Before we dive into the difference between full-service and partial property management, we need to define what property management even is. When rental property owners don’t have the time or expertise to run their rental on their own, they have the option of partnering with those that do. Property managers are part of a larger company that lends property owners a helping hand, allowing them to run their rental properties properly. Their role is to do what the property owner would typically do, and ultimately pave the way toward passive income.
For instance, if a rental property owner lives overseas, they can partner with a property management company that can tend to their property’s day-to-day demands. By doing so, their rental doesn’t need to suffer from their absence, and they can continue to earn rental income even when they’re away. They’ll also be able to protect their property and ensure it stays structurally sound.
There is a type of property management that isn’t provided by property managers but is available to you. Self-management is when you manage your rental property on your own. You do not partner with a third party that assists you with tenant screening, rent collection, and so on. All rental-related responsibilities are no one but yours. In short, you’re a one-man show.
Tenant placement is the process of finding and leasing a rental property to the best possible candidate. Finding the right tenant involves several steps, including advertising, arranging showings, and screening potential candidates. Once an ideal candidate is found, a tenant placement company will negotiate the lease, and complete the lease agreement, along with all other necessary documentation.
The most important step in finding a great tenant is the vetting process. Tenant placement companies know the right questions to ask to ensure a good tenant. Therefore, tenant placement is a great option if you would prefer to manage your rental property on your own but are unsure of how to find a long-term, reliable tenant.
Full Service Property Managment
Overall, you get to choose what property management services you want to go for, however, it is worth mentioning that seasoned (and successful) landlords choose full-service management. Keep in mind that being a rental property owner is a full-time job, and that its demands will not take a break. You need to be able to commit to being a landlord – if you can’t do that, you need to consider partnering with a property manager who’ll be there 24/7.
And if you think partial property management is for you, think again. You may be able to handle some parts of property management now, but remember that as your portfolio grows, so will your responsibilities. Eventually, you will be overwhelmed by everything that needs to be done, and you will outgrow partial property management.
Investing in full-service management means you can be sure that your property is being managed properly. This leads to more greater rental income, reduced vacancies, and renters who’ll renew their lease agreements time and again.