Are you a landlord in Florida looking to take some arduous work off your plate? If so, then this brief guide is for you.
One of the most time-intensive, admin-heavy parts of the job is finding tenants, setting up a lease agreement, and doing all the checks you need to do. You could save a lot of time, stress, and money (indirectly) if you got a service to do this for you.
Tenant placement and rental management help landlords with this, but in different ways. Learn more about these services in the discussion below.
Tenant Placement Services
A tenant placement service is when a property management company does all the pre-leasing work for the landlord. They first list and market the rental property, which gives the owner the benefit of a much more comprehensive array of potential tenants who already trust the property management firm.
The property manager will process applications, conduct tenant screening that's compliant with Florida's leasing laws, and draft the lease agreement. However, once the tenants move in, the owner takes over all the landlord's responsibilities, including maintenance and handling the security deposit correctly.
Rental Management Services
Rental management is when the property manager or management company takes over all the landlord's responsibilities. They also handle the pre-lease admin, onboarding, property maintenance, rent collection, and the final check-out.
Rental management services are pricier because they're more comprehensive. Whereas you may pay an up-front fee for tenant placement, most companies bill you for rental management by claiming a percentage of the monthly rent. This can still work out cheaper for many people than doing the jobs themselves in their specific contexts.
Which Service Suits You Better
There isn't one inherently better service; they suit different types of people. Tenant placement services are ideal for people for whom being a landlord forms part of their day job. It's either one of several side hustles, or you have many properties you run full-time.
People in this position benefit from advertising and the "legal shield." The property manager's reach gives more access to potential tenants. You also don't have to worry about missing a technicality in the lease agreement or running against the law during the screening process.
People who benefit the most from rental management are those who have real opportunity costs associated with their rental property. This would be those with hectic professional lives who can't spare time for landlord responsibilities. It could also be people who live too far away for it to be practical.
Getting Service You Can Depend On
Tenant placement and rental management services both make life easier for property owners. Tenant placement only covers marketing, screening, and the contract elements of the leasing process. The owner takes over once tenants move in.
Rental management is when a property manager acts as the owner's agent in all respects. The fee is normally a portion of the rental income.
Figuring out which one works best for you is a key business decision. Everest Property Management is a partner that brings a wealth of expertise to the table. Partner with us today for excellent landlord advice and service.
As a top producing Realtor and Property Manager; Terry specializes in sales, extensive construction homes, rentals, REO’s, short sales, and all aspects of Real Estate. After graduating the University of Michigan with a master in MBA, Terry continued his endeavor and now has over 15+ years of experience in the Real Estate world. If there is anything that has to do with Real Estate and sales, you can always be sure of Terry to provide important, specialized knowledge.
