There are 20 million rental properties in the United States, 14.3 million owned by individual investors.
If you own even one of these millions of properties, you know how difficult it is to manage. Owning multiple properties and managing them all on your own is impossible.
You know you need help, but you can't decide between rental management and tenant placement services. Keep reading to learn the differences between the two to find out which is right for your situation.
What Is Rental Management?
Rental management involves hiring a property manager to complete day-to-day investment property operations. These companies employ property managers who can handle these tasks:
- Property marketing
- Tenant screening
- Rent collection
- Property maintenance
- Tenant relations
A full-service property management company offers investors a hands-on approach to property management so that you can spend more time doing what you do best; investing.
The time that these professionals free up for you could be spent diversifying your portfolio. The more real estate you have scattered across the United States, the better.
What Is Tenant Placement?
Tenant placement is a subset of property management. It doesn't involve ongoing management but focuses on finding adequate tenants for your rental units.
If you are a great property manager but don't want to dedicate time to marketing to tenants and screening applicants, tenant placement services can benefit you.
In this scenario, you take control of day-to-day operations, such as:
- Rent collection
- Property maintenance
- Tenant relations
Tenant placement services take on the tasks of marketing the property, conducting tenant screenings and background checks, and creating lease agreements.
These services are beneficial if you want to find the best tenants. These are people who have good credit scores and pay rent on time.
Once a quality tenant is placed, all other management responsibilities fall on the landlord.
Rental Management vs. Tenant Placement: The Main Differences
Rental management and tenant placement overlap in some ways. If you hire a full-service rental management company, a property manager will place tenants for you, as well as complete other important tasks.
The main differences between the two are:
- Time commitment
- Expertise
- Decision making
- Cost
Tenant placement requires a time commitment for day-to-day operations from the landlord. Rental property management takes on all landlord tasks to free up your time completely.
Property management services might have more expertise in managing property and screening tenants than landlords. They also know the market well and can factor that into their decision-making.
Lastly, both rental management and tenant management will charge a fee. Full-service management is going to be more expensive than tenant placement services.
No matter which you choose, you'll be able to see a return on investment from both of these services.
Let Our Property Management Team Help
PMI Station is the ideal choice for rental management and tenant placement. We have over 20 years of experience with full-service property management and placing tenants.
We make property management manageable and that includes property marketing, screening tenants, creating leases, and more.
Don't wait any longer to start having some free time. Contact us today to learn more about our helpful services.
