Every property owner’s primary goal is to ensure that their rental property gets rented out on time to avoid vacancies. However, once the rental gets occupied, these landlords also have to take care of all their tenants’ needs and make sure that they follow the local, state, and federal laws. Handling all of these responsibilities can be exhausting, especially if you own multiple rental properties in Colorado Springs.
To avoid the hassle, many landlords take the help of third-party service providers for property management and maintenance tasks.
If you are considering choosing either of these services, we have listed the pros and cons of both to help you decide what is suitable for your Colorado Springs rental property.
A Brief Introduction to Leasing-Only Services
A leasing-only service helps you, the landlord, to find prospective tenants and conduct tenant screenings. This service includes all of the necessary steps prior to a tenant signing the lease agreement. A leasing-only service can help you deal with rental vacancies efficiently by professionally marketing the property and ensuring that your property gets occupied by a great tenant. If you like to take an active part in managing the day-to-day of your rentals, this can be the right option for you.
Advantages of Leasing-Only Services
Here is how choosing leasing-only services can be beneficial for your rental business –
Opting for leasing-only services is more affordable as these service providers do not charge you a monthly fee for property management. Instead, leasing-only services have a flat pricing model in which you pay a decided amount to the company after they have helped you secure a renter.
Lets You Have More Control Over Your Property
The role of a leasing-only company is limited only to helping you find a renter. Beyond that, you can manage the property according to your preferences and on your own terms. This includes handling the maintenance, repairs, inspections, and all other rental management tasks. As the landlord, you have to interact with the tenants directly for any rental-related issues or queries.
Saves Time Finding Tenants
Time is your most valuable asset in every business, and the rental business is no exception. With a professional leasing-only company in Colorado Springs, you do not have to spend hours every day to find high-quality renters. Instead, you can focus on making passive income and let the company find the right tenants that fit your requirements.
Gives You Freedom of Property Maintenance
Leasing-only services do not interfere with maintenance, repairs, or other management-related tasks. As they avoid meddling in other facets of your business, you have complete freedom to carry out maintenance tasks on your own or hire a different repairs specialist to resolve upkeep issues. If you are someone who has a wide network of service providers, this can be a good option, as you can get the required work done independently.
That is not to say that leasing-only services are the best. They do have some drawbacks as well.
Drawbacks of Leasing-Only Services
Every service has its upsides as well as downsides. Let us look at the few disadvantages of leasing-only services –
Requires You to Take a Lot of Responsibility
Leasing-only services leave a lot of the tasks to you, which can consume a significant portion of your time, especially if you have multiple properties to manage. The service only takes care of the tenant finding and agreement creation aspect of property management. You still have plenty of other responsibilities to address for tenant retention and management.
If you are someone who is looking to offload your landlord responsibilities completely or do not have the time to handle them on your own, these services may not be a good option for you.
Cannot Assist You with Property-Related Laws and Regulations
As the landlord, you have to ensure that you follow the Colorado Landlord-Tenant Laws and the Fair Housing Laws. However, leasing-only professionals may not be able to help you navigate the legal landscape of your rental outside their purview, i.e., tenant placement and lease creation.
Therefore, if you have to understand and keep up with Colorado’s many laws on your own, there is an increased liability risk.
Considering these shortcomings, if you feel that leasing-only services are not the right choice for your Colorado rental business, you can opt for full-service property management in Colorado Springs.
What is Full-Service Property Management?
Colorado landlords who are looking to generate passive income from their investment properties without the hassle of handling the property on their own can choose full-service property management. Several out-of-state owners who have properties in Colorado also often choose these services.
Here are a few advantages and disadvantages of full-service property management in Colorado –
Advantages of Full-Service Property Management
Full-service rental management is simple. You hand over all your responsibilities to an external entity and pay them to look after your units. This can be advantageous in many ways, mentioned as follows:
Efficient Handling of Day-to-Day Rental Problems
As a landlord, you may not have time to resolve every one of your tenant’s issues personally. Instead, your tenant can contact your property management service, which can resolve the issue faster. You do not have to personally oversee every minor problem as the company you have chosen will deal with challenging tenant situations on its own.
Less Hassle and Stress-Free Process
From advertising your property to handling evictions, managing a property can be a stressful process. Full-service property management takes end-to-end care of the place, making your rental experience very pleasant and stress-free.
Standard property management services include:
- Listing your Colorado Springs property on local platforms
- Advertising and marketing services to reach the right audience
- Finding and thoroughly screening rental applicants as per your requirements and fair housing laws
- Shortlisting tenants and arranging property showings
- Creating lease agreements
- Conducting regular inspections to maintain the health of the property
- Providing detailed reports about property-related accounts and profits on investment
- Collecting rent, late fees, and other fees from the tenant
- Handling repairs and maintenance requests 24×7
- Offering legal counsel in case of tenant issues, all the way up to evictions
Having said that, full-service property management comes with its own set of drawbacks.
Disadvantages of Full-Service Property Management
The significant disadvantages of hiring a full-service property management company are:
Lack of Total Control
Since you hand over the majority of your responsibilities to the property manager, you may not have a lot of control over how your property is being handled. The management firm may make most of your decisions and only come to you for approval when required. Other than that, your role will be minimal.
Property Management Can Be Expensive
As the property management company handles several activities for your Colorado Springs rental, they have significant charges. Additionally, the company is entitled to a portion of each month’s rent generated from your properties, which can be costly.
Leasing-Only Services vs. Full-Service Property Management – Which Should You Choose?
The final choice depends on your personal goals and your aptitude for property management. If you like looking into every detail and managing everything on your own or are considering taking up rental management full-time, leasing-only services can be a good option.
If you view the property as purely an investment and just a stepping stone in your real estate portfolio, you can opt for full-service management as it gives you the opportunity to grow your business.
Whether you’re looking for a reliable and hassle-free leasing-only service in Colorado Springs, or you’d prefer a more hands-off experience with full property management services, our team can help you every step of the way. We offer unparalleled services to the entire Colorado Springs and Pueblo real estate market. Complete client satisfaction with our services is our number one priority.
For more details, connect with us at Muldoon Associates, Inc.