Hiring someone to manage a property can be one of the smartest decisions an investor can make. By providing expertise and infrastructure, property management companies can save investors time and money. Today we are speaking with Dan Hines, Regional Manager with Mynd Property Management, about what property management companies do and how much their services will cost, particularly in the Elk Grove area.Alex Osenenko: Boys and girls, Alex here with Mynd Property Management. Today we're learning all about investing in Elk Grove real estate, how to run your property there and how to be successful. I have a guest today who can help us and share lots of his experience. He has been managing 1400 units for a decade in Sacramento and Elk Grove. His name is Dan Hines. Dan, how are you?Dan Hines: Doing great. How are you doing?Alex Osenenko: Doing great, Dan. Thank you for joining us. This is fantastic to have you on camera sharing your wisdom. Dan is a co-founder of a company called Raymond Property Management. He's now a regional director here at Mynd. Very excited to have him. And today’s question is about, what do property management companies actually do and what does that service cost? Can you walk us through, specifically in the Elk Grove area what is the make-up?Dan Hines: Yeah, so a lot of companies in Elk Grove are full-service management companies. I'll dive into what that actually means in a moment. Other companies do provide Just stand-alone leasing services. That's a situation where they'll find a resident, move them and then they basically pull out from there, but they charge a higher fee for that. So, a full-service management company will handle everything from the leasing process, rent collection; so, basic property accounting. And then, there's some element of maintenance support, where they will be there basically like a maintenance intake service. But, not all companies have their own in-house crew that they control. A lot of companies just rely on outside vendor networks. So, they essentially act like an operator when something goes wrong. I think that covers most of it.Alex Osenenko: So, that's a full-service company, so anywhere from actually placing a tenant to managing the property day-to-day, the full spectrum. Whether it's a repair issue; whether it's eviction or hopefully not, right? Rent collection, reporting, that kind of stuff.Dan Hines: Yeah, a good way to think of it is, if you're a property owner and you live in another state and you never want to have a conversation with a resident, you aren't able to handle any sort of accounting, you aren't able to answer a phone because you're going to go on vacation or disappear for two months, a full-service management company will handle, from start to finish, everything about the routine operation of the property.Alex Osenenko: Gotcha. What are the costs typically, then? What do you see the cost range in Elk Grove, specifically?Dan Hines: So there's a range. As in most things, you typically get what you pay for. There are some companies that are very cheap. It might range from $70 or $80 to two times that.Alex Osenenko: We’re talking a monthly fee, right?Dan Hines: Right, a monthly fee. So, there's a couple of structures. You typically have a recurring monthly fee that covers the routine operations. And then there's some sort of add-on fee around leasing and renewals. And again, there's a large spectrum. Sometimes it's a flat rate. Sometimes it's a percentage of the monthly rent amount. For back-of-the-napkin math, call it from 30 to 50%. A leasing fee would be 30 to 50% of the monthly rent amount, but there are variables to this. I would say most good companies, reputable companies, will publish pricing upfront so it's clear and it's transparent and you know exactly what you might be getting yourself into. If someone is real under wraps about the pricing, personally, I would ask questions why. Those things should be nice and clear. But again, I cannot stress this enough, you typically get what you paid for. And be honest with yourself about what you want that experience to look like.Alex Osenenko: Gotcha. So, if pricing is not published, who knows? They might have something to hide. I mean, why would you not publish? We publish here at Mynd. Go to Mynd.co. Hit pricing. Select Sacramento and you'll see how Dan prices his region. Right, Dan? You're super expensive. No, he's not. We have three different plans. You can go check it out. We publish it all. It's all visible.So, we hope this video helps you out to learn more about Elk Grove real estate investing and how to manage a property there, whether you do it yourself or hire someone else. We've done a number of these interviews on our website at Mynd.co, M-Y-N-D dot CO. Put in Elk Grove in the search bar and enjoy all the education we put out. Dan, thank you very much for your time.Dan Hines: Thanks for having me.Alex Osenenko: Thanks for watching.By hiring a property manager, an investor can gain the infrastructure and expertise to deal with problems as they occur. A full-service company, for example, can provide everything from clerical work to maintenance and emergency repairs. Of course, this comes at a cost, and in property management, you truly get what you pay for. Knowing exactly what fees a property management company charge and what services they provide can position any investor for long-term success by giving them the knowledge to choose the company that is best for them.
Investing in real estate can prove to be lucrative, particularly in a market like Sacramento or Elk Grove. But, failure is always a potential. Our guest today is Dan Hines. Dan is Regional Manager with Mynd Property Management and, today, he will be giving us his top three reasons why investors and property owners have failed while investing in Elk Grove.Alex Osenenko: Boys and girls, Alex here with Mynd Property Management. All about Elk Grove, today. Elk Grove, California. Investing in real estate. How do you do it? How do you not lose your butt? How do you make money? How do you become successful healthy heart, you know, no issues? Well, there are always issues in real estate, but I have a guest today who can help me unpack one of the more often asked questions. And that is, what are the top three reasons rental property owners would fail specifically in Elk Grove. What are the specific things people miss and end up losing money? Dan Hines is my guest today. Dan, how are you?Dan Hines: Great, thanks. How are you doing, Alex?Alex Osenenko: I'm awesome. So Dan's got a lot of experience, right? Let me just set him up really quick before we get right into the topic. He has over a decade of experience in managing property in Sacramento and Elk Grove. He is a co-founder of a company called Raymond Property Management. They had 1400 units under management. And now, Dan is Regional Director here at Mynd. So, I'm excited to have him on. But Dan, let's unpack the three reasons you see people fail.Dan Hines: The first is, people are slow to act, usually.Alex Osenenko: That's a good one. Interesting. Let's unpack that.Dan Hines: People are slow to act. You know, owning investment real estate is a business. Think of the old saying: be slow to hire, quick to fire. A lot of people don't know when to pull the plug. They try to try to wait things out. Patience is a virtue until a certain point and then you can cause a lot of problems and cost you a lot of money to unwind it.Alex Osenenko: Do you have an example of that? I mean, I'm just curious, what would it look like in real life?Dan Hines: I cannot tell you how many times I'll speak with a prospective client, a new property owner, and they say that for the last six months or eight months—however long—their resident has been telling them the same story: “I'll catch up on the rent here. I'll do this. I'll do this.” And, I think a lot of property owners want to do the right thing. They want to be a good guy or a good person. You have a lot of faith that people also want to reciprocate that. And we find ourselves dealing with a lot of situations where we are playing cleanup crew, unwinding several months of people's patience and goodwill. So, it's hard to strike that balance between making sure that you're being a responsible landlord, but also managing the asset and conducting business in a way that's going to set you up for success. It's not always easy to do both.Alex Osenenko: This is something like the saying, fool me once, fool me twice, the third time I probably should act.But alright, so that's one reason: people are slow to act. Interesting. So not correcting the situations and this wishful thinking—hoping for the best ends up typically costing tons of money, and that's where the failure comes in. What's number two, Dan?Dan Hines: Emotional purchasing. And this is sort of a spin-off of the last point, but there's a lot of silly investing decisions that are made around how a property feels.Alex Osenenko: In which way? How does that manifest?Dan Hines: They'll buy something and find out that they're not going to collect nearly as much rent as they thought. Or they buy something because it feels nice being close to a certain thing—a certain location, a certain park, maybe a particular school. But, because of the lack of diligence, the lack of attention to detail on certain things, they find themselves in a situation where, well, I now own this property and I thought it was a good idea, for whatever my reasons were. But they leaned too much on the emotional side.And that's also where a lot of property owners get in trouble. And that ties back to the first point: knowing when you need to pull the plug on stuff. If something isn't working, oftentimes the best thing you can do is get out while you're still in control. Stop the bleeding. Regain control and don't wait six months and find yourself in more hot water.Alex Osenenko: All right. So, second is emotions. Hey, I like school. Buying a house near the school is the way. But they end up finding out 90% of the prospective residents don't really care, for one reason or another, because there's a bunch of good schools in the area. Whatever the case is, right? what's the third reason?Dan Hines: Lack of education. From the purchasing process to how you're going to effectively manage maintenance issues, to what level of withholdings you might need if you're an out of state owner, if you own property in California. You have to structure your entities in the right way. Are you socking away enough money? Now, there's a lot of times when, unfortunately, people are building that airplane as it is in the air, so to speak.Alex Osenenko: And I'll give reason 3.5: not watching Dan Hines interviews where all of that is discussed and out in the open. So, speaking of that, go to Mynd.co, M-Y-N-D dot CO. Type in Elk Grove and learn yourself into and more educated position when it comes to investing in Elk Grove because we are doing a whole series with Dan on investing in Elk Grove. Thank you very much for watching. Hopefully, we helped you out. Dan, thank you for your time.Dan Hines: Thanks for having me.Alex Osenenko: See you next time.There are many reasons why investors lose money in real estate, but having just a little bit of knowledge can buoy an investment in any market. Investors save the most by having a sober understanding of the financial viability of a property and knowing what returns such a property can generate. This means being a responsible landlord, as well. Those who successfully self-manage, maintain their investment by remaining diligent and firm when dealing with tenants and consistent with maintenance; for the most important aspect of investing in any market is having the knowledge of how to make the right decision and when.
Maintenance emergencies are guaranteed—particularly when renting a property. As such, knowing how and having the ability to manage an emergency before it happens is key to keeping tenants happy and costs low.Our guest is Dan Hines. Dan is Regional Manager at Mynd Property Management and, today, he will be sharing with us some advice on how to properly prepare for and deal with what maintenance emergencies are guaranteed to occur.Alex Osenenko: Boys and girls, Alex here with Mynd Property Management. I have a guest with me today to help us talk a little bit more about, or learn a little bit more about, investing in Elk Grove, California. My guest today is Dan Hines. Dan, how is it going?Dan Hines: Things are great. How are you?Alex Osenenko: Great. So here we are. Dan has lots of experience. He has managed 1400 units in Sacramento and Elk Grove for Raymond Property Management, which he is a co-founder of that company. And now, he's a regional director here in Mynd. Very excited to have him. So anything Sacramento related, and if you are a Mynd customer or potentially looking, you know you can reach out to Dan and he can help you out. But today, we're going to answer a question we get a lot. How do you handle maintenance emergency in your Elk Grove rental property? Dan, what would you do?Dan Hines: Well, the first step is, have a good property manager. So you don't have to mess with yourself, especially at two in the morning. In all seriousness, though, build your vendor list first. Know who your go-to’s are. Know who the plumber is. Know if they take after-hours emergency calls. Know who's out there that can extract water if you have some sort of an issue—water is flooding a hallway; baseboards are soaked; water is soaking up the first six inches of your walls—the last thing you want to be doing is running through Yelp or some other listing trying to find qualified plumbers in the area that can service you. So, the old saying goes, if you fail to plan, you will plan to fail. So, step one: know who you're going to call.Step two. If it's an emergency do a really quick triage. Stop the bleeding and, then, when you put everything back together, do it right the first time and do not cut any corners. Those things will normally end up costing more money in the long run. Quick service, button it up.Alex Osenenko: I'm going to repeat what you said in the other episode you and I have done. You said, water is the enemy of real estate.Dan Hines: Absolutely. Water is the arch-nemesis of real estate.Alex Osenenko: Arch-nemesis. We prove that saying every single episode. Well, boys and girls, that was pretty cool. I mean, I think it's important to start interviewing people before you have a problem. Or as Dan said, hire a qualified property management company. If you want to learn more about investing in Elk Grove and being successful, go to Mynd.co, M-Y-N-D dot CO and type in Elk Grove. Dan and I've done a number of interviews on the subject. Hopefully, we helped you out today. Dan, thank you for your time.Dan Hines: All right. Thanks for having me.Alex Osenenko: And thank you for watching.Hiring a property manager is the first line of defense for many investors dealing with a maintenance emergency. Many full-service property management companies provide an established infrastructure of vendors to deal with such problems as they arise. Even so, it is key to deal with an emergency as it occurs. Putting off a costly repair, for example, can wind up costing much more in the long run. As such, keeping on top of repairs can keep any property profitable for an investor.
While self-managing a property can prove both challenging and rewarding, hiring a property manager is the best decision many investors make. Today we are speaking with Dan Hines, Regional Manager with Mynd Property Management. Dan is here to speak with us about why hiring a property manager is such a good decision for many investors in Elk Grove.Alex Osenenko: Boys and Girls, Alex here with Mynd Property Management. Today, we're talking about investing in real estate in Elk Grove, specifically. We're going to do this series of local, specific, very local educational blogs and unpack some of the wisdom from my guests who spend years and years managing and/or investing in the area. So, today, let's talk about if you really need a property management company. Do you need a professional property management company if you have a property—a rental property in Elk Grove. And I have a guest today who will help us unpack this question. His name is Dan Hines. Dan, how are you?Dan Hines: I'm doing well, thanks. How are you doing, Alex?Alex Osenenko: Great, Dan. Thanks for asking. Just to set up Dan for all of us here—he's been in Sacramento real estate for a number of years. He's a co-founder of a company called Raymond Property Management. They managed 1400 units in Sacramento and Elk Grove. So, obviously he's got a wealth of knowledge.He's now a regional director at Mynd. We're very excited about that. But Dan, hit us with some of the reasons why or why not to hire a property manager.Dan Hines: Well, property management is an industry for a reason, right? There's a lot of things that can go wrong. There's a lot of people that can self-manage effectively for a period of time—if you're local, but it's something that's very difficult to do if you're not local—if you can't reach out and touch the asset if something were to go wrong.Operational greatness normally comes from systems, having support, resources, and the experience to solve the problems when stuff comes up. So, I've seen a lot of people that can do it for a while small scale. But, when something happens and they find themselves out of their depth, then they normally end up paying for it dearly.So, we've created systems. We have the support from being in the property management industry for a decade now. Very rarely do we see anything for the first time anymore.Alex Osenenko: Yeah, you look 25. You've been there since 15?Dan Hines: Yeah, right? So, very rarely do we see surprises, anymore.Alex Osenenko: So, I agree with that. As one of the interviews I've done with your colleague Enrique Jevons, he runs Seattle for us. He was talking about how one of the pitfalls is all kinds of fines being levied by the local government, ordinances and just a lot of—I think, isn’t rent control coming or already there? Like how does, how does the landlord deal with that stuff?Dan Hines: Yeah, so there's likely going to be some form of rent control that will hit Elk Grove. It's not here yet. The recent measure that was passed only affects the actual City of Sacramento inside of city limits, but the county does have a residential housing inspection program and there's ordinances. A lot of people, a lot of landlords, especially that self-manage in Sacramento, don't realize that they have to register property. They don't realize that there are fees and penalties that come along with that.There's a mandated inspection protocol, essentially, and you can be audited for these things. If you don't have your paperwork in order, the fines can get pretty nasty pretty quick. It also leads to code enforcement violations and a whole bunch of problems that you don't want. And, to go full circle, those are problems you don't want, especially if you’re not local.Alex Osenenko: Yeah. And so, in your experience, do property managers in the Elk Grove area—do those mostly provide full service, there’s some that just do lease only—what is the spectrum of service that PM’s provide in the area, usually?Dan Hines: It's all over the map. There are some companies that are really just going to be there to answer some basic questions. There is a couple that offers lease-up only. I've seen the majority are full-service management companies where they're going to take care of everything with a resident from leasing to rent collection, some light property level accounting for the landlords, some accounting, some maintenance support. most single-family residence shops out there are full-service.Alex Osenenko: Gotcha. And so, that's kind of where Mynd is, as well—M Y N D. And if you guys want to learn more, if you are still watching this video, check out in Mynd.co and type in Elk Grove or Sacramento. We've done a number of these interviews where we talk to local experts and share wisdom, whether you are with a property management company, self-managing or considering hiring a property management company, I think these informational video videos can help you out, so check them out. Thank you very much for watching. And, Dan, thank you for your time.Dan Hines: Thank you.Hiring a property manager is the right decision for many investors. This is especially true for non-local investors, for whom having a dedicated team to manage a property is a necessity. Hiring a property manager can prove smart for local investors, as well. From dealing with paperwork to interfacing with tenants, property management companies alleviate the stress of so many investors by providing both infrastructure and expertise to attentively maintain a property or properties.
Owning a property inevitably costs money. This is especially true when owning a rental property. Today we are speaking about property management in Elk Grove, California with Dan Hines. Dan is a Regional Manager here at Mynd Property Management, and he will be giving us his top three things that will cost you money when owning a property in the Elk Grove area.Alex Osenenko: Boys and girls, Alex here with Mynd Property Management. Today, we're talking about Elk Grove. Specifically, how to invest in real estate in Elk Grove, how to Win, how to make money, how to have a good investment experience that actually helps you achieve your goals. To unpack this and get more specific for Elk Grove, I have someone with a lot of experience in the area. Dan Hines my guest today. Dan, how are you?Dan Hines: Great. Thanks. Thanks for joining us.Alex Osenenko: Yeah, thanks. Look, Dan has got a lot of experience. We've done a number of these already, and today's topic is going to be around the three things that will cost you money specific top three things that will cost you money if you want to invest in Elk Grove. Let me set Dan up really quick. Dan has been in the industry for over a decade. He is a local property manager for Sacramento and Elk Grove. He co-founded a company called Raymond Property Management. He is now part of Mynd and the Regional Director here for Sacramento. Very excited to have him on board. But, let's unpack this particular topic. Three reasons, Dan, you see investors fail over and over again.Dan Hines: The tenant selection process is huge. If you're not being very careful and heavily scrutinizing who you put in your property, you're rolling the dice. We'll see issues range from someone who will move in, they have a bunch of extra people with them. They never knew. Now, your property is taking a beating.Eviction issues can be a real thing if you don't trust or if you don't check out the financial history and wherewithal of your applicant. You know, that friend your family member wants to ask for the hookup—we see a lot of show what comes from that, too. So, you want to make sure to have very stringent and very clear qualifications for your residence selection. That's number one.Alex Osenenko: Can I add some color to this, Dan? Another piece is making sure that you follow the fair housing laws and stay within the regulations and not discriminating. Because, if you're looking to have a family, as a resident that's already a red flag. There are very specific rules. So I think, my recommendation is, despite the fact that we are a property management company, either connect with local investors who have done it and know the rules or hire a property management company that can actually place a tenant for you. If you don't want to pay for ongoing service, that's fine, but there are companies out there that would go find you a tenant. So, that's just a little side advice. A little color. Dan, what is your number two?Dan Hines: Yeah, and to that point, in a place like Elk Grove where so many people who are out there because it has great schools, there are all sorts of things to do for a wide variety of types of people. I can't tell you how many times I'll see marketing pieces from one-off landlords where it says, “look at the backyard. It's great for kids. Your children will enjoy this.” All of those are big no-noes in terms of fair housing. You cannot, and never should try to talk about a familial situation. You know, make certain—Alex Osenenko: Race, color, religion, a whole slew of things. And yet, you want to have the best possible occupant in your property. So, you have to follow the rules, but they're also tips and tricks of the trade. And I think at least talking to a professional property manager will help you out. What’s number two?Dan Hines: So, a lot of people will buy a home that is a few years old and they think that because it's new that nothing is going to go wrong. There's a lot of things, especially around the 10, 12, 15-year mark, things start aging out. Systems have certain life expectancies. Personally, I purchased a home that was about 10 years old and in the first six months, all sorts of things started going out on it—from shower cartridges to appliances. Even a tankless water heater. So, have realistic expectations with yourself on how new or how old the property is. Plan accordingly. That goes back to making sure that you’re doing research on what is the expected useful life with these types of things. Sock away a little bit of extra money so when things start popping all at once, you're not being surprised.Alex Osenenko: What would you recommend this kind of rainy day budget for unforeseen things to be?Dan Hines: So that really depends on the age of the home, the types of systems that you have during the purchase process. And that’s something that we've covered under different topics. Really make sure that you’re putting in a lot of attention and a lot of care during your diligence process. I know there are certain calculations you can do from a percentage based on the square footage of the home to the percentage of what your monthly rent is. There are lots of ways to go about that.Alex Osenenko: What do you use, personally? Let's say there’s a 10-year old home. Rent is $2800 or whatever. $2600. And let's say everything is sort of original in the house. What would be your rainy-day budget and what would be the maintenance budget?Dan Hines: I'm putting a couple of hundred bucks a month. You know, one water heater will be a thousand bucks. If it's a tankless water heater and it's over 12-years old, if anything goes out, it's $2500. You know those figures can get real pretty quickly.Alex Osenenko: So put away a couple hundred. That's good advice. Did we cover all three, Dan?Dan Hines: No, that was two. You asked for three. The last one, you know this is just good, prudent advice anyways, regardless of where you are, but burying your head in the sand. I see, a lot of people that ignore a problem. There's a level two or level three problem now. They don't want to put up the money. Well, in six months, now it's a level five or it’s a level six problem. If you're dealing with something water-related, water is the absolute enemy of real estate.Alex Osenenko: That’s an interesting way to put it. Yeah.Dan Hines: If you have a little drip, now, if you leave that thing for six months, you're going to do a lot more repair work than just making that drip go away. So, do it right the first time. Do it quick. Don't procrastinate, it will cost you more money.Alex Osenenko: Yep. Sounds good, man. Well, thanks a lot. If you guys want to learn more about investing in Elk Grove, go to Mynd.co. Check out the website. Type in Elk Grove and you'll see a number of episodes that Dan and I have done together. Thanks a lot for watching. Dan, thank you for your time.Dan Hines: Thank you.Every property owner will face costs at some point in the life of their property. This is especially true for rental properties when even the process of renting a property can cost money. For example, being mindful when finding a tenant can help you avoid a costly eviction process, later on. Likewise, keeping up with repairs and maintenance—particularly for costly appliances—can prevent a small problem from becoming a much bigger problem, as well. Avoid burying your head in the sand and remain attentive to the different needs of your property. Doing so will save both time and money, in the long run.
Self-managing a property is not the right decision for some investors. For many, hiring a property manager is the best way option to avoid unnecessary heartache. Dan Hines is our guest today. He is Regional Manager with Mynd Property Management, and is here to share with us the best ways to choose a property management company, particularly in a market like Elk Grove.Alex Osenenko: Boys and girls, Alex here with Mynd Property Management. Today, we're talking about Elk Grove, investing in real estate. How to win, how to have a healthy investment. How to love your life because you've done good when you have a rental property in Elk Grove. I have a guest today who will help me unpack some of this wisdom and hopefully throw some nuggets back at you to help you out. His name is Dan Hines. Dan, how are you?Dan Hines: Doing great. Thank you for having me. It's good to be here.Alex Osenenko: Dan, that's awesome. Well, so Dan has managed 1400 units for a decade in Sacramento and Elk Grove. He’s got a lot of depth and expertise. And today, we are talking about a specific question. How would you go about choosing your property management company, Dan?Dan Hines: So personally, I'm a very heavy user of review sites—so, Yelp Google reviews, things like that. It provides a platform for people to share their real experiences. And oftentimes, you get a very candid look at how companies operate and how they solve problems. So, my first step, I'm doing research, I'm checking out review sites and looking at how they respond to reviews, either positively or negatively. Yeah, I'm just calling as many people as I can try and narrow it down.Alex Osenenko: Can I ask a question on this particular one? So, in property management side it’s like, okay, so if you have a sushi or steak or you are on a guided fishing trip, there are outcomes. Steak is, delicious. It's not dry. It has a nice bark, whatever. Fishing is, you caught some fish, you had a good time. What is a good time in property management, brother? Do people taste property management? How do they go and review you?Dan Hines: So property management is one of those tough things, in that very, rarely do residents think, “oh, I just had a great experience with my landlord. Let me go leave a review.” Right? But as our society is changing and people oftentimes feel like they want to have that platform, they want to have that soapbox to tell people about when things go wrong.That's where there's a lot of really bad property management companies out there and you will find that they have a ton of one star reviews. And something that a lot of people say is, “I would give them zero stars if I could.” Right?Alex Osenenko: If I had $1 for every time I heard that.Dan Hines: Yeah, so there are people to want to talk about positive interactions. There are people that are very pleased when they receive quick, prompt, quality service. And, typically with property managers, the types of things you will see is, there's a lot of residents who will talk about their maintenance experience, how quickly will the landlord respond to maintenance requests? How easily do they make processes? Is it difficult to pay the rent? Can I communicate with someone? Are they listening to me?You know, one of the biggest complaints, in the resident realm is, what happens with security deposits? There's always a lot of talk about, don't go as such and such company if you ever want to see your security deposit come back to you. And all of those things point to how that particular management company operates. What is their North Star, so to speak? So, I would try to steer clear of some of those things.Personally, for a number of years, I was the guy that, when something did go wrong, when had a negative review come in, I was the guy that would leave a comment, that would respond back and get in touch with the resident and explain that this is a service industry. And if something doesn't go right, how is that company going to respond to make it right. I think that's really what separates the bad from the not good to the good.Alex Osenenko: So look at responses. Look at engagement. Make sure the owners are in the conversation in the review site. So that's good. Alright, so the passed that that particular yardstick for you. Let's say they're four-and-a-half stars, four stars. You know, whatever. Good. What are you looking for next?Dan Hines: I'm wanting to know the full breadth of services that they offer. So, I'm wanting to speak with someone and ask them questions about, on average, how long does it take them to rent a property? I'm asking questions about their delinquency rate, their overall eviction rate. How many similar units they have in my particular area? So, if I have a single-family home in Elk Grove that is really close to the Franklin side, I want to know how many properties within a mile radius or two-mile radius of mine do you manage? When it comes to pricing, especially if you're dealing with a vacant property, making sure you accurately price that thing from day one and make sure you gain traction. It's huge. So, how intimately does this company know your floor plan or your actual stats of the property? So, I'm asking questions like that.I'm asking about their technology and their reporting. If something goes wrong and I have to send some money to the property manager to fix some big-ticket maintenance item, do I have to drive a check to their office? Do I have to mail it? Can I do things electronically? A lot of residents, now, are choosing property management companies to rent through because they like the ease. They like online pay. They like having portals. They like the convenience. And if I have some management company that isn't quite with the times, so to speak—everything's paper—that means it's going to be slow. It's not going to create or provide a great service to my resident. Those are the types of things I'm looking for.Alex Osenenko: Gotcha. Well, that was a lot. That was a lot there to follow. Good advice, Dan. Thank you very much for your time. Those of you who are still watching, if you’re with us and you want to know more about Elk Grove and all the intricacies of that market and how to invest there, then go to Mynd.co, M-Y-N-D dot CO. Hit resources or just search for Elk Grove. A bunch of my interviews with Dan will come up and hopefully, you can learn more and become a more successful rental property owner there. Dan, thank you for your time.Dan Hines: All right, thank you.Alex Osenenko: Cheers, guys. Thank you for watching. Until next time.Technology has made choosing the right property manager easier than ever. With online review platforms like Yelp and Google reviews, investors have instant access to feedback left by other property owners and tenants to help paint a picture of how a particular company manages. This can also give an investor a better understanding of how a company charges for their services and exactly what services are provided. Building this profile can make choosing a property manager the easiest and best decision an investor can make.
There are many things to remember when investing in real estate. Having a little bit of knowledge can help any investor be or remain successful. Dan Hines is here with us, today. Dan is Regional Manager here at Mynd Property Management, and he is going to give us his top five reasons why investors have found success in Elk Grove.Alex Osenenko: Boys and girls, this is Alex with Mynd Property Management. Today, we're talking about Elk Grove and investing in real estate, specifically in Elk Grove and how to be successful doing so. My guest today is Dan Hines. Dan, how are you?Dan Hines: Doing great, Alex. Thanks for having me on. How are you doing?Alex Osenenko: I'm doing great. So, Dan's got a wealth of experience. He co-founded Raymond Property Management, which managed 1400 units in the Sacramento, Elk Grove area. And since about six months ago, Dan’s team joined Mynd and Dan is now Regional Director here at Mynd. So, Dan, let's talk. Specific, let's unpack some of the reasons why investors are successful in investing, specifically, in the Elk Grove area. Let's hit me with the top five reasons, in your opinion, investors can be successful there.Dan Hines: Top five. Well, first and foremost—diligence. Researching the area buying the property right. So, that is the number one. Elk Grove is a very high-demand, strong area. People flock to Elk Grove because of the school district. There's lots of quality newer construction. So that's reason number two.So, one, make sure you know the area and make sure you're wanting to buy there. Make sure you understand the basic expectations of who your residents for your tenant base will be.Staying on top of market trends and growth. That also feeds into step number one. And, really what that means is a lot of people say that you will make your money on the purchase. You have to buy it right. So, you need to understand the timing, being in tune with what correct market rates are. It all goes back to the underwriting and making sure you're really confident in the overall structure of the deal on the property.Alex Osenenko: Do you have some tips and tricks on that, maybe? Sorry to deviate, but, maybe one or two little top tips on how to buy right? Especially right now when we’re in, what? August, September, 2019? Some people say the market is kind of hot and it's going to cool down. I mean, what are your thoughts on that and how do you buy right today?Dan Hines: Figure out what you think the worst case scenario is and if you can live with that, then consider doing the deal, meaning I think there's a lot of investors that grab this pie-in-the-sky type of situation. If everything goes right, they'll get really aggressive with their vacancy rates. They think that just because the property is new—and I'll touch on this little bit later—just because it's a new property they don't think they need to factor in for expenses. All of those things still exist. It’s still real estate. These things come up. So, be conservative but still cautiously optimistic, but make sure that, if everything goes wrong—if the property is vacant for longer than you think, if you have to replace a water heater six months in—make sure that those things still pencil out and it’s a deal you can live with.Alex Osenenko: Is Elk Grove’s main—and sorry to deviate, I'm just super curious on this particular pocket in and around Sacramento—do you think it's more of an appreciation market where you buy and sort of hope for appreciation or do you see properties’ cash flowing?Dan Hines: So purchase prices are pretty strong out there, so it won't be a huge cash flow play for a lot of investors and unless you're bringing on a lot of equity. It's definitely a strong appreciation market. And then, turnover rates are usually very low. The submarket of Elk Grove, it attracts a lot of people that want the high-quality schools, that want the peace of mind that comes with newer property, higher-grade construction. There's a lot of quality elements. That's what attracts people. So, it's traditionally a very stable more, more stable I would say, than other submarkets of Sacramento.We are seeing property owners that have held properties for a handful of years to have a nice cash flow situation. But Sacramento, it's been a very strong, quickly-growing market. So, purchase prices have been strong and there's also quite a bit of new products going up there again, too.Alex Osenenko: Gotcha. So we go back to the five reasons. One, you said, is know the area. Two is know your numbers? Number two?Dan Hines: So number one is diligence. Number two is know the area. Three is staying on top of market trends and growth. Number four, and this is something that a lot of people overlook, know what your overall goals and exit strategy are. I think a lot of investors get into a property and hold on to it for too long. Maybe they don't realize that they've already extrapolated 70% or 80% of their total potential value and they just sit in it for way too long to get that extra 5 or 10% with the value out. If you want to park some capital for a handful of years and exchange that for something better, know what that looks like and set things up correctly from the very beginning so you can participate in some of that.Or if you're the investor that you want to capture the equity and have that resident pay down your debt, and you just want to hold this as long as you can, put your blinders up, don't pay attention with the neighbors are selling for, don't get distracted by, do I think this is a good time to jump? Just be clear on what your goals are and be clear on what you want your exit to be in the very beginning.Alex Osenenko: Gotcha. And so, that was number four—understand and build a strategy. Have your goals in place. And then, execute your real estate investment strategy based on those particular goals. Because some folks can be 10 years from retirement, some folks could be 30 years from retirement, and some folks can be in retirement. And that’s different goals. Obviously there's different life paths and different situations. So set goals, then manage investment against your goals, not against cycles or what's popular or what everybody is doing. Dan, what's the last one, five?Dan Hines: So in order to execute, you need to have a great team. So, from a CPA or tax preparer to a property manager, professional representation if you're clinging on selling, build your team early. Have people and resources around you that you can lean on and learn from, that you can trust—a team that you think has your best interests at heart and get out there and executeAlex Osenenko: Gotcha. Look, if you're still watching, we have this whole series on both Elk Grove and Sacramento. You can just go to Mynd.co, go to Resources. Type in Elk Grove or type in Sacramento and you'll see a number of these more insightful interviews about the area and how to go about investing.We also run a number of events. Twice a year we run a MasterMynd event, we call them. So if you want to learn more, you check out our events and sign up for one of those events. Again, if you need property management services, we are here for you. Otherwise, I hope this video really helped you out. Dan, thank you for your time.Dan Hiles: All right. Thank you.Real estate investing can prove incredibly rewarding for many investors. So, having a little bit of knowledge can be the difference between lucrative returns and staying afloat. This is why it is key for investors to be diligent when researching the market or property in which they are looking to invest. This means staying on top of market trends and setting the right rents, as well. And, because a maintenance emergency is almost guaranteed, it is key for investors to have a dedicated team to answer the call when one does occur.This is why hiring a property manager can be such a good decision. With a wealth of knowledge in the market and an established maintenance and management infrastructure, the right property management company can make the experience of renting a property easy and stress-free for any investor.
One of the things that every investor and landlord fears is a bad tenant. If you’re a Phoenix investor, you want to know what to do when you have a disruptive or difficult tenant. Maybe one of your residents is causing problems or creating headaches for you or your property or your neighbors. If you’re not sure what to do in such a situation, we have some advice for you today.
The best way to deal with bad tenants is to never place them in your property in the first place. The most important thing you can do is a good screening upfront. You want to qualify your tenants and make sure they are not likely to cause problems. This is why you hire a Phoenix property management company. We can make sure the residents moving into your home have a positive rental history.Even with good screening practices, things can go wrong. Luckily for us, the landlord and tenant laws in Arizona are fairly landlord-friendly. If you have a resident who is being difficult or causing problems, you can remove them from your property.
Send a certified 10 Day Notice letter when your tenants are being a problem. This informs them that they have violated the terms of their lease. Those lease terms could be quiet hours, not being a nuisance to neighbors, or any of the things that are spelled out in your lease agreement. If you receive complaints from neighbors or the community, you are entitled to serve a 10 Day Notice telling them to come into compliance or face eviction.Send the letter via certified mail so you can document when it was sent and received. Then, do a follow up. You can conduct an inspection or ask a neighbor to document whatever is going on at the property. Follow up with your tenants and see if they are now in compliance.If not, you’ll have to escalate the situation. Then, you can evict your tenants in about a month. This should only occur when they are refusing to comply. Hopefully, you can come to some resolution and work out a situation where the tenants are willing to change their behavior and perform in the way that you expect them to.As a resident, you don’t want an eviction on your record. Once you’ve been evicted from a rental property, it’s nearly impossible to find a new home in the Phoenix rental market. So, a strongly worded letter from an attorney or a legal 10 Day Notice should bring them into the compliance. If the tenants are still being difficult, you’ll want to get them out.
When you have to take action against bad tenants, there are some important things to remember.First, there’s a reason your lease agreement exists. You’re abiding by it as a landlord, and you expect your residents to abide by it as tenants. This is a contractual agreement and it’s binding. It’s law.You cannot deviate from the lease agreement. It doesn’t matter what your feelings are or even what you think. If the tenants violate the lease agreement, there’s a protocol that must be followed to handle the situation.It’s easy to get emotional, especially if you’re a new landlord. But, handling something in a way that’s outside of the legal process will only get you into trouble. Tenants have rights, and those rights are protected. This is the business you are in now, and you have to hold yourself to legal standards.Sometimes, there’s just a perception that a resident is disruptive. Stay professional when you’re enforcing the lease agreement. Follow your procedures and be consistent. Document everything, and keep emotion out of the situation.This is easier said than done, we know. But, it’s important in protecting you and your property.
Everything you say or write to the tenant could be admissible in court. Be careful in the heat of battle. Don’t say or do what you shouldn’t when you’re enforcing your lease.Your rental property is a business. If you’re having trouble with tenants or you can’t seem to keep your emotions out of the way you manage your home, work with a professional Phoenix property management company. It’s our job to treat your rental home like a business. We can be consistent with the way we enforce the lease and deal with tenants.No one ever responded to a tenant with a knee-jerk action or email and later felt glad about dealing with it that way. Be strategic, intentional, and professional. You have a contract in place, and you can trust that contract to lead you towards the right actions and decisions.If you’re not sure what to do with disruptive tenants, hand them over to us. We can take care of the situation for you and save you a lot of time and frustration. Contact us at Mynd Property Management, whether it’s to tell us about the tenants you just can’t deal with or to ask us more about our professional Phoenix property management services.You can also visit our Facebook group of investors, which is called Master Mynd. It’s a real estate investors’ club, where you can exchange ideas with other owners. Check out our weekly podcast as well, called The Myndful Investor. We invite leaders in real estate and property management to talk about their success and, more importantly, their failures. There’s a lot to learn from this relatable content.