If you're a Tampa Bay landlord, you may already know that potential tenants may find buying a house more appealing than renting. It's mainly due to rising rent prices, but that doesn't mean the rental market is doomed.
If anything, since competition among buyers is fierce, those who don't "win" are forced to rent. You also have to consider that the housing market is constantly changing. For some, renting is the best choice for their lifestyle.
Having said that, you may be wondering if it's better to invest in tenant placement over rental management. Here's what you need to know.
Understanding Tenant Placement Services
Tenants who don't pay rent, don't leave, or damage your property will eat into your potential profits. Rather than dealing with nightmare tenants, it's best to ensure your tenant screening process works.
Now, for some landlords, that means working with a company offering tenant placement services. With a reputable company, you won't have to worry about effective tenant selection. They'll also take care of:
- Advertising your rental
- Arranging showings
- Negotiating the lease
- Completing the lease agreement
Compared to rental management, tenant placement may be more cost-effective. Most tenant placement firms require a one-time fee, or you can hire them as needed. However, it's on a case-to-case basis, as there are times when it's better to invest in rental property management services.
Working With Rental Management Companies
No matter how many articles you consume on tenant management tips, it takes experience to implement effective property rental strategies. If you're a newbie landlord or would prefer to be hands-off with the day-to-day management of your property, a rental management company is your best option.
Not only can they attend to tenant complaints fast, but they will also ensure your rental is well-maintained and up to code. Since they are experts in all areas of property management, you can rest assured that both parties are working towards rental income enhancement.
The downside, however, is that rental management costs more than tenant placement. You must decide if marketing, tenant screening, rent collection, property maintenance, and handling evictions are worth it or if you would instead take on these management tasks yourself.
Which Option Is Better for Tampa Bay Landlords?
If it works for others, it doesn't mean you should follow suit. Always consider your personal circumstances. To start, you should be honest about your:
- Property management experience
- Available time for rental property management
- Budget constraints
For example, if you're an accidental landlord, two things can happen. Either you get the hang of being a landlord quickly, or you'll struggle with property management tasks. If you're the former, then you may need tenant placement services from time to time.
Otherwise, consider working with a full-service property management company to help maximize your rental's profitability.
The Choice Is Yours
Whether you go for tenant placement services or work with a rental management company, you'll reap the most benefits when you have a reputable partner.
With over two decades of industry experience, PMI Arrico Realty & Property Management can help Tampa Bay landlords like you. We can help you find qualified tenants, or we can take over rental management duties to help you maximize your rental's financial potential.
Contact us today so we can work on a strategy that increases your rental's profitability.
