If you're curious about how much you can earn by renting your New York City property, then know the average salary landlords here make is $89,564 a year, according to ZipRecruiter.com. The top earners even make nearly twice as much: a whopping $165,199!
But to maximize your rental income, you must first find qualified renters. The fastest way to achieve this goal is to rely on professional rental management or tenant placement services.
The real estate management experts here at PMI Paramount put together this guide comparing the two to help you get started, so read on.
What Tenant Placement Entails
Tenant placement solutions are landlord services focused on finding and moving qualified renters into your property. Their first step is usually listing your property on various rental platforms using creative marketing strategies. They'll then communicate with applicants by answering questions and coordinating property showings.
Next, the tenant placement service provider will screen all applicants using the following tools and processes:
- Credit checks
- Income or employment verification
- Rental history reviews
- Criminal background checks
Service providers must abide by federal, state, and local laws during tenant acquisition and screening. According to Fair Housing NYC, failure to do so can be grounds for housing discrimination.
Once the tenant placement service has found the best tenants for you, they'll assist with the move-in. After that, their "job" ends, and you'll be responsible for all other rental property management tasks.
What About Rental Management?
Rental management is a more comprehensive, ongoing service offered by full-service NYC property managers. Tenant placement is just one of its aspects, as it also includes the following:
- Lease enforcement
- Rent collection
- Property oversight, including coordinating inspections, maintenance, and repairs
- Tenant communication
- Creating tenant incentive programs to encourage lease renewals
- Accounting and record-keeping
The most reputable property management companies also provide eviction protection plans. If they ever have to evict a tenant they placed, they will handle the entire eviction process and cover some of the associated costs.
Which One Should You Choose?
If you want more involvement in managing your property, tenant placement is a more suitable choice. You'll get the help you need to find quality renters, but everything else after the tenants have moved in is up to you. For example, you'll be responsible for collecting rent, maintaining the property, enforcing the contract, and renewing leases.
If you don't have time to manage your property but want to maximize your rental income, consider rental management. With a dedicated property manager, all you'll have to do is sit back, relax, and wait for your income to roll in.
Let PMI Paramount Manage Your Rentals
Now that you know how tenant placement and rental management differ, you can make a more informed selection. Just remember that tenant placement will require more involvement.
So, if you want to earn rental income in the most passive way possible, opt for rental management and partner with PMI Paramount. We're a full-service provider of property management solutions serving landlords throughout NYC. As a member of PMI, a larger company in the U.S. with two decades of property management experience and over $5 billion of assets under its care, you can count on us to make your rental business a success.
Speak with us today to request your free rental analysis!
