Despite having big-city and world-class amenities like those in Los Angeles and New York, living and renting in Houston, TX, is cheaper. Here, the average rent is around 23% lower than the U.S. average. You can also rent a 3-BR apartment here for only about $1,793 monthly, whereas a similar property in New York could cost around $3,500, nearly twice!
No wonder Houston attracts renters from not just Texas but other states, too. So, as a rental property owner here, you should consider investing in tenant placement or rental management services. They can help you fill your property with qualified tenants.
This guide explores how these two services differ, so read on.
Tenant Placement 101
Tenant placement is a multi-service arrangement between landlords and property management companies. Its primary goal is to help landlords find qualified tenants. It usually involves the following services:
- Marketing the property, including taking professional photos and creating engaging listings
- Responding to prospective applicants and property inquiries
- Coordinating and overseeing property showings
- Conducting comprehensive tenant background checks
- Helping placed tenants move into the property
The contract then ends once tenants have successfully moved in. After that, you'll have to manage your rental by yourself.
How Tenant Background Checks Work
Professional background checks are comprehensive reviews of factors related to a person's qualifications to rent a property. These include each applicant's:
- Financial standing, such as their employment status and income sources
- Credit standing, including their credit score and credit history
- Rental background, such as if they've been good renters in the past
- Eviction history, to see if they've had prior evictions
- Criminal histories, including convictions for severe crimes or felonies
Thoroughly checking those factors lets property management experts determine which applicants are most qualified to rent your property. They also do these checks in compliance with the Fair Housing Act (FHA) enforced by the Houston, TX, government.
How Rental Management Differs
Rental management services also include tenant placement. However, it's much more comprehensive, as it also provides the following:
- Rental property valuation
- Accounting and reporting services
- Rent collection
- Property inspections, maintenance, and repairs
- Assistance with homeowners' association (HOA) violations
So, by outsourcing rental management, you'll have a dedicated property manager do most of your landlord duties on your behalf. The primary downside to this is that you'll pay more than if you just outsource tenant placement.
However, with rental management, you'll have fewer landlord tasks. You can simply sit back, relax, and wait for your manager to deposit your rental income into your account. You can enjoy the financial perks of being a landlord while avoiding most of the stress and work of being one.
Ready to Find Trustworthy Tenants?
Now you know that tenant placement and rental management services can help you find and place qualified renters on your property. However, if you need help with more than just finding tenants, opt for full-service rental management.
First Class Realty, Inc., is your go-to for professional property management. Since 2001, we have provided high-quality rental management solutions throughout Houston.
If you're ready to improve your rental business, contact us today. We'll happily give you a free property consultation to get you started!