There are two types of property management services that property management companies provide: full-service and partial. In this post, we’ll be breaking down what sets them apart so you can decide which one is for you.
What Is a Property Management Service?
Before we dive into the difference between full-service and partial property management, we need to define what property management even is. When rental property owners don’t have the time or expertise to run their rental on their own, they have the option of partnering with those that do. Property managers are part of a larger company that lends property owners a helping hand, allowing them to run their rental properties properly. Their role is to do what the property owner would typically do, and ultimately pave the way toward passive income.
For instance, if a rental property owner lives overseas, they can partner with a property management company that can tend to their property’s day-to-day demands. By doing so, their rental doesn’t need to suffer from their absence, and they can continue to earn rental income even when they’re away. They’ll also be able to protect their property and ensure it stays structurally sound.
What Is Self-Management?
There is a type of property management that isn’t provided by property managers but is available to you. Self-management is when you manage your rental property on your own. You do not partner with a third party that assists you with tenant screening, rent collection, and so on. All rental-related responsibilities are no one but yours. In short, you’re a one-man show.
What Is Full-Service Property Management?
Full-service property management is the total opposite of self-management. If self-management involves managing on your own, full-service management involves delegating every single thing on your to-do list to a third party. In other words, the owner doesn’t have to lift a finger.
In full-service property management, a manager does everything that an owner would otherwise have to do, such as screening tenants, collecting rent, and even evicting. Not only that, but they also make themselves available to attend to the tenants’ needs. It’s the perfect option for owners who don’t want to spend their time running their rental, or who want to earn money without having to do the heavy lifting.
What Is Partial Property Management?
There are rental property owners who want to be a bit hands-on with their properties. They see the benefits of partnering with a property management firm, but they still want to be able to contribute to the management of their property. These property owners prefer to be involved than to have a third party make the call for them all the time. Partial property management is common among property owners who want to gain experience in managing properties.
A property owner may also prefer partial property management if they’re particularly good at something, such as real estate law. If you were a lawyer, it would make the most sense to assume all compliance-related concerns and then delegate the rest of your duties to a third party. Or, if you’re a people person, you may want to deal with tenants personally, and tell your property management agent to handle the rest of the non-tenant-related matters.
What Type of Property Management Service Is For You?
How hands-on do you want to be, and how do you want to contribute to your rental’s success? If you aren’t confident in your property management abilities, and you don’t want to risk running a rental by yourself, full-service property management is a perfect fit. Similarly, if your goal is to generate passive income, you may opt for a property management firm that offers full-service management.
Suppose repairs aren’t your forte but communication is. In that case, it would be best to choose partial property management and let the pros handle the aspects that you can’t. Or, if you prefer to find your tenants yourself, you can avail of partial property management services and have your manager handle things aside from tenant screening.
Successful Property Managers Go For Full-Service Management
Overall, you get to choose what property management services you want to go for, however, it is worth mentioning that seasoned (and successful) landlords choose full-service management. Keep in mind that being a rental property owner is a full-time job, and that its demands will not take a break. You need to be able to commit to being a landlord – if you can’t do that, you need to consider partnering with a property manager who’ll be there 24/7.
And if you think partial property management is for you, think again. You may be able to handle some parts of property management now, but remember that as your portfolio grows, so will your responsibilities. Eventually, you will be overwhelmed by everything that needs to be done, and you will outgrow partial property management.
Investing in full-service management means you can be sure that your property is being managed properly. This leads to more greater rental income, reduced vacancies, and renters who’ll renew their lease agreements time and again.
What’s Included in Full-Service Property Management?
Here are a couple of examples of the services you can expect from a full-service property management plan:
- Market Analysis. This is a skill that’s hard to come by, and chances are, you don’t have the capabilities to conduct it. Property management companies will study your market to make sure your property will be profitable.
- Full-service property managers have access to more listing sites than the average person.
- Tenant Screening. If you aren’t familiar with Fair Housing Act (FHA) and anti-discrimination laws, you may find yourself in court.
- When you partner with a full-service property management firm, you can benefit from their vast vendor network, and avail of contractor services for a fraction of the typical cost.
- Full-service management companies can draft fool-proof lease agreements to protect you and your property.
- …and many more.
Looking For Full-Service Management in South Florida?
If you want your property to succeed, don’t risk it on self-management or partial property management. Instead, go for full-service property management to guarantee consistent rental income, reduced turnover rates, and improved property values. For full-service property management that you can count on, look no further than Luxury Property Care. Having served the South Florida region for years, we’ve gained valuable experience that has allowed us to maximize our clients’ investments.