As a property investor, one critical decision you will have to make is whether to manage your property by yourself, go for lease-only property management or sign up for a full-service property management package. Deciding between the two options can be overwhelming and challenging, as each comes with its unique advantages and disadvantages. However, we are here to help you make the right decision. In this blog post, we will be discussing lease-only vs full-service property management to help you determine which is right for you.
Lease-Only Property Management: A lease-only property management is also known as a tenant placement service. Typically, this package only involves listing your property, screening potential tenants and finding qualified renters who are interested in living in your rental property. After a tenant has been found and the lease signed, the property owner is left with the responsibility of handling all other aspects of property management.
This option might be ideal for you if you have a lot of time on your hands, have the expertise and experience necessary to deal with your tenants effectively, and can handle all the tasks involved in property management. Opting for lease-only property management can save you some costs, as you won’t be paying for additional services like property maintenance, rent collection, and regular property inspections. However, considering the hassles of screening tenants, attending to repairs, and dealing with tenant complaints, full-service property management might just be worth it.
Full-Service Property Management: Full service property management involves the entire range of services needed to manage a rental property effectively. These services include rent collection, property inspection, marketing your property, tenant screening, and maintenance and repairs. With full-service property management, your property manager serves as your representative, responsible for everything from securing tenants to taking care of the day-to-day operations of the property.
If you are a busy investor who wants peace of mind, opting for full-service property management will certainly be a great investment. Aside from having more time on your hands, it will also save you from stress that comes with managing your properties. Full-service management comes at a higher cost than lease-only management because of the added services on offer, but it provides you with more value. By opting for full-service property management, you will enjoy professional services that keep your property well-maintained and profitable while avoiding all the headaches that come with managing a rental property.
How do you decide the best approach for you? Here are some vital factors to consider:
Property Size: The size of your property can determine whether you need lease-only or full-service property management. If you have a large property or several properties in your portfolio, you might not have the time or expertise to handle all the tasks involved in property management. In this case, full-service property management might just be what you need.
Time Availability: Managing a rental property is time-consuming. If you don’t have the time to screen tenants, collect rent, and attend to repairs when necessary, full-service property management will be an ideal choice for you.
Budget: Property investors on a tight budget might go for lease-only property management. However, it’s important to note that while savings might be enjoyed initially, costs may pile up over time.
When deciding between lease-only and full-service property management, it can be a challenging decision for property investors. We hope this post has provided guidance to help you choose the best option for your rental property management. If you are still unsure, consider reaching out to a property management expert, like Robert Cole Properties, who offers both lease-only and full-service options. With lease only priced at $1295 and full service at 7% of the gross monthly rent plus a one-time leasing fee of $895 with every turnover, they can assist you in making an informed decision. Remember, selecting the right management approach can greatly impact the profitability and maintenance of your rental property.