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Hiring someone to manage a property can be one of the smartest decisions an investor can make. By providing expertise and infrastructure, property management companies can save investors time and money. Today we are speaking with Dan Hines, Regional Manager with Mynd Property Management, about what property management companies do and how much their services will cost, particularly in the Elk Grove area.
Alex Osenenko: Boys and girls, Alex here with Mynd Property Management. Today we’re learning all about investing in Elk Grove real estate, how to run your property there and how to be successful. I have a guest today who can help us and share lots of his experience. He has been managing 1400 units for a decade in Sacramento and Elk Grove. His name is Dan Hines. Dan, how are you?
Dan Hines: Doing great. How are you doing?
Alex Osenenko: Doing great, Dan. Thank you for joining us. This is fantastic to have you on camera sharing your wisdom. Dan is a co-founder of a company called Raymond Property Management. He’s now a regional director here at Mynd. Very excited to have him. And today’s question is about, what do property management companies actually do and what does that service cost? Can you walk us through, specifically in the Elk Grove area what is the make-up?
Dan Hines: Yeah, so a lot of companies in Elk Grove are full-service management companies. I’ll dive into what that actually means in a moment. Other companies do provide Just stand-alone leasing services. That’s a situation where they’ll find a resident, move them and then they basically pull out from there, but they charge a higher fee for that. So, a full-service management company will handle everything from the leasing process, rent collection; so, basic property accounting. And then, there’s some element of maintenance support, where they will be there basically like a maintenance intake service. But, not all companies have their own in-house crew that they control. A lot of companies just rely on outside vendor networks. So, they essentially act like an operator when something goes wrong. I think that covers most of it.
Alex Osenenko: So, that’s a full-service company, so anywhere from actually placing a tenant to managing the property day-to-day, the full spectrum. Whether it’s a repair issue; whether it’s eviction or hopefully not, right? Rent collection, reporting, that kind of stuff.
Dan Hines: Yeah, a good way to think of it is, if you’re a property owner and you live in another state and you never want to have a conversation with a resident, you aren’t able to handle any sort of accounting, you aren’t able to answer a phone because you’re going to go on vacation or disappear for two months, a full-service management company will handle, from start to finish, everything about the routine operation of the property.
Alex Osenenko: Gotcha. What are the costs typically, then? What do you see the cost range in Elk Grove, specifically?
Dan Hines: So there’s a range. As in most things, you typically get what you pay for. There are some companies that are very cheap. It might range from $70 or $80 to two times that.
Alex Osenenko: We’re talking a monthly fee, right?
Dan Hines: Right, a monthly fee. So, there’s a couple of structures. You typically have a recurring monthly fee that covers the routine operations. And then there’s some sort of add-on fee around leasing and renewals. And again, there’s a large spectrum. Sometimes it’s a flat rate. Sometimes it’s a percentage of the monthly rent amount. For back-of-the-napkin math, call it from 30 to 50%. A leasing fee would be 30 to 50% of the monthly rent amount, but there are variables to this. I would say most good companies, reputable companies, will publish pricing upfront so it’s clear and it’s transparent and you know exactly what you might be getting yourself into. If someone is real under wraps about the pricing, personally, I would ask questions why. Those things should be nice and clear. But again, I cannot stress this enough, you typically get what you paid for. And be honest with yourself about what you want that experience to look like.
Alex Osenenko: Gotcha. So, if pricing is not published, who knows? They might have something to hide. I mean, why would you not publish? We publish here at Mynd. Go to Mynd.co. Hit pricing. Select Sacramento and you’ll see how Dan prices his region. Right, Dan? You’re super expensive. No, he’s not. We have three different plans. You can go check it out. We publish it all. It’s all visible.
So, we hope this video helps you out to learn more about Elk Grove real estate investing and how to manage a property there, whether you do it yourself or hire someone else. We’ve done a number of these interviews on our website at Mynd.co, M-Y-N-D dot CO. Put in Elk Grove in the search bar and enjoy all the education we put out. Dan, thank you very much for your time.
Dan Hines: Thanks for having me.
Alex Osenenko: Thanks for watching.
By hiring a property manager, an investor can gain the infrastructure and expertise to deal with problems as they occur. A full-service company, for example, can provide everything from clerical work to maintenance and emergency repairs. Of course, this comes at a cost, and in property management, you truly get what you pay for. Knowing exactly what fees a property management company charge and what services they provide can position any investor for long-term success by giving them the knowledge to choose the company that is best for them.