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While self-managing a property can prove both challenging and rewarding, hiring a property manager is the best decision many investors make. Today we are speaking with Dan Hines, Regional Manager with Mynd Property Management. Dan is here to speak with us about why hiring a property manager is such a good decision for many investors in Elk Grove.
Alex Osenenko: Boys and Girls, Alex here with Mynd Property Management. Today, we're talking about investing in real estate in Elk Grove, specifically. We're going to do this series of local, specific, very local educational blogs and unpack some of the wisdom from my guests who spend years and years managing and/or investing in the area. So, today, let's talk about if you really need a property management company. Do you need a professional property management company if you have a property—a rental property in Elk Grove. And I have a guest today who will help us unpack this question. His name is Dan Hines. Dan, how are you?
Dan Hines: I'm doing well, thanks. How are you doing, Alex?
Alex Osenenko: Great, Dan. Thanks for asking. Just to set up Dan for all of us here—he's been in Sacramento real estate for a number of years. He's a co-founder of a company called Raymond Property Management. They managed 1400 units in Sacramento and Elk Grove. So, obviously he's got a wealth of knowledge.He's now a regional director at Mynd. We're very excited about that. But Dan, hit us with some of the reasons why or why not to hire a property manager.
Dan Hines: Well, property management is an industry for a reason, right? There's a lot of things that can go wrong. There's a lot of people that can self-manage effectively for a period of time—if you're local, but it's something that's very difficult to do if you're not local—if you can't reach out and touch the asset if something were to go wrong.
Operational greatness normally comes from systems, having support, resources, and the experience to solve the problems when stuff comes up. So, I've seen a lot of people that can do it for a while small scale. But, when something happens and they find themselves out of their depth, then they normally end up paying for it dearly.So, we've created systems. We have the support from being in the property management industry for a decade now. Very rarely do we see anything for the first time anymore.
Alex Osenenko: Yeah, you look 25. You've been there since 15?
Dan Hines: Yeah, right? So, very rarely do we see surprises, anymore.
Alex Osenenko: So, I agree with that. As one of the interviews I've done with your colleague Enrique Jevons, he runs Seattle for us. He was talking about how one of the pitfalls is all kinds of fines being levied by the local government, ordinances and just a lot of—I think, isn’t rent control coming or already there? Like how does, how does the landlord deal with that stuff?
Dan Hines: Yeah, so there's likely going to be some form of rent control that will hit Elk Grove. It's not here yet. The recent measure that was passed only affects the actual City of Sacramento inside of city limits, but the county does have a residential housing inspection program and there's ordinances. A lot of people, a lot of landlords, especially that self-manage in Sacramento, don't realize that they have to register property. They don't realize that there are fees and penalties that come along with that.
There's a mandated inspection protocol, essentially, and you can be audited for these things. If you don't have your paperwork in order, the fines can get pretty nasty pretty quick. It also leads to code enforcement violations and a whole bunch of problems that you don't want. And, to go full circle, those are problems you don't want, especially if you’re not local.
Alex Osenenko: Yeah. And so, in your experience, do property managers in the Elk Grove area—do those mostly provide full service, there’s some that just do lease only—what is the spectrum of service that PM’s provide in the area, usually?
Dan Hines: It's all over the map. There are some companies that are really just going to be there to answer some basic questions. There is a couple that offers lease-up only. I've seen the majority are full-service management companies where they're going to take care of everything with a resident from leasing to rent collection, some light property level accounting for the landlords, some accounting, some maintenance support. most single-family residence shops out there are full-service.
Alex Osenenko: Gotcha. And so, that's kind of where Mynd is, as well—M Y N D. And if you guys want to learn more, if you are still watching this video, check out in Mynd.co and type in Elk Grove or Sacramento. We've done a number of these interviews where we talk to local experts and share wisdom, whether you are with a property management company, self-managing or considering hiring a property management company, I think these informational video videos can help you out, so check them out. Thank you very much for watching. And, Dan, thank you for your time.
Dan Hines: Thank you.
Hiring a property manager is the right decision for many investors. This is especially true for non-local investors, for whom having a dedicated team to manage a property is a necessity. Hiring a property manager can prove smart for local investors, as well. From dealing with paperwork to interfacing with tenants, property management companies alleviate the stress of so many investors by providing both infrastructure and expertise to attentively maintain a property or properties.