Colorado is now one of the top states for outmigration, meaning that more people are leaving than coming. Where does this leave property investors who purchased rentals in Westminster and surrounding areas?
Chances are, you're noticing a slowdown in the rental boom of a few years ago. Now is a good time to rethink your rental strategy and decide if that should include a property manager.
Are tenant placement services enough to overcome the hurdle of a dwindling pool of renters? Would rental management be the better choice? Read on to find out.
What Does Tenant Placement Include?
Tenant placement is the process of getting new tenants for a rental unit. It can include a variety of services such as:
- Property marketing and listing management
- Tenant screening
- Leasing management
Tenant placement is a great service if your biggest issue is gaining traction on a property and finding the right tenant for it. For example, if you have high tenant turnover, better tenant screening can help. Along with income verification and criminal background checks, a thorough credit check will help you find responsible tenants who tend to pay bills on time and in full.
What Does Rental Management Include?
Rental management (aka property management) is a more holistic approach to getting new tenants and increasing the ROI of a property investor. Rental management encompasses tenant placement services as well as:
- Property maintenance
- Ongoing tenant relations
- Accounting and financial reporting
- Rent collection
With the right property management company, you can sign up for full rental management services or customize your management package to only include the services you need.
Signs You Need a Property Manager
As we mentioned already, tenant placement services are great for property owners who mainly struggle to find and keep reliable tenants. How do you know if you need more than that?
One common sign is that you started a real estate portfolio with the intention of earning passive income. Managing a rental property is far from hands-off. If you don't want to be the one talking with tenants, scheduling maintenance, and protecting yourself from legal liabilities, a property manager can help.
Another common sign is that you need what we call landlord rescue. Maybe your tenants are months behind on rent and you don't know what to do now. Maybe you've allowed the property to fall into disarray and don't have the time to fix it alone.
Even if you simply want to see a higher ROI, property management could be the way to go.
Overcome Tough Odds With Westminster Property Management
A few years ago, investing in Colorado rental properties felt like a surefire way to grow a portfolio. Now, it's taking more work than ever before to secure tenants and reap a consistently high return on investment. Whether you need a specific service like tenant placement or full rental management, PMI can help.
PMI offers customizable property management services provided by Westminster real estate experts. Let us know how we can help and we'll get started right away.