Are you sure that you understand the details of the Fair Credit Reporting Act? Do you have confidence that you're not in danger of violating the Fair Housing Act?
When you're a landlord, you have a complicated legal landscape to manage. If you're not on top of your game or too busy to pay attention to the details, your source of passive income can become a headache.
Whether you're concerned about the day-to-day or avoiding other issues, a leasing-only service can get you started. In some cases, a full-service property management company makes even more sense.
If you're debating what type of business you should hire, continue reading to learn the details that will become crucial to your decision-making.
What is a Leasing Only Service?
Hiring a leasing-only service divides duties between yourself and the property manager. While you handle what happens after the lease becomes signed, the company you hire takes care of finding tenants.
This arrangement means that the management company advertises availability, screens applicants, and secures the deal. Taking on these tasks comes with a moderate fee to cover costs and time.
Advantages
The first benefit is saving yourself time and money. If you don't have to spend the time upfront, you can concentrate on more critical things.
You also have the confidence that a self-management hybrid brings to landlords across the country, along with potential tax benefits. If you don't have to sweat finding high-quality tenants, the rest of your plans for passive income fall into place.
Disadvantages
While the "sales" part of the process becomes handled, you still have plenty of responsibilities to manage. Additionally, you're assuming a significant amount of liability that others can take off your shoulders.
What is Full-Service Property Management?
A full-service property management company handles the complete tenant lifecycle and helps you stay up to code. If you have trouble keeping up with the tasks that come with owning a rental property, this can remove all of those troubles.
Advantages
When you choose a full-service company, you can leave your troubles behind and let others handle your day-to-day problems. Attracting new tenants, completing maintenance, and avoiding legal challenges are officially off your plate.
Disadvantages
If you prefer to have more control over everyday activities, this can also become a problem for those personality types.
Giving this much trust to another party means sharing the profits, of course. In most cases, a portion of the income goes directly to your professional property manager.
Do You Need a Leasing-Only or Full Service Property Manager?
Now that you understand the difference between a leasing-only service and a full-service option, you must have more questions! Knowing which category works best for you is only the start.
HomeRiver Group has the experience that you're looking for in a Houston-based property manager. Contact us today through our website or call us at 855-744-4268!
