Is the Scottsdale, AZ market a good fit for your investment strategy? Learn more about this unique market,why to hire a property manager, and how to determine your rent for this area.
Scottsdale is known for hosting baseball spring training for the San Francisco Giants, Colorado Rockies, and Arizona Diamondbacks. With more than 200 golf courses in the area, it is also a popular destination for golfers.
Often referred to as a suburb of Phoenix, the average prices of a rental home in the area is about $400,000. However, this does vary depending on the area you are looking in. As an investor, you would expect to benefit from appreciation in value but not so much as far as cash flow goes. The higher purchase price in the area is what is going to limit your cash flow, so this will probably only appeal to the investors interested in appreciation of the property.
When shopping for an investment property, you want to use the knowledge of Scottsdale property manager who knows the area, knows the rental market, and knows where to buy based on your goals. At Mynd, we have proprietary data that will help determine if this area is right for you. If it aligns with your goals, your property manager knows what areas rent faster and can help you find a good investment.
One of the most important jobs of a Scottsdale property management company is to make sure your property is protected while also ensuring the tenant is taken care of. At the end of the day, you are in the customer service business, and your property management company can be that helpful,friendly face when dealing you’re your tenant(s). This includes things like
Your Scottsdale property manager knows the local laws and how to handle situations when they arise with your property or tenant. They are well educated when it comes to know the laws and are better equipped to help you make smart, legal decisions about issues.
Just because you have been charging the same amount for years doesn’t mean it will rent for that amount today. Your rent must match the market. This could mean an increase or decrease from what you have charged in the past. Your property manager can provide you with a rental analysis to show you comparison numbers for your market and give you a better understanding of what you can expect to get in today’s market. Mynd offers a free rental analysis of your home. Setting the price right will help it rent faster. An overpriced rental runs the risk of sitting vacant month after month which costs you money in the long run.
When you are managing a home on your own, you need to make sure any contractors are licensed and insured, and are they charging you a fair price. Your property management company has established relationships with quality vendors. Often, they can get a better price on work because of this long-term relationship they have with their vendors.
You can be free of the late-night emergency maintenance calls and other interruption involved with owning rental property because your property manager will be taking care of this for you. If you are a serious investor with multiple properties, these headaches are multiplied. As you grow your portfolio, you will eventually be short on both time and knowledge. Hiring a professional property management company is going to give you your time back. Now you are free to do what you want while they handle any issues that come up. No more 1:00 am emergency calls! They are better equipped with their vendor resources and knowledge of the laws to protect both your property and your tenants.
Not knowing the law doesn’t excuse you when it comes to tenant laws. If you do choose to manage the property yourself, take the time to educate yourself.
After purchasing your Scottsdale, AZ rental property, how do you determine what rent to charge?
If you were hoping for a 30-60 days on market turnaround,keep in mind the 120 days is going to effect your cash flow. You will want to factor that in your planning.
Getting market analysis numbers is important, and your property manager can help get you the numbers you need to make an informed decision on things like purchasing or setting rent.
56% of the homes in Scottsdale are owner occupied. That means 46% of homes are rentals, and that is good news for you as an investor. If your property is in rent ready condition and priced right, it has a great chance of renting.
Scottsdale has been experiencing about 8% a year while Phoenix is about 10%. That is good news for investors looking to purchase investment property for appreciation in value.
Don’t focus on 1 set of numbers but instead look at them all to create a bigger picture. The average house price in Scottsdale is $934,000 (about $326 /sq ft) . The national average is $330 per sq ft. That tells you that Scottsdale prices are on the high side. Expect to have little cash flow, but the advantage is going to be in the appreciation due to the consistent growth in the area.
If you want a free rental analysis of your property, contact us at Mynd. Not only do we offer property management services in Scottsdale, AZ, we have offices in 19 of the most rent able markets in the US, so we can help you increase your portfolio and net worth in multiple markets.
We can help you purchase and manage an investment property outside your current market. When you expand outside of your area, you will have a wider selection to choose from to find the properties that best fit your goals and strategies as an investor. The advantage is you can expect the same level of services across all our offices, and you only have to deal with one company for all your investment needs. Contact Mynd today.
Thinking about owning a rental property in Temecula, CA? Already own a property in the greater San Diego area? We are here to help ensure your investment is operating efficiently and you are managing the unit effectively. Learn more about how to quickly fill vacancies in your rental properties as well as the local laws and regulations applicable to homes in the Temecula, CA area.
Having a vacant property can be a stressful time for any rental property owner. Learn our top tips for getting your Temecula rental property leased quickly to the right tenant.
Your experienced Temecula property manager can provide some guidance to efficiently get the property ready to rent.
If your home has a musty, closed-in smell, you want to take some steps to make the home smell fresh. A new coat of paint and clean carpets can make the home more inviting.
Quick updates you can do to improve curb appeal:
Don’t assume that the rent you charged in the past is still accurate. Markets change and rent rates fluctuate. To be competitive in Temecula, CA, your rent rate needs to match what is available in your area today. Pay attention to your market to know how much you can rent your home for. Your property manager will be able to give you a rental analysis that shows a rent range you can expect to receive.
You might have potential tenants coming from out of state that aren’t familiar with the Temecula, CA area, so highlight the benefits of your location and point out the convenience of your property.
When you own a rental property in Temecula, CA, how do you know all the laws and regulations that govern you as a landlord and protect the tenants? Where can you find these laws and regulations?
Are you aware of changes to the laws and regulations that apply to landlords specifically in the Temecula, CA area? You need to be.
For example, AB 1482 was a law that was introduced earlier this year that created state-wide rent control along with several other little laws that they didn’t talk about, yet they are all being enforced. The rent control law has gone through multiple changes, and it is up to you to go discover them, keep up with any changes, and most importantly know how they affect you and your resident.
No one wants to discover they have broken a law by receiving a notice that you have violated the federal Fair Housing law. You must stay up to date on the changes in the law to avoid such a situation.
There are a lot of laws to comply with, and you want to make sure you are following them all. Are you qualified to even figure out these regulations by reading these yourself?
If you aren’t interested in spending your spare time reading through websites for law changes, you may want to consider hiring a staff member to do this research for you or hire an experienced property management company in Temecula.
Making sure you have the proper business model and are operating within the confines of the law (local, state, and federal) is key to your success as a real estate investor. As a rental property owner, you should be doing everything you can to make sure your asset is protected, your tenants are safe, and you are complying with the laws.
At Mynd property management, our professional Temecula property management services can take this headache away from you. We can give you a comprehensive review of your property, and if you want to add more properties to your portfolio, we can give you advice based on your strategy and goals. We are here to help you develop a strategy for success and make sure your property is operating correctly within the confines of the law. Contact us today for more information.
Owning a rental property in Carlsbad, CA can be extremely lucrative, if operated properly and efficiently. When your property is vacant, you are leaving money on the table. We will cover how to prepare your home for leasing season in Carlsbad, CA as well as some general tips and tricks to owning a home in the greater San Diego area. In general, the area is high in rental demand and experiences yearly job market growth. Learn more about how to manage your Carlsbad rental property below!
Before listing your rental property, make sure you have the background processes ready to make finding a tenant a smoother process.
Having the right structure from the beginning will reduce your vacancy time, so your first step is to have policies and procedures in place. Set the screening criteria in a way that increases your chances of finding a quality tenant while also giving you a solid defense in a discrimination claim.
The last thing you want to do is violate a Federal Fair Housing law or find yourself involved in a discrimination lawsuit. It is important to have written criteria that meets all the laws. All the back end policies and procedures should be set before you start advertising your property.
Is the grass cut? Are there colorful flowers in the yard? Are the trees and shrubs trimmed? Is there trash in the yard or mail hanging out of the mailbox? Not only is this first impression important for attracting interest, it also sets the bar on how you want them to treat the property. It is worth taking the time to make that impression a great one. You want your property to be the one they remember for the good qualities you present.
Think about the difference between seeing a front door with peeling paint vs one with a fresh coat of paint. The front door gives the tenant some insight into how the owner takes care of their property. They are looking for someone that is going offer them a safe, well-maintained place to live.
You want to be the property they remember because it smelled good, not the one that smelled old and musty.
A bad smelling home can be an instant turn off. Fresh paint or new carpet can make a big difference in making the home appear newer and cleaner.
If you have walls or carpets with holes or spots, take care of it. You are not going to want the tenant that would accept the home in this condition. Take the extra steps to attract a quality tenant and set the bar for the condition you expect it to be returned in.
When you show an empty home, the prospective tenant can envision how it will look with their belongings inside. Don’t show a property with an old, smelly, dingy sofa in it that was left behind from the previous tenant. Get rid of it prior to showing the property. Saying “We will take care of that before you move in” isn’t good enough. Getting your property rent ready before listing it on the market will produce the best results.
Don’t feel like prepping the home? Leverage your time by hiring a Carlsbad property management company that has the vendors and resources to help you get your property rent ready quickly.
Carlsbad is a quiet little beach town located just North of San Diego that has a few specific types of renters due to its location.
Renters in the area are a mix:
Due to the demand for housing in the area, the price per square foot is going to be high, but the values in this market are very stable.
Because the city’s populations consist of mostly retirees, vacationers, and military families, there aren’t a lot of places to work in the area as far as businesses go.
Would it be better suited for the retiree, vacationer, or a military family?
Because the value of the property is high, your cash flow is probably going to be a little lower than if you had property in another city. What you will get is a lot of appreciation. Don’t expect to put a minimum amount of money down on an investment property in Carlsbad and get a maximum amount of cash flow. However, you can expect the property to consistently go up in value year after year. Before investing in Carlsbad, consider these points and determine if that aligns with your investment strategy.
Carlsbad is perfect for someone that is looking for a property that is going to go up in value in a stabilized, smaller area.
If you are interested in investing in the Carlsbad, CA area or need management services, contact us today about Mynd’s full-service, results-oriented property management in Carlsbad.
Real estate investors have to watch every dollar that’s spent on their rental properties, so it’s understandable that you’d be wondering if professional property management in Tampa is really worth your money. This is a fixed expense that you’ll have to pay every month; is it really worth your money?The simple answer is – yes.Today, we’re talking about what property managers do for you and why the management fee is well worth paying.
A good property management company will take care of everything for you from A to Z. The ultimate goal is to ensure your investment property is cash flowing consistently and earning you the money you expect it to.This includes the basic day to day tasks such as rent collection and lease enforcement. Collecting rent on time is an important function of property managers, and a good rent collection policy needs to be documented and enforced. If rent isn’t collected on time, your property will send notices and put pressure on your to show them you’re serious about on-time payments.Enforcing the lease agreement is also a critical part of what we do. To protect your property effectively, we need to make sure there aren’t any unauthorized pets or in the property. There isn’t any kind of emotional attachment between property managers and tenants or property managers and rental homes. We can make business decisions that are best for your bottom line.
The value of what you pay a property manager starts with the leasing process.Before you even place a resident and start collecting rent, you can count on your property management company to prepare your home for the rental market, make the necessary repairs and upgrades, and clean it thoroughly from top to bottom. All of your landscaping will be attended to so there’s great curb appeal to attract the best .Screening in accordance with fair housing laws is another major reason to pay for a professional property manager. You won’t have to worry about drafting the lease and including all the necessary disclosures. All of the required processes are in place and things are handled expertly. You pay your property manager to collect the security deposit and the first month’s rent as well as any extra pet fees and deposits.
You will also have the benefit of expertise and relationships when it comes to maintenance. Your property manager will take care of all routine, emergency, and preventative maintenance, and we’ll be able to ensure the work is done professionally and cost-effectively because we work with the best vendors and contractors in Tampa.Communication is a critical part of what you get from professional management. Your property manager will share information and discuss strategy. You’ll have someone who deals with your and handles any conflicts or concerns. When a resident is moving out, your property manager will handle the inspection and the security deposit and preparing your property for the next tenant.There are a lot of moving parts, and your property manager handles all of them.
With a professional Tampa property manager, you can leave the running of your business in capable and experienced hands. You’re working with someone who has established policies, procedures, and structured systems. Your property manager is keeping your clients () and ensuring the revenue of your business is strong.There’s also a lot of protection available when you work with a management company. You can expect your property manager to keep you safe from claims and lawsuits. One out of three landlords are involved in a lawsuit every year. These lawsuits may concern fair housing violations, mistakes with the Fair Credit Reporting Act, evictions, and discrimination. If you’re not operating your property like a business, you’re putting yourself at risk.There is a lot of value available to investors who use property managers. We could spend all day talking about what property managers do for their money.Most importantly, your property manager is a part of your team. You receive a lot of leverage when it comes to managing your business if you have a good property manager working with you. We are here to do the things that you don’t need or want to be doing yourself.As an investor, you probably buy real estate as an end goal. You’re not investing to have a second or third job. You use a property manager for the same reason you use a CPA or an attorney or a car mechanic. The expertise is worth even more than the actual tasks that are handled for you.Sophisticated investors want a property manager who will take care of every aspect involved in the leasing and management of an investment property. Property owners should be able to trust you but also have the ability to verify the work that’s being done. You can go and live your life while your property manager takes care of your asset.If you want to talk more about the value of a Tampa property management company, please contact us at Mynd Property Management. Whether we’re managing your property or not, we love educating investors and talking about how to have a better rental experience.We also have other opportunities to connect with us and learn more about investing in Tampa. 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.
If you’ve decided to hire a professional property management company in Portland, Oregon, you’ve made a smart choice. Good investors know that their success depends on the team they surround themselves with, and they don’t waste time trying to manage their own rental homes.You want to make sure you’re hiring the best possible fit for your investment goals and your portfolio of properties. So we’re talking today about what kinds of things you should look for when you endeavor to hire the best property management company in Portland.There are a lot of choices. How do you know which property management company to pick?You have to ask some questions, and we have some suggestions.
We have spent more than 30 years in the property management industry, and one of the things we have learned is that sophistication can work in your favor and make you more money.When you begin looking for property management services, you’ll find many well-meaning but very small mom-and-pop businesses. The effort is there, and they clearly love what they do. But, the sophistication level is lower than it should be, and their follow through is rarely where it needs to be.So, you end up having a property management firm that tends to be very reactive rather than proactive. It’s not that their intentions are bad, it’s more like they don’t have the capacity to meet your needs. Some of the smaller management firms are running around playing whack-a-mole, just putting out fires. They can’t be strategic and they can’t deliver the sophisticated services you need.You want a property management company that is proactive. Look for an innovative company that’s modern and on the cutting edge of everything that’s happening in property management and real estate investments. You need a company that’s willing to invest in technology so that they can proactively take care of the things you need.Here’s an example of how a proactive property management company operates. They might suggest to you that the furnaces in your rental properties get tuned up in the off-season because it’s less expensive to have a heating specialist out in the middle of summer. Having those furnaces inspected and serviced will save you money in December because you won’t have a more expensive repair and your residents won’t be calling because the heat doesn’t work.That is being proactive. This type of sophistication and forward-thinking saves you money and in some cases, it can save you a lot of money.
You also want to make sure you are using a property management firm that only uses licensed, insured, and bonded maintenance companies. Sometimes you might feel like you’re paying more for these professionals, but these are companies that will warranty their work. They have a good, strong reputation in the marketplace and value your business. They will take care of you and your residents and treat you like valued customers.When it comes to maintenance, cheaper is not necessarily cheaper, and it’s definitely not better. You’ll end up spending more than you think you are saving. We have learned this first-hand. There is a cost of doing business and there is a cost of getting things fixed and doing it right.In Steve’s early days as an investor, he thought he was saving money, but when maintenance provider had to go out to a property three times, he actually ended up spending more to get the work done right. And, he found himself with frustrated residents. It’s hard to deal with an issue like that and to continue spending money on the same problem. If he had hired a licensed and insured professional to fix the problem the first time, it would have not only saved money but stress as well. Get the right person in there. Get the job done and do it right and move on.
And when we talk about the level of sophistication a property management company needs, you need to be sure to ask the right questions.You want to know how quickly they respond to tenants. And you will want to know how quickly maintenance issues are resolved. Ask a potential property manager if they have any preventative maintenance programs. At Mynd, we strive to respond to everyone within 24 hours and to have all maintenance requests closed within seven days. A lot of times we actually do better than that. If you can run a business like that, your residents are going to be very happy. It will increase retention and allow for healthier rent increases.
When you are looking for a management company, make sure they are in alignment with your goals and your strategy. Make sure they can help you get there. You don’t want to choose a company just because they’re the cheapest company on the block. They could very easily lead you in the wrong direction. There could be mental frustrations and lawsuits that come with that.Make sure that whatever company you choose, they are in line with what you want for your investment property.We would be happy to answer any questions you have about how to find a Portland property management company or what we can offer you that other managers can’t. Contact us at Mynd Property Management for more information.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.
At Mynd Property Management, we believe we’re the best property management company in Tampa. But, if you do an internet search for Tampa property management, you’ll find a lot of options. If you’re an investor who currently owns property in Tampa or is thinking about buying a new investment property, you’ll need to know where to turn when you’re looking for reliable property management advice and resources.Today, we want to help you understand what you should be looking for.
There are a lot of property management companies in Tampa and there are also a lot of real estate agents who try to manage properties on a part-time basis. While some companies deliver high-quality, outstanding services, a lot of property managers in this area give the entire industry a bad reputation because they’re not doing it right and they’re not doing it well.The phrase we like to use is win-win. It should be a lot of winning for property owners and their residents.You want to make sure you’re getting great communication from your property managers. Whether it’s texting or calling or delivering information via online portals, your property manager should be communicating with you regularly and consistently. The communication should be clear and accurate and transparent.Discuss your needs and your expectations before you sign the management agreement. We are always surprised at how many owners and investors just sign on the dotted line when they’re told to, without reading the management agreement and really studying what it entails.There’s a lot at stake when we’re talking about the management of your investment, whether it’s a single property or an entire portfolio. Make sure you and your chosen property management company are on the same page.It’s also important that you don’t feel locked into an agreement that may not serve you in the future. Be wary of termination fees and long-term contracts. At Mynd, we have a zero-term and zero-cancellation fee policy, and this makes us a little bit unique. But, we want to earn your business and keep it. It doesn’t help either of us win if we’re locking you into a contract and charging a huge cancellation fee. We want you to be happy with us. That’s important, and so we make sure that our contract makes sense. We hold ourselves accountable for helping you with cash flow and profitability.
Call people you know and trust, and ask them for referrals. Talk to people who are currently working with a property manager and ask what kind of experience they are having. You’ll want to know how the property manager helped or made a difference. It doesn’t necessarily matter to hear that a property manager collects rent every month. We hope that all property managers are doing that. Find out what really made the experience special; what stands out about a particular company?You want to make sure your investment goals are in place and your needs are being met. You need a property management partner who is on your team.
You’re going to get what you pay for with property management. You will never hear us say that you should use the cheapest property management company. At Mynd, our fees are flat and competitive. We provide tenant portals and documents and we make sure your property is being well-maintained and earning you consistent rental income.Don’t compare costs. Compare value.You’re looking for a management company with systems in place. You don’t want to have to manage your manager. If you own real estate assets, you don’t want to be bogged down with day to day decisions and hassles. You simply want to be able to log onto your portal and see what’s going on with your property.We often hear investors say they hired a certain company because they answered their phone first. That’s not a good reason to choose a property management company. You also shouldn’t choose a company because they’re the cheapest. Choose a Tampa property management company that’s aligned with your investment goals and has a documented history of success working with investors like you.If you were driving down the street to get surgery and you saw a doctor with a sign for 50 percent off surgeries, would you go to that doctor?Property management isn’t surgery, but it is your life savings and your financial security. You need to have a conversation and resist the temptation of choosing the first person who answers the phone or offers the deepest discount.Don’t go cheap and don’t do it alone. You don’t want to be frustrated and you don’t want to be the person who has to come up with systems because your property manager hasn’t. People do not buy real estate investments to have a second or third job.At Mynd, we’re choosy about the properties we want to manage because we believe in sharing the same goals and in being clear and transparent.If you want some help choosing a Tampa property management company, please contact us at Mynd Property Management. You don’t necessarily need to hire us to manage your property, but you can ask us for some tips and extra resources to make the choice easier.We also have other opportunities to connect with us and learn more about investing in Tampa. 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.
Investors are always talking amongst themselves about whether they should manage their own rental properties or if they should hire a property manager. Today, we’re talking about why you need a professional property management company in the Portland metro area. This information should help you make the decision easily and understand why it’s a bad idea – and even dangerous – to try and manage your own investment properties.
In a lot of states, there are new laws coming out including rent control laws, and city and state governments are changing the rulebooks. This has a big impact on investors, especially investors who don’t have the time and the resources to keep up with every new law.Time has always been a problem for real estate investors. Not having enough time to maintain the rental property on your own or market it when it’s vacant or show it to tenants has always been an issue. You have a full time job of your own and maybe you have family responsibilities and other passions you’d like to pursue. Getting your time back is a great reason to hire a property management company.But, the political landscape has changed, and now you don’t just want a property manager to save you time. You want a property manager to save you from expensive legal mistakes and potential lawsuits.Landlords are facing much heavier restrictions and requirements. More important than the laws themselves are the penalties. The amount you’ll have to pay for a mistake or a misstep is much bigger than it once was. So, if you’re hoping to self-manage, make sure you have a plan to understand and stay up to date on all the political changes that are happening. If you do not have that time, then you really need to get a professional Portland property management firm to help you. The stakes are too high, and managing properties legally and in compliance with new regulations is only going to grow more complicated.Laws evolve and change, and the government that makes these laws will expect you to keep up. Just because one law comes out this year doesn’t mean that it stays static. That law may shift next year, and you won’t necessarily know it’s happened. You might not find out what was actually required of you until it’s too late and you’re in legal trouble.No one gets into real estate investing to have a second or third job. When you try to self-manage, that’s exactly what happens. You find yourself having to juggle your first job with your new jobs. It takes away your time and it sets you up for mistakes.So, ask yourself what’s more important to you: time or money? You can always make more money. But, it’s pretty much impossible to make more time. So, paying for professional property management is probably in your best interests. Do you really want to commit yourself to understand the ever changing laws all the time? Acting as your own landlord is an excellent way to set yourself up for failure.
Another good reason to hire a professional Portland property manager is the market trends. Unless you have the time, expertise, and resources to stay up to date with everything going on in the local market, you need someone with the experience and the connections to know what properties are renting for and what residents are demanding in rental homes.This is part of the pattern, and it all goes back to the lack of time. Investors have a hard time staying afloat of the actual market value of rents. So, a common mistake that self-managing landlords make is that they get a resident in place, and then they never raise the rent. Or, they don’t conduct annual inspections. Maybe they don’t do a good job with preventative maintenance or they’re unresponsive to any type of maintenance. Before you know it, three to five years have gone by and a lot of money has been left behind. The property may be renting for $200 to $300 under market. Over the course of a few years, thousands of dollars are lost.Maybe you thought you had great residents in place because you never heard from them and they never bothered you with maintenance requests. Then, those residents move out and you find a lot of deferred maintenance and unreported repairs. These costs are going to be much higher than they would have been when they were first noticed.Many owners often think they’re saving money by not hiring a property manager. But, you are probably losing money on the things that aren’t getting the attention they need.When you own a rental property, you own a business. To be successful, all the pieces of that business need to fit into place. It’s like a pilot needing an airplane. That’s a pretty important piece to make the whole thing work. When you own a piece of property, having a property manager that operates the business is a key part of your success. You have to understand what the rents are and what the laws are and what is best for the business.We’d love to tell you more about Portland property management and how we can help. Contact us at Mynd Property Management for more information.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.
Mynd, the tech-powered property management company with the industry’s first real-time data management and mobile app, announced today that it has acquired San Diego-based Pacific Shore Management’s 595 unit portfolio. The deal makes Mynd one of the fastest growing mid-cap property management companies in the US and will more than double their unit count to nearly 1,100 in just 10 months of operations. The expansion into Southern California, one of the nation’s largest rental markets, further demonstrates the company’s commitment to overhaul the rental management industry.“The acquisition of Pacific Shore Management is an exciting opportunity for Mynd to continue our expansion into the massive Southern California market and to enable more property owners and residents to experience the benefits of our tech-powered property management service,” said Doug Brien, CEO and Co-Founder of Mynd. “We are proud to partner with the outstanding team at Pacific Shore Management and look forward to expanding further into the San Diego market.”Launched in 2016 by real estate veterans Colin Wiel and Doug Brien, Mynd marries homegrown software with industry-leading operations to offer owners a simpler, more profitable solution to manage their rental properties.“We have been in the real estate business for 15+ years and have always felt like technology was underutilized. When we met the Mynd team and saw how they had leveraged technology to make their management platform more efficient we were extremely impressed. We think Mynd’s approach to management will be game-changing for investors in San Diego,” said Krystle Moore with Pacific Shore Management.“Acquiring property management firms around the country provides a compelling way for Mynd to seed new markets so they can leverage their 21st century approach to management,” said Rich Boyle, General Partner with Canaan Partners.
If you have read Property Management History Part I, you know we have been taking a brief look at the history of property management.For those who haven’t: So far, we pointed out that urbanization – starting in the 19th century - created lots of demand for rentals in growing cities, and gradually owner-managers collected enough rental assets that they began to employ caretaker managers. But Beginning in the 60s and 70s, when people began to move around more frequently, professional managers capable of sales and marketing and leasing emerged - and the modern property management business began to emerge.
As many of you also know, the volatile economy of the 1980s saw dramatic ups and downs in the housing market: many savings and loan banks went bust and the federal government, through the Resolution Trust Corporation, gained control over large numbers of foreclosed rental properties. These required sophisticated managers who, in addition to their many other duties, needed to know how to market apartments in different economic environments.And then major tax reform legislation passed in 1986 eliminated several tax laws favorable to apartment owners, dramatically decreasing the appeal of real estate as a way to avoid taxes. Suddenly, “investment properties had to produce actual income - and owners now looked to managers for asset preservation and income maximization,” according to professors Rosemary Carucci Goss of Virginia Tech University and Howard Campbell of Ball State.
That meant a good manager had to find innovative ways to reduce expenses and increase revenues. Doing that required that the manager understand the property owner’s goals and budget—as well as the local real estate market. (And the 1990s saw the emergence of Real Estate Investment Trusts (), many of which were public and so brought added pressure from stockholders on managers to increase returns.)Property management firms that could maximize returns and increase the value of a property became ever more valuable, and could charge higher fees for their performance. In high-rent areas like East Bay, where rental units can generate a great deal of income—but the market is complex and regulations tricky—managers need a large, sophisticated skillset if they are to be successful. And they need technology to keep track of it all.
And of course the housing market in California is unique. Between 1970 and 1980, home prices in the state went from 30% above US levels to 80% higher, due to high demand and limited supply, as well as high land and construction costs. Today, an average California home is two and a half times the average national home price, and the median monthly rent in the state in 2013 was $1,240, almost 50% higher than the national average, according to the California Legislature’s Legislative Analyst’s Office.The financial crisis of 2007-2008 brought prices down in many US markets, and metro markets on California’s cost got hit especially hard (), but prices rebounded in California more quickly than in most states, and they have been rising rapidly since 2012, due to the same supply/demand factors. Navigating such a market—with extreme high prices and rents—is no simple task for owners and property managers.
Little is certain, as history shows, but we can comfortably predict this: Going forward, property managers will need to be fluent in multiple property submarkets, from low-income and affordable markets, to the middle market, to the lifestyle market that serves the affluent, as well as the student and retiree markets and other niches. Good managers need to know finance, marketing and management, and will also need to be technologically savvy—by using the latest applications and software—to successfully compete in the 21st Century.Adam and Eve—and maybe even their pet serpent—would be impressed.Editor’s Thanks/Acknowledgements: A good portion of these articles’ source material is drawn from the work of professors Rosemary Carucci Goss of Virginia Tech University and Howard Campbell of Ball State University in their 2008 paper that surveyed the existing literature on this topic.
Property investors and small business owners are alike in the sense that they believe they can manage everything on their own. Sure, it’s possible, but is it the best use of time? What are the pros and cons of self-managing? What other projects or priorities can you be focusing on instead? If you’re wondering whether you should manage your own rental properties or seek professional help, here are some key questions to consider.
Property management is a lot more work than one might think, especially for a first-time investor. And for investors who are looking to grow their portfolios – is the amount of work required to self-manage sustainable at scale? Before you can answer, let’s assess what actually goes into managing rental properties:
When you think about the finite amount of time you have in your day, how do you assign value to each hour? When you start thinking about what your time is worth, it’s amazing how much clarity you gain on how to best utilize your day. The sheer number of hours that go into every aspect of property management essentially amounts to a full-time job. It really depends on whether you are regarding property management as your profession, or if it’s meant to be a means of building wealth in a more passive way.
When you think about your top skills or where your expertise lies, is property management a part of that picture? The art of property management requires professional undertaking. Amateurs can be successful, but it takes a specialist to understand how to scale services and maximize return on investment. On top of that, it’s necessary to be well-versed in local and state legislation and have relationships with attorneys to avoid fees and unnecessary legal battles should they ever materialize. Additionally, do you have connections to trusted vendors to ensure quality completion of R&M jobs and resolve resident requests quickly? Although it’s not absolutely critical to have these relationships, it certainly makes the business of managing properties far more efficient, and friendlier on your wallet to boot.
Think about this: How would your life change if you never had to worry about managing your own properties again? Property management professionals do this for a living for a reason.Working with a team of professionals who know how to operate skillfully in your particular geolocation can increase your return in ways you never thought possible.For more details, read our Self-Managing: What Is Your Time Worth? article.