Are Rental Agencies Property Management Companies As Well?

Dustin Edwards • December 29, 2023

Navigating the intricate real estate business can take time for new landlords or established investors. It's important to distinguish between rental agencies and property management companies. While property management companies and rental agencies often fill similar roles, there are a few key differences between them.


Below, we’ll review three differences between property management companies and rental agencies.


The Scope Of Services

One of the differences between rental agencies and property management companies is the general scope of services provided. Rental agencies primarily focus on the tenant side of the business. This includes services such as tenant placement, marketing, screening, and enabling the lease signing process. Their goal is to find a suitable tenant to fill your vacancy. Once the lease is signed, their involvement decreases.


Some rental agencies will continue to offer services like rent collection and financial reporting. However, this isn’t typically the norm.


Property management companies
, on the other hand, provide services that include the aforementioned services of the rental agency. Except their involvement continues long after the lease is signed. Property management companies are also heavily involved with minimizing the duration of a vacancy through marketing and preparing the rental for the next tenant. It is well known that a vacancy can negatively affect your bottom line. Not only are you not collecting rent, but you frequently must pay utilities and repairs while the rental property is being marketed. 


Ongoing Involvement With the Property

As previously stated, most rental agencies back off after signing the lease. They usually have an approach akin to a transaction. Once the service is completed, they are no longer needed and tend to withdraw until they’re needed again. This approach can be convenient for owners who can manage the property yet have difficulty marketing and dealing with lease agreements.


Property management companies, once hired, remain involved with the property for the duration of the established contract. This means a property management company should deal with the day-to-day affairs once a tenant has moved in. This includes rent collection, general or emergency
maintenance, and the overall obligations involved with managing a property. They are often the personnel a tenant contacts in case of questions, requests, or complaints. Unlike rental agencies, property management companies continue to communicate with tenants for the duration of the lease term. 


Different Specializations

Ultimately, the main difference comes down to their respective specializations. Only some landlords need a property management company. It's common for first-time landlords to manage their own rental property. Especially those inclined to do the maintenance themselves to save money. For these landlords, it's likely that they only need to find quality tenants without the additional services that a property management company could provide. As the old saying goes, “Different strokes for different folks.”


A full-service
property management company, on the other hand, is a generalist. While not specializing in any single aspect of property management, a property management company can reliably handle taking care of your property. This allows you to enjoy your free time as you wish, whether with friends and family or investing time in expanding your real estate portfolio.


Every landlord needs a different tool to manage their properties. Some owners can handle the majority of the work involved. At the same time, others may need a more comprehensive approach to property management due to the size of their portfolio. If you need help managing your rental, we invite you to call us today at (562) 888-0247 or fill out our
Owner Application online.

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By Dustin Edwards June 6, 2025
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