So you've invested in your first rental property and you want to start making an income.
Being a landlord isn't always straightforward, and there are plenty of difficult decisions to make. One of them is how much management control you want.
You can hire tenant placement and property management companies to help you with certain aspects of your rental property. Both can offer benefits, but you'll need to choose between them.
In this guide, we'll explain what both of these services are so you can determine which would be best for you. Keep reading for more.
What Is Tenant Placement?
The overall purpose of tenant placement services is to help you secure tenants for your rental property. The first part of this involves marketing. This service can create listings for your property that are tailored to your ideal tenants.
This will result in viewings and applications. A tenant placement service can go through all of these applications to find suitable tenants.
They'll then put them through a thorough tenant screening process. This will narrow things down by cutting out tenants who raise red flags such as a history of property damage or a worrying criminal background.
They'll then help you select the best tenants out of the ones left. When it comes to the lease, they can draft one that focuses on your best interests while still being ideal for the tenants. Finally, they'll help you move your new tenants in.
The service ends here, and they hand things back off to you. You'll then be responsible for any other aspects of property management.
What Is Rental Management?
Rental management technically includes tenant placement, but it also involves a lot more. Rather than a one-time service to help you secure tenants, rental management is an ongoing service.
Once your tenants have moved in, a rental management company will continue to oversee the day-to-day operations of your property. You can make use of this service for as long as you want.
One of the most important tasks they can handle is property maintenance. A rental management company can organize a regular maintenance schedule and oversee any repair work.
They'll also help with tenant relations and serve as your tenants' first point of contact. If any issues arise, your rental manager will deal with them and will consult you if needed.
A rental management company can also handle various other tasks such as rent collection, lease renewal, and accounting. If any legal issues arise, they can give you suitable legal advice.
A rental management company can scale its services with ease. If you decide to grow your portfolio to earn more rental income, they can easily manage your new properties too.
Which Should You Choose?
What you need to determine is how much work you want to take on. If you want to manage your property yourself, tenant placement will be enough. If you'd rather hand it off to the professionals, rental management is the better choice.
PMI Diversified Properties is a full-service real estate asset management company that serves Reno and the surrounding communities. We have decades of experience and have managed hundreds of properties in the past. Take a look at our property management page to see more about how we can help you.
