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Tips for Successfully Onboarding with a Property Manager
9 Plays1 month ago
🎧 Welcome to Thoughts For Rent — the podcast where real estate gets real (and local)!
Hosted by Jenni McKenna, a Las Vegas born and raised seasoned broker, and Owner of McKenna Property Management, this show is your inside look at what’s really happening in the Vegas property management and real estate world. With over 20 years of experience herself - Jenni brings not just knowledge, but heart to the conversation.
Whether we’re talking market trends, property tips, community happenings, or just the everyday quirks of Vegas living, this podcast is all about keeping you in the know.
💬 Real talk. Local stories. Professional insight – provided from a company who has their boots on the ground and hearts in the community.
In this episode, we’re covering suggestions on how to onboard your investment with a property management company.
McKenna Property Management, proudly managing Las Vegas homes since 2005 (and loving every minute of it).
Hit subscribe and comment down below to join the conversation! 💛
✨ Stay connected with us!
Instagram: @mckennapropertymanagement
Facebook: McKenna Property Management
TikTok: @TheMcKennaTeam
Website: McKennaPropertyManagement.com
Phone: 702-434-HOME (4663)
Owner/Broker: Jenni McKenna B.29819
#ThoughtsForRent #McKennaTeam #LasVegasRealEstate #JenniMcKenna #PropertyManagement #MarketTrends #PropertyTips #Community
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Transcript
Introduction to 'Thoughts for Rent' with Jenny McKenna
00:00:20
Irelynn Zurflueh
Hi, everyone. Welcome back to Thoughts for Rent, Realtors Keeping It Real. I am Ireland, and this is Jenny McKenna, owner-broker of McKenna Property Management right here in Las Vegas, Nevada.
00:00:32
Irelynn Zurflueh
I know, and we're finally starting to see some fall weather come in. It's it's a relief. No longer... 115 degrees outside anymore, which is nice. So it's only 105. goes from down to 105. But no, I agree with you.
00:00:48
Irelynn Zurflueh
It does, when you have that 10 degree difference, it does start feeling like a season change, which is always nice to have here in
Fall Weather and Community Events
00:00:56
Irelynn Zurflueh
Vegas. It's always fun. We may not have all four seasons, but we definitely have a decent enough season change in the fall that it feels pretty good and everything starts to change. You get all the Halloween decorations out and you get all the the fall flavors and everything. I think what she's really trying to say is she's looking forward to Starbucks pumpkin spice latte.
00:01:18
Irelynn Zurflueh
Always. Pumpkin spice, but I always like their Christmas collection more. So I'm actually just waiting for that. Well, and I got to sit down with a team member a couple of days ago and we're going over what we're going to be doing for our boo bash. So that's always fun too.
00:01:33
Irelynn Zurflueh
Yeah. Because McKenna Property Management, we like to contribute to the community and raising three kids. I always felt like, you know, there were places to go trick or treat, but I always was just a little weirded out on going into neighborhoods.
00:01:48
Irelynn Zurflueh
So if I could find a trunk or treat or like a church event, something where I felt better for you guys um for safety. So what we did is McKenna Property Management, we host annually our suite trail, which is S-U-I-T-E.
00:02:05
Irelynn Zurflueh
trail. But we give out a lot of sweets. W-S-W-E-E-T-S. Yes. Yes. So it's called the Boo Bash and we're going to be doing it right here on Halloween and we're already preparing for it and super excited as we do some of the podcasts with the decorations um up. That'll be kind of fun.
00:02:25
Irelynn Zurflueh
So yeah, it does. It feels like we're getting into fall and feeling good.
Challenges in a Weak Real Estate Market
00:02:29
Irelynn Zurflueh
And so what do we want to talk about today, Ireland? Well, I feel like we've talked a lot about kind of more so my side of things, which might be resident oriented. So we've talked a lot about HOAs, vendors, repairs, the application process, things of that nature.
00:02:45
Irelynn Zurflueh
um But we haven't really gotten a chance to talk about what it might look like for an owner if they're interested in using a property manager and kind of what that looks like if you have an investment and you're wanting to onboard with a company.
00:02:59
Irelynn Zurflueh
Yeah, because I do think that there's a lot of questions that they might have on What would be their responsibility? How much should they be involved in everything? And then I think that the obstacle that we've been seeing lately is we've had properties where they've been on the market for sale and the market is not as strong in the real estate side for sales and listings as it was a couple years ago.
00:03:23
Irelynn Zurflueh
So they pop it on the market for sale for a few months and When it doesn't get the price that they want or they don't want to compromise on that price, then the other option is, which is a great option, rent it out.
00:03:35
Irelynn Zurflueh
Rent it out until the market turns. When we've been getting those properties, Ireland, they're not in rent-ready condition. And it surprises the owners because they're like, well, hold on.
00:03:47
Irelynn Zurflueh
I've had this property on the market for sale for three months, but then you pop in, you do your walkthrough. And now I've got a laundry list of six or seven things that need to get done. And i think the best way to explain that is ah for sale listing is a different buyer or a different set of eyes than it would be for a renter who's moving into the property.
00:04:12
Irelynn Zurflueh
Yeah, absolutely. So if I'm an owner who has investment and gets your contact information, what does it look like from the time that I would call in?
Preparing Properties for Rent
00:04:22
Irelynn Zurflueh
So the first call in would obviously be They always want to know what do you think my property is going to go on the market for? So there's a rent analysis done, sight unseen.
00:04:31
Irelynn Zurflueh
So that's all data. We of course would want to adjust that once we get to the property, but this gives you at least a starting point. And then that starting point, if they're still wanting to move forward, then we will set up a time where we can physically go see the property.
00:04:46
Irelynn Zurflueh
If they're out of town, we get a key. If they're in town, sometimes they like to meet us. Either way, the idea is let's get eyes on the property so our expertise will be able to tell that owner what needs to be done.
00:05:00
Irelynn Zurflueh
So you guys are here at McKenna, you would be willing to go to a property without any kind of contract being signed? Like you wouldn't need anything up front or anything required in order to view the home in person? Well, actually, that's not true. Good point.
00:05:16
Irelynn Zurflueh
After we've discussed the basic random the the amount or the rent range, let's say, we've gone over all the details of what they're going to pay for a site evaluation once a year.
00:05:28
Irelynn Zurflueh
They also know about our fees as far as when the first resident moves in and then whatever our management fee is that we've determined. um Then we send that out.
00:05:39
Irelynn Zurflueh
If they sign that, that is when we go boots on the ground. We used to do it the other way, to be totally honest. I used to go to every property whenever anybody wanted me to.
00:05:50
Irelynn Zurflueh
And then I realized that sometimes that's not the best use of my time. So now we want to make sure all the terms work within the budget. of that particular owner. They can do a DocuSign for the property management agreement with a caveat.
00:06:05
Irelynn Zurflueh
And the caveat is if I walk your property and you don't want to do all the things that I'm asking you to do, we will rip up the contract. You're not going to be held to that contract.
00:06:16
Irelynn Zurflueh
I just don't want to be so going out and looking at a property and putting ah estimates together involving a handyman that goes and looks at the property unless I feel pretty confident that that owner and I are on the same team.
00:06:30
Irelynn Zurflueh
That makes sense. So you give the owner and a rough data estimate of what the rent might be. As long as both parties are in agreeance, this contract is signed, and then you go to the property and you get your boots on the ground idea.
00:06:45
Irelynn Zurflueh
Most of the time, do you find yourself adjusting from the original data amounts or do you feel like it stays pretty consistent? It stays pretty consistent. The only thing that's going to make that number adjust is if every house next to the subject property has abandoned cars in the front yard or dead landscaping.
00:07:08
Irelynn Zurflueh
or if I go to the property and the backside of the property, um it's just a big old two-story with a balcony that looks right into the backyard.
00:07:19
Irelynn Zurflueh
It would be things that I know of that would affect a renter or resident putting in an application. And so therefore we may have to adjust the rental amount.
00:07:30
Irelynn Zurflueh
The good news though, compared to when you're selling a property, When you list a property and if that property is listed at a certain number and you're just not getting any hits on it, your listing agent is usually going to ask you for like maybe $10,000, $20,000, $30,000 adjustment. When it to rentals, $20 adjustment is big.
00:07:48
Irelynn Zurflueh
adjustment comes to rentals a twenty dollar adjustment is big You don't think it, but it really is. When we've done rent adjustments for properties that have been on the market for 14 days and we're just not seeing the activity that we want, if I just adjust it $20, $25, it makes a big difference in the rental world.
00:08:09
Irelynn Zurflueh
So that big two-story with the balcony that was looking into the backyard, on my rent range, I would just go a little more to the lower side of the rent range and not the higher side of the rent range.
00:08:21
Irelynn Zurflueh
So to answer your question, it really doesn't adjust that much. And then when you do walk a new property for the first time, what do you feel like are some of the more common items on that list of things that would need to get done to be rent ready?
Common Rent-Ready Issues
00:08:37
Irelynn Zurflueh
I think the hardest thing for an owner to swallow is a full paint because they're going to look at a property and they're going to see some dirt or scuffs on the walls and they're going to be like, oh, that's not that big of a deal.
00:08:51
Irelynn Zurflueh
And technically, it's really not that big of a deal if it's only a few places. But what you really find is you're going to have a few on this wall and a few on this wall and a few on this wall.
00:09:03
Irelynn Zurflueh
And then by the time you're halfway through the walk, you got too much. And touch up paint can sometimes be more expensive if it's a major than if you just did a full paint because it's easier. You can get in, you can do it quicker. You don't really need a specialist.
00:09:20
Irelynn Zurflueh
So I think that that's where probably the hardest conversations I have with owners is when they're like, the walls are pretty good, Jenny. Why do I have to do a full paint?
00:09:31
Irelynn Zurflueh
But the reality is a full paint is going to get you a better resident. Anything else that's common on that list or is it just the paint? um Curb appeal. I am a huge believer in this is after 33 years of being in the business.
00:09:45
Irelynn Zurflueh
You are going to make your first impression and you're never going to make a second first impression. You are going to want that walk up to that front door to look good.
00:09:56
Irelynn Zurflueh
You are going want it to be debris free. You are going to want the door to be nicely painted. You are going to want to make sure that while that agent is going to get the key from the lock box, wherever that lock box is, that that person standing in front of that door can already start envisioning them living there.
00:10:14
Irelynn Zurflueh
And so, yes, the inside is important, but you win at the front door. Okay. So those are curb appeal, paint. Those are probably the most common things.
00:10:25
Irelynn Zurflueh
Yeah, you know, you're always going to have the flooring issue. i am a believer that carpet cleaning does a lot. And when you've got a good carpet cleaner, he can salvage a lot of carpet.
00:10:36
Irelynn Zurflueh
But if the carpet has already gone through its life expectancy, then carpet is going to be a big factor on making your property look good. A lot of people will go with um carpet only in the bedrooms.
00:10:50
Irelynn Zurflueh
And I tend to agree to that. I think that if you're going to do any kind of upgrading to a property and you know it's going to be a rental, put either ceramic tile or the plank vinyl flooring, high quality, you know, don't go super cheap.
00:11:05
Irelynn Zurflueh
Don't roll out the vinyl because that's not going to last. But do good flooring in all the common areas. And then those will last the duration of the rental. And then you only have to replace the carpet if you need to in the bedrooms.
00:11:18
Irelynn Zurflueh
That's good. So once you give this list, are owners given an option to do it themselves or they given a vendor? How does it look after the list has been created?
00:11:29
Irelynn Zurflueh
So the list is created and then it comes with an estimate from a handyman that I've worked with in the past. So a trustworthy handyman. However, if the owner says i have somebody that can do items five, seven, and nine, then we just take those items off and they can have their own person do it.
00:11:50
Irelynn Zurflueh
And then we would make sure and supervise all the rest of the items on the list. If the owner says, Jenny, guess what? I've got my cousin who's a handyman. I'll give him your list and he can take care of everything.
00:12:02
Irelynn Zurflueh
I'll call you back in seven days. Actually, that is wonderful. That is wonderful because then i don't have to supervise. i don't have to worry about money. i don't have to get a capital contribution.
00:12:14
Irelynn Zurflueh
Everything is handled by the owner and it's going to be done to their standards, which is always nice. So the only thing I would have to do after is just make sure that everything on that list got done and to the standard that we need in order to find a good qualified resident.
00:12:31
Irelynn Zurflueh
And you do that through another walkthrough or just through photos? Through another walkthrough. Yeah, I have to. Photos are not going to tell me everything that we're going to need to know to make sure that it's in rent ready condition.
00:12:43
Irelynn Zurflueh
So there's going to be another walkthrough done. There's also at our company, we do a turnkey. So we get another set of eyes on it. And that other set of eyes goes through and does an actual site evaluation.
00:12:56
Irelynn Zurflueh
And that site evaluation comes with photos. And then that is saved in our software. So it's dated. It's always there. And I think that's a very valuable thing, especially when you're managing property year after year after year.
00:13:10
Irelynn Zurflueh
You can really see if there's been deterioration, if we need to upgrade the property, ah how long has that carpet really been there? And when we got it, what was the condition? um So that's called a turnkey inspection.
00:13:24
Irelynn Zurflueh
And that lives within the... um that file the the whole life that we we manage the property. So it sounds like you let your owners be pretty hands-on or you give them the option to be hands-off so they get both um possibilities.
DIY vs Professional Property Management
00:13:40
Irelynn Zurflueh
Do you feel like there's ah happy medium or ah level of involvement that leads to more success than other levels of involvement? Yeah. Well, so there's a thought that if you're hiring a professional property manager, let them do what they're good at.
00:13:58
Irelynn Zurflueh
Now, that's not to say that some of my owners are not really good at DIY jobs and they might actually really enjoy it. And I don't want to take that away from them. But for the most part, if you are looking to hire a property manager, you don't want the aggravation of getting the property in rent ready condition.
00:14:16
Irelynn Zurflueh
So in that case, I would say it's probably in the best interest of the owner to just let me handle it from start to finish. And then that way it's going to be done to our standards, to what we know is going to help get the property rented quickly.
00:14:33
Irelynn Zurflueh
We're going to supervise that vendor and make sure that vendor does a good job. So if they don't love it, then I would say, let me do all of it. But if there is a love and a passion that they want, then by all means, I don't want to take that away from them.
00:14:49
Irelynn Zurflueh
But yeah, level involvement, less is probably a little bit more efficient. Nice. Do you give any advice to people? someone who is having like a genuine, genuine first time investment or someone who it was the home that they lived in for however many years and now it's becoming a rental. Are there any like one liners or things that you say when you meet in person for that? Or is it like, do you have any advice? That is a great question. And I do have a quote unquote one liner.
00:15:24
Irelynn Zurflueh
If the person has been living in the property, It is a hard thing to disconnect and they need to. That's no longer their home.
00:15:36
Irelynn Zurflueh
They need to look at it as a dollar sign. It's an investment. So what I like to say to them, and and this is just something I came up with so many years ago, and I got a chuckle from that individual across from me. And I've always been like, okay, well, they didn't take it really harsh. So maybe I'll just use it. So I've used it.
00:15:52
Irelynn Zurflueh
I basically tell them, I need you to cut the umbilical cord. This is no longer your home, your family home. This is your moneymaker. And so you have to make decisions differently and you have to look at it differently.
00:16:08
Irelynn Zurflueh
When it comes to a first time ah investor, they're disconnected anyways. So they're always just looking at the bottom line. So the conversation that I have with them is all about the money.
00:16:19
Irelynn Zurflueh
what we're going to spend, why we're spending it and why we're going to get this amount of money on the back end. So totally different when you're just an investor. um But yeah, if you've been living in the property and now it becomes a rental, cut the umbilical
Market Analysis for Buyers
00:16:36
Irelynn Zurflueh
cord.
00:16:36
Irelynn Zurflueh
And if I remember correctly, you do sometimes offer that market analysis even to people who are potentially purchasing the home. So if they're thinking about pursing purchasing it for an investment, you will provide data, even if they haven't made the sale yet, but they're just interested. You'd You'd be willing to do that for them. always do that. And the reason I do that, Ireland, is because i think it is my professional service to make sure that that individual is well informed.
00:17:03
Irelynn Zurflueh
And so they may be going out and finding a great investment. um And quite honestly, their real estate agent is trying to do them a service by telling them, oh, rent's going to be about this. Right.
00:17:15
Irelynn Zurflueh
But if that real estate agent is not 100% property manager, they're not going to be able to give the the right number. They might get close, but they may not get the right number.
00:17:26
Irelynn Zurflueh
So I tell everyone, if you're thinking about buying a property that is going to be an investment property, Shoot me the address and I'll be happy to give you the, the you know, ah ah what I call a rent market analysis just so that I can tell you what I'm seeing with the data without seeing the property.
00:17:45
Irelynn Zurflueh
I just think it's a good idea to be eyes wide open when you are buying an investment property and just kind of know what a professional is telling you that property could rent for.
00:17:56
Irelynn Zurflueh
And I'll tell you this right now. It's always different. Today is different than what it was two years ago on the exact same house. And I'm going to bet my life savings two years from now, it will be a different number than what it is today.
00:18:12
Irelynn Zurflueh
So if someone already owns the property and Maybe it takes like a week to do the to-do list that you've given them. What do you think is like the average turnover between like the time they call and the time it's being advertised as like a property to rent?
00:18:30
Irelynn Zurflueh
So if we're doing the work, you' you're right. It's about 10 to 14 days probably to do all that work and get it scheduled and completed. But once the work is completed, then it's only about three days before we have to put it on the market. By the time we get the marketing photos, the verbiage.
00:18:47
Irelynn Zurflueh
We post it to the MLS. We post it to other 64 websites. So that turnaround time is pretty quick.
Minimizing Vacancy Periods
00:18:55
Irelynn Zurflueh
And then the question is going to be, did we get the sweet spot?
00:18:59
Irelynn Zurflueh
And the sweet spot is, did we give an opinion of rent that is perfect? Because if you did, you're going to see applications within the first 14 days.
00:19:10
Irelynn Zurflueh
But if you didn't, if you're a little too high, then what we're going to need to do is educate the owner and let them know we did an educated guess, a professional opinion, but the market is telling us, basically screaming at us that we're a little too high.
00:19:27
Irelynn Zurflueh
And then we just make those adjustments until we get into the sweet spot. And McKenna Property Management's average right now days on market is only a little over 20. So our average days on market is about 23, I think was our last number, before we secure that resident.
00:19:44
Irelynn Zurflueh
um So yeah I tell my owners, you've got a budget for about 45 days of no money coming in from start to finish. That's not... I feel like that's not too bad, especially to go from like a house that you've lived in or a house you just bought to now a full rental. Yeah.
00:20:01
Irelynn Zurflueh
I do know that I'm very, very conscientious about that number. um i do not like that number being high. So whatever we can do at McKenna Property Management to make sure that days on market is as low as possible is very important to me.
00:20:18
Irelynn Zurflueh
That's why we have a weekly meeting with all of our showing agents and That's why we're always fluffing up verbiage or changing pictures or, you know, putting a different spin on it.
00:20:29
Irelynn Zurflueh
Because I really think that every day a property sits vacant. In my mind, it's money flying out of my owner's pockets. And that doesn't sit well with me. Yeah, absolutely.
00:20:41
Irelynn Zurflueh
Well, I appreciate you answering all my questions because that's not really something that I am involved in day to day. So it's definitely kind of the other side of the office. There's like the east side and then there's the west wing of the office. and We're the other side of the railroad tracks.
00:20:56
Irelynn Zurflueh
We're the onboarding side. But um if you're an owner who... just is scared because they don't even know where to start. This is kind of just gives you a little bit of some insight of what it might look like.
00:21:09
Irelynn Zurflueh
ah Maybe just a typical standard situation. So if that doesn't sound too scary, or if you want kind of your hand to be held through the process, then i would say just give us a little shout, give us a reach out because um this is kind of what your first 45 days would look like if you were to turn your property into a rental.
Easing Owner Concerns
00:21:32
Irelynn Zurflueh
And I'm good at holding the hand. I will walk you through it, answer any questions that you might have, because I've been there once and I remembered it was a little scary. And so everything I do is to to take that.
00:21:45
Irelynn Zurflueh
I like to say, i like to be the aspirin to property management headache. Let me give you that solution so that you no longer have that headache for property management. I like that.
00:21:56
Irelynn Zurflueh
Giving medication to people. Yeah. Figuratively speaking, of course. Metaphorically, figuratively. Yes. Well, thanks for tuning in, guys.
Conclusion and Call to Action
00:22:05
Irelynn Zurflueh
If you have any more questions, feel free to reach out or feel free to comment or give us a call and we'll be able to help you with with any concerns that you might have.
00:22:14
Irelynn Zurflueh
And if you think somebody would appreciate this episode, feel free to share it. And then also subscribe because we drop an episode once a week. Thoughts for Rent, Realtors Keeping It Real. We talk about everything under the sun.
00:22:28
Irelynn Zurflueh
So there might just be something that interests you and hopefully our stories can't. keep you going while you're driving or whatever else that you're doing. So remember, thoughts for rent, Realtors Keeping It Real. I'm Jenny McKenna with McKenna Property Management.
00:22:42
Irelynn Zurflueh
And I'm Ireland. See you guys later.