19 Sep Points to Consider When Deciding Who Will Lease Your Rental Property – Your Agent or Your Property Management Partner
If you own a rental property, your main goal is to attract long-term viable tenants who will occupy the property, which in turn will lead to sustained income. After all, as a rental owner, your goal is to maximize the comprehensive rate of return.
When you’re searching for companies to help you in the leasing process of your rental property, you will likely be faced with two main choices — going with your real estate agent or opting for an Austin property management team.
In many ways, trusting a property management company with your rental property is the smart move, as it provides you with many advantages over a traditional individual agent.
Here are some of the main points you should consider when deciding who will lease your rental property.
Can They Legally Lease the Property?
While an agent will provide assistance in searching and acquiring your real estate investment property, many aren’t allowed to lease the rental property for the rental owner. In order to do so, agents have to get written authority from their brokerage. If they don’t, it could lead to litigation.
On the flip side, an Austin property management partner will have all the legal requirements necessary for leasing and marketing your rental property. Not to mention, the years of experience to execute the process efficiently and properly to get you the best possible tenant in contract.
Can They Properly Market the Rental Property?
Agents and property management companies alike both have the ability to market a rental property on the MLS. They even both have the ability to acquire a tenant for the rental owner, as long as all licenses and compliance matters have been met.
The big difference between the two, however, is in preparing the rental property for leasing. A huge part of real estate investing is ensuring that a rental property is prepared to go to market.
This is where an experienced Austin property management company can separate itself from individual agents.
Property management teams provide an initial rental property walkthrough and will know what to look for. This is an essential part of the “go-to-market” plan. It’s a process that can’t be overlooked and simply won’t be provided by an individual agent. This foundational step sets up the property and investor for a successful relationship with future tenants.
Your Austin property management partner will have extensive experience providing walkthroughs with vendors with which they have long-standing relationships. They’ll be able to provide you with solid estimates on the cost and fees for what your real estate investing project needs, as well as a timeline for completion. They’ll also be able to suggest small changes that can protect your investment or help you avoid future pitfalls.
Only after this walkthrough and estimate have been done will you be able to fully see what your rental property needs. Without this, your rental property may not be in the best condition before it goes to market.
Can They Provide a Listing Timeline?
Your Austin property management partner will have inside details about the progress of your rental property. As such, they’ll be able to provide a general timeline and updates to you as the rental owner so you have realistic expectations about when your property will enter the leasing phase.
Minor updates to a property may take only a few weeks to complete, while major renovations could take one or more months. It all comes down to the condition in which the property begins. Either way, a property management firm will be able to keep you in the loop on the process, and advise you every step of the way to help you maximize your real estate investing returns.
This is an area where an individual real estate agent will play no part at all. An agent can simply market your property, but will serve no advisory role in getting it into the best shape so that it’s competitive in the market and has the best chance to get a quality renter under contract quickly.
Can They Acquire a Tenant?
Individual real estate agents may have the legal ability to acquire tenants for rental owners. However, professional property management firms have the experience and processes in place to properly vet all potential tenants and may even be able to deliver statistical results proving their success rates.
To this end, an experienced Austin property management firm will have custom leasing agreements that have proven to work in attracting the highest quality of tenants for rental owners. This includes ensuring all background checks are done properly and that nothing slips through the cracks.
While individual agents will likely also have legally-binding documentation, they are much more generalized and not specific to your rental property or your needs as a rental owner.
Further, a downfall of working with a generalized sales agent is that once the leasing has been completed, the property management related duties fall back into the hands of the property owner. With a property management partner, this doesn’t happen; the firm stays on board and helps with every other aspect of the leasing process.
Choose 1836 Property Management
Real estate investing in the Austin, Texas, market can be very lucrative, but only if you have the right partners. As a rental owner, one of the best things you can do is partner with an experienced Austin property management company to assist you with all your real estate investing needs.
At 1836 Property Management, we have years of experience helping investors just like yourself be successful in leasing rental properties. Contact us today to find out how we can help you improve your real estate investing ventures.
By: Kayla Gonzales, 1836PM Marketing Manager