Rental properties--especially multi-family dwellings--are a great financial investment. They also require a great deal of attention, time, and work. There are a lot of moving parts you have to consider to make the venture a success.
Two of the most important ones are rental management and tenant placement. Both are vital to getting the most out of your investment property, but should one take priority over the other?
This article answers that question by exploring the pros and cons of both endeavors. This information will help you know how to prioritize these aspects of property management. It will help you keep your rentals filled with the best tenants while making sure your current ones are happy.
What Is Tenant Placement?
Tenant placement is the general term for finding a renter for a particular property. More precisely, it involves serious marketing and screening. The goal is to attract tenants that are the best fit for a particular property.
In short, being too picky means rental units go unfilled, and that costs you money. On the flip side, you want to ensure you are leasing to individuals who will pay their rent on time and not cause any issues in the neighborhood or complex.
If you are doing it right, tenant placement requires a lot of time and precision. You want to market effectively and be meticulous in doing background, credit, and reference checks. This also can be quite costly.
What Is Rental Management?
Rental management is addressing the demands of the property itself--including common areas--as well as responding to the needs of current tenants. This includes grounds upkeep and pest control.
It also entails fixing appliances, changing lightbulbs, or scheduling repairs on neighborhood facilities, like automatic gates. It also might mean keeping up with amenities on the property, like swimming pools, fitness centers, or walking trails.
Finally, rental management entails myriad accounting and clerical duties, such as rent collection and lease renewal. This includes staying in regular contact with your tenants and addressing any concerns they might have. It also could involve dealing with evictions.
Which Is More Important?
There is no clear-cut answer to this question. As mentioned, if your units are not filled, then you are losing income, so tenant placement is vital. The catch-22 is that, if you let property upkeep slide or neglect existing tenants, then you may not be able to rent them in the first place.
The good news is that, if you feel that either (or other) aspects of your real estate business are slipping through the cracks, there are solutions. A professional property management company can help you fill in the gaps. They can assist with any area of your business and leave the rest to you.
Find Property Management Services Near You
Now that you understand the different aspects of rental management versus tenant placement, you can find balance for your rental property. Addressing both will ensure occupied units and happy residents.
PMI St. Louis is a full-service property management company. We offer a range of services, including rental management, tenant placement, rent collection, grounds maintenance, and more. Reach out to us today to schedule a free consultation to discuss your St. Louis properties.