If you are a resident living in a Reno rental property, you want to make sure you understand which maintenance issues you’re responsible for and which ones the property owner will take care of.This is usually market specific, and today we’re talking about what is pretty typical in Reno.
In Reno, you always have to ask about lawn maintenance and landscaping. We get extreme weather in this part of the country. There will be snow in the winter and high, hot temperatures in the summer. If your landscaping is included, make sure you know this. Otherwise, you might be expected to pay for the landscaping service. If you don’t know how it works, look it up in your rental agreement or talk to your landlord.
Changing filters for the heating and cooling system is usually a resident’s responsibility. That’s an expectation for many landlords. You have to participate in protecting the HVAC. It’s an extremely expensive unit, and it keeps your heat and air conditioning working well. Make sure you’re changing your filters, and protect the HVAC. It also keeps your home efficient and your energy bills lower.
Figure out if you’re responsible for winterizing the property’s irrigation system. Sometimes the owner puts this on the residents, and you’ll want to be prepared. In the spring and summer, having a professional come out to service and inspect the irrigation system is a great way to maintain it.
Make sure you’re proactive about reporting maintenance needs. If you see something that needs to be repaired or replaced, report it. You might expect the owner or property manager to know certain things, but we often don’t know unless you tell us. If there’s a leak, it could affect the safety and the habitability of the property. Don’t ignore it. Report the problem to the owner or the property manager.Make sure you document everything, because you don’t want to be responsible for something you reported. If a landlord doesn’t respond and the problem gets worse, at least you’ve documented that you made the report.Always make sure you’re complying with the lease agreement.If you have any questions about how to manage your maintenance responsibilities, contact us at Mynd Property Management. You should also contact us if you’re looking for a Reno rental property. If you want to talk to us about renting a new home, please contact us. Our website has all our available leasing instructions and properties, and you can search by parameters like square footage, price, etc.
Selecting a resident can be one of the scariest parts of being an investor sometimes. Screening and leasing our rental properties is not something we do all the time. If you’re a self-managing landlord who is looking for a resident to occupy your vacant property, you might not be up to date on all the current laws and requirements. You may keep your residents for a long time, so you only go through the screening process every few years.Filling your Reno rental property is certainly stressful. It’s a process that’s hard to control while you’re making money. When you buy an investment property or renovate a rental home, you’re controlling the whole process. But, when you’re picking someone from the general public to live in your asset, it can be difficult to do.There are a lot of things you should consider when you’re choosing a resident, and in this blog, we’re focusing on the top three things to look at.
Financial stability is absolutely the most important thing to look for when you’re screening applications. You need to be sure the resident moving into your home has the means to afford your property. Make sure the resident has been employed by a stable company or has a traded that’s stable and in demand. You can use employment references to talk to employers and make sure the company won’t be shutting down or moving in a year.Private landlords who manage their own rental homes don’t always take the time to investigate a potential resident’s finances. This is a mistake. Financial stability is important and can be a huge indicator of whether you’re going to have your rent paid on time every month. You don’t want to place a resident who you assumed was financially stable because they were able to come up with the security deposit and the first month’s rent, and then find that resident is coming up short three or four months later. Spend some time looking at credit and debt and income.
References are important. Just like when you call for employment references, you want to call for landlord references as well. On each application, we ask for prior rental references and maybe personal references as well. Almost every rental application asks for them, and it will only take you five minutes to make the phone call and ask for some information.When you’re talking to a landlord about a current or former resident, consider asking that person for a second tier reference as well. Perhaps a neighbor or a vendor can speak to whether a particular resident was easy or difficult to work with. You really want to spend some time exploring who a prospective resident is.
Identify the person’s short term and long term goals before you begin the screening process. You want to know how long they plan to stay. If they’re here for work, they might want to rent for only a few months while they work on a project. That’s not going to be a good fit for you if you’re seeking a long term tenant. Maybe a resident is looking to buy a home in a few years and wants to save some money and rent while they get to know the Reno area.Knowing short term and long term plans will help you fill your vacancy with the right resident. Some investors prefer the stability of a long term tenant. Others like having the higher rents that come with short term tenants. Look for what you want and identify the types of residents who fit with your investment goals.
Make sure you’re screening each application consistently and fairly. You need written policies, procedures, and standards that explain your screening process and qualifying criteria. Otherwise, you can get into some fair housing trouble.Here’s an example. Perhaps you have a rental property that you expect will rent quickly, so you set very high screening standards and deny a tenant who applies because his income doesn’t match your requirements. After three weeks, you have not found a resident, and you’re starting to panic as your vacancy grows more expensive. So, when another applicant wants to rent your property and their income is too low, you approve them for your property anyway because you’re desperate to get the place rented.Not only is it a bad idea to lower your standards; it’s also illegal from the perspective of the first applicant who had the same qualifications and was denied.You don’t want to loosen your standards or become desperate. When you’re selecting a resident, make sure you have your qualifications in writing, and follow them consistently.Putting the right or wrong resident into your property is the difference between a successful investment experience and a horrible one.Standards protect you against litigation and they hold you accountable. If you have strict and reasonable criteria that you follow, it won’t be hard to find a well-qualified resident.We want you to be smart about managing your Reno rental property. Please contact us at Mynd Property Management. We’re always happy to talk about real estate and answer any questions. Even if we’re not managing your home, this is something we’re passionate about, and we love talking to other investors.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’re a resident in Reno looking for a new home to rent, there are lists of questions you should ask before you fill out an application or hand over a security deposit. Instead of going through the entire list, we’re focusing today on a few of the most important things you have to ask before you lease a Reno rental property.With the housing crisis we’re currently having in Northern Nevada, it can be difficult and stressful to find the right property. But, you don’t want to settle for something that doesn’t fit your lifestyle, your family, or your budget. So, make sure you’re asking the most critical questions.
Ask for a copy of the draft lease that you’ll be expected to sign.Realtors and property managers are always going to have a copy of the contract and all its terms. It might not have your exact rental amount and the property’s address on it because those things will be included once you’ve found a property and you’re ready to sign the lease. But, you should be able to see the draft.There is no state law or mandate that says we all have to use the same contract. So, you may find different types of lease agreements when you talk to different property managers or landlords. We can put together our own agreement, which gives us some flexibility in terms of how things are structured.You want to have a good idea of what you’re signing before you put a deposit down or pay the first month’s rent. Ask for a copy of the draft lease. It’s a request that will be accommodated by the agent you’re working with if they’re good agents.
The other important question to ask is pertaining to rent. This information will likely be in the lease agreement, but having a conversation about it always helps. This is one of the most important questions you can ask before moving in. Find out:
How much rent is due.When it’s due.How it should be paid.
If you get paid on a certain day and you’re worried that rent will be late because of the timing of your paycheck, talk about the options you might have. Clarify when you can pay rent before you sign the lease so you’ll know what’s expected of you and what you’re allowed to expect from the landlord. Sometimes residents will expect one thing and then encounter something else. We like to say that you have to slow down to speed up in many cases. Ask the right questions so you’re being smart, and don’t rush into anything.We help a lot of residents find new properties to rent in Reno. Contact us at Mynd Property Management if you’re looking for a new rental home. We have a search function in our website which makes it easy to search by square footage, price point, etc. We look forward to working with you.
In Nevada, recreational use of marijuana is legal, and has been since January of 2017. Adults 21 years of age and older are permitted to vape and smoke, but many landlords prefer to keep this activity out of their rental properties. As a property owner, you need to know what you can do to protect your investment.The problem that owners are running into is that this is a billion dollar industry, and as more states legalize marijuana and marijuana products, it’s harder to push back. Realistically, marijuana will likely be legalized throughout the country, in a year or two. You need to be prepared to combat the smoking inside your home or your unit.
Everything that happens at your rental property starts with your lease agreement. It’s important that you have a strong lease with specific expectations and responsibilities. It’s not enough to just tell your residents that you don’t allow smoking of any kind inside the property. You have to include the language and the prohibition in your contract.Make sure the language is clear. You don’t want to say “no smoking” and leave it at that. This type of vague statement won’t cut it anymore. Be specific about what isn’t allowed. List everything from tobacco to marijuana to vape pens. Vaping has becoming extremely popular among millennial tenants, and that’s one of the largest growing demographic populations. You have to be clear that it’s not allowed inside the property because many of your residents won’t think that vaping counts as smoking.
Have a conversation with your residents before they move into the property. While most of your lease signing and communication may be electronic, you want to make sure that you’re clearly establishing the rules of living in your property. Explain that you are renting that property to the residents with the expectation that there will be no smoking of any substance.Set clear standards and consistent boundaries. When you have done this in writing and in person, there is no excuse for your residents to violate the lease agreement or smoke in the property or claim they didn’t know if wasn’t allowed. If you discover something that’s a violation of your no smoking policy, you can feel comfortable that you gave them the information that they needed, but they ignored it and now must face the repercussions.
Have a team of professionals lined up to treat the property if you discover a resident has been smoking inside. You may or may not notice that there are residues on the wall, but if someone has been smoking marijuana or vaping inside the property, there will be residue. You’ll need to take care of your walls, paint, carpet, and surfaces. Be ready to repair and replace these things, and work with expert vendors and contractors who have done this type of work before.A lot of people don’t realize that vaping inside a property creates a chemical film or residue on the walls and ceiling. There may only be trace amounts of it that are hard to notice, but on a larger scale, that residue can affect the color and texture of your paint. There’s not a lot of data yet about the long term effects that these chemicals can have on your property or on the residents who will be moving into the property after someone was in there smoking.With results still in the discovery process, we don’t know if there’s any special cleaning that can be done, and it’s probably best to do a full repaint if a resident has been using vaping products or smoking marijuana. We haven’t dealt with these chemicals widely throughout the industry, so we don’t know what it’s going to do to sheetrock, carpet, tiles, and other services. It’s possible that over time, you’ll see a couple inches of saturation and it won’t help to just paint over it.This is understandably a big fear for investors. It’s terrible to have to deal with an unknown expense that may be so large even a security deposit won’t take care of it.
A recent experience with a Mynd client illustrates the importance of knowing what’s going on at your rental property.At the end of 2018, a new owner asked Mynd for a professional opinion about a situation he had encountered. His tenant had been living in the same rental property for many years. Everything seemed to be going well, so the owner never did any inspections and no maintenance requests were ever submitted.When the tenant moved out, the property had a very strong smell. The heavy odor of marijuana hung in the air and had saturated the walls, ceilings, floors – everything. The owner had to file an insurance claim, and the insurance company required an investigation which was a very time consuming process. Ultimately, a remediation company had to be hired to treat the odor. This amount of work is similar to what an owner would have to go through with fire or water damage. Air purification steps were taken and the walls had to be treated.It’s hard to say whether that property is 100 percent back to where it was.As a rental property owner, you’re taking a huge risk when you don’t have a tight eye on your resident.Make sure you’re staying up to date on all the laws pertaining to vaping and marijuana use. If you’re not sure how these things apply to your Reno rental property, please contact us at Mynd Property Management. We have a lot of experience getting owners out of stressful situations.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.
Emotional support animals are different from pets. If you don’t know this, it’s important that you understand the difference. The laws around emotional support animals have recently changed, and we want to talk about it with anyone who owns a Reno rental property and may have a resident who claims to need such an animal.Nationally, this is a big thing, especially in the property management industry. We are providing some local expertise today, which can help you avoid making an expensive mistake that may result in a discrimination lawsuit.
The million dollar question that has been brewing for the last five years is: how do we define and identify an emotional support animal? The Department of Housing and Urban Development () at the federal level has only released ambiguous statements on emotional support animals. They have been overly cautious about clearly defining it and then getting caught up on something. So, we don’t really have a blanket policy that we can use, and it’s been causing more problems than solutions over the last few years as more and more people want to live in properties with their support animals.
Pet are not always the most welcome residents in a rental property. Lots of investors prefer not to allow pets because they worry about the potential for damage and the replacement costs that can really be scary. We have all heard horror stories about the damage that a large dog has done or the smell of cat urine that can never be completely eradicated.Not all investors are worried about pets. There are a lot of really good pet owners out there who rent responsibly. Now, when investors are making decisions about whether to allow pets or not allow pets, they have no choice in the matter of service animals and emotional support animals.People who need a support animal must have paperwork and documentation to back it up. When this is eagerly provided and everything checks out, there’s not much you have to do. But, some people abuse the system and try to turn their pets into emotional support animals so they can avoid things like pet fees or pet rent.This makes working within the federal rules and regulations so difficult.
At the end of the day, every landlord and investor and property manager has to follow the guidelines, which were recently updated a month or two ago. There’s more structure to the policy now, but it’s still easy to misrepresent your position on pets and service or support animals. You can get into a lot of trouble if you’re suspected of discriminating against residents who need an emotional support animal.At Mynd, we use a third part service which keeps us very much above the legal dangers involved in emotional support animals.We work with Petscreening.com, which is a great service for Reno investment property owners. The company is comprised of a panel of attorneys who vet the medical professionals who are issuing the documentation residents provide. These days, people can buy certificates online to bypass the need for medical documentation. We want to avoid that and make sure the residents are complying with their own requirements.The screening service is very professional. They call the doctor or medical professional who signed off on the certificate and verify that the patient () needs the prescribed pet for the specific listed reasons. We want to make sure that letter came from the doctor’s office. They are usually happy to verify it when they’re legitimate medical professionals.Companies like this are at no cost to our landlords. It’s a free service we offer at Mynd, and we pay for it by asking the residents to pay a screening fee for their emotional support animal. We disclose the fee upfront. Whatever the outcome, you will be protected.This is a true form of leverage. If you own or manage a property, you don’t want to be the person who has to stay up to date on all the laws and protections. When there’s a professional property manager or an attorney-led screening service who can take care of these things for you, it’s much easier to rent out your property.Basically, Petscreening.com is doing a background check on the animal. They’re verifying that it’s an emotional support animal and they’re following all the regulations that are legally required.This area of the law and the property management industry is still fairly new. You need to understand the difference between therapy animals, service animals, and emotional support animals. As a rental property owner, you can’t say you won’t take these animals. Laws protect both the animal and the owner.Don’t get on the wrong side of this issue. Be transparent and document everything. You don’t want to find yourself on the opposing end of a complaint, which starts at around $10,000 per violationIf you have any questions about emotional support animals or anything pertaining to your Reno rental property, please contact us at Mynd Property Management. We love talking to investors about all things pertaining to real estate.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.
One of the biggest challenges most people face when it comes to rental property ownership is a disruptive resident. It actually keeps a lot of people from even investing in real estate. A lot of things can go wrong with the resident who is living in your rental property. You could place a terrible person no matter how closely you screen.If you get a disruptive resident who is causing problems, you need to know how to deal with it. Usually, it comes down to basic communication. Try to keep things simple, and don’t let anything escalate if you can help it.We have some ideas today about how to deal with these types of residents.
Terrible residents are the bane of existence for a lot of investors. You might immediately regret placing a certain resident, or you might not realize until two or three months later that you’ve got a bad one. There may be a laundry list of things that have gone left instead of right. They could be combative or loud or unpleasant and just difficult to manage.They are in a rental contract with you, however, and unless they aren’t paying rent or are in some way violating the terms of your lease agreement, you have to deal with the person who is living there.If the resident is disruptive because he or she is not paying rent – it’s an easy fix. You can get the eviction process moving right away. But, if they’re paying rent and doing what they’ve generally promised to do, being difficult is generally not a reason to evict.
I recommend to any self-managing investor dealing with a difficult resident that you not respond to residents emotionally. Stick to the facts. Make sure you have a good lease agreement in place that goes over quiet hours and the respect that’s owed to other residents, especially in the multi-family market.Northern Nevada has a large community of multi-family buildings and apartment communities. One disruptive resident in a multi-family building can cause three other move outs. A bad neighbor really leaves a sour taste with other residents. You don’t want your good residents to leave, sticking you with the bad resident. You may find you have a problem placing and retaining residents when there’s one difficult or disruptive person in the building.Identify the facts and gather the evidence when a resident is disruptive, especially if a complaint has been made by another resident. Find out who is telling the truth and who isn’t. You want to hear people out and get the whole story. If a resident is playing the radio too loud, it doesn’t mean he or she is a terrible person. It just means that person isn’t being very neighborly.When residents come to you with problems, ask if they have taken the five minutes to talk to their neighbor. Maybe if they knock on the door and have a conversation, the issue will be resolved.As a landlord or a property manager, you can issue notices to residents who are violating the lease agreement. Provide quiet hour reminders if you can. But, remember that people don’t like to be attacked or singled out when they receive a notice from their landlord. If there’s a problem, make sure it’s informally communicated first. You also want to document everything so you can show that reasonable steps have been taken to solve a problem.People get emotional when they’re living next door to others. You can enforce the lease agreement, but there’s not much you can do to facilitate better communication between neighbors. A simple conversation can go a long way, especially if the disruptive resident isn’t even aware of the disruption that he or she is causing.Residents need to give their neighbors an opportunity to talk. As a landlord, you don’t need to insert yourself into the situation until the lease has been violated. Your job is to enforce the lease, not to mediate issues between people who are living in your property.
Make sure you understand the Nevada eviction laws before you try to remove a resident in Reno. If you have to evict someone who has truly become disruptive and will not respond to any communication attempts or written notices, you have to follow the law and do it properly. A nuisance eviction may be your best course of action. It gives the resident a specific number of days to respond or cure the problem.If the issue continues and it is well-documented, you can take your problem to court and let a judge decide what needs to be done. Either you’ll be granted an eviction or you’ll be informed about what the resident’s rights are under the state laws.You’re running a business when you’re renting out a Reno property. There is no place to manage from your feelings or your gut reaction. We have never seen a successful gut reaction, but we have seen a lot of successful solutions. Our job is not to place blame or to take sides. It’s to run a business.If you have any questions about what you can and cannot do with a disruptive resident, please contact us at Mynd Property Management. We’d be happy to help you with anything pertaining to your Reno rental property.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’re a new investor and you want to get involved in the Reno rental market, we have a few specific tips, a lot of advice, and a list of items for your to-do list.
Our first recommendation is that you spend some time here. Identify where you want your investments and why you think Reno properties might fit your investment goals. If you’re in another city, come out here and spend some time in the neighborhoods. There’s nothing more devastating than an owner who picks a city that doesn’t match what they want to do.Reno is great town to look at when you’re investing. We are 45 minutes from Lake Tahoe, and the entire state is experiencing a huge amount of growth. There are an increasing number of trades and businesses, and a lot of diversity in real estate and rental properties. Homes coming up for sale on the market right now are good purchases for investors.
Define the geographical area you want to invest in and the parameters you have in place for the type of property you want to buy. Reno has a lot of sub-neighborhoods, and you could find yourself exploring communities like Somersett, Midtown, Arrow creek, and surrounding areas.Talk to the people who live here. Find out what their favorite part of town is and why. When you’re choosing a property to buy, you want to identify a location that’s great for residents and likely to attract some great applicants. Spend some time in the neighborhood at night and in the day. Sleep there if you can, and really get to know the house you’ve purchased.
Every investor needs to know the all-in number that will ensure you break even. Your investment has to make sense, so you need to crunch your numbers and look for the right opportunity and price point before you invest.With Reno a thriving market, sales prices are high. And, we have seen increases in value year over year. So, you need to identify what you can afford and stick to your budget. Don’t make exceptions just because you found a house that you really like. This is a business decision, not a personal decision or an emotional choice. Choose the investment that makes monetary sense. You know what kind of rent and appreciation you need to earn the return you want. There’s nothing worse than getting into a deal and being excited about it, and then after the closing you realize it might not work for you.Get your math done.
Start with an end goal and then work backwards on your strategy for reaching that goal. You have to be certain that Reno matches your strategy and your goal. When investors get into a new market, there are a few things that the more successful property owners do.Find partners. A lot of new investors are afraid to work with other investors, even though it can really help them. Find a mentor or someone who already owns property in the Reno market. Learn everything you can. Get in touch with experts. Other real estate investors can help you communicate with the right people. They’re a wealth of information and knowledge, and there’s no reason for a new investor to feel competitive or afraid. You might make double or triple what you’re currently making just by working better with other people.Identify the level of involvement you want with your investment. At Mynd, we work with a lot of overseas and out-of-state investors who hand over their properties and trust that it will be successful with our Reno property management experience. Other investors who are local to the area keep hammers in their trucks and they show up at their rental homes to take care of renovations themselves. So, decide how involved you want to be – it will determine where and what you buy. You might want a renovation neighborhood or a turnkey neighborhood.Know the local market or find someone who does. You need a real estate agent or a property manager or a sophisticated software system to help you manage the rental home. Local boots on the ground are important. Find a Realtor to write an offer for you. Work with a brokerage that aligns with what you want to accomplish. Don’t forget the Reno property management expertise that you need. In Nevada, property managers have to be licensed real estate agents. Make sure your property manager understands the local, state, and federal laws. You don’t want to get bad advice or incorrect advice.If you’re thinking about buying investment properties in the Reno rental market, or you need advice about the Reno real estate market, contact us at Mynd Property Management. We love to answer questions from new investors and experienced investors. Talking about real estate investing is one of our passions, and we’d be happy to help you. Our team will run some comps for you so you know what kind of rent you can ask on a property you’re thinking about buying. Just send us the MLS listing, and we can help you plan. We’re full of resources and expertise, and we love to share what we know.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.
Here we are again, talking about Seattle rental property investments and how to be as successful as possible when you own them or when you’re thinking about buying them. Our guest is Enrique Jevons, who has a wealth of experience on this topic. He is the Regional Director of Mynd Property Management, and his team manages 850 rental properties in the Greater Seattle area. On top of that, he owns 73 units personally. He understands the full 360-degree experience of real estate investors and how to be successful, specifically in Seattle.The question we are asking Enrique is: What are the three things that cost investors the most money?You might be thinking those are easy answers – vacancy, maintenance, finding new residents, etc.It’s not quite that simple, and we asked Enrique to share his personal and professional experience on this subject. He’s made some mistakes, which he’s learned from. He’s seen others make mistakes, too. Part of being a successful investor is not wasting your money. So do everything you can to avoid these three money disasters.
One of the top things that cost money is a lack of expertise. This is unfortunate for a lot of people because you don’t know what you don’t know. Give yourself as much education as possible when you’re managing a rental property or even buying an investment home. There’s a lot you can do thanks to the technology that’s available today. Read all the blogs and newsletters and articles and websites that pertain to real estate investment and property management. Listen to podcasts and go to events. Really soak in all the information you possibly can before you move forward with your investment goals.But, even with all those things, it’s critical to align yourself with an expert or a group of experts who can help you with the tools, resources, and knowledge that you need. Save yourself some money by not losing it. Get the help you need from experts.People will be strangely willing to move forward in the investment process without experts. They just don’t seem to get it. When you don’t partner up with a real expert in this field, it’s a quick and easy way to lose money and fail on your real estate investment.This expertise is something you need across the board. You have to know who the good property management companies are in Seattle. You have to know who the good plumbers are and which electricians will come out and rewire an older home if that’s what you bought. You need to know which cleaning crews really pay attention to detail and how to find a landscaper that understands your property’s lawn needs.You need an attorney who understands what needs to be included in a Seattle lease. You need legal experts who can protect you if you need to evict a resident. Don’t just settle for anyone, either. Find the rock stars. If you know a good Seattle property management company, you’ve already got your team of experts lined up. Property managers will already have a reliable list of excellent electricians, plumbers, attorneys, landscapers – the list goes on.Make sure you’re asking the right experts for those referrals. Your neighbor might know an attorney, but the better referral will come from your property manager. You want to work with people who are really good at what they do.
Another sure-fire way to lose money on your Seattle investment property is by wasting your time. Investors don’t have the time that’s required to manage their properties well. They’re unwilling to give up control to others, and that can be costly. As an owner, you might decide to paint your house during a turnover period because you know how to paint.That doesn’t mean you should be the one painting.Maybe knowing how to clean a house really well, so you decide to clean the units personally before having a new resident move-in. That’s not a good use of your time, and it’s better to leave tasks like those to the professionals. The highest and best use of your time is likely not cleaning a unit.Are you really going to want to clean a rental property after cleaning your own house or after spending 40 hours a week at your job? This is money that’s lost forever. It’s going to cost you a lot. Paying someone to clean the unit today or landscape the yard today is far more cost-effective than doing it yourself in a week. You can never recapture the lost revenue that flies out the window when your property is vacant. Even an extra day is costly. This is similar to airlines who lose money on every vacant seat. You can’t earn that back.Make good use of your time. Don’t have such a personal and emotional stake in your investment property that you feel you have to do everything yourself. This is a business, and you don’t have to do everything yourself. The better business decision is to leave the work to the professionals, turn that investment home around quickly, and start collecting the maximum amount of rent that you can.
Not having money costs money.If you don’t have enough money to buy and operate your rental property, you’ll run into some problems. A lack of funds is actually a major reason that investors fail, even after they’ve purchased a property and they think that collecting rental income will take care of every possible expense.Businesses fail because of a lack of capital, and real estate businesses are no different. You need sufficient capital available for emergencies and unexpected disasters. It’s advisable to have enough money to cover inconveniences like longer than expected vacancy periods. Maybe there’s a catastrophe at the property that will ultimately be covered by insurance, but you still need the money to move the resident out and keep the property operational until the insurance check arrives.There are different ways to access money and capital, and maybe you’ll want to focus on one in particular or maybe you’ll want to have different streams of funds that are available to you when you need them. The money can be your own funds growing comfortably in a savings account. It doesn’t have to be your own money, however.It’s a good strategy to have some credit available. This might be a credit card with a high limit or lines of credit from banks and other financial institutions. A lot of owners don’t like this because maybe their credit card comes with a 19 % interest rate. No, you don’t want to pay 19 % interest on your credit card. But, if there’s an emergency, that 19 % interest will cost a lot less than losing your property because your entire business has failed.Enrique likes to use equity lines on the investment properties he owns. With 73 units, something is going to fail at some point, and he wants to be ready for new roofs and new furnaces and other expensive and unforeseen circumstances. So, he uses business and personal lines of credit to provide the financial security that he needs. By lining that up in advance before he actually needs it, he knows that he’ll have the cash available when something goes wrong.Don’t lose money by refusing to work with experts, by wasting your own time, and by forgetting you need money available to you.There are a lot of nuances to what we’ve talked about, and if you have any questions, please contact us at Mynd Property Management.
Choosing the best property management company is more than picking a name out of the phone book. There are many things to consider that many investors may not think of. Our guest today is Trevor Steadman, Portfolio Manager for the Reno division of Mynd Property Management. Trevor is here to give us his opinion on how to choose to best property management company in Reno and what to look out for when doing so.
Steve Rozenberg: Hey, everyone. My name is Steve Rozenberg and I am with Mynd Property Management. I'm joined today with Trevor Steadman, who is the Portfolio Manager for Reno, Mynd Division. Trevor, thanks for joining me, today. I appreciate it.
Trevor Steadman: Thanks, Steve. Thanks for having me, as always.
Steve Rozenberg: No problem. So here's what I want to know, Trevor. How do I choose the best property management company in Reno? Now, obviously, we all feel that Mynd is the best property management company, but I think it's fair. There's a free market. I think people have the right to learn and look and make sure that it's a fit. Because the reality is, we may not be a fit for everyone, and that's business. And that's fine.We want to make sure that we add the most value to our clients and vice versa. We don't want someone to go with us because of one reason and then they don't like everything else. I think it's important to educate yourself. And this should never be a knee-jerk reaction when you hire a management company. This is an important piece of being a successful investor. So, what are your opinions on that, Trevor?
Trevor Steadman: The professional property management industry has evolved a lot in the last 5 to 10 years and picking a property management company is crucial to the successfulness of your investment. And it comes out to a lot of different factors. Owners have some Juju to, you know, it feels this way, I like this person, I know this guy, but you really got to take the emotion out of it and look at the metrics.Ask the questions. What's their eviction rates? How many people do they actually throw to their property due to non-payment? How many residents end up breaking their lease agreements? How many vendors do they have for a certain number of trades? And we'll look at the reviews.Our industry, I think we've mentioned in a segment before, but we're in the customer service industry. Just like Yelp and Google and all the different off-sites collect responses on certain interactions and experiences, we have the same standards held to us, too. Look and see what the residents are telling the public. See what the owners are telling the public. Do your research and don't be afraid to pop in at their office.In the state of Nevada, if the property management firm exists, it has to have a brick and mortar office. So, go in meet the broker. Talk to the property managers. Talk to the maintenance division. See what's going on in the day-to-day and make the right choice.Our company may not be the right fit for yours and vice versa. That owner may not be the right fit for our company. But do your research. Do your due diligence and kind of drill down to the nuts and bolts of it before you make a decision.
Steve Rozenberg: And I know that, in the state of Nevada, you have to have a property manager, is it a license or certificate, to manage properties?
Trevor Steadman: Correct, so we can apply for a real estate salesperson, which allows me to buy and sell homes and property, but for me to actually work in property management, I have to have a separate license for specifically property management. So that kind of puts me aside from the real estate and realtors that are in town, that I have to have special education, licensing requirements and just general know-how of federal law and state law in order to manage rental properties and residents. It's extremely important to make sure all that licensing is in place so that you're above board with the state.
Steve Rozenberg: Yeah, because what people, you know, sometimes they think, the management company, that's their problem. At the end of the day, the buck stops with you as the owner. You're the CEO of that business and you have people that are working for you—management Company being one of them—but it's basically incumbent upon you, the owner of the rental property, to make sure that everything's being done correctly. Because, when it happens, and something goes wrong, everyone is wrapped up in that and you're not immune to that.So, those are great points, Trevor. I appreciate that. So if someone decides that they want to learn more about Mynd and maybe talk to you about managing their properties in Reno, what's the best way to get ahold of you?
Trevor Steadman: Have them give me a call. 775-335-0124 or shoot me an email. Trevos.email@example.com and we can answer your questions and even talk property management.
Steve Rozenberg: Great. And if you want to know more about investing, I would suggest you join our Facebook group. We have a great Facebook group. It's free to join. We don't sell anything. It's the Mastermynd Real Estate Investment Club. I'm in there. Trevor's in there. We're learning, engaging, having conversations. Make sure you join that. And go to our website, mynd.co. M-Y-N-D.co. I'm Steve. This is Trevor. We’ll talk to later. Bye-bye.
Trevor Steadman: Thanks.Choosing a company to manage a property can be an already difficult process. But choosing the right management company requires thinking about whether such a company is right for the property and vice versa. Likewise, asking such questions as what are this company’s eviction rates or how many of their tenants break their lease is imperative when picking the right one. Finding the right property manager requires not being afraid of asking questions and thinking about what is right for you, the property, and the management company, as well.
The potential for failure is ever-present in any business. This can prove to be especially true when investing and renting in the real estate market. Today we are speaking with Trevor Steadman, who is the Portfolio Manager for Mynd Property Management in Reno. Trevor is here to give us his top three reasons investors have failed in the Reno market and help other investors avoid the same mistakes in the future.Steve Rozenberg: Hey, everyone. My name is Steve Rozenberg and I'm with Mynd Property Management and I'm joined today with Trevor Steadman who is the Portfolio Manager for the Reno Division of Mynd Property Management. Trevor, thanks for joining me today. I appreciate it.Trevor Steadman: Thank you, Steve. As always, love to be on your show here and working with Mynd in the Reno market.Steve Rozenberg: Thank you. So, as an investor, we all know that there's ups and downs and things happen. And we've talked in the past, we've done videos on how to be a successful investor, but I think it's important to understand, too, what do you think are the top three things that cause investors to fail in the Reno market?Trevor Steadman: Yeah, that's a great question and something that my clients, all the time, come to me and ask and say, what do I need to avoid? The first one I'm going to say, over-improving properties for their areas. As anyone knows in Reno, we have the Midtown, we have South Reno, Somerset, some of these big areas that are up-and-coming. And, sometimes, they're pouring money into properties that really over-improves the unit for what we can actually fetch rent-wise.Steve Rozenberg: Is that because they think that that's how it should be and that's how they would want it if they live there? Is that kind of the perception?Trevor Steadman: Yeah, it's more kind of an emotional tie. You know, we have some investors that come from the Bay or some other parts of the area where that's kind of what they expect but they need to realize that we still have the same tenant base here in Reno. That hasn't changed for the most part. And so, they'll put stuff in a property that won't allow them to get the highest rents that they should get for that property versus something located right in Downtown or Midtown that could afford that kind of leverage.Steve Rozenberg: That's normally coined a “white elephant” from investing terms, where it's basically, it's a great house, it's pretty, but it does not align with the market and it's way overpriced, and you'll never get it. And, unfortunately, I think what happens a lot of times is, and this may be something that's on your list, but they overprice it and now they're saying, “well, I need this much,” because now they’re in debt to it and they can't get it and then they hold out and then they don't get that much. And then, next thing you know, they’re in a bad financial position and, it kind of circles the drain, so to speak. So, tell me the second reason.Trevor Steadman: Yeah, and that actually goes right into my second point, not pricing the units correctly. You know, with all these improvements and people looking for higher rents throughout the town, we have to make sure the units are priced to move quickly and attract the right kind of residents. We have a lot of influx of people moving from out-of-state who maybe rent for a couple years, and then buy. We want to carve out a good portion of the rental market for people who are looking to rent for the next 2,3,4,5, 6 years and not just a 12-month and then have to rent it again. So, we have to price the property for the right resident, as well.Steve Rozenberg: And do you find that, when this happens, is it normally an upper-end property or mid-level? Is there a common theme that you see that this happens to take place in?Trevor Steadman: You know, typically we're sitting across all types of classes of property. But really, right now, the class C and the class B housing is where we're seeing a lot of these fudgy-ness in terms of pricing. And, unfortunately, the investors do get their number sometimes. So that's what's urging forward this kind of mindset where, you know, we have one investor who makes the mark, but then we have another investor who has three months of vacancy loss. So, we have to mitigate that for them and set real expectations.Steve Rozenberg: Yeah, I know, myself, as an investor, I used to be able to talk myself into the numbers all the time to make the deal make sense and that was the worst thing I could do because the numbers were clearly telling me what it was going to do. But, you know, I’d think, “well, if I make it look nicer and if I get that right tenant and this and that,” and I bumped it up 10, 15, 20% in my mind, thinking this is going to be a great return on my investment, and the reality was it's just not there, because the market bears what the market bears and that's a great lesson. It is what it is. And you can't change the neighborhood. You can't change the population of Reno because you made your house nicer. The population is the population. And that's a great value to learn.Trevor Steadman: Exactly, exactly. And that actually kind of goes in my third point with regards to resident screening and selection. I don't think enough time is spent there, especially for homeowners or landlords who do their own self-managing. They don't put the time into actually looking for the right tenant for the right property. So they also should spend a lot of time in that area, as well. Screening, selection, rental verifications, all the above.Steve Rozenberg: And I think the biggest challenge with that, in general, is that most landlords don't have a process and procedure or qualifications and they go off their gut or their reaction or their emotions. And, I don't know about you, but I've never seen someone make a knee-jerk reaction and come back and say, “that was the best decision I ever made. I'm so glad I did that.” It normally is the other way.And I'm guilty of that myself as an investor. Because, when you price a property wrong and you plan for maybe one or two months of vacancy and now you're into four and five months, they can see and that one person rings the phone and says, “hey, I'll take it,” you throw all the ideas out the window and all of those things and next thing you know, you maybe put the wrong person in your property.I used to tell owners, it's still vacant, you just have a person living in it now. And now you have a bigger problem because now you got to worry about getting them out. And I think the biggest challenge when it comes to doing this and making these mistakes are, nobody really accounts for the mental stress that you put on yourself by making that wrong decision and having that wrong person in your property. And now you've got to untangle the mess that you basically made. And what I'm hearing from all of this, which is funny because the other video we've done in the past talks all about successive investors using data. This shows me the reason a lot of investors fail, if you count up all these things, is because of data. They're just not paying attention to the data. And so they're making more emotional decisions or what they think it should be, not what the numbers are telling them.Trevor Steadman: That's it exactly. You hit it on the head. Exactly.Steve Rozenberg: Wow, that's great information. So, if somebody wants to make sure they make the right decisions in Reno and purchase a property and not the wrong decisions and they want to get ahold of you, what is the best way to contact you?Trevor Steadman: The easiest way is to give me a call. The number is 775-335-0124. or shoot me an email. Trevor.firstname.lastname@example.org. That’s CO at the end. That’s the easiest way to get ahold of me, and we can see what we can do.Steve Rozenberg: That's great. And for those of you that want to learn more and get more engaged in the investing world, I would ask you to join our Facebook group. We have a Facebook group called the Mastermynd Real Estate Investment Club. A lot of serious investors in there. New investors. Experienced. All learning, engaging, conversing. I'm in there. Trevor's in there. Join that. you'll learn a lot of things that you can do and avoid a lot of pitfalls of things that you shouldn't do.Also, if you want to go to our website, mynd.co. M-Y-N-D.co. Again, I'm Steve Rozenberg. This is Trevor. I Want to thank you for watching. We'll talk to you later. Bye-bye.Trevor Steadman: Thanks again.There are many factors to investing in real estate that new and seasoned investors may not think of which could lead to serious failure in the Reno market. For example, with an influx of new residents from California and elsewhere, some investors may find it necessary to improve and update the residence they are renting. While this may seem like the right thing to do, depending on the neighborhood, improving a property too much can actually make it harder for an investor to achieve their desired returns.Likewise, pricing a property incorrectly is a major mistake many investors have made. As such, it is incumbent upon the property manager or owner to thoroughly understand the market, the neighborhood, and the property to set the right price.Lastly, it is incredibly important for property owners to take the time to truly screen potential tenants to make sure they are right for the property, but also that the property is right for them. Success or failure in the Reno market and other markets, generally, depends, in part, on how a property manager or investor manages these factors when renting a property.