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One of the biggest questions an investor might ask themselves when buying property is whether to hire a property manager or self-manage. Today we are speaking with Trevor Steadman, Portfolio Manager for the Reno division of Mynd Property Management, about why an investor may want to consider hiring a property management company, specifically in the Reno market.
Steve Rozenberg: Hey, everyone. This is Steve Rozenberg with Mynd Property Management and I’m joined here today with Trevor Steadman who is the Portfolio Manager for the Reno Division of Mynd Property Management. Trevor, thanks so much for joining me today. I appreciate it, buddy.
Trevor Steadman: Thanks, Steve, thank you for the opportunity to come on and talk about Reno and all things property management.
Steve Rozenberg: Absolutely, yeah. It’s exciting stuff. So, what I want to talk about today in this video is, why does somebody even need a property manager in Reno? What is your opinion and is it necessary? Is it a good thing or is it something that you should have from your perspective?
Trevor Steadman: Yeah. So, for the most part, Reno has been kind of a sleeper city. And a lot of times, a lot of private owners and we’ve seen a huge influx and change and investment cycles, investors pouring money into real estate and whatnot over the last three or two or three years.
But, really the biggest changes we’ve seen is that a lot of owners are switching from the private self-managing over to a professional property management company which we’ve seen a huge influx of over the last two to three years. And a lot of it comes down to, we have a lot of influx of California residents moving into Nevada. We have a lot of investor money that are developing, building homes. We have a lot of companies that are eyeing the Reno market as kind of the second Silicon Valley.
So all of those things have kind of stirred up the pot over the last two, three years and we’ve definitely seen it in the property management industry because people need places to live. Having a good property manager as an investor is extremely important in this kind of dynamic because things are changing legislatively. We’ve had a lot of laws change. In the 2019 legislative session in July, we actually had a number of really big heavy-hitting tenant and landlord bills that came on the docket that almost made its way through and kind of undermined a lot of the landlord laws that we have in the state and held on to.
And so, just because of that, landlords need to be really cautious of what they do because what worked 15 years ago doesn’t work today. But that’s extremely important for them to keep in mind.
Steve Rozenberg: And also, unfortunately for investors, they don’t tell you when the law changes. There’s no circular mailer that goes out that says, “hey, FYI, we’ve changed a lot.” You find out what you’ve broken the law when you get a subpoena into court or you’re standing in front of the judge or you have some kind of litigation on your hands.
And again, I agree with you. I think that’s why property managers exist because that’s their focus and that’s what they’re doing and, in Reno, things are changing. It’s a growing market. It’s evolving. It’s an inbound city, meaning there’s a lot of inbound people from other places transplanting there or just buying real estate there. And if you’re living in California or you’re living somewhere else and all of a sudden you want to own real estate in Reno and kind of ride that wave, you don’t know the laws because they’re different in California, as they are in Arizona, and Texas and everywhere. So, and I’m guessing they’re probably even different in Reno, as opposed to Las Vegas.
Trevor Steadman: That’s actually it. And it typically varies by county. A lot of times you’ll have state-level legislation that changes and then you have the local realtor associations with lobby for different parts and pieces in the resale market, which also affects the property management market.
And the other interesting dynamic, too, is that in this state, you have to not only be a real estate agent, you have to be a licensed property manager, you have to have both. I can actually sell real estate and I can manage property, but if there was a real estate agent out here in the town that just wanted to do real estate, they couldn’t do property management unless they have the extra licensing. So it’s really, really important to carve out those specifics because a lot of agents in town think they know a lot of stuff about property management, but they’re not licensed to actually be an expert on it.
Steve Rozenberg: Yeah, and it just goes to show again, you have so much of your money invested when you buy a piece of real estate as an investment property. The last thing you want to do is trust it to chance and not know. That’s why I think having a property manager just makes sense. It’s just a piece of the puzzle. It’s part of the team. Property managers are worth their weight in gold when they take care of your asset and then make it worth more money. They protect you from lawsuits and litigation and all that.
So Trevor, I really appreciate you being on today. Thank you so much. If somebody wants to get a hold of you and talk to you specifically about managing their properties in Reno, how do they do that?
Trevor Steadman: Yeah, so what’s great is that we have an office local here in Reno. We’re located off of Delucchi Lane and Neil Lane, which is right by the Meadowood Mall. My direct number is actually 775-335-0124. You could call me any time just for questions regarding the market. I have agents that call me looking for rent price comps for their investor clients who are looking to buy something in the market that they need expertise on. So, whenever they need to do that and they can get ahold of me and we can go over those topics. And then if they want to shoot me an email, as well. Trevor.firstname.lastname@example.org, that’s C-O, is the best way by email to get ahold of me, as well.
Steve Rozenberg: Great, great. And for those of you watching, if you’d like to join our Facebook group, we have a specific exclusive Facebook group for investors. It’s the Mastermynd Real Estate Investment Club on Facebook. People like myself, Trevor, all the other people that own properties are in the mix, having conversations, engaging, discussing current issues that are going on. You can join for free. So I’d like to invite you to that.
Or if you’d like to go to our website, mynd.co, M-Y-N-D.co and you can find out all about our company, as well as all the different markets that we manage. And so, this is Steve and Trevor. I want to thank you for watching and we’ll talk to you later. Bye-bye.
Trevor Steadman: Thanks.
Many investors choose to self-manage their own properties. And while this may work for many, there are a number of reasons why it makes sense for investors to hire a property manager. This is specifically true for Reno.
For one thing, local, state and federal laws are always changing. This is especially true in Nevada where a number of laws affecting tenants and landlords were on the docket in 2019. Keeping on top of these changes is the responsibility of the investor or landlord. But, by hiring a property manager, an investor can insulate themselves from having to stay on top of such dynamics as licensing and other laws and regulations which could change on a dime.