One of the most common traps that new landlords fall into is trying to do everything by themselves. But there comes a point when the demands of real estate become overwhelming. The question you'll then face is: what do I need to outsource?
To help answer that question, we'll be comparing two of the most common services side by side: rental management and tenant placement. Read on to find out which is best for you.
Rental Management: the Advantages
Rental management is the more comprehensive of the two services. This gives you a property manager or team who can handle the day-to-day operations of a rental property.
The big advantage of this is that it offers a hassle-free approach. You also have someone who can keep an eye on the small details, like whether you need any maintenance work on your building or rental property optimization.
Rental management also helps you create a more streamlined process for administrative tasks like collecting rent from your tenants.
Rental Management: the Disadvantages
As with any service, there are disadvantages to rental management and reasons why you may not favor it over tenant placement. For a start, it comes with a cost.
Rental management fees are an additional expense for your property investments every month. You'll need to consider whether you can cover that cost and still make a profit from your investment.
This hands-off approach also means you probably won't get involved in all the small day-to-day decisions as you will be delegating this to someone else. You'll need to ask yourself whether you are comfortable with that approach or whether you prefer to have more control over your property management.
Tenant Placement Benefits
Tenant management, as the name suggests, supports you with one specific aspect of your rental property: securing a tenant. It's a simple and highly efficient way to get tenants, which is one of the main advantages.
Take tenant screening, for example. Using a placement service means you don't have to worry about running background checks; instead, you can rely on a company with a tried and tested process and the proper access to records.
People also like to use tenant placement as the expertise on offer makes it taste to find a tenant. You'll have a team who knows how to market your property and attract the perfect tenant.
Tenant Placement: the Disadvantages
If you want a comprehensive, done-for-you rental service, tenant placement may not be the best solution.
Certain property management services aren't included under the tenant placement umbrella, such as property maintenance and handling legal issues. If you need support in those areas, you will need to hire teams separately.
Tenant Management Vs Rental Management: Which One is Right for You?
Both tenant placement and rental management have their advantages.
What is right for your real estate business comes down to what you prefer on a day-to-day basis. Do you want the hassle-free option, or do you prefer the hands-on approach that gives you more control?
Whatever your decision, you're in the right place to take the next step.
PMI Davis Realty is a leading property management team in Orange Park, Florida. We can help transform your real estate business for the better. Find out more about our real estate services.
