How to Choose the Right Property Management Company
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Technology has made choosing the right property management easier than ever, giving investors a better understanding of the range and quality of services a company can provide. Today we are speaking with Scott Raymond—founder of Raymond Property Management, now part of Mynd—about how investors can easily choose the right property management company for them.
Alex: All right. Boys and girls, Alex with Mynd Property Management, talking all about investing in Sacramento. My guest today to help us demystify and build your successful portfolio in Sacramento is Scott Raymond. Scott, how are you?
Scott R: Doing great, Alex. Thanks.
Alex: Hey, Scott's got over a decade of experience—an extremely successful investor in Sacramento. He's also the founder of a company called Raymond Property Management, which is now part of Mynd. Very exciting. And today's topic is going to be an interesting one. Scott, as an avid investor, how would you go about choosing a property management company in Sacramento?
Scott R: Great question. For me, it starts with determining basically who has the strongest online presence—both from a professionalism standpoint and also a customer rating standpoint. To me, this is important because the industry is really transforming itself into one that relies on technology basically to do everything from marketing units to receiving tenant applications and approvals, handling maintenance dispatching, owner communications, and a lot more.
As for ratings, it's really easy to get poor Yelp and Google ratings as a property management company just because of how hard the business is, to maintain happy tenants and happy owners. So I think ratings, Google ratings, Yelp ratings will give you a pretty good starting point of which the top management companies are. Also, check out the quality of the marketing of the vacant homes that the property management companies are offering. Everything from how they take photos; do they have 3D touring of the units? Do they have a good editorial on the units themselves? Is the tenant application process easy? These things are critical to helping you get the units full.
Obviously, cost is an important factor but shouldn't be the overall determining factor. It's really about the management company's coverage and depth of experience in your area that you're investing in, as well as the breadth of their services. So those are probably my top reasons.
Alex: Those are really good top three. I've heard a lot of topics, I mean, I've done this for 10 years, and I think checking into how property management companies market rentals is—I've heard it maybe one or two times before—it's rare, but I think that's an important piece. Because, look, at the end of the day rent needs to come in and if the rent doesn't come in, the property is losing money. So that's a really good tip.
Now a question for you, Scott. What do you think about published versus unpublished pricing? Do you care? If you find somebody who meets your criteria and you pick up the phone and call them versus somebody that has pricing up there on the website, how do you feel about either?
Scott R: Well, as for me, pricing transparency is important. If they're not willing to put the price on the Internet, it makes you wonder: what is it they're hiding? What is the pricing strategy? It sounds like their pricing structure might be complicated. They haven't boiled it down into a simple, digestible pricing structure for tenants or for owners to understand. And so that would be a little suspect for me. All property management companies are generally within the same range. So if you're not willing to put it on the Internet, I would consider that a little suspect.
Alex: Interesting. Well, Scott, thank you very much for your time. Folks, thank you for watching. And if you want to go and find more wisdom nuggets from Scott, go to mynd.co, M-Y-N-D.co. Type that up and search for Sacramento investing, and there'll be a number of episodes just like this one. Thank you for watching.
Scott R: Thanks, Alex. Choosing the right property management company is imperative for investors thinking of entering Sacramento’s competitive rental market. Technology has made such a decision easier than ever, providing investors with instant access to lists of provided services and customer ratings.
The way a property management company advertises their services is crucial, as well. Transparency in pricing can give an investor a fuller understanding of what services are provided and how much these services will cost. And though cost should always be a factor when choosing the right property management company, it is equally important for investors to know a management company's coverage and depth of experience in the area in which they have invested.
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