Full Service Property Management vs. Lease Only:What’s Best?

Introduction to Full Service Property Management

When managing a rental property, choosing the right management option can make all the difference. Full-service property management and leasing services are two popular options, but each serves different purposes. Whether you’re looking for hands-off management or prefer to handle certain aspects yourself, this blog will help you decide which path best fits your needs by comparing full-service property management to leasing services. Are ready to maximize your rental property’s potential? Contact us today to explore the best management option for your property.

Table of Contents

1. Overview

2. Key Feature Comparison

3. Pricing Comparison

4. Pros and Cons

5. Conclusion

6. FAQ

Overview of Each Option

Full-Service Property Management
Full-service property management takes care of every aspect of rental property management. This option is perfect for landlords who want a hands-off approach, letting professionals handle everything from marketing the property to managing tenants and maintaining the home. Services typically include rent collection, tenant placement, maintenance coordination, financial reporting, and even eviction processing when necessary.

Leasing Services
Leasing services, on the other hand, are more focused on tenant placement. This service is ideal for property owners who want help finding and screening tenants but prefer to manage the day-to-day aspects of the property themselves. Leasing services generally include marketing the property, conducting showings, screening tenants, and preparing the lease agreement. Once the tenant is in place, the owner takes over the ongoing management of the property.

Key Feature Comparison

Marketing and Tenant Screening
Both full-service property management and leasing services offer marketing and tenant screening, ensuring you attract the right tenants. However, full-service management often has more robust tools and resources to advertise across multiple platforms, while leasing services typically focus on listing the property on a few main sites.

Ongoing Maintenance and Repairs
One of the primary differences between full-service property management and leasing services is the handling of maintenance. With full-service property management, all maintenance requests and repairs are handled by the management company. Leasing services, however, do not cover this—once the tenant is in place, the property owner takes over handling all maintenance needs.

Rent Collection and Financial Reporting
Rent collection is another significant distinction. Full-service property management includes rent collection and detailed financial reporting, making it easier for owners to keep track of their income and expenses. Leasing services leave rent collection to the property owner, meaning they must also track their financials manually or through separate software.

Eviction Protection
Evictions can be a stressful process. Full-service property management typically includes eviction protection, handling the legal paperwork, court appearances, and tenant removal if necessary. Leasing services generally do not cover this, leaving the owner to manage the eviction process themselves if things go wrong.

Pricing Comparison

Full-Service Property Management Costs
Full-service property management tends to come with a higher price tag due to the comprehensive nature of the service. Typically, these services charge a percentage of the monthly rent, ranging from 8% to 12%. There may also be additional fees for things like maintenance coordination, inspections, or eviction services.

Leasing Services Costs
Leasing services are more affordable upfront but offer fewer long-term solutions. Most leasing-only services charge a one-time fee, often a percentage of the first month’s rent, which can range from 50% to 100%. While this option costs less initially, the property owner must handle the ongoing management tasks.

Pros and Cons

Full-Service Property Management Pros

• Hands-off experience: Property owners can be as involved or uninvolved as they wish.

• Professional maintenance: Repairs and maintenance are handled by the management team.

• Tenant retention: Property managers typically work to keep tenants satisfied to reduce turnover.

• Eviction support: If the worst happens, property managers handle the legal side of evictions.

Full-Service Property Management Cons

• Higher cost: The comprehensive nature of the service comes with higher fees.

• Less control: Owners who prefer to be hands-on might find the level of control too limited.

Leasing Services Pros

• Lower upfront cost: Leasing services come with a one-time fee, making it affordable for property owners who want to manage their property themselves.

• Control: Owners retain control over maintenance, rent collection, and tenant relations.

Leasing Services Cons

• No ongoing support: Once a tenant is placed, the owner is responsible for everything.

• Eviction and legal challenges: Leasing services do not cover evictions, leaving the owner to handle this process alone.

Conclusion

Choosing between full-service property management and leasing services depends on your specific needs and the amount of involvement you want in managing your property. Full-service property management is ideal for those who want a hands-off approach and professional oversight, while leasing services offer a more affordable, one-time solution for landlords willing to take on daily management tasks.

If you’re unsure which is right for you, consider the long-term implications of managing the property yourself versus the convenience of full-service management. Contact us today to explore your options and find the best solution for your rental property needs!

FAQ

• What are the tasks of a landlord?

  Landlords are responsible for maintaining the property, ensuring it meets local housing standards, collecting rent, handling repairs, screening tenants, and managing the leasing process. They also handle legal matters like evictions when necessary.

• What is the difference between a landlord and a property manager?

  A landlord owns the property, while a property manager is hired to handle daily operations like rent collection, maintenance, and tenant relations on behalf of the landlord. Property managers act as a buffer between tenants and the owner.

• What are the benefits of using a property manager?

  Description teProperty managers provide professional expertise in managing tenants, handling repairs, rent collection, legal issues, and even evictions. They help reduce stress for property owners, ensure properties remain in good condition, and maintain tenant satisfaction, potentially leading to lower vacancy rates.xt goes here

• How much does it cost to hire a property manager?

  Property management fees typically range from 8% to 12% of the monthly rent. Some companies may also charge additional fees for specific services like leasing, maintenance, or eviction handling. Check out our offerings.

• What are some important things to consider when hiring a property manager?

  When hiring a property manager, consider their experience, service offerings, fees, and reputation. It’s essential to ensure they have a good track record, are responsive, and offer transparent pricing. Additionally, check for any specialized services that may be important, like maintenance coordination or legal support for evictions.