If you want to get started as a real estate investor, there are plenty of options available. Rental properties are ideal if you want to create a recurring income.
Being a landlord isn't easy, so you'll need to work if you want to get a good return on your investments. Outsourcing certain tasks to third-party companies is a standard practice that you may want to consider. Tenant placement services are a common choice, as are rental management services.
So what are these two and which would be better for you? Keep reading to find out.
What Is Tenant Placement?
Tenant placement is a dedicated outsourced service that a landlord can make use of. A tenant placement company will employ strategies that allow them to find suitable tenants for your rental property.
The first part of this is property marketing. They'll create listings and potentially other marketing materials to promote your property to renters in the area.
Next, they'll deal with applications and screen any tenants that they're considering. This allows them to assess their rental history and see if there are any red flags. These are typically things like a history of property damage or issues with paying rent.
Once they've found the most suitable tenants, they'll negotiate the lease. This is a tedious process that takes in-depth knowledge to handle correctly.
Finally, they'll move the new tenants into your property. This is where tenant placement services end and they hand things back over to you. You'll then be responsible for the continued management of your property.
What Is Rental Management?
If you want more comprehensive services, then you can hire a property manager. They provide tenant placement as well as much more.
Rental management services are ongoing for as long as you require them and cover the day-to-day operations of your property. When your tenants move in, your property manager will continue to oversee things.
A property manager will maintain tenant relations, collect rent, organize maintenance/repair work, deal with any legal issues that arise, and more.
Which Is Best for You?
Tenant placement is ideal for those who own a single property and want to manage it themselves. It's a one-time service, so will cost less and you'll have full control over your property.
The majority of investors are better off with rental management services. It takes a lot of time and effort to look after a rental property, so many prefer to leave it to the professionals.
This is especially true for people who don't live close to their rental property or own more than one property. Managing properties under these circumstances is far more difficult, so outsourcing to a professional company is typically the best move.
Managing Your Rental Properties Properly
Whether you've just bought your first rental property or you're an experienced investor, you can benefit from outsourcing tasks. If you're happy to take on the primary management of a property yourself, tenant placement services could be ideal. Alternatively, rental management may be better for your needs.
PMI Wiregrass is a full-service Dothan real estate management company. We're part of the PMI brand, which has been managing properties across the US for almost 20 years. Take a look at our residential property management page for more information on our services.
