You’ve been managing your Memphis property successfully for this long, but there is no shame in asking for help. As your rental property business grows, your responsibilities will too.
The question is, what type of help do you need? You can choose between lease management and property management services depending on how hands-on you want to be.
Keep reading to learn more about the differences between the two to decide which is right for you.
Common Types of Leases
Without understanding the different types of leases, you can’t understand lease administration. There are three common lease types that landlords can utilize depending on their needs.
A gross lease is the most common type where the tenant pays a flat rent without additional fees. A net lease refers to the tenant paying additional maintenance costs, taxes, and insurance.
Lastly, there are modified gross leases that contain elements from each of the more common leasing types.
No matter the type of lease you choose, it needs to establish the rights of you and your tenants.
What Is Lease Management?
Lease management helps owners track and report on rental property leases. When done correctly, you can stay compliant, lower costs, and mitigate your risks.
Lease management involves coordinating data related to leasing rental properties.
Leasing management services cover basic tasks including lease negotiation, lease accounting, and ongoing lease tracking.
Lease Negotiation
When a landlord and tenant agree on terms for a rental property, the negotiation is complete. The contract, however, has to be approved through the financial and legal department.
The final lease is provided to both parties and stored after it is signed. Some software platforms will put the leases into abstract formats so you can easily analyze them.
Lease Accounting
Lease accounting helps you determine the financial impacts of your rental leases. You should always include payments in your lease to avoid liability issues.
The value of your rental lease payments depends on how much you charge your tenants for rent.
Ongoing Lease Tracking
When a lease is signed and in place, it will require ongoing management. Lease tracking will help you identify how your tenants pay rent and when, which is one of the most important aspects of rental income.
Lease tracking also requires you to ensure your tenants are abiding by their agreements. Completing regular property inspections will help you verify this.
When a lease nears the end of its duration, consider offering tenants a lease renewal. Lease renewals can reduce tenant turnover and lower high vacancy rates.
Who Is Responsible for Lease Management?
Typically, the responsibility of leasing management falls on the property manager. These professionals are in charge of leases, and the property as a whole.
They have contract knowledge and understand the local laws to adequately administer rental property operations. In addition to lease management, a property manager is responsible for other tasks.
If you manage your property yourself but don’t know the ins and outs of leases, you can hire a lease management service. They will take on a portion of the landlord’s responsibilities to help you out.
Property Management vs. Lease Management
There are some differences between property management and lease management, despite there being some overlap between the two.
Lease management refers to how you monitor your leases. Lease management can be done in-house or by a property management service.
Property management services refer to how properties are maintained. A property manager can handle leasing tasks, but they do much more than that.
Leasing Agent Responsibilities
A leasing agent is responsible for attracting tenants when a property has a rental vacancy. Their duties involve property marketing, property showings, and tenant screening.
If you want to keep your units occupied to keep up with your cash flow, consider utilizing these services.
Leasing agents in Memphis will stay up to date on the latest rental market trends. They’ll be able to help you set a competitive rental price and find tenants who can afford your space.
Property Manager Responsibilities
A property manager is responsible for the same things as a leasing agent and more. They are responsible for managing rental properties in all of their glory.
This means that a property manager can also work as a leasing agent, but a leasing agent cannot work as a property manager. You can avoid many property issues by working with a professional manager.
They will handle leasing tasks, tenant relations, property maintenance, rent collection, and more. Most of them have accounting experience to help you maintain accurate financial records.
If you want to be a hands-off Memphis landlord, hiring a full-service property management team is your best bet.
You can count on these companies to ensure you stay compliant with local and federal regulations.
Utilizing Property Management Software
You and your leasing manager can utilize property management software to make time-consuming tasks much easier. This efficient software can help with the following:
- Tenant management
- Financial management
- Maintenance and work order management
- Document management
- Communication tools
This software streamlines and automates tasks that can help landlords who manage their own property and those who manage leases.
Property management software can work in tandem with lease management software. Lease management software includes these key features:
- Lease tracking
- Document management
- Financial management
- Compliance monitoring
- Expense tracking
- Reporting and analytics
There is some overlap between the two. You might even be able to find property management software that includes leasing software features so that you don’t have to learn two different programs.
Which Property Services Are Right for You?
Lease management and property management services are different, but there is some overlap.
You can benefit from lease management services when you hire a property manager. If you prefer to be a hands-on landlord, lease management services might be right for you.
No matter your choice, Reedy & Company is here to help! Our unrivaled Memphis property management services have been helping landlords like you since 2002.
We manage over 3,000 properties and employ specialists who are familiar with the local area. Let us help you improve your investment with our services. Contact us today to get started.
