Rental properties are known to be great investments, but managing them isn't easy.
You can hire third-party companies to assist you with various aspects of rental property management. Tenant placement is a popular service that a lot of landlords use. Others prefer to go the route of property management.
So how do these two services differ, and which should you go for? Keep reading to find out.
What Is Tenant Placement?
Tenant placement is a standalone service that rental property owners can make use of to find tenants. A professional will help you find quality tenants for your property and establish a lease that serves your best interests.
The process starts with marketing your property and arranging viewings with prospective tenants. This is followed by a tenant screening process to ensure tenants are suitable. Finally, all the documentation is completed, including the lease agreement.
The tenant vetting part of this is perhaps the most important aspect. Tenant placement companies know what questions to ask and what to look for when comparing tenants.
This will help ensure you end up with quality tenants who you can trust to always pay rent on time. They'll also look for any red flags like a history of property damage to make sure you don't end up with tenants who might cause problems.
Once the lease is signed, the tenant placement process is over. You'll then take over any other areas of property management.
What Is Rental Management?
There are various types of property management companies, and some offer more services than others. In general, property management encompasses tenant placement along with various other services. Overall, as a rental property owner, you won't have to do much (if any) property management if you take this route.
A property management company will help with tenant placement, rent collection, property maintenance, accounting and reporting, and more. Essentially, they'll handle all of the day-to-day operations of your property.
This is a much more comprehensive solution. It costs more but massively reduces your workload. This is an ideal option if you don't want to spend a lot of time dealing with the operations of your investment property.
If you decide to invest in more properties, this level of service will become more essential. Managing just one property can be challenging, so when you own multiple, it's very unlikely that you'll be able to keep up.
It's worth noting that property managers are also very good at what they do. When it comes to maintenance, for example, they'll know exactly who to contact for specific jobs. They can also help keep your operational costs to a minimum and will act as the point of contact for tenants.
Which Is Best for You?
If you have a lot of experience with property management and are happy to take on the work involved, tenant placement could be a good choice. For most investors, however, the full property management route is the more suitable option. You can relax knowing that your property is being handled by a qualified professional.
PMI Hometown Living is a full-service real estate asset management company that offers tenant placement as well as various other services. We have almost 20 years of experience in Dickson and the surrounding communities. Take a look at our property management page for more.