If you're interested in becoming a real estate investor, there's a lot to learn. Rental properties can be a great choice, but you need to take the right approach.
Managing a rental property on your own can be difficult. You can outsource various tasks to external companies to lighten the load.
Tenant placement services are a common choice, while some investors opt for rental management services instead. Both can be useful, but you may not know which one is best for you. Let's take a look at each of these services so you can get a better idea of how they work.
Tenant Placement Explained
Your rental income comes directly from tenants, so when your property is ready, you'll want to find some as soon as possible. Tenant placement services can help with just this.
They'll start by marketing your property through online listing sites and potentially other channels. This will help attract attention to your property, and you'll get people who want to view it in person.
Your tenant placement service can deal with viewings as well as any applications that interested renters submit. After getting these applications, they'll conduct tenant screening on any potential applicants. This looks at a renter's background to make sure they're a suitable tenant.
After narrowing things down, they'll be able to help you select the most suitable tenants. At this point, they'll help negotiate the lease with your best interests in mind.
Once the lease is signed, they'll help move the tenant in, and that's where the service ends. From here, you'll be responsible for managing your rental property.
Rental Management Explained
Rental management involves tenant placement along with various other services. A property management company can take over the day-to-day operations of your property so you can relax and leave it to the professionals.
After your tenants have moved in, they'll continue to communicate with them as needed. This includes collecting rent and assisting them with any issues that come up.
They'll also organize any maintenance work that's needed. This will keep your property in a good state for your tenants while also maintaining its value.
Many landlords opt for rental management services, as they cover almost everything that's required. Additionally, property managers have the experience and knowledge to handle property management far more effectively than the average investor.
There are several key reasons that an investor may be better off with rental management services. Someone who owns multiple properties, for example, won't be able to stay on top of everything. Rental management services are scalable, so if you want to grow your real estate portfolio, they'll be able to manage your new properties.
Which Is Best?
If you only want help with finding tenants, tenant placement may be all you need. In this case, you'll need to be prepared to take over the management of your property.
If you want a more comprehensive service, rental management is the better choice. You can rest assured knowing your properties are in good hands.
PMI East Lyme offers property management services throughout East Lyme and surrounding communities. We're a part of PMI, one of the largest real estate management firms in the US. Look at our property management page to learn more about what we can do for you.
