What Do Property Management Companies Do?
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Property investment can come with a diverse set of challenges and responsibilities—especially in a competitive market like Sacramento.
Today, we will be speaking with Scott Raymond—founder of Raymond Property Management, now part of Mynd—about different services that property management companies provide and how to choose the right one to meet your needs.
Alex: Boys and girls, Alex here with Mynd Property Management talking all about investing in Sacramento and being successful at doing so.
My guest today is Scott Raymond. Scott, how are you?
Scott Raymond: Doing great Alex. Thanks for having me.
What is the Scope of a Property Management Company’s Services?
Alex: Scott is the most experienced person I know in terms of investing in Sacramento. He's got a decade of experience being very successful.
He's a founder of a company called Raymond Property Management, which is now part of Mynd. Very exciting.
So today we get to poke Scott's brain and see if we can get some wisdom nuggets falling out. And we've done a number of episodes already. You would see those at Mynd.co.
Search for Sacramento Investing.
But today—right now—today's topic is: what do property management companies do?
Specifically, in Sacramento—what's the scope of services? What do they do?
Scott Raymond: That's a good question.
You would think it would be an easy answer, but there's really a variety of different ways property management companies approach services. The entire property management service continuum, as I like to call it, includes everything from:
- getting the vacant units ready to rent
- marketing the vacant units
- screening and choosing tenant applicants
- collecting rents
- paying bills
- preparing audit reports and bookkeeping
- handling maintenance issues and emergencies
- interfacing with tenants and whatever they need
- being responsive to owners' needs
- managing the group of vendors that are required to work on these properties.
Some companies will only do leasing, for example, or only offer a portion of these services. For example, doing leasing only.
Some will collect rents but not pay bills.
Or they'll charge you extra to pay bills, but they don't handle maintenance, for example, or preparing units for rent.
Other companies offer the entirety of services. They're called full-service companies, and they—soup to nuts, from beginning to end, from getting the unit ready, to leasing it, to collecting the rents, to paying the bills, to sending the reports, and everything in between.
It's really a variety of services, from lease-up only to full service, Alex.
How Do You Choose a Property Management Company?
Alex: As an investor yourself, how would you go about choosing one, and why would somebody just do a lease-only, and does their incentive align with the investor more or less than a full-service property management company?
Give us a little bit more color on going and choosing one for yourself.
Scott Raymond: No, I don't think there's a misalignment in services.
I mean, a company that only does lease-only is going to have the same energy and incentive to lease up that property as a company that does full-service, which includes leasing the property.
So those interests are aligned with the management company's standpoint. But, why would an owner hire somebody for leasing only?
Well, maybe the property's next door to the one they live in or right down the street, and so it's easy for them to look after it. It's easy for them to collect their rents. It's easy for them to fix a broken appliance or something. But they realize that they don't have the technological prowess that a property management company would to do solid online marketing and showing and screening and all the fair housing compliance that goes with it.
So it does make sense for some investors to hire a company that just does lease only because they'll do a better job, a quicker job, and get higher rents than somebody who’s self-managing. But they don't need all the other bells and whistles of a full-service property management for a variety of reasons.
Alex: Got you. Very good. Thank you for giving us some color on the subject.
Boys and girls, thank you for watching. As I said, go to Mynd.co and see if you're interested in Sacramento as an opportunity to invest in or if you want to potentially look into a property management service in Sacramento. Check us out, Mynd.co.
Scott, thank you for your time.
Scott Raymond: Thanks, Alex.
Bottom Line on What a Property Management Company Does
Alex: Thanks for watching.
The types of services property managers provide are as diverse as the needs of investors.
From preparing and marketing a property to screening potential tenants, the expertise and infrastructure they provide can turn a vacant property into a profitable rental.
And from bookkeeping to maintenance services, a good property management company can easily meet the challenges, responsibilities and specific needs of any real estate investor.
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