Many landlords hear "passive income" and think that they can earn money while doing nothing. Just sit back and let rent roll in.
They'll soon realize how active the job is, especially if they manage the property themselves. Routine inspections are a necessity, and tenant disputes or maintenance issues can pop up at any time.
There are professionals you can call to make it easier on yourself by taking over certain landlord duties. Read on to learn the differences between a leasing-only service and full-service property management.
What's a Leasing-Only Service?
Jacksonville ranked seventh for highest vacancy rates in Florida with a rental vacancy rate of 6.3%. Landlords with empty units they can't seem to fill may want to focus on that area of their business.
A leasing-only service is also known as a tenant placement service. It helps with areas related to securing tenants for the rental property. These may include:
- Rental property marketing
- Property showings
- Tenant screening
- Arranging lease signings
- Compiling leases
- Collecting security deposits and the first month's rent
They step back after the tenant has signed the lease. This allows you to manage the property yourself.
What's Full-Service Property Management?
What about the landlords who are overwhelmed by every step of the process? What if they wish they could find help finding tenants, keeping them happy, and keeping the property up to code?
Full-service property management is the answer. It includes lease services and also helps with everything else involved in managing a property, including:
- Rent collection
- Inspections
- Evictions
- Maintenance and repairs
- Accounting
- Legal compliance
This allows you to be a hands-off landlord as your representative handles everything.
Which One Should I Choose?
Consider how much time you have available to manage your property. Both options will save you time, but what if you have a family or a full-time job? Full-service management may be necessary.
Think about which option fits best with your budget. Full-service management is the better value, but it's also more expensive.
New landlords on a budget may only be able to afford leasing-only services. They can always upgrade later when their investment grows.
Most landlords are individual investors with only 1-4 units. They may be able to get by with the help lease-only services can provide.
Out-of-town investors may not be able to get to their property in time to handle any issues. Managing all the properties in a large portfolio may also be difficult. Full-service is the better option in both situations.
Where Should I Look for the Right Service?
Leasing-only service can handle everything involved in finding and securing tenants. Full-service options go beyond that and handle everything involved with managing properties.
Choosing between them depends on your resources in terms of time and money. You'll also have to consider the size and locations of the properties in your portfolio.
Round Table Realty Property Management is run by three award-winning professionals with 40 years of combined experience. Contact the team to see what our exceptional service can do for your investment today.
