Will a property manager find tenants for their clients? Many landlords and property owners hire property managers to screen tenants, collect payments, and manage requests. Property managers can also find tenants for their clients, which may come at a cost.
Will a Property Manager Find Tenants for Landlords?
With over 100 million people living in a rental home in the United States, being a landlord seems very profitable. However, like any venture, it does come with several challenges. It takes a lot of time and effort to manage a rental property. Landlords must do everything from collecting monthly rent, handling maintenance issues, and screening tenants.
This is where property management companies and professional property managers come in. They can shoulder almost all the work that comes with being a landlord. Property managers can screen tenants, collect rent, follow up late payments, and maintain upkeep. They can even help landlords handle evictions when necessary.
But apart from managing the rental property and handling tenant-landlord relationships, will a property manager also find tenants for landlords? Many landlords don’t know, but many property managers do.
With an additional fee, landlords can avail of several services that help them find tenants. Moreover, not only will a property manager find tenants for landlords, but they can also help with screening. They can handle the application process, so landlords don’t have to lift a finger. Here are some of the related services that property management companies offer:
Advertising the rental property
Searching for potential tenants
Collecting applications
Screening and interviewing applicants
Managing the contract signing
Handling tenant turnovers between rental periods
How Does a Property Manager Find Tenants?
Typically, a property manager looks for renters by posting advertisements. They advertise the property’s availability on various platforms to maximize reach. Property managers also include all the pertinent details like the property size, how many rooms there are, and what amenities it comes with. They may even advertise the starting price of the rental property.
Posting all these details may seem strange, but it’s a great way to pre-screen tenants who aren’t the right fit for the property. After all, what good is one tenant’s interest when they can’t afford to pay rent? Advertising this information also reduces the number of questions tenants might ask about the property, which saves a lot of time for both the property manager and potential tenants.
Apart from this, how else will a property management company find tenants? One of the benefits of hiring a property manager is that landlords can gain access to their networks. Property managers and management companies often have many connections in the industry. They can use this to look for tenants that might be interested in the property.
For example, the property manager may be connected with realtors and other industry professionals. Those professionals may have leads on potential tenants looking for something specific. If the manager’s advertised property fits those requirements, they can provide a referral.
How Much Does It Cost?
It depends on the property management company. Every company will have a different fee structure, so ask about all the related costs before hiring a property manager. Typically, management companies will have a new tenant placement fee or bonus. Landlords usually pay this when the property manager gets a tenant to sign a lease agreement.
The new tenant placement fee is often a percentage of the first month’s rent. Some companies charge a 25% fee, while others charge as much as 100%. Alternatively, some property managers may charge an up-front fee. However, they usually do not charge multiple fees.
Apart from this, the property management company may charge an advertising fee, often between $100 and $200. This fee pays for the management company’s efforts and platform costs to advertise a vacant unit. Some also charge a vacancy fee (usually one month’s rent) upfront to pay for advertising, prepare paperwork, and pay real estate commissions to agents.
Delegating Tenant Acquisition: The Pros and Cons
Many property managers find tenants for landlords, but just because they can doesn’t mean all landlords should avail of the service. Property owners should weigh the pros and cons of delegating this task to property managers. Let’s examine them below.
Advantages
The most obvious advantage of delegating this task is convenience. Landlords will only sometimes have the time to put into advertising and looking for tenants themselves. A property manager can lift the burden so landlords can focus on portfolio expansion and other aspects of rental property management.
In addition, delegating this task allows the landlord to fill vacancies faster. Property managers often have the right resources, tools, and connections to find tenants quickly. They also know more about tenant behavior and which platforms are more effective. Moreover, they’re experts on marketing, so they know which parts of the property to highlight to attract renters.
Disadvantages
The biggest disadvantage of delegating tenant acquisition is the cost. Property management companies can charge a high price for their services. This can reduce the landlord’s profit margin. Moreover, some may even have hidden fees for tenant vacancies and advertising that can feel like a trap for landlords.
Apart from this, landlords can lose some control over who sees their property listing. They might advertise the property on a website the landlord doesn’t completely trust. Moreover, the landlord may have a different standard for tenants. As a result, they may disagree about how to advertise the property or which applications to accept.
Alternative Ways to Find Tenants
Landlords won’t always have the budget to hire a property manager. In that case, it’s best to use alternative methods to fill vacancies and find tenants. Here are some of the most common methods.
1. Post a Rental Sign
The simplest way to advertise the property is to post a rental sign. This lets the neighborhood and everyone passing by know the unit is for rent. Consider posting the unit on the window or balcony if it is in an apartment complex or condominium building. Just make sure it isn’t against the community’s rules.
Moreover, remember to include contact details on the “For Rent” sign and make sure it’s visible from the street. If possible, consider creating a website URL for the listing and including it in the signage.
2. Create a Property Website
Landlords can create a property website that advertises all their properties. This way, potential tenants can know which properties are available, how much they cost, and what amenities they include. Past tenants can also refer to this website to find a different property under the same landlord.
3. Advertise on Social Media
Social media is a wonderful platform for rental properties. Landlords should take advantage of it and post availabilities on websites like Instagram and Facebook. Almost everyone uses social media nowadays, so it’s a great way to advertise to a large audience. Moreover, it’s usually inexpensive to post on these platforms.
4. Advertise on Listing Platforms
There are many listing platforms landlords can use. Zillow and Apartment List are popular options to help landlords easily gain exposure. They can even automate the process with special tools.
Hire a Property Management Company Today
Property managers find tenants in various ways. Regardless, they’re helpful for landlords who don’t know where to look or want to fill vacancies quickly. They may cost some money, but they’re efficient in securing a tenant.
Are you looking for a competent rental property management company in Florida? Surfrider offers premier rental management services. Call us today at 727-403-7088 or contact us online for more informatiio