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Maintenance emergencies are always a possibility, especially when renting a property. As such, having a team of experts and vendors to rely upon can mean the difference between fixing the problem now and fixing the problem in the morning. Scott Raymond is the founder of Raymond Property Management—now part of Mynd—and today he is here to discuss how to tackle such emergencies when they do occur and how some emergencies might be avoided, altogether.
Alex: Boys and girls, Alex here with Mynd Property Management. Today we’re talking all about investing in the Sacramento area. My guest today is Scott Raymond. Scott, how are you?
Scott Raymond: Doing great, Alex.
Alex: Great. Scott has a decade of experience investing in Sacramento, specifically. He’s very successful in doing so. He founded his own property management company, Raymond Property Management, which is now part of Mynd, so very excited about that. The topic we want to cover today is what to do or how to handle an emergency maintenance situation with your rental.
Scott Raymond: That’s a good one, Alex. Most non-life threatening maintenance emergencies really have to do with plumbing or the HVAC system not working in extreme weather. Plumbing issues would be like a water leak or a sewer backup. An HVAC failure would be, the air conditioning’s not working and it’s 110 degrees outside or the heater’s not working and it’s freezing outside.
So if you’re self-managing, you need to have a reliable, stable group of vendors that you can call on—that will be there when you need them, like in the middle of the night or holidays, and won’t completely price gauge you.
Otherwise, my suggestion is to hire a property management company that has a dedicated staff of maintenance techs and vendors that can handle any problem, pretty much at any time.
Alex: Yeah. So, we’ve done a similar interview with Enrique Jevons in Seattle. His sort of advice was—I think very similar to yours, but he was more specific into building a team—you have to have a team in place before you need them.
Scott Raymond: Absolutely.
Alex: Do you have any tips on how to build a team as an investor? I mean, I understand hiring a property manager gives you access to those teams, but folks who are not currently involved with property management companies, how would they go about building a team?
Scott Raymond: I’ve got to tell you; the bad news is it’s very tough. You know, if I’m a real estate investor and I have one rental house, I’m not going to get on anybody’s radar, I’m not going to be considered a top client or top person for a plumber or an HVAC vendor or electrician to call.
When I call them, I’m just going to be like any other customer. So it’s really, unfortunately not until you get some real scale, three, four or five properties where you can give these people consistent work. When you start to give these vendors consistent work, that’s when they put you on their team, you put them on your team and that’s how that really works. But other than that, you’re just another client calling off of Google to the local plumber trying to get a priority fix on an emergency issue.
Alex: There you go. Get big or hire a property manager or be smart and do both. That’s the advice. Thanks for your time today, Scott.
Scott Raymond: Thanks, Alex.
Alex: And all of you watching, thank you for watching. Go to mynd.co to find a number of other interviews Scott and I have done on investing in Sacramento. Until then, much love.
Maintenance emergencies are bound to occur when owning a rental property. So, having the right team of vendors is the best way to tackle any emergency you may encounter. Building relationships with reliable experts and vendors can be quite difficult, however, especially for new investors or those with relatively few properties.
Having an infrastructure in place before you start renting is imperative. By hiring a property manager, you gain a devoted team of vendors to handle whatever emergency may arise. And while self-managing is a viable option for many investors, the scale and expertise of a property management company can save you time and money by providing dedicated experts to fix any problems before they become worse.