I manage 320 units and spent 6 months researching property management software. Everyone told me 'AppFolio is the best' or 'Buildium is cheaper.' Nobody gave me real numbers or honest comparisons.
So I'm going to give you what I wish I had: actual costs, real pros and cons, and when each option makes sense. Including the third option nobody talks about: building your own.
Side-by-Side Feature Comparison
AppFolio: The Premium Option
Best for: 500+ units, full-service management, companies with budget for best-in-class features
What AppFolio Actually Costs
Base pricing: $1.40 per unit per month. For 300 units, that's $420/month or $5,040/year.
But here's what you actually pay:
• Base fee: $5,040/year
• Transaction fees (2.5% on $240K rent): $6,000/year
• User licenses (5 users): $1,800/year
• Integrations and add-ons: $1,200/year
• Tenant screening: $2,400/year average
Real total: $16,440/year minimum, often $25,000-35,000/year
AppFolio Pros
Comprehensive features. Everything you need in one system. Property management, accounting, maintenance, tenant portal, owner portal, marketing—it's all there and it all works.
Best-in-class mobile app. Tenants and staff can do almost everything from their phones. The app is polished and reliable.
Strong integrations. Connects to QuickBooks, screening services, marketing platforms, smart locks. The ecosystem is mature.
Good support. Phone support is available, training is solid, and the knowledge base is comprehensive. When you pay this much, you expect good support—and you get it.
AppFolio Cons
Expensive, especially transaction fees. That 2.5% on every rent payment is brutal. On $240K annual rent, you're paying $6,000/year just to process payments. This alone makes custom worth considering.
Annual price increases. AppFolio raises prices 6-8% every year. Your $27,000/year cost becomes $35,000+ in 5 years. You have zero negotiating power.
Vendor lock-in. All your data is in their system. Switching is painful and expensive. They know this, which is why they can raise prices aggressively.
Limited customization. AppFolio works how AppFolio works. If your workflow doesn't match theirs, you adapt to their system—not the other way around.
Buildium: The Middle Ground
Best for: 150-500 units, cost-conscious managers, residential focus
What Buildium Actually Costs
Plans range from $50-160/month base, depending on features and unit count.
For 300 units, expect:
• Base subscription: $160/month = $1,920/year
• Payment processing (if using Buildium's): $4,800/year
• Add-on features: $1,200/year
• Tenant screening: $2,400/year
Real total: $10,320-20,000/year depending on add-ons
Buildium Pros
More affordable. Roughly half the cost of AppFolio for similar portfolio sizes. If budget is a concern, Buildium delivers decent value.
Solid core features. Property management basics work well: tenant tracking, lease management, rent collection, maintenance requests, basic reporting.
Optional payment processing. Unlike AppFolio which pushes their payment processor hard, Buildium lets you use your own. This saves transaction fees if you already have a processor.
Active user community. Good forums where property managers help each other. Buildium's been around long enough to have accumulated lots of user-generated knowledge.
Buildium Cons
Feels dated vs AppFolio. The interface works but isn't as polished. If you've used modern SaaS products, Buildium feels like it's from 2015.
Features require add-ons. Base plans are cheap because features are limited. Want good reporting? Add-on. Want marketing tools? Add-on. Costs creep up.
Customer support can be slow. Phone support exists but response times vary. Email tickets can take days. When you're paying less, you get less support attention.
Not great for mixed-use. Buildium is built for residential. If you manage commercial or mixed-use properties, it doesn't handle complexity well.
Custom Software: The Long-Term Play
Best for: 200+ units, 3+ year horizon, unique workflows, transaction fee sensitivity
What Custom Actually Costs
Development: $50,000-150,000 one-time depending on features and complexity
Annual costs:
• Hosting (AWS/Google Cloud): $2,400-7,200/year
• Maintenance and support: $4,000-12,000/year
• Third-party services (payment processing, APIs): $2,400/year
Real total: $98,000 Year 1, then $9,000-22,000/year ongoing
Custom Pros
Exactly what you need. No features you don't use. No workflows that don't match yours. The software adapts to how you work instead of forcing you to adapt to it.
Unlimited users, no transaction fees. Add every property manager, leasing agent, maintenance coordinator who needs access. Process $1 million in rent or $10 million—costs stay the same.
Long-term cost savings. Year 1 hurts. Year 2-3 you break even. Year 4+ you save $15,000-25,000 annually compared to AppFolio or Buildium.
Competitive advantage. Your competitors use AppFolio or Buildium. Custom software gives you capabilities they don't have—automated rent optimization, predictive maintenance, whatever you build.
Complete data ownership. Your data on your servers. Want to build AI models for predicting maintenance? Go ahead. Want advanced analytics? You can. SaaS platforms restrict how you use your own data.
Custom Cons
High upfront cost. $5K-30K is real money. You need financing or cash reserves. Can't just swipe a credit card and start using it tomorrow.
Development takes time. 3-7 weeks from requirements to launch. If you need software next month, custom doesn't work.
More responsibility. When AppFolio's servers go down, you call them. When your custom system has issues, you call your developer. You're managing a vendor relationship instead of being one customer among thousands.
Which Should You Choose?
Choose AppFolio If:
You manage 500+ units and need enterprise features
You want it working next week, not next year
Budget isn't your primary constraint
You value proven, polished software over cost savings
You're okay with vendor lock-in and annual price increases
Choose Buildium If:
You manage 100-400 units
Cost is a major concern
You do mostly residential properties
You can live with slightly dated interface for lower price
You don't need cutting-edge features
Choose Custom If:
You manage 200+ units
Your current software costs $15,000+/year
You plan to be in business 3+ years
Transaction fees are killing you (2%+ on large rent collections)
You have unique workflows SaaS doesn't handle well
You want long-term cost control
Real Switching Stories
AppFolio → Custom: Saved $58K/Year
450-unit portfolio in Texas. Was paying AppFolio $74,000/year (base + transaction fees + users). Built custom system for $142,000. Now pays $18,000/year for hosting and maintenance. Savings: $56,000/year. Break-even: 2.5 years. Five-year savings: $238,000.
Buildium → AppFolio: Better Features, Higher Cost
Growing firm went from 200 to 600 units in 3 years. Buildium couldn't handle the complexity. Switched to AppFolio, costs went from $14,000/year to $38,000/year but gained features and scalability they needed. Sometimes paying more makes sense.
Custom From Scratch: Never Looked Back
New company managing mixed-use properties. Knew from day one that SaaS wouldn't work for their specific needs (retail + residential + office in same buildings). Built custom from the start. $95,000 initial investment. Competitors using AppFolio struggle with their workflows; this company's software handles it perfectly.
Frequently Asked Questions
Can I switch mid-contract?
Check your agreement. Most SaaS contracts are annual with auto-renewal. You can usually cancel at renewal with 30-60 days notice. Breaking mid-contract may incur fees.
How hard is data migration?
2-4 weeks with professional help. Both AppFolio and Buildium allow data export. Custom developers build migration tools to import your property data, tenant records, lease history, and financials. Expect some manual cleanup.
What about staff training time?
AppFolio/Buildium: 1-2 weeks for staff to get comfortable. Custom: 2-4 weeks since it's new software. Factor this into your timeline. The upside with custom is it's designed for your workflows, so once learned, it's faster than adapting to SaaS.
The Bottom Line
AppFolio is the premium choice—best features, highest cost, best support. Worth it if you manage 500+ units and value polish over price.
Buildium is the value choice—decent features, lower cost, acceptable compromises. Makes sense for 150-400 units when budget matters.
Custom is the long-term choice—high upfront cost, but massive savings after 2-3 years. Worth it for 200+ units if you're committed to your business and hate transaction fees.
There's no universal 'best.' The right choice depends on your portfolio size, budget, timeline, and whether you're optimizing for short-term convenience or long-term economics.
Want help deciding? We'll analyze your specific situation—units, rent collections, staff size, workflows—and show you exactly what each option would cost over 5 years. No sales pitch, just math.