The first step to finding the perfect place is deciding if you want to rent from a private landlord or a property management company. Both types of property managers offer different experiences, so your priorities will decide which is right for you.
What Is a Private Landlord?
A private landlord is an individual who owns a property and rents it out independently. They typically invest in houses, townhomes, duplexes, or fourplexes, and their rental property is often a secondary source of income. Communication with private landlords is more informal, and they often collect rent with online payment systems like PayPal or Venmo.
Pros of Renting from a Private Landlord
Personalized renting experience
Private landlords likely don’t have access to the same bells and whistles as a property management company, so communication and management is often more informal. Tenants can develop a relationship with their landlord and may communicate via text message as opposed to a rental dashboard.
May be more open to negotiation
Private landlords set their own rent, make their own house rules, and screen their own tenants, so they have the final say in who can live on their property. This means that renting from a private landlord is a great option for renters with no credit or bad credit because they are more likely to be open to a conversation before declining an application, giving renters the opportunity to advocate for themselves and negotiate concessions so they can rent while they build their credit.
More flexibility
Because private landlords make their own rules, they can bend them as they see fit. This may come in the form of waiving late rent fees due to unforeseen circumstances, making an exception to dog breed restrictions, or accepting a tenant with a low credit score.
Cons of Renting from a Private Landlord
Maintenance may take longer
Because they often have a day job and they’re typically the only one managing a property, private landlords work with less time and fewer resources than a management company. This means that they may not be able to address maintenance requests immediately, so you might be stuck with a dripping faucet for a few days.
Limited amenities
Private landlords work with a much smaller budget than property management companies, so they have to pick and choose the amenities to offer and upkeep. While this is perfect if you’re just looking for some more elbow room and a yard for your dog to run around, you’re probably not going to find a fitness center on a private landlord’s property.
Less established
It’s harder for private landlords to establish a reputation, which means it’s harder for you to vet them. While you can easily find reviews for a property management company’s apartment community, you might not be able to get the inside scoop on a private landlord unless you already know one of their previous tenants.
What Is a Property Management Company?
A property management company is a corporation that owns several multi-family rental properties, often in multiple states. Property management companies typically own large
apartment communities and condo buildings, and they rely on rental dashboards to communicate with tenants and collect rent.
Pros of Renting from a Management Company
Established process
There’s something to be said for rigid guidelines. A property management company’s protocol provides consistency for tenants throughout the lease cycle, and knowing what to expect from a property manager as far as communication, rent collection, and maintenance can relieve a lot of stress.
Better amenities
Property management companies have a bigger budget to work with, so they can invest in flashier amenities. Fitness centers, pools, and dog parks are common amenities for property management companies to offer, and access to these amenities being included in rent can make a big difference in larger cities where the cost of living is higher.
Faster maintenance
While a private landlord is typically the only person managing a property, property management companies have multiple people working at any given time. This means that they have more bandwidth to address maintenance requests, and they likely have a maintenance employee on site who can perform maintenance and repairs within a day.
Cons of Renting from a Management Company
Less personal
Rental properties owned by a property management company often have a leasing office with multiple employees available during normal business hours. Because these rental properties often have more than 50 units, renters don’t usually get to know the property managers on site. This can feel impersonal, especially when compared to the informal experience of renting from and communicating with a private landlord.
Less flexible
Rental properties owned by a property management company follow a strict set of rules, so you may not be able to negotiate a rent decrease or a more relaxed
pet policy. This can be a problem for renters with bad credit or no credit history, since property management companies often require a credit score above 650 and may not be open to bending the rules.
More expensive
Because property management companies often provide more amenities and services, the cost to live in a corporate property is often higher. Renters may not use all the community amenities, making it feel like they’re paying more for only the few features they do use.
Is a Private Owner or Management Company Better for You?
Renting from a property management company is best for renters who value structured lease terms and better amenities. However, if you’re looking for a more flexible and personalized renting experience, a private owner rental may be best for you.
Connect With a Private Owner on ForRent.com!
If you prefer to rent directly from a private landlord, ForRent.com makes it easy to find places for rent by owner. Once you’ve decided on the perfect location, narrow your search by selecting “For Rent by Owner” at the bottom of the filters popup. Whether you choose to rent from a private owner or a property management company, ForRent.com has you covered.
