research on that too.

## How does Uber like Apps make Money?

These apps have two primary sources to earn money. These sources are:

### Fees / Commission

Uber-like apps charge a commission from both the rider and driver. A rider pays the fees in terms of extra charges such as ride cancellation charges, animal transportation charges, etc. But, the major part of income is generated through a commission from the drivers. Uber-like apps charge drivers a certain commission for giving them business. For Uber, the commission starts from 20% to 35% of the driver’s total ride fare. Uber’s commission rates differ in different regions.

### Sponsored Ads

Since millions of people use ride-hailing applications daily, it is the right spot for companies to run their advertisements. The apps showcase companies sponsored ads on a cost-per-click or similar model. Most of the time, large corporations collaborate with these apps to offer a discount on their products and services for ride-hailing service users.

Now let’s move on to the technical part and learn how to build an app like Uber.

## How to Build an App like Uber – A Step by Step Guide

Building an app of such complexity **requires both client and server-side development.** There is a need for a highly optimized central server to manage the interaction between the users (riders and drivers) on a real-time basis. There is numerous functionality that an app will play like matching, cost calculation, location, guiding the way to the driver through Google map, commission subtraction, and rating. For all these purposes, there should be many geographically distributed servers to optimize response times, eliminate failures, and provide constant service availability.![Img](https://a.storyblok.com/f/86602/803x177/e7dec226a0/uber-design.png)

Let’s look at the steps now:

### Step # 1: Find your Niche

You first need to identify your niche for a taxi booking app. Getting an idea about your niche is very important and it can be considered as the foundation of building a taxi booking app.

### Step # 2: Conduct Research & Audit

Do your research and gather all the information for taxi mobile app development and improvements you want to make.

### Step # 3: Prepare Documentation

Prepare a complete roadmap for the technical specification of app functionality, the app’s architecture, and tech stack details.

### Step # 4: Start Development

Divide the project into different tasks, starting to implement each task based on their priority and conduct unit testing to find errors.

### Step # 5: Deploy your Uber-like App

After testing and getting a good-to-go report from QA officers, it is time to launch your app to the live environment to ensure that it runs properly on all devices.

## Basic and Advanced Features for Taxi Booking Application

The first thing to understand is that a taxi booking app is divided into three different sets of products. There are two separate apps for rider and driver, as well as an admin dashboard. Let’s look at some of the basic and advanced features for each.

### Rider/Consumer App

#### **List of Basic Features**

Here’re some of the main features that every taxi booking app should have for consumers.

* **Registration** - Users can easily register by using his/her profile on existing social media or create a new one via email or phone number.
* **Ride Booking** \\– Users can easily book a ride in real-time or can schedule for later. The app should have both options.
* **Payments** \\– It is an important feature that enables a passenger for auto payments right from the app.
* **Notifications** \\– Notifications should be sent to the rider about the trip when the driver accepts the request. The notification message should contain vehicle information such as model, passenger count, color, and the number of the car, and the average time of arrival (ETA).
* **Ride History** \\– An option that shows all the previous rides' transcripts to the consumer.
  -**Fare Calculator** - It helps to calculate the cost of the trip.
* **Driver’s Review and Rating** \\– The app should show the driver’s reviews by other customers and overall ratings so that consumers can decide whether to continue the ride or not. This feature is more important to build a trust factor, especially for females.

<Baner name={software-development} />

#### **Advanced Features**

Now let’s talk about some of the advanced features for a passenger app:

* **Pick-Up Location** - By using the built-in GPS module, a consumer can point out his/her exact location without typing the complete pickup address.
* **Split Payments** - It’s an advanced feature that splits payments between two or more passengers. Uber is using this feature in many regions of the world.
* **Vehicle Selection** - Allows picking another driver for the trip.
* **Interactive Map** \\– It helps users track the driver’s movement in real-time and show nearby rides.
* **In-App Messenger** - Ensures communication between passenger and driver right in the app through messages.
* **Gamification** \\– The features motivate users to take more rides to win badges, special offers, leadership boards, etc.
* **Discounts** - Gives a discount for trips by adding code or digital coupons.
* **Voice Recognition** \\– It is one of the most advanced features not available in many taxi booking apps. It allows the user to give voice commands to the app to book a ride.

It is the end of the list for a Passenger/Consumer/Ride side of the app. Let’s move on to the second app which is for a driver.

### Driver’s App

**Basic Features**

The basic features of the Driver’s app overlap with the passenger/consumer app. The driver app also has the registration feature which allows them to do personal profiling and submitting additional documents like a driver's license. The app also has features like push notification, fare calculator, ride acceptance/rejection, messenger, etc.

**Advanced Features**

There are some unique elements for drivers’ app which are:

* **Status** \\– It is a feature that makes a driver visible in an app and on the map that he/she is ready to pick rides.
* **Order Alert** - Informs about a new trip and shows payment and road details. Also, it allows for getting or canceling orders.
* **Navigation** \\– The navigation feature helps the driver to choose the best route for the trip.
* **Estimation** \\– It helps the driver to know the count of trip costs and discount
* **Reports** \\– This feature shows the statistics about trips and earnings to the customer

Let’s move on to the last part which is the Admin dashboard.

### Admin Dashboard

**Basic Features**

One of the basic functions of an Admin Dashboard is to store databases and manage passengers' and drivers' activities. It offers complete details of logistics of drivers and trips and manages all financial issues. It has all the data for both the riders and drivers.

**Advanced Features**

An admin dashboard can be linked with the Google Analytics tool for analysis of the behavior of app users. It is one of the most advanced and important features to monitor and strategize marketing activities. It can be the starting point for the revision of the entire business process.

One other important thing that should be noted while building an app like Uber is that in many countries, the legislations have strict guidelines that strongly require a detailed admin dashboard, even if it seems functionally unnecessary for your business model.

## How to Gain a Competitive Edge in the Taxi Booking Industry

If you copy the same style and features of Uber, how will you gain a competitive edge over it then? There needs to be something unique that users can remember. When it comes to taxi booking apps, innovation becomes even more critical to stay ahead in the competition race.

The following are some of the strategies on which business owners can improve their chances of success.

### Unique Value Proposition (UVP)

![Img](https://a.storyblok.com/f/86602/1732x1154/97fa94bc56/unique-value.jpg)

There is a direct relationship between an app’s success and its end-users’ satisfaction. Based on this fact, the first thing that every taxi booking app needs to add in the list is riders and driver’s satisfaction. There are numerous ways to offer unique value to both rider and driver, some of them are listed below:

#### Rider’s Unique Value Proposition

* Track the driver’s route and arrival time
* Discounts, badges, prizes on rides
* Fixed affordable prices for known places like Railway Station or Airport
* In-app payment gateways to pay for the rides from within the app
* Fare estimate calculation based on Pickup and drop-off location

#### Driver’s Unique Value Proposition

* More fare charges in peak hours
* Bonuses on set targets
* Easy and hassle-free registration
* Flexible timings to complete daily or weekly targets
* Insurance coverage

### Global Expansion

Being globally recognized is another UVP that inspires people to prefer your brand over others. If you have a budget, expanding your services globally is a competitive advantage. It also raises your target audience to a larger scale. Uber's success is a clear example of it.

There are still untapped markets where Uber has not reached yet, including **Brunei, Malta, Iceland, Cyprus, and Luxembourg** for different reasons. That’s evidence enough that the service has some roadblocks and the first business to find a way across them can expect huge rewards.

## Conclusion

It is correct to say that **companies like Uber and Lyft have captured the taxi booking market**, but there is still a lot of room and space for new entrants. By identifying a niche and focusing on the unique value proposition, they can create a profitable monetization strategy.

All you need is **an out-of-the-box idea and a perfect implementation** of that idea in terms of a user-friendly ride-hailing service app. The more innovative and advanced features you will propose to users, the more value your brand will gain in the target audience’s eyes. It can be done by freezing the requirements pre-development or building an MVP first to ascertain product feasibility and response.

**If you need guidance along the way to build a taxi booking app, or you want to outsource the project to an exceptionally talented and experienced team of developers, then you should consider [Selleo](https://selleo.com/).** We have the best developers from around the world to help you develop your dream taxi booking app.

If you are looking to invest your time and money in building a taxi booking app, then this article is for you. To create a taxi booking app, first, we need to understand how it works and what its basic building blocks are.

How To Build A Booking Taxi App Like Uber? A Complete Guide

Do you think Airbnb's success did happen overnight? No, it didn’t. But, it has become an inspiration for many startups to enter the same industry with the same business model. Do you want to replicate the success of Airbnb?

How To Build A Website Like Airbnb?

\[TOC\]  
The global real estate management software industry size was valued at [USD 8.98 Billion](https://www.adroitmarketresearch.com/industry-reports/real-estate-management-software-market) in 2017. The global real estate management software market is expected to reach **USD 12.89 Billion by 2025**. According to [IbisWorld](https://www.ibisworld.com/united-states/market-research-reports/property-management-industry/), there are currently over 290,000 businesses in the property management sector in the USA.

Since 2008 there has been a visible rise in investments in the real estate sector. However, real estate investors now are much smarter than they were a decade ago and they expect sophisticated solutions such as [real estate management software](https://selleo.com/real-estate-software-development).

**Do you want to build property management software?** This article will answer the most common questions regarding the topic and help you build an excellent product.

***What you will learn from this article***:

- What are the key functionalities that differentiate commercial property management systems from hotel management systems?
- In what ways do custom property management systems offer better scalability compared to Software as a Service (SaaS) options?
- How do property management systems ensure data storage and protection, especially given the increasing concerns around cybersecurity?
- What are the essential features for a property management system designed specifically for Home Owners Associations (HOA) and condominiums?
- How automation within a PMS can help reduce errors and improve overall operational efficiency?
- How is blockchain technology expected to influence the future development of property management software?
- What steps should businesses follow for effective testing, optimisation, and launch of a custom-built property management system?

## What is a Property Management System (PMS)?

A property management system is software designed for property managers, commercial property managers, owners, and operators to automate and simplify key business processes in managing properties.

Those business processes may involve communication between tenants and landlords, finances or data storage. Property management system software is usually based in the cloud, but can also run on a local server.

Property management systems are used in industries and fields like:

- hospitality
- commercial real estate
- local governments
- manufacturing and logistics

PMS solutions are designed for property types like apartment buildings, houses, single-family, and multiple-unit properties who are renting either for the short- or long-term.

![Types and other property management systems](https://s3.amazonaws.com/a.storyblok.com/f/86602/720x410/149e728144/types-of-pms.png)

### Commercial property management systems

Perfect for owners of office buildings and retail sites. They use the PMS to:

- reduce wait time on property maintenance
- customize online reporting
- gather lease data
- collect online rent payments
- schedule rent increases
- track maintenance requests

### Hotel management systems

Hotels and hostels use property management software to:

- book rooms
- manage bills
- assign rooms
- check guests in and out
- track room availability

### Home Owners Associations (HOA) and condo management systems

HOA management systems are designed for condominiums, townhouses, co-ops and property HOA. Those systems include features like:

- reporting
- e-payments
- accounting
- initial resident screening for sublets

### Industrial property management systems

Used for offices, warehouses, logistic facilities and industrial properties. They have essential functions like:

- facility maintenance management
- space management
- lease administration

We can also divide property management software by functions, which are as follows:

- **Applicant screening** ([AppFolio](https://www.appfolio.com/), [Yardi](https://www.yardi.com/), [OnSite](https://www.onsiteproperty.com/)) - help to find qualified residents, generate a summary of important data like criminal history etc
- **Customer (tenant-owner) relationship management (CRM)** ([Buildium](https://www.buildium.com/), [Property Solutions](https://www.propertysolutionspm.com/), [Leasehawk](https://www.leasehawk.com/)) - focused on financial reporting and offer lease tracking, automatic rent collection, tenant screening
- **Web-based portals and marketing apps** ([Zillow.com](https://www.zillow.com/), [Realpage](https://www.realpage.com/), [Rentbits](https://rentbits.com/)) - help in lead generation and provide easy tools for real estate website design
- **Internet property listings** ([Trulia](https://www.trulia.com/), [Apartments](https://www.apartments.com/), [Airbnb](https://www.airbnb.pl/)) - connect renters with tenants and buyers
- **Short-term rentals management** ([Guesty](https://www.guesty.com/), [Kigo](https://www.kigo.net/), [Airsorted](https://www.houst.com/)) - improve efficiency throughout the entire process from screening potential candidates to payments
- **Virtual tour software -** as the name suggests it allows taking visitors on virtual tours. Property managers and homeowners can upload photos and videos of property for sale or rent
- **Contract software** ([Gatekeeper](https://www.gatekeeperproperties.com/)) - manage legal aspects and automates the process
- **Revenue management** ([Rainmarket](http://eteampm.com/), [Sphere](https://www.sphere-realty.com/)) - predict the behaviour of each customer segment and optimize product availability and price
- **Speed management** ([BuyersAccess](http://www.buyersaccess.com/), [Avidxchange](https://www.avidxchange.com/)) - going paperless, centralizing and strengthening the internal control to gain profitability
- **Utility billing and energy management apps** ([Conservice](https://www.conservice.com/), [NWP](https://nwpmanagement.net/)) - help utility and energy managers gather utility bills and usage data from various sources
- **Payments software** ([PayLease](https://www.paylease.com/), [PayYourRent](https://www.payyourrent.com/)) - streamline the rent payment and collection process
- **Accounting apps** ([Intuit](https://www.intuit.com/), [MRI](https://www.mrisoftware.com/)) - real estate agents, brokerage firms, landlords and property investors can keep track of business finances
- **Maintenance and lease management software** ([RentManager](http://rentmanager.com/), [RenTec](https://www.rentec.com/Home.action?index=true)) - track lease details to manage critical dates and financial obligations effectively.
- **Residential community systems** ([I-Neighbour](https://www.i-neighbour.com/), [Nextdoor](https://nextdoor.com/), HOA app) - enable secure access and interaction among condo, co-op and HOA residents using IoT technology
- **Integrated workplace management systems** ([MPulse](https://mpulsesoftware.com/blog/maintenance-management/11-trends-shaping-your-workplace/), [OfficeSpace](https://www.officespacesoftware.com/)) - optimize the use of workplace resources like management of real estate portfolio
- **All-in-one solutions** ([AppFolio](https://www.appfolio.com/), [PropertyWare](https://www.propertyware.com/), [Yardi](https://www.yardi.com/)) - owner and renter portals, rent payments, maintenance requests, accounting, reporting, bulk text messaging.

## Why create new property management software

Property management market is still relatively young yet very promising. Let’s look at the benefits of building a property management system:

![Why create new best property management software](https://s3.amazonaws.com/a.storyblok.com/f/86602/720x717/92e8932fbb/benefits-of-pms.png)

### Multiple property management

This is probably one of the most important reasons why property owners think about creating a PMS. This type of software eases the processes of accounting, reporting and communicating. All the necessary information can be found in the owner's portal.

Property management software speeds up business processes by reducing third-party tools so you can achieve better standardisation of management and increase its efficiency.

<Baner name={software-development} />

### Scalability

PMS is a product with the potential for broad functionality. With businesses growing, they are likely to expand the system with more features like revenue management or tenant screening. Keep in mind that the scalability of an online real estate management system is only available with a custom software solution.

### Data storage and protection

No more paper reports and documents. PMS allows you to access the information with just a few clicks. What is more, it ensures maximum security. Note that the most convenient access to data is with a web-based system rather than a local-based one.

### Automated tasks

Automation is a business’ best friend. By automating repetitive tasks like property vacancy posting, billing or responses to tenants your team will be able to focus more on productive assignments. Additionally, the risk of errors is significantly reduced.

### Unlimited channels

With a custom property management system, you can cover all possible channels for distributing your rental or hotel services. No need to choose between Airbnb or Expedia.

### 24/7 customer support

You can integrate your solution with chatbots or virtual assistants to provide your guest with excellent support whenever and wherever.

### Customer loyalty

A good PMS can take your business to the next level. With mobile availability, notifications, personalised marketing you will make your clients feel respected and appreciated. What is more, your system can support multiple languages and currencies which will strengthen the relationship with your customers even more.

## Must-have features of PMS

![Must-have features of leading property management software](https://s3.amazonaws.com/a.storyblok.com/f/86602/720x525/a54c685884/must-have-features-of-pms.png)

A property management system will have different functionalities depending on its purpose. For example, a hotel management system will have online receptionists and housekeeping management features while industrial property management will have monitoring assets and inventory functions. However, we can all those functions down to a couple of core ones like:

### Online payments

[Payment integration](https://selleo.com/blog/how-to-integrate-a-payment-gateway-into-a-website) will help you reduce the time spent on billing, decrease costs spent on paper documents and securely collect money.

By offering online payments, you offer your clients a quick solution as well as give them the ability to view their account balances or receive receipts. Online payments work well with automatic notifications and email reminders.

### Reporting

Reports will give you lots of information about how your business is doing covering expenses, income, fees, payments and property availability. Those reports can be customized to the needs of your business by adding extra columns or sorting by various variables.

### Document management

Your PMS can store all the information about your properties, renters and finances. A custom solution will allow you to upload, download and manage documents like flow statements or rent rolls.

### Communication

A built-in messenger feature allows you to contact renters directly via text message or email. You can send messages in bulk or individually, create groups and store the chat history within the system.

### Calendar

Definitely one of the most essential features of a good PMS. Calendars are designed to display reservations from different channels, property availability and guests status. It will allow you to schedule meetings with tenants, create rent collection reminders etc.

### Accounting

Your PMS can be integrated with a financial module that will help you work with loans, payments, bank accounts, debts etc. All in one place, securely stored and available with just a few clicks.

## How to Develop A Property Management System

There are two ways in which you can develop a property management system: create a custom solution or use a ready-built one.

### Custom property management software development

A custom-made system will give you lots of flexibility and freedom when it comes to features integrated within it. Consider also benefits like:

- everything will be tailored to the needs of your business
- scalability
- high-quality solution
- easy integration with APIs and various tools like [PayPal](https://www.paypal.com/pl/home) or [Stripe](https://stripe.com/)
- custom UX designed for your target audience

However, this type of solution can be more expensive and take more time to create, but give you independence.

### SaaS software for property management

[Sofware as a Service](https://selleo.com/blog/a-step-by-step-saas-development-guide) is a service subscription that provides you with pre-build software. Here you will pay a monthly fee to access the system. Such ready-made systems are suitable for property management companies just starting out on the real estate market.

SaaS solutions are generally less expensive than a custom solution however have a limited set of functionalities, there are little to none abilities to customize it and you always have to depend on external tech support. What is more, not all of them support different languages and currencies.

## 5 easy steps to develop the next-gen property management application

If you choose to build a [custom solution](https://selleo.com/blog/outsourcing-frontend-development-to-poland), no matter if it is going to be with an in-house team or outsourced development, expect the process to conclude in 5 steps:

1. **Define goal**

Think about the perfect solution you want to create. About its must-have features, look, whether it is going to be available or mobile or desktop.

1. **Market analyze - an innovative idea**

Analyze the market, look at the competition. Determine your target clients, research their problems and give them solutions in your product. Explore the grey area to gain a competitive edge.

1. **Design your** [**MVP**](https://selleo.com/blog/why-mvp-development-should-be-outsourced)

Design an MVP with basic features and a beautiful design that can be released to a small testing group. Gather their feedback and implement changes accordingly.

1. **Development process - employ AI, big data, business intelligence, blockchain**

AI is helpful in detecting patterns, data analysis and security enhancement. By using big data, you will be able to reduce maintenance costs and prepare a predictive analysis.

It won’t be long before blockchain in most property management software becomes a new standard. PMS may well evolve into a blockchain-powered ecosystem that develops and manages entire operations for the real estate industry, so keep that option in mind.

1. **Testing, optimization and launch**

Before the official release, test your software. This will help to avoid errors and misbehaviours. Optimize it for mobile devices of various types and sizes as well as different internet browsers. If all is well - launch it! Follow a marketing strategy to build a customer base and gain recognition on the market.

## Conclusions

**The rental property business market constantly is looking for ways to optimize and standardize processes**. With rental property management software, they can track and automate back-office operations, property-related functions and finances. **A PMS streamlines owner-tenant-property-manager communication** and provides a unified channel of interaction.

A custom solution allows businesses to expand and create a one-of-a-kind design and features. If you recognize the advantages of building one, [teams at Selleo](https://selleo.com/custom-software-development-company) will be happy to help you with that. Our expert developers and graphic designers will create a cutting-edge solution and our [QA specialist](https://selleo.com/blog/why-do-we-need-quality-assurance-engineers) will ensure it is of the highest quality.

If you want to read more about building a solution like Booking.com or Airbnb, read our articles [How To Create A Booking Website Like Booking.com?](https://selleo.com/blog/how-to-create-a-booking-website) and [How To Build A Website Like Airbnb?](https://selleo.com/blog/how-to-build-a-website-like-airbnb). You can also review our [portfolio](https://selleo.com/portfolio/hotel-management-software).

Global real estate management software industry size was valued at USD 8.98 Billion in 2017. Do you want to build property management software? This article will answer the most common questions regarding the topic and help you build an excellent product.

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