If you invest in a rental property, you can make a reliable income. The amount you make, however, will depend on various factors.
It takes some work to maximize your profits. Fortunately, you don't have to do everything yourself.
Many investors outsource tasks to professional service providers. Tenant placement services are common as they can help people with one of the most difficult aspects of being a landlord. Rental management is another popular choice for those who want a more comprehensive service.
In this guide, we'll go over tenant placement and rental management so you can see how they compare. Keep reading for more.
How Tenant Placement Works
You can only start making a rental income once you have tenants in your property. If your home is ready for people to move in, then you should try to find tenants as soon as possible.
A tenant placement company can help you find tenants. They begin this by marketing your property. They'll create online listings with quality images and an enticing description that will draw in renters.
The more interest there is in your property, the more people there will be requesting viewings. Your tenant placement service will organize these viewings and then accept any applications from interested parties.
After looking through the applications, they'll conduct thorough tenant screening on potential tenants. This will help them narrow the applicants down to find the best quality tenants. These are tenants who are less likely to cause damage or create other issues and you can expect them to pay rent on time.
Once you've settled on your choice, they'll help you move the tenant in and negotiate their lease. At this point, the service ends and you'll take over the day-to-day management of your property.
How Rental Management Works
Rental management involves a lot more. Tenant placement is a key part of it, but the service continues after this for as long as you need it. It's an ongoing service that covers all of the daily operations of your property.
A property manager will oversee tasks such as property maintenance, rent collection, tenant relations, administration, and lease renewal. They can even assist with legal matters such as evicting tenants if need be.
This service is far more suitable for anyone who doesn't want to manage a property themselves. It's important to understand that managing a property takes a lot of work and can be very time-consuming.
It can be even more important for certain investors. Someone who owns multiple properties will have a much harder time staying on top of everything, so rental management can be invaluable. A landlord who doesn't live close to their rental properties can also benefit a lot more from rental management.
Which Should You Use?
A DIY landlord who is happy to manage things on their own may only need tenant placement. Those who don't wish to tackle everything on their own will be better off with rental management services.
PMI Central Oregon provides property management services throughout Bend and the surrounding communities. We operate under PMI, the fastest-growing property management franchise in the US. Check out our residential property management page to find out more about the services we offer.
