Finding qualified tenants is the cornerstone of a profitable rental property venture in Florida. Placing reliable tenants sets the stage for a successful lease term, however, the work doesn’t end there. Some rental property owners believe that once you find the right tenant, the rest is smooth sailing. While some tenancies are less challenging than others, managing a rental property is a time-consuming process, and a significant commitment.
Many property management companies offer both full-service property management, as well as tenant placement services. While tenant placement can be beneficial for those rental property owners looking for full control over their property, full-service property management provides optimal success, return on investment, and tenant retention rates.
Is the difference between full-service property management and tenant placement that significant? As a professional property manager, I’m here to give you all the information about the two options. Let’s dive in!
What is Full-Service Property Management?
Full-service property management is the ultimate step towards building long-term wealth and generating an additional stream of income. Full-service property management includes services that allow your property manager to take over all aspects of daily management operations. While exact services may vary, full-service property management typically includes:
- Marketing and Leasing
- Tenant Screening
- Rent Collection
- Property Maintenance and Repairs
- Rental Property Accounting
- Rental Management Guarantees
Whether your property is a single-family home or a multifamily complex, the professional resources provided by a property manager enhance both your experience as a rental property owner, and your tenants living experience throughout their lease term.
An experienced property manager will not only manage your property, but will take the time to educate you and align your experience to meet your goals. At The Listing Real Estate Management, we firmly believe that a property manager should be a resource and a guide to you, and your tenants. While some property managers are skeptical of the decision to pay for property management services, many share that their property management journey was challenging and unsuccessful before choosing full-service management.
What is Tenant Placement Only?
Tenant placement varies significantly from full-service property management. As tenant placement does not involve any further management, this option should only be chosen by property owners who plan to be in full control of the daily operations of their property.
Tenant placement typically includes four steps to find and secure tenants, such as:
- Marketing and advertising your property
- Screening and placement of tenants
- Distributing and securing the lease agreement
- Move-in process
In simple terms, tenant placement is exactly what it sounds like: hiring a property manager for the sole purpose of finding tenants for your property. Once the lease is signed and your tenants are moved in, your property manager performs no further services.
In many cases, rental property owners choose tenant placement because they feel it is less of a commitment and a cheaper option to property management. However, what some property managers don’t consider is that once that duty is fulfilled and the property owner becomes the sole manager of the property, they are now in charge of rent collection, tenant inquiries, addressing maintenance issues, legal processes, and more.
Pros and Cons of Full-Service Property Management
Full-service property management is highly beneficial for Tampa rental properties. With anything in life, there are some aspects of full-service property management that may be seen as “cons”, depending on the outlook of the property owner. As rental property owners ourselves here at The Listing, we firmly believe that the pros outweigh the “cons” as we have led hundreds of clients to success and prosperity.
Pros of Full-Service Property Management
The pros of full-service property management are significant. We’ve witnessed firsthand the power that full-service property management has to change the lives of rental property owners. Whether you’re a first time investor, an experienced rental portfolio holder, or an accidental landlord, anyone can benefit from the experience and guidance of a professional Tampa property manager.
Stress-free and Time-Saving:
Full-service property management provides a stress-free rental ownership experience. Hiring a professional property manager that assumes responsibility for all daily operations means that you are removed from the tedious aspects of everyday management. Whether it’s responding to a tenant inquiry, finding a reliable maintenance vendor, or collecting and distributing funds, your property manager will handle it all.
Industry Knowledge and Professional Network:
Rental property investments are one of the most valuable tangible assets, especially in the Tampa Bay and St. Petersburg areas. If you have the means to invest and the desire to earn an additional income and build wealth, inexperience shouldn’t hinder you from doing so. A lack of real estate industry knowledge can make the investment and management process daunting, however, doing so with professional guidance makes the experience smooth and worthwhile.
As professional property managers, we know the ins and outs of the Tampa Bay real estate and rental market. At The Listing, we meet our clients where they’re at. Everyone is on a different journey in their investment journey; some are searching for the best neighborhood for their rental property, and others are looking to expand their multifamily rental portfolio. With our years of experience and extensive professional network, our full-service property management is built to guide all types of investors to long-term wealth and high ROI.
We know it can be difficult for rental property owners to set the most optimal rental price, so at The Listing, we offer a FREE rental price analysis to help guide you in the right direction. CLICK HERE to fill out the form to get started with a free rental analysis today.
Maintenance Upkeep for Your Rental Property:
One of the most important, yet difficult, aspects of managing your rental property is keeping up with maintenance and repairs. While efficient reactive maintenance is important, preventative maintenance is often overlooked and undervalued. With full-service property management, the right property manager will offer recommendations and share insight about preventive maintenance when necessary.
For example, your property manager will facilitate a move-in inspection, quarterly interior and exterior inspections, and a move-out inspection. These inspections give your property manager insight into the condition of all aspects of your property. With knowledge of general maintenance and appliance functionality, your property manager should be able to recognize areas that need preventative maintenance. Preventative maintenance will save you money, time, and spare you from conflict with your tenants.
At The Listing Real Estate Management, we work with an extensive network of licensed and trusted maintenance professionals who get the job done effectively, and charge fair prices. Our clients appreciate not having to search for a reliable vendor and face the risk of upcharges and poor craftsmanship.
Increased Tenant Retention Rate and Profits:
Full-service property management provides tenants with an elevated and safe living experience. While landlords and rental property owners often have other duties, a property managers’ sole responsibility is to manage your property. This means that your property is kept to the best of standards and your tenants’ needs are constantly met. As a property owner, you don’t have to worry about the daily upkeep of your property, tending to tenant inquiries, or general management responsibilities.
A property manager’s availability, prompt communication, and effective problem-solving can lead to a higher tenant satisfaction and retention rate. Not only does this make for an enjoyable rental experience, but it also guarantees a continuous income and increases your ROI. When your tenants renew their lease agreement, there is no vacancy period and no lack of rental income. It’s a win-win situation: your tenants continue to enjoy your property, and you continue to cash flow and earn a passive income.
Cons of Full-service Property Management
Full-service property management is highly beneficial for Tampa rental properties, however, there are some rental property owners who prefer to do things their own way. There are typically two aspects of property management that hinder Tampa rental property owners from choosing full-service property management over tenant placement only:
Lack of Control Over Your Rental Property
Every rental property owner is on their own journey — some are accidental landlords with no knowledge of the industry, and others are experienced portfolio holders with a passion for real estate investing and the Tampa Bay rental market. With that being said, not all rental property owners want to be completely removed from the management process. When you choose to sign up for full-service property management, your property manager is then responsible for all aspects of management, with the exception of mortgage, HOA, and other personal property payments.
The ability to earn a continuous income while being removed from the day-to-day operations is an attractive option to many rental property owners. On the other hand, there are plenty of property owners who struggle with the idea of handing over their valuable investment.
Full-service property management is most beneficial when the property manager and property owner are in complete agreement of the level of involvement of the property owner. If you prefer to have complete control over your rental property, full-service property management may not be the most appropriate approach for you. For more insight on self-management vs hiring a property manager, CLICK HERE.
Property Management Fees:
Another factor that drives property owners away from full-service property management is having to pay property management fees. There is a common misconception that property management fees eat away at rental income profits and financial returns. However, working with a reliable full-service property manager will have the opposite effect. The efforts of a professional property manager will help you build wealth while saving you money and time in areas like maintenance and vacancy periods.
Each property management company’s fee structure is entirely different. Some property managers are completely transparent with their pricing, and others may charge hidden or additional fees. If you’ve dealt with a property manager who tacks on hidden fees, this experience may have tainted your view of property managers. While I understand the disappointment of receiving an outrageous bill with unexpected fees from your property manager, it is important to note that there are many reliable property managers who will not surprise you like this.
At The Listing Real Estate Management, our property management fees are thoughtfully structured in a manner that allows us to provide transparent and effective full-service property management. The three standard property management fees are the leasing fee, monthly management fee, and lease renewal fee. Be sure to gather information on all property management fees before hiring your potential property manager.
Paying for full-service property management will significantly enhance your rental experience, ensuring a smooth operation of your rental property while earning a passive and stress-free income.
Pros and Cons of Tenant Placement Only
The alternative to full-service property management is tenant placement only. As Tampa property managers, we’re often asked about the pros and cons of tenant placement vs full-service property management. Although everyone’s management preferences are different, we find that our clients’ success rates are significantly higher when they select full-service property management in comparison to tenant placement only.
Pros of Tenant Placement Only
Tenant placement can be a beneficial alternative to full-service property management if you are an experienced rental property owner with the availability for a full-time management commitment.
Property Marketing and Leasing:
One of the benefits of tenant placement is that it typically includes property marketing and leasing. Property marketing may include professional photos, videos, and drone footage. Professional photos and videos are essential when it comes to marketing your property in the best way possible. Professional marketing and in-depth listing descriptions will attract a larger tenant pool, making it easier to find a reliable and qualified renter for your Tampa property. In addition, your property manager will list your property across various online rental platforms for optimal traffic and potential applicant outreach.
Tenant Screening for Your Tampa Rental Property:
The most significant benefit of tenant placement is, of course, finding a tenant for your property. Experienced property managers will vet and select tenants through a rigorous tenant screening process to ensure financial stability and positive rental history. At The Listing Real Estate Management, all of our tenants meet a strict criteria, including:
- Credit score <550
- No past evictions
- Employment verification, if applicable
- Sufficient and verifiable income of 3x the rental rate
- Previous landlord references
- Pass a background check
Enforcing this strict screening process ensures that tenants have the means to pay rent in full and on time, will respect and maintain the condition of your home, and comply with all aspects of the lease agreement.
Cons of Tenant Placement Only
Tenant placement may be beneficial for experienced Tampa rental property owners and investors who prefer to have full control over their rental property but still want to ensure the reliability of their tenants. While tenant placement works wonders for finding a qualified tenant, once the tenant is moved in and situated with a lease agreement, there is no further help from your property manager.
Self Management is Time-consuming:
Unless you are experienced in managing rental properties in the Tampa Bay area, managing your rental property may pose significant challenges. Once a tenant is placed and your property manager’s duties are fulfilled, your landlord duties can become overwhelming and time-consuming. Some tenants require a lot of attention, and to ensure their satisfaction, communicating and addressing their needs must be done in a timely manner.
Although you hope your property will not face any major issues, if a problem does arise, it can be challenging and time-consuming. Unexpected maintenance or repair issues may require weeks to months of attention. From finding the right maintenance vendor, to getting the work done or ordering new appliances, a maintenance issue can turn into a full-time job. If you have responsibilities besides managing your property, keeping up with communication or unexpected issues will become difficult and may hinder the satisfaction of your tenants.
Property Management Responsibilities and Lack of Resources
Full-service property management provides Tampa rental property owners with a plethora of resources that ensure the smooth operation of your property throughout the lease term. Property managers have access to online owner and tenant portals, online rental payment and financial tracking resources, a network of professional maintenance and real estate connections, and a deep understanding of the local Tampa rental market.
A lack of resources can hinder the success of your rental property. While the benefits of finding a qualified tenant are significant, the process is only getting started there. To be able to keep that tenant and encourage lease renewal, you must stay on top of all management responsibilities to ensure satisfaction and promote a seamless lease renewal process.
Ready to Hire a Full-Service Tampa Property Manager?
If you read this blog post, you’re most likely deciding between full-service property management and tenant placement only. As an experienced property manager, I’ve dealt with both full-service and tenant placement only. While we at The Listing are highly experienced in finding tenants, we often find that our clients realize they want more management help after their tenant is placed. Many rental property owners do not have the time to dedicate to managing their rental property to its full potential, and you don’t have to!
At The Listing Real Estate management, we find value in not only managing your property, but taking the time to educate, align, and guide you on your successful property management journey. Our full-service property management has helped hundreds of rental property owners earn a consistent and stress-free income and build long-term wealth. If you have further questions about tenant placement only vs full service property management, don’t hesitate to reach out to us! Contact us today at The Listing Real Estate Management, your boutique property manager!
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