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Rental properties offer a lot of benefits and can help you reach your real estate goals. Managing them, however, is rarely easy.
A DIY landlord manages all of their properties on their own. While this is feasible, it's often very impractical. Managing just one property can be too much for some people, and multiple is nearly impossible.
Most real estate investors outsource certain tasks to third-party companies. This can make things much easier for you as a landlord. You just need to determine what services you want to use.
Tenant placement services and rental management services are both highly useful, but what's the difference between them? Keep reading to find out.
Tenant Placement Services
You can only start making a rental income once you have tenants move into your property. Tenant placement services are all about assisting you with this.
A tenant placement company can help you attract tenants and get them moved into your property effectively. There are several steps to this.
It starts with property marketing, which is often more difficult than people expect. Creating interesting, stand-out listings is much easier for those with experience.
In a tough market, this is especially important. Renters will have a lot of choices, so you need to present your property well.
If the marketing is done right, there will be a lot of interest in your property. A tenant screening service can organize viewings and handle any applications that people make. They then need to make sure you're only considering quality tenants.
They'll run a thorough tenant screening process on applicants to check their rental history and background information. This will allow them to narrow the applicants down to only the best.
Once you've found the ideal tenants, the tenant placement company will organize the lease and move them in. After this, they'll hand things back over to you. You'll be responsible for managing your property from here onwards.
Rental Management Services
Rental management is far more involved. It includes tenant placement but also continues after that. A property management company can continue to manage the day-to-day operations of a rental property for as long as you require.
They'll cover tasks such as:
- Rent collection
- Property maintenance
- Tenant relations
- Lease renewals
- Legal matters
A real estate investor who uses rental management services will have a much easier time. Note that you can still be involved and have a say in how things are run, but you can also sit back and leave things to the professionals.
For most property investors, this is the most suitable solution. Even more so for investors who own multiple properties, as this simply adds to the workload.
How to Choose the Right Service
If you're struggling to decide between tenant placement and rental management, you should think about your needs and how you want to manage your properties. If you own just one property and you're happy to oversee it yourself, tenant placement could be sufficient. For those who don't have enough time or investors with multiple properties, rental management can be a much better solution.
The Martin Team joined Dickson Realty in 2004 and has been providing property management services in the Reno/Sparks area ever since. Take a look at our property management page to find out more about our services.
