Keeping a rental property occupied all year is every landlord's #1 goal. Thankfully, the rental market in Punta Gorda, FL, is thriving, with a vacancy rate of just 6.9% in 2023.
If your rental is currently unoccupied, you might wonder whether to use a rental placement service or outsource everything to a property management company. Both options have advantages and disadvantages. It's your responsibility to weigh the options and settle on one that suits your needs.
Continue reading to learn more about tenant placement vs rental management.
What Does a Tenant Placement Service Do?
Tenant placement services have one job: supplying quality tenants to landlords.
Think of it as a recruitment service, but in this case, the landlord is the employer and the tenant is the job seeker. The service will do all the necessary screening and build a pool of qualified tenants. Once a rental vacancy arises, the service will send the tenant's details to the landlord for consideration.
Pros and Cons of Tenant Placement Services
A major benefit of working with a tenant placement service is you'll have a quick tenant turnaround time.
It can take anywhere from a few weeks to months to find a new tenant when you're a DIY landlord. A lot depends on how competitive the local rental market is at the time and your property marketing efforts.
With a tenant placement service, you'll typically have a new tenant by the time you're finished making repairs and other necessary refurbishments to the property.
You'll also likely save significant money when you use a tenant placement company. Although these service providers charge a fee, think about how much you'd have spent on property marketing and tenant screening.
A downside of using tenant placement services is that you may not get quality tenants every time you need them. Some companies cut corners during tenant screening, which means bad tenants can make it to a client's rental.
What Does a Rental Management Service Do?
A tenant placement service's job ends the moment they send a qualified tenant your way. After that, you have your usual landlord responsibilities to fulfill, including lease administration, rent collection, and property maintenance.
If you don't want to do any of that, hiring a rental management company is the way to go. A full-service company will take over all your tasks. Some offer tenant placement services as well.
Pros and Cons of Hiring a Rental Management Service
If you're a busy landlord or have several rental units, you'll appreciate the services of a property management company. Since they handle everything, you'll have more time to focus on other important things, such as expanding your investment portfolio.
Landlords who have a property manager routinely report higher occupancy rates, greater tenant satisfaction, and generally fewer rental property ownership headaches.
On the downside, your property manager will take a 5-8% cut from your rental's gross income.
Rental Property Ownership Made Easy!
Both tenant placement and rental management services are designed with landlords like you in mind. If you have the time to manage your rental, it certainly makes sense to engage a tenant placement service when needed. If you'd like a hands-off approach, hire a property management firm.
Contact our team at PMI Stingray Homes to learn more about our property management services in Punta Gorda, FL.