It can take as long as 6 weeks to secure a tenant. This translates to 6 weeks without rent, which can really ruin your cash flow. That’s why, to find tenants at a faster rate, many landlords opt to partner with a rental agent. But as a real estate investor, will a leasing agent be enough, or will you need someone who’ll go beyond leasing? In this post, we explore the key differences between rental agents and rental managers so you can make an informed choice.
Rental Manager vs. Leasing or Rental Agent: What’s the Difference?
It’s a common assumption that the two roles can be interchanged, but not actually the case. To choose the best one for your rental business, it’s crucial to get a good grasp of what they both do.
Leasing or rental agents show a rental property to potential tenants. The core of their function is to secure tenants fast since many of them work on commission. A rental manager, on the other hand, does that and more. Rental managers (or property managers) deal with all aspects of property management, including collecting rent, conducting repairs, and performing maintenance, among many others. Ultimately, their main responsibility is to make sure your property stays profitable.
Put simply, a leasing agent’s goal is simply to rent the property out, while a rental manager aims to make sure the renters they find stay for the long term. Essentially, a rental manager can assume the role of a rental agent, but it can’t be the other way around.
Should You Choose a Rental Manager or Rental Agent?
When choosing between a rental manager and a rental agent, it all boils down to your goals. If you simply want to find tenants fast and self-manage the rest, a rental agent’s services might suffice.
However, if you truly want to maximize your investment, it would be best to partner with a property management company. It will cost more money, but it will be worth it in the end because you’ll get all-in-one property management services. Not only will they find tenants fast, but they’ll also make sure your property is cared for, your rent is collected, and your tenants are more than satisfied with their stay. At the end of the day, you’ll want to work with someone who can handle all aspects of your property.
Benefits of Leasing Through a Rental Management Company
Below, we’ve outlined some of the benefits of renting out your property with the help of a South Florida rental management company:
#1 They’ll Help You Find the Perfect Tenants
A rental agent’s main concern is money, so they’re less likely to put an effort into finding ideal tenants for your property. Meanwhile, rental managers are concerned about the renters they choose. They’ll be dealing with the renter for as long as you partner with them, which is why they’ll do their best to find someone who won’t cause problems. They also know that their reputation is on the line, so if they rent to bad tenants, they know their business will be at risk.
Rental managers will list your property on popular, reputed sites such as the MLS, Realtor.com, and many more. In that way, more people can discover your vacant property. Once they have a pool of prospective tenants, they’ll conduct a strict screening process which involves checking their credit score, criminal past (if any), employment status, and so on. They’re also trained to spot red flags in tenants, so you can rest easy, knowing that bad tenants will be weeded out.
#2 They Can Free Up Your Time
Landlords generally have a long to-do list from the get-go, so it can be a great relief to have a reliable partner by your side. With the rental manager promoting your property for you and sorting through prospects, you can concentrate on other commitments while knowing your investment is cared for. For example, you can spend your time expanding your portfolio with fractional ownership.
Furthermore, if you live in a different city, it would be wise to hire a rental manager so you don’t have to travel to and from your rental every time you have to show your property to prospective tenants. Even if you may be able to deduct your travel expenses from your taxes, it’s still time-consuming to travel.
#3 They’ll Ensure Compliance During the Tenant Screening Process
Navigating the rules and regulations of tenant screening can be challenging for first-time rental property owners. There are many laws surrounding how you secure tenants, such as the Fair Housing Act (FHA) which protects potential tenants from any form of discrimination. For instance, if you thought you could write “perfect for families with children” in your rental listing, think again – that could be viewed as discriminatory by child-free couples.
To avoid any legal issues, consider leasing your property via a rental management company. They’re well-versed in rental laws, so you can rest assured knowing that all your activities are performed with full compliance. They’ll also carry the load of staying up-to-date with any changes in the law, and support you in the rare chance that you find yourself in court.
#4 They’ll Collect Rent on Time, Every Time
As we earlier mentioned, rental managers do more than find tenants – they also manage those tenants, including collecting their monthly rent. While you will get your first month’s rent from a rental agent, that’s all you’re guaranteed to get – you’ll be on your own when you collect rent for the second month, the third month, and so on. If you’re new to the rental world, you may have a hard time collecting rent. You probably won’t be able to put your foot down when tenants try to make excuses for their late payments.
Without a property management company, you run the risk of disrupting your cash flow due to late rent payments. A good rental manager will make sure that rent is paid to you on time, every time, no matter what.
Hire Rental Property Managers in South Florida
When you hire a rental property manager, you can be confident that your day-to-day responsibilities will be professionally handled. They won’t just find tenants – it will also be their job to make sure your property remains profitable for as long as possible. That means they’ll do everything, from collecting rent to overseeing legal compliance.
At Luxury Property Care, we provide full-service property management to South Florida rental owners. For more information on how we’ll help you run your rental, contact us at (561) 944 – 2992 or complete our contact form today.