Renting out your house can be a lucrative endeavor, but it also requires careful consideration and management to ensure a smooth and profitable experience. One of the key decisions you’ll need to make is whether to enlist the services of a realtor or a property manager. Both options have their own set of advantages and disadvantages. In this blog post, we’ll delve into the pros and cons of using a realtor versus a property manager to help you make an informed choice.
Using a Realtor
Pros
Market Expertise: Realtors are well-versed in the local housing market trends, ensuring that your property is priced competitively to attract potential tenants.
Marketing and Advertising: Realtors have access to various marketing channels and can effectively advertise your property to a wider audience, potentially reducing vacancy periods.
Negotiation Skills: A skilled realtor can negotiate favorable lease terms, helping you secure a better rental rate and conditions.
MLS: Realtors in Ontario have access to the MLS, which is where tenants looking for luxury rentals are often searching. Listing higher priced rentals ($3000+) on the MLS is often the fastest way to get them rented.
Cons
Cost: Realtors usually charge a commission, often a full month’s rent to list the unit.
Limited Ongoing Management: Realtors primarily focus on finding tenants and setting up leases, leaving you responsible for ongoing property management tasks.
Limited knowledge of the Residential Tenancies Act: Realtors are unequivocally experts when it comes to buying and selling properties. However some may not be well versed in the rules surrounding landlords, leaving you open to potential liability issues.
Using a Property Manager
Pros
Cost: Oftentimes, property managers charge leasing fees less than one full month’s rent, keeping more money in your pocket.
Expertise in Maintenance: Property managers have a network of reliable contractors and vendors, ensuring timely and cost-effective property maintenance. This can drastically speed up any repair work needed to get your rental rent ready.
Legal Compliance: Good property managers are well-versed in rental laws and regulations, reducing the risk of legal issues arising from improper procedures.
Vacancy Management: Property managers work to minimize vacancy periods by promptly advertising and filling empty units. They usually have staff dedicated solely to filling vacancies reducing the time it takes to rent a property
Cons
Quality Varies: The effectiveness of property management can vary greatly depending on the company or individual you hire. It’s important to understand the tenant vetting process the property management company uses to quality tenants.
No Access to the MLS: Many property managers do not have access to the MS and therefore cannot list property on that service.
Conclusion
Choosing between a realtor and a property manager ultimately depends on your specific needs and preferences as a landlord. If you value a hands-on approach and have the time and expertise to manage the property yourself, a realtor might be the better choice for finding tenants. On the other hand, if you’re looking for a more convenient and stress-free experience, a property manager can handle the day-to-day tasks, ensuring your property remains well-maintained and generating income. It’s crucial to carefully weigh the pros and cons of each option and assess your individual circumstances before making a decision that aligns with your goals as a landlord.
