Keeping your rental property fully occupied is one of your primary landlord goals. However, finding tenants isn't always a simple task. In a tough market, a rental property can sit empty without a tenant for several months, occasioning big financial losses to the landlord.
To prevent low occupancy, landlords choose to either hire a tenant placement service or a full-service rental management company.
Picking the best of these landlord solutions isn't a toss of the coin. You must evaluate both options carefully, and then select one that best suits your needs. To help you make an informed decision, we're sharing important things you should keep in mind.
The Pros and Cons of Tenant Placement Services
A tenant placement service does just that; it places tenants in your property. When a vacancy arises, all you need to do is get in touch with the company, and they'll do the rest.
A major benefit of working with placement services is you won't need to spend your time and money on finding a new tenant. Effectively, this eliminates the cost of property marketing, the tenant screening process, and onboarding.
You'll also benefit from the quick turnaround time that placement services offer. These companies usually have a database of renters looking for rental housing. They can find you a new tenant in as little as under a week, with the only barrier being how quickly you can get the property ready for a move-in.
On the downside, there's a risk of poor tenant selection. If you choose a placement service that isn't reputable, you could end up getting problem tenants who will make your life miserable.
Additionally, the cost of hiring the service can be a bother, especially if you're looking to maximize your rental income. After all, why hire someone to do a job that you can DIY?
The Pros and Cons of Rental Management Services
Unlike tenant placement companies that only offer one service, rental management companies take a holistic approach to rental property management. They offer all the services a landlord would need, including property marketing, tenant screening, rent collection, evictions, and rental property maintenance.
With a rental manager, you'll take a hands-off approach to being a landlord. This is by far the biggest benefit of taking this option.
However, hiring property management services comes at a big cost. You'll pay about 10% of your rental income to your manager as a service fee. If you find tenant placement services expensive, then the idea of hiring an even more expensive rental management service isn't going to cut it.
Tenant Placement or Rental Management? Make Your Choice
Rental management is clearly a superior service, but whether you need it or tenant placement comes down to your specific situation. If you're a hands-on landlord, it makes sense to hire a placement service only. If you're an out-of-town landlord or don't have time to care for your property, a rental management service will come in handy.
If the latter is your ideal option, look no further than PMI Elite Properties in Palmetto, FL. As part of a national franchise that has been in the industry for over two decades, we have access to the technology, personnel, and know-how to offer you the best full-service property management services.
Contact us to schedule a free consultation.
