Few investments have as much potential as real estate, but more goes into managing properties than you might think.
Before you can start making money, you need to secure tenants. You could try to do this yourself, but it's often quite challenging. Many property owners hire either tenant placement or property management services.
So how do these two options compare, and which would be best for you? Keep reading to find out.
What Is Tenant Placement?
Tenant placement services are dedicated to helping you find tenants and this starts with marketing your property. This might seem simple, but in a tough market, it's not easy to make your property stand out.
A tenant placement company knows what renters are looking for. They can optimize your listing to easily attract tenants.
Once some people have shown interest, you need to select the tenants you want to go with. There are certain qualities you'll want from tenants. For example, you want to be able to rely on them to pay rent on time and not damage your property.
A tenant planet company will always conduct thorough tenant screening processes. They'll look at a person's rental history to see if they've caused issues with properties in the past.
With your ideal tenants chosen, they'll help you organize the lease and then your tenants can move in. This is where the tenant placement service ends. You'll then be responsible for all other aspects of property management.
What Is Property Management?
Property management isn't entirely different from tenant placement. In fact, tenant placement is a key component of property management. The difference is that property management also involves a lot more.
They'll take care of everything that tenant placement involves, and then they'll continue to handle to day-to-day operations of your property. This includes tasks such as:
- Property maintenance
- Rent collection
- Routine inspections
- Tenant communications
They can help deal with things if you have problem tenants. They'll even take care of evictions if necessary.
Property managers also have a good knowledge of rental property law. This can be very beneficial if any legal issues come up.
Which Is Better?
If you want to choose between these two services, you need to think about your needs and goals. Finding tenants is typically one of the biggest challenges landlords face. As such, tenant placement services can be invaluable.
You should only go this route, however, if you're happy to manage the property on your own once your tenants have moved in. Bear in mind that this can take a lot of time and energy. If you own multiple properties, things will only be more difficult.
If you just opt for tenant screening, you'll be paying less, but you'll also get less. In many cases, it's more financially efficient to go for full-service property management.
Professional Rental Management
Tenant placement services are reliable for helping you get ideal tenants and start making an income from your rental property. For a more comprehensive solution, you can go with a property management company that will take care of almost everything for you.
The team at Advantage Property Management Services has over 40 years of combined experience in Pleasanton, CA. We can help, regardless of the route you want to take. Check out our services page to find out more.