How to Select a Profitable Rental Property According to Elk Grove Property Management Experts

Choosing to invest in a rental property is a big decision and one that requires extensive research. Real Property Management Select has more than 30 years of experience in the property management industry and has managed every type of property including single family homes, condos, multi family apartment complexes, and duplexes. If you are starting your real estate investment portfolio for the first time, Select can assist in leading you in the right direction to find a property that best suits your goals. Whichever property you buy today will impact how you need to manage it tomorrow. Make a smart decision now that will increase your success as a rental property owner.

Picking the Right Location

Not all markets are created equal. When searching for a rental property, look at specific neighborhoods. Targeted neighborhoods should include those with low vacancy rates, high rents, and high appreciation. Real estate agents should have extensive knowledge on this subject and can guide buyers to the right neighborhood. Another way to get familiar with vacancy rates and high rent rates is to talk to the neighbors when viewing prospective properties or Elk Grove property management companies like Select. Tracking and analyzing vacancy rates is an important part of a property management company’s data and most should know an average vacancy rate off the top of their head. The US Census Bureau has vacancy rate information as well, though it is a more general average and does not specify neighborhoods. The Bureau reported that in Quarter 1 of 2019, the United States vacancy rate was at 7.0.  

Nearby Amenities

Pick a rental property in a location that is close to schools, transit, shopping, entertainment, and other amenities. People like to live near places that they will attend often and that are convenient. When picking a property near a school, research the school and determine if it is in a desirable school district with good reviews. Talking with neighbors or a realtor can be beneficial in finding out this information. Public transportation that is easily accessible can help draw tenants towards a rental property in Elk Grove. Property management experts know that renters who commute via bus or train will enjoy having a stop near their house for a quick and easy commute. Quick access to grocery shopping, clothes shopping and dining are priorities to most people when they choose a rental property. Nobody wants to trek twenty minutes to the grocery store when they forgot milk or an ingredient for dinner. Even worse, when a member of a family falls ill and they need to run to the grocery store for medicine, they need one within five minutes. Having a movie theater and nearby restaurants that provide residents with delicious and entertaining options will draw and keep tenants living in a house long term. 

Homeowners Association Rules

If you plan to buy a rental property that is part of an HOA, make sure that you know and study the rules before renting it out in Elk Grove. Property management firms know that some HOAs have regulations regarding rental properties and others simply do not allow rentals or will shut them down if terms and conditions are not met. HOAs appeal to many home buyers because the rules generally help to maintain high property values. The concern that many HOAs see with rentals is that they draw people into the neighborhood who would not normally live there. While most tenants make great stewards over rental properties, there is a suspicion that renters may not care for the property in the same way that a homeowner would. Some HOAs can limit the number of residences within a neighborhood that can be a rental property while others may put a requirement on the number of years that a homeowner must occupy the property first, before transitioning it into a rental property. 

Choosing the Right Property

Assuming that investors have narrowed down neighborhoods and taking into consideration HOAs, location, and amenities, it is now time to determine the property specifics that will provide investors with long term tenants who pay rent on time and care for the property as if it were their own. Elk Grove property management company, Select, has been in the industry and managed every type of property possible. The experts at Select know that different property types provide investors with different outcomes. The type of property an investor chooses to purchase should depend on his or her financial strategy. 

Property Details

  • Data shows that during the last fifteen years, single family rentals delivered high returns on investment through appreciation and rental income. For multiple years in a row, rent rates have increased by three percent each month and in January 2019 alone, they jumped 3.2%. 
  • Select can back up the data provided above and confirms that single family rentals are in high demand and generating more income than ever before for investors.
  • Single family residences can support a family lifestyle. Renting to a family is known to provide property owners with long term tenancy. Look for a property that would appeal to your desired tenant. This would include a property that is a minimum of three bedrooms and has at least two bathrooms. A fenced yard is also a desirable characteristic for prospective families looking for a single family rental. 
  • Elk Grove property management experts recommend that investors purchase a home that is less than 50 years old. This will help to keep maintenance costs low. The older the property, the more expensive the maintenance. Another benefit to buying a newer home is that you are less likely to get a quirky layout. The style starting from about 1990 to the present is to have open layouts that provide occupants with a Great Room. A Great Room has the ability to combine multiple rooms that serve different functions into a large gathering area. They generally include the kitchen, living room, and dining room. This layout allows families and friends to interact with one another, while doing different tasks. 
  • Elk Grove property managers advise investors to avoid busy streets that cause excess noise to the tenants or a safety concern as children play in the front yard or ride bikes on the street. 

Proven Leasing and Marketing Strategies

Successful leasing and marketing starts back at your buying decision. Target the right audience with advertisements. Market rental properties on local classifieds, Craigslist, Zillow, Hotpads, Oodle, or Trulia, just to name a few. Place a For Rent sign in the front yard and draw attention to it by attaching some helium-filled balloons. This is a proven successful strategy as neighbors will alert friends and family, so that they can live near one another. 

How the Experts at Elk Grove Property Management Team, Select Can Help You

Whether you own a single family home, multi family complex, duplex, condo, or manufactured home, Select is ready to help you maximize your return on investment and reach your financial goals. We have managed all types of properties and have experts standing by who can provide investors with high quality tenants, top rental rates, low maintenance costs, and low vacancy rates. Call us today. 

Rental Property Management Sacramento Resident Club: Select Rewards Tenants Who Pay Rent On Time

Screening applicants as potential tenants for rental properties takes time, research, and upholding rigorous standards. Some landlords fall victim to lowering application standards just to fill a vacancy. Real Property Management Select strongly advises against lowering standards in order to qualify someone who would not normally qualify for a rental property. Rigorous tenant application screenings can protect real estate investors against evictions, tenants who do not want to live the lease agreement standards and rules, and it can protect against tenants who fail to pay rent. No matter how thoroughly a property manager screens a tenant, there is always a risk that they might not pay rent on time. What if Select could come up with a way to encourage a tenant, no matter his or her previous track record, to pay rent on time? A way for him to receive money back into his pockets, so that paying rent on time each month, saved him money? There is a way. Rental Property Management Sacramento company, Select, has started rewarding tenants for on time rent payments made online. Here is how it works and serves as a win-win situation for tenants, investors, and property management companies.

Sign Up for Tenant Portal

When a tenant signs the lease agreement and receives the keys to a rental property, a friendly leasing agent with Select will set up login information for our tenant to gain access to our online tenant portal. Through the tenant portal, residents are able to request maintenance, see payment history, and pay rent online. Tenants can also set up recurring rent payments. This prevents the hassle and stress that renters feel each month to remember to pay rent to property managers or landlords. Set up an automatic withdrawal from a bank account, and say goodbye to setting alerts and marking your calendar to remind yourself to pay rent. When tenants pay rent through the online tenant portal, they will be prompted to click a link and sign up for the Resident Club. Clicking on this link allows tenants to unlock hundreds of beneficial savings through coupons and discounts, courtesy of your rental property management Sacramento team.

Resident Club

Upon signing up for the Resident Club, tenants will be asked a series of questions to help determine how much money can be saved annually. Some of the questions are as follows:

  • How often do you eat out at restaurants each week?
  • How many times a year do you attend a theme park?
  • How often do you attend the movies?
  • How much money do you spend at the grocery store each week?
  • How many times per year do you do activities like laser tag, bowling, or mini golfing?
  • How many pairs of shoes do you buy each year?
  • How much money do you spend on clothing each month?
  • How often do you buy flowers or chocolates for loved ones?

By answering these questions, the Resident Club software system can calculate the amount of savings that residents can expect annually, by utilizing the Resident Club program. It is free and pays you to use it. Signing up for the Resident Club presented by rental property management Sacramento companies is a no-brainer.

Coupons and Discounts 

Residents who pay rent on time can expect to see coupons and discounts for as much as fifty percent off retail prices. The coupons will allow tenants to save hundreds of dollars, even up to thousands of dollars, while grocery shopping for everyday items like yogurt, milk, bread, cereals, and meat. Just present the coupon to the cashier prior to payment and start seeing the savings. If you are venturing out to a theme park with family or friends, check the Resident Club coupons and discounts for savings on admission tickets. Some tenants report seeing theme park tickets for Buy-One-Get-One-Free or Buy-One-Get-One-50% Off. Take that extra savings and buy some Dip-N-Dots and churrors once inside. Select’s rental property management Sacramento team wants to provide affordable fun for all responsible tenants that pay rent on time. If you are heading out for a fancy night out on the town, be sure to scroll through the restaurant deals and coupons. Every caliber of restaurant can be found on the Resident Club including fast food, casual dining, or luxurious restaurants. With more than sixty-five thousand restaurants participating in the Resident Club nation-wide, you are certain to find what you are looking for, at an affordable price. Ring up some savings when shopping online or in the store for clothes, accessories, or shoes. With more than thirty-five thousand retail merchants, tenants can always find the right item for less. 

Estimated Savings

Depending on how residents answer the above questions on the Resident Club website will depend on how much money they can save annually through their rental property management Sacramento company. The savings calculator estimates the following savings if your answers are similar to the following:

  • Eats out five times a week, this includes lunch and dinner combined
  • Plays mini golf, bowling, or laser tag six times a month
  • Purchases six theme park tickets a year
  • Buys five pairs of shoes per year
  • Orders flowers or chocolates three times a year
  • And buys five DVD’s annually

This amounts to a total of $4,000 in savings per year. That is a lot of money. Capitalize on the savings that are at your fingertips by renting with Select. 

Search Near You

When you are on the go and searching for a place to eat, the Resident Club allows tenants to search for retailers by zip code or alphabetically. Just download the Purqz app on your iPhone or Android device. You can search for locations within twenty-five miles of your current location and find coupons to local and national chains. It takes just a few seconds to download the app to your phone, sign in to the app with a username and password, and you will find all the savings on your screen, ready for access.

How Your Rental Property Management Sacramento Team Says Thank You

At Select, we do not take good tenants for granted. We want them to know that we value those who care for rental properties as if it were their own house, pay rent on time, and submit maintenance requests when needed. It is because of responsible tenants, that Select wants to give back. Sign up for the Resident Club today and start taking advantage of this so-called rent decrease. If you are not already a tenant under Select’s property management, call us today to learn about our available rentals, so you can unlock savings. 

Why You Should Rent Out Your House with Property Management Companies in Sacramento, Instead of Sell It

People in Sacramento who bought homes 20 years ago are sitting pretty today. Appreciation throughout the entire state of California has continued to rise over the years. Location, Inc. has released data and analytics that prove that since 2000, appreciation rates in California have increased by 156.84% total. This means that homeowners looking to sell their lifelong homes and retire or move closer to loved ones have two choices. Renting out their house or selling their house. Property Management Companies in Sacramento see the value in selling and cashing out on all the appreciation homeowners have accumulated, however, homeowners can transform owner occupied properties into rental properties and cash out even bigger. Turning a property into a rental house is a great return on investment and pays off big in the long run.  Don’t believe us? Keep reading. 

Single Family Rentals and Rent Yields

A report leased by ATTOM Data Solutions analyzed single family rental returns in more than 430 counties across America, each with a minimum of least 100,000 people, and with ample rental and home price data. The report found that the average annual gross rental yield amongst the counties was 8.8 percent in 2019. That is a tenth percent higher than the average in 2018 at 8.7 percent. Property management companies in Sacramento know that this research means that buying a single-family residence to rent it out is a better deal at this time in 2019 than it was in 2018 because profit margins are increasing in most of the counties in the United States. Right now, the profit margins are up in six out of every ten counties analyzed in the study. Sacramento County ranked as one of the top counties in America with the biggest increase in potential annual gross rental yields for 2019, while counties in San Francisco and San Jose ranked in the lowest bracket. These findings prove that home prices are too high in the Bay Area to yield profitable rent margins, while property management companies in Sacramento see property owners raking in the cash from the local rental market. Mortgage rates, home prices, and taxes are reasonable and make financial sense in Sacramento County for investors. In addition, renters are migrating from the Bay Area to Sacramento and nearby cities to find more affordable rent prices and cost of living. This means that the demand for rental housing in and around Sacramento is getting greater. Real estate investors and property owners looking to transform an owner occupied property into a rental property will have no trouble finding qualified renters. 

Why People Want to Rent Instead of Buy

It is no secret that purchasing a home is nearly unaffordable in this economy. The amount of money needed to purchase and own a home monthly is costing people more money than it does to rent a home from property management companies in Sacramento. A study conducted by the U.S. Census Bureau’s 2013-2017 American Community Survey found that in every single state across America, homeowners are spending more money on housing than renters. But how much more money? The answer depends on the state. Homeowners in New Jersey spend more than $1,100 per month on average to own, while homeowners in Arkansas only spend $300 more than renters. In California, the median monthly cost for homeowners with a mortgage is $2,206, while the median cost to rent is $1,358. There are many factors that play a role in why these findings are true. Some speculations include maintenance, taxes, repairs, insurance, inspection fees, closing costs, and mortgage rates. At this point in time, renting a house from property management companies in Sacramento is the smarter option for many people, and homebuyers and renters know this information. A study that was released from Realtor.com found that the costs to purchasing and owning a home are up fourteen percent over the last year, while national rent rates are only up by four percent. In the past, homeownership has been a status symbol, while renters have carried a stigma of having less money than those who own a home. But the times and stigma around renters is changing. Perhaps renters are seeing that money can go further and they can live the lifestyle they desire by choosing the more affordable option. The status symbol of owning versus renting a property is dissipating. 

Who Makes Up the Rental Market?

The National Multifamily Housing Council has found that people who are 30 years old and younger make up fifty percent of the rental market in America. Experts at property management companies in Sacramento suspect the reason for this is that millenials value the type of lifestyle that allows for flexibility and ease of movement with plans and jobs. Millenials do not like to be tied down. However, a major factor is also affordability. Housing prices are rising more quickly than wages and people are choosing to make wise decisions with money earned and find a rental property. Those who fall within the age category of 30 to 44 years old account for twenty-three percent of the rental market. 45 to 64 year olds account for nineteen percent of the share, and those who are 65 years old and older only make up nine percent of the rental market.

How Will I Know That My House Will Receive Proper Care From a Tenant?

Shifting a home that was once owner occupied to renter occupied can be difficult for many. A home is where memories have been made, hearts and souls have bonded, and a place that has received careful and meticulous care. Some may call this an emotional attachment. If you are looking to shift your house into a rental, know that one of the top rated property management companies in Sacramento, Real Property Management Select only accepts applications from highly qualified applicants. An American Community Survey has found that the number of high-income renters has increased from 3.8 million in 2008, to 5.7 million in 2017. High-income renters are classified as those making $100,000 annually or more. Select ensures that all applicants income qualify for a rental house. The professional leasing staff at Select also run credit checks, contact previous landlords for referrals, run criminal and background checks, and verify employment. In addition to a thorough and rigorous screening process, Select conducts bi-annual property inspections. During these inspections, a member of the leasing team will not only inspect the interior and exterior of the property, but also check for lease compliance regarding pets, occupancy levels, and proper care of the property. 

How to Rent Out Your House with Property Management Companies in Sacramento

With more than 30 years of experience in the property management industry, Select has managed every type of dwelling from single family homes, duplexes, multifamily housing, condos and more. No matter the property type, our friendly staff can help turn any property into a cash flowing rental, no matter the type or condition. Select provides a comprehensive service and can supply investors with the following:

  • Full service listing
  • Marketing and Rental Market Analytics
  • Showings of the property
  • Getting the property Rent Ready
  • Advertising on dozens of commonly used rental websites, including Select’s website
  • Rigorous Tenant Application Process
  • Lease Signing and Move-In
  • Faster than average leasing times 
  • Affordable maintenance through preferred vendor pricing
  • 24/7 availability for maintenance emergencies
  • Tenant Portal and Owner Portal access
  • Move-Outs
  • Eviction Protection

Start making money on your house now. Call our team of professionals today