If you want to make a reliable, recurring income, investing in real estate can be a great choice.
With that said, you need to do more than just invest. It takes some work to maximize your profits, and you need to start by looking at different ways to get tenants.
Third-party services like tenant placement and rental management can both be good options. You'll need to understand both to be able to figure out which you should go with.
In this guide, we'll go over both tenant placement and rental management so you can see how the two compare. Keep reading for more.
Tenant Placement
Your income from rental properties comes directly from tenants, and the tenants you get can have a huge impact on your experience. If you end up with bad tenants, they could cause various issues. This includes damaging your property, disturbing other residents, or even not paying rent.
The purpose of tenant placement services is to ensure you find desirable tenants. The first thing a tenant placement service will do is market your property.
Property marketing isn't as simple as people often assume. You'll get the best results if your listings stand out and appeal to renters. A tenant placement service knows how to do this effectively so you can attract more renters.
The next step is tenant screening. They'll look into potential tenants' rental history in more detail to make sure they're suitable. If they find someone has a history of failing to pay rent, causing damage, or anything else, they'll steer you clear.
Once you've found ideal tenants, they'll help you with the lease and get them moved in. They'll then hand things off to you, and you'll continue to manage the property yourself.
Rental Management
Rental management encompasses a wide range of services. This includes tenant placement as well as things like property maintenance, tenant communications, rent collection, and legal assistance.
They'll conduct the tenant placement in a similar way but will continue to oversee the day-to-day operations of your property for as long as you want to hire their services. Many people go with this option as it ensures everything is taken care of by professionals.
A lot of the tasks that property managers are responsible for are very time-consuming. If you choose to only hire tenant placement services, you need to make sure you have the capacity to take on these duties yourself.
While rental management costs more, you'll also get more in return. It's worth noting that if you have multiple properties, you'll struggle without a property manager. One property can be a lot for one person, so managing several alone is almost impossible to do effectively.
Which Should You Go With?
This all depends on your needs and your goals. If you only have one property and are happy to put in the time and effort to manage it yourself, then tenant placement should be fine. If you have more than one rental property, outsourcing tasks to a rental management company is likely the best choice.
PMI Alliance is a full-service property management company based in Dallas. We have plenty of experience with tenant placement, rental management, and various other real estate services. Get in touch today and we'll discuss your options with you.
