Want to earn income and build equity without putting in 40 hours a week? Owning property can be incredibly lucrative. By renting out the space, you can create a steady income stream and rely on the property consistently building equity.
Managing a rental property, on the other hand, comes with its own set of responsibilities. As a property owner, you can opt to do everything yourself, enlist a tenant placement service, or hire a full-time management company. These property experts will help ease the process of property management.
Keep reading to learn more about rental management and tenant placement services.
What Is Rental Management?
Rental management is the full-service option for property management. This service covers the day-to-day operations as well as the overall administrative tasks of owning a rental property.
Some of the tasks covered by a rental management business are tasked with managing the following:
- Tenant screening
- Rent collection
- Property maintenance
- Collecting lease agreements
- Tenant conflict resolution
Property managers usually charge a monthly fee or take in a percentage of the rental income. Property management companies streamline operations to handle a full portfolio of properties.
Benefits of Rental Management
When you hire an expert, you can rest easy that the property management firm will handle any issues, from renter grievances and vacancies to legal issues and maintenance needs.
Hiring a property management company can alleviate stress on the property owner. Bringing on a team of experts will help free up your time.
Property managers will also help streamline the tenant onboarding process. They perform extensive background checks to select trustworthy tenants. This lowers the likelihood of disruptive inhabitants.
A reputable property management company needs to adhere to the local rental rules. Management companies are kept up to date on any changes to local compliance.
Disadvantages of Rental Management
Rental management companies charge a fee for their services. Rental management services do take away from your bottom line.
If you were to perform rental management in-house, you could save money but would need to allocate more time to the property.
What Is Tenant Placement?
Tenant placement is the process of identifying and screening renters for a rental property. Tenant placement companies charge a fee to handle the tenant procurement process. Tenant placement services are one-time costs that do not entail continuing management.
Benefits of Tenant Placement
Tenant placement services are a low-cost way to ensure you can fill any vacancies in your rental property. These services are affordable compared to full-service rental management. Since they only handle the onboarding process, you can still maintain full control of your property.
Disadvantages of Tenant Placement
With tenant placement services, you will be responsible for ongoing tenant relations. If there is conflict with a tenant, or difficulties collecting rent, you will figure out how to fix it.
Choose Which Property Management Service Is Right for You
The choice between rental management and tenant placement services depends on your needs. If you want to be more hands-on when managing your properties, you should opt to bring in a tenant manager to fill up vacancies.
If you are growing your real estate portfolio, you may want to partner with a property management company. This will ensure that you don't spread yourself too thin. With the help of property management companies, you can turn your rental properties into passive income.
Contact our team at PMI Prime Property Management to get connected with experienced and reliable property management experts.