Rental properties can be a great source of recurring income, but managing them can often be challenging.
Many property investors outsource some of their operations. Some use tenant placement services but handle most things on their own. Others hire property management companies to take care of everything.
In this guide, we'll take a look at tenant placement and rental management to see how the two compare. Keep reading for more.
What Is Tenant Placement?
Finding tenants is one of the most important elements of owning a rental property. A tenant placement service can take care of this for you to help you find the best tenants.
This starts with property marketing. They'll create a quality listing that will make your property stand out from others available in your area.
This can be incredibly important in a tough market. When renters have a lot of choices, standing out from the crowd will help you get a lot more interest.
They'll then deal with any applications and screen tenants thoroughly. This helps to ensure you don't end up with tenants who have caused issues with previous properties they've rented. Such issues include property damage, late rent payments, and more.
They'll then negotiate the lease to ensure it meets your best interests. After the tenants move in, they'll hand things back over to you.
What Is Rental Management?
Rental management services are more comprehensive and are ongoing for as long as you require them. This involves tenant placement as well as various other day-to-day tasks.
A property manager will oversee the general operation of your properties on your behalf. Property maintenance is one of the key tasks here. They'll organize any repair or maintenance work that's needed to keep your property in good shape.
They'll also handle everything regarding tenants, such as communication and rent collection. This will keep tenants happy so that they'll be more likely to want to renew their lease when it expires.
Accounting and reporting can be very complicated, but a property manager can handle this too. They can also provide legal assistance if anything arises.
Which Is Better for You?
Outsourcing tasks can be ideal for various reasons. If you're happy to oversee the day-to-day operations of your property and just want help securing tenants, then tenant placement services should be enough.
Many investors, however, are better off with rental management services. If you have multiple properties, live far from your properties, or simply don't have the time to oversee them, then rental management services are likely your best bet.
Many companies will be able to offer you either of these services. You can discuss your needs with them and they may be able to advise you on the best approach if you're unsure.
Finding the Right Service
Tenant placement will be sufficient for some owners, but if you want professionals to take care of everything, then rental management services will be ideal. Consider your current situation and your investment goals to make the best choice.
PMI First Choice is a full-service property management company that has been serving Newport Beach and surrounding communities for over 19 years. Take a look at our property management page to find out more about the services we offer.
