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Managing a property business involves a multitude of tasks, from handling rental payments and tracking expenses to managing mortgages and ensuring compliance with tax laws. For many landlords and property investors, keeping track of finances is time-consuming and can feel overwhelming. This is where Hammock, a cloud-based property finance management platform, comes into play.
Designed specifically for property businesses, Hammock automates and simplifies financial management, offering a real-time overview of your portfolio’s performance. But how exactly can Hammock help your property business thrive? In this blog, we’ll explore the key benefits of using Hammock, discuss its potential drawbacks, and offer some alternative software solutions for landlords and property investors.
What Is Hammock?
Hammock is a property finance management software tailored for landlords and property investors. It combines rent tracking, expense management, and mortgage monitoring into a single platform, helping you streamline your financial operations and keep on top of your property portfolio’s performance.
Pros of Using Hammock for Your Property Business
1. Real-Time Financial Tracking
One of Hammock’s most powerful features is its ability to track your property finances in real-time. The software connects directly to your bank accounts, automatically categorising income and expenses for each property. This gives you a live view of how your portfolio is performing, which is particularly useful for landlords with multiple properties.
Benefit: You can see exactly which tenants have paid rent, track late payments, and monitor your cash flow with ease.
2. Automated Rent Collection and Alerts
Hammock helps automate rent collection, saving you time and effort. It tracks rent payments for each property and tenant, notifying you of any late or missed payments. Automated alerts ensure that you never miss an important payment date or rent due.
Benefit: No more manual tracking of rent payments or worrying about missed payments—Hammock does it all for you.
3. Tax Efficiency and Reporting
Hammock also simplifies tax planning for property businesses. It automatically generates detailed reports on rental income, expenses, and profits, which are essential for completing your tax returns. This feature can help you prepare for end-of-year self-assessment and ensure that you claim all available tax reliefs.
Benefit: Hammock helps landlords stay compliant with UK tax regulations and saves time on preparing accounts and tax submissions.
4. Mortgage Management
For landlords with mortgaged properties, Hammock’s mortgage monitoring feature is invaluable. The software allows you to track mortgage payments, interest rates, and loan balances, helping you stay on top of your mortgage obligations and make informed decisions about refinancing or additional borrowing.
Benefit: Easily monitor mortgage performance and explore ways to optimise your mortgage strategy.
5. Portfolio Performance Overview
If you have multiple properties, Hammock gives you a clear, consolidated view of your portfolio’s financial health. You can track rental yields, capital growth, and operating expenses across your entire portfolio, helping you make strategic decisions about your properties.
Benefit: Comprehensive financial insights make it easier to identify underperforming properties or opportunities for growth.
Cons of Using Hammock
1. Cost
Hammock is a subscription-based service, and while it offers a wide range of features, it may be seen as an additional expense for smaller landlords or those with tight budgets. The cost varies depending on the size of your portfolio and the features you require.
Downside: The monthly subscription fee might not be ideal for landlords with just a few properties, especially if they already use other accounting software.
2. Limited Integration with Other Systems
While Hammock provides a strong property-focused solution, it may not integrate seamlessly with all other accounting or property management software you may already be using. This could lead to duplicating work or managing multiple systems side by side.
Downside: Landlords who already use comprehensive accounting tools like Xero or QuickBooks may find it less useful without tight integration between platforms.
3. Limited Features Beyond Finance
Hammock is primarily a financial tool, meaning it lacks the broader property management capabilities that other platforms might offer, such as maintenance scheduling or tenant communication tools.
Downside: You may need separate tools for broader property management tasks beyond financial tracking, increasing the complexity of your tech stack.
Alternative Software Packages for Property Businesses
While Hammock offers excellent finance tracking for landlords, other software platforms might be a better fit depending on your business’s needs. Here are some alternatives worth considering:
1. Arthur Online
Arthur Online is a comprehensive property management platform that covers all aspects of managing your portfolio, from finances to tenant communication. It integrates with Xero for accounting, making it a more holistic solution for landlords who want to manage both operational and financial tasks in one place.
Pros:
- Comprehensive property management tools
- Seamless integration with Xero
- Tenant communication and maintenance management
Cons:
- More complex to set up and use for smaller portfolios
2. Xero with Add-Ons
For landlords already using Xero for accounting, integrating it with property-specific add-ons like Arthur Online or Re-Leased can give you a full financial and property management solution. Xero offers powerful financial tracking, invoicing, and tax planning, and you can customise it with other tools to suit your needs.
Pros:
- Powerful accounting and financial tracking
- Customisable with industry-specific add-ons
- Strong reporting capabilities
Cons:
- Requires multiple tools and integrations
- Not property-specific out of the box
3. Landlord Vision
Landlord Vision is a property management software designed specifically for landlords, covering tenant management, rent tracking, and accounting. It offers a good balance between property management and financial tracking, making it a strong alternative to Hammock.
Pros:
- Built specifically for landlords
- Includes property management features like tenant communication and maintenance tracking
- Affordable for small portfolios
Cons:
- May not offer the depth of financial insights Hammock provides
4. Re-Leased
Re-Leased is a cloud-based property management platform designed for landlords with larger commercial portfolios. It offers in-depth reporting, property management, and financial tracking, with a particular focus on helping landlords manage multiple properties across different sectors.
Pros:
- Excellent for larger portfolios and commercial landlords
- In-depth financial and operational reporting
- Scalable with powerful automation features
Cons:
- More expensive than other platforms
- Best suited for commercial rather than residential portfolios
Conclusion: Is Hammock Right for Your Property Business?
Hammock is a great solution for landlords and property investors who want to simplify financial management, automate rent collection, and track the overall performance of their portfolios. With its focus on finance and tax efficiency, it’s an ideal tool for those looking to gain clearer financial insights and reduce the administrative burden.
However, if you’re looking for broader property management features or already use software like Xero, you might want to explore alternatives that offer more comprehensive tools or better integrations.
At our UK accountancy practice, we specialise in helping property businesses navigate their financial and operational challenges. Whether you need advice on the best software for managing your portfolio, structuring your business or support with tax planning, to name but a few, we’re here to help. Contact us today to discuss how we can support your property business and help you thrive!
