If you're looking for a good long-term investment, real estate is widely considered one of the best asset classes you can go for.
While it can yield a lot of benefits, there are also some challenges that come with owning rental properties. Fortunately, you can outsource various tasks to make things much easier. Tenant placement is a common example of this, but many landlords prefer to opt for rental management.
So what's the difference between these two services, and which should you use? Keep reading to find out.
Tenant Placement
Tenant placement is a type of service you can use if you're trying to find reliable tenants. Tenant placement services can cover all the steps involved to help you find someone reliable to rent your property.
The first part of this is marketing. They'll promote your property through suitable channels to help you attract quality tenants. Proper marketing is vital, especially in a tough market.
Next, they'll conduct a thorough tenant screening process. This will narrow down the list of applicants and help you avoid tenants that could cause issues down the line. It will highlight things like:
- A history of unpaid rent
- A history of criminal activity
- Any potential lies in applications
Your tenant placement company will then negotiate lease terms with the tenant. This will help ensure both you and your new tenants are happy with the agreement while also reducing the risk of confusion about any details.
Finally, they'll help move your new tenants into your property. After this, they'll hand things back to you. You'll then be in charge of all day-to-day property management tasks.
Rental Management
Rental management typically includes all aspects of tenant placement, as well as various other property management services. Some common services included here are:
- Property maintenance
- Tenant relations
- Rent collection
- Accounting
- Lease renewal
While tenant placement is a one-time service, rental management is ongoing. You can have a property management company oversee the daily operations of your property for as long as is needed.
This is best if you don't want to manage things yourself. Managing a single property can be very time-consuming, and things become even more difficult if you own multiple properties.
By handing things over to a property management company, you can ensure everything is handled properly by trained professionals. This will give you a lot more free time to focus on other areas of your life.
Note that if you decide you want to take over certain aspects of your property management yourself, you can adjust the services that you get from a property management company.
Which Is Right for You?
Both tenant placement and rental management can be useful if you're trying to achieve rental income maximization. You need to think about your needs to determine which would be a more suitable approach for you. Speaking to an experienced property manager can be helpful as they'll be able to give you expert insights to help you decide.
Rental Zebra is a professional property management company that has been helping clients in Merced, Stanislaus, and San Joaquin Counties and beyond for over a decade. Our focus on excellence, responsiveness, and compliance ensures we always provide the best level of service available.
Take a look at our property management page for more.
