Property Management in Sacramento CA

Avoiding Costly Sacramento Property Management Mistakes

You plan meticulously and make a record of every dollar, every conversation you have had with a tenant, and every notice that you have placed on their door. You have made yourself available twenty-four hours a day, seven days a week since you bought for your first investment property. Then with one slip, one mistake, it falls to shambles. You are hit with an enormous expense that could have been avoided in property management. Sacramento landlords can work for months, and even years, trying to recoup the costs after paying for a mistake. Do not let this be you. Keep reading if you want to improve your cash flow, keep vacancy rates low, and avoid costly legal fees.

Vacancy Rates

No property owner likes having their property vacant. When it is vacant, it halts cash flow, costs extra money to get the home rent ready, and you lose money every day that your property sits empty. During quarter one of 2019, the average vacancy rate for rental housing in America was seven percent. That is higher than last years 6.60 percent, but lower than the long term average of 7.36 percent. There are many strategies that Sacramento property managers can do to avoid long vacancies. A few of these include picking a highly desired rental property, marketing it aggressively, properly preparing it for showings, and pricing it right. 

  • Rental Property Selection: The first criteria investors should look for when seeking to purchase a rental property is the neighborhood. Find a neighborhood that has a track record of low vacancy rates. These neighborhoods typically have good schools, a lot of amenities, offer single family dwellings, have grocery shopping and dining nearby, and are convenient for commuting to work.
  • Marketing Your Rental Property: When you are searching for a home to rent or buy, what is one of the first things you look at on a listing? Pictures. Pictures can attract or detract prospective tenants from expressing interest in your rental. Get high quality photos of your property and use the best picture as your featured image on the listing. Advertise your property across multiple websites like Zillow, Hotpads, Oodle, Craigslist, and other local classifieds. Place a For Rent sign in the front yard of your property. This not only informs people driving by who are looking to rent, but also alerts neighbors who have friends or family that are looking for a rental. Word of mouth can be very powerful in Sacramento property management.
  • Preparing Your Property for Showings: Turning over a property to get it ready for showings to prospective tenants requires a lot of time, work, money, coordination, and efficiency. A rental property that is ready for showings should have fresh paint on the walls, clean and well kept flooring, appliances that work, fresh landscaping, should be clear of all pests, and all cabinetry and countertops should be clean and in good condition. Once a past tenant vacates and turns in keys, landlords and property owners should enter the premises immediately to cut down on vacancy time. If possible, enter the property approximately two weeks prior to the tenant vacating to get an idea of the amount of work needed upon move-out. Doing so allows landlords to schedule vendors ahead of time, so they can get the date of service they need and want without wasting days between vendors during vacancy. 
  • Pricing Your Rental Property: Expert property managers in Sacramento conduct market comparisons and analysis to make sure they are asking the right amount for rent. If you price a property too high, you will have prolonged vacancy. If you price it too low, it will get snatched up right away, but you will walk away knowing you could have received a higher rental price. Look for properties that are within a three to five mile radius that have similar square footage, bedroom to bathroom ratios, amenities, quality of neighborhood, and age of property and fixtures. Price your property competitively and always start a few dollars high. If your phone fails to ring within the first few days, lower the price by twenty-five dollars and see if phone traffic picks up. 

Tenant Qualifications

It is better to have a property vacant than to accept unqualified tenants. Do not lower your tenant screening standards just because your property is sitting vacant for longer than you expected. Set rigorous screening standards for your tenants to ensure they pay their bills on time, make sufficient income, and have a proven track record of renting from other companies in property management. Sacramento landlords should ask for a 3:1 income ratio. This means that if rent is $2,200/month, the monthly gross household income of applicants must be at least $6,600. Require that applicants provide you with proof of income. This could be the two most recent pay stubs, previous two years of tax return documents, six months of bank statements, or official offer letters typed and signed on letterhead. Run a credit check and background check on applicants. A credit check will tell you if they are current on paying bills and a background check will let you know if they have any criminal activity. Certain criminal activity could cause a liability to property owners. Call previous management companies or landlords to inquire as to what type of tenants your applicants are. 

Rent Collection

It comes and goes every month and if you do not have a simple and reliable rent collection process, you will find yourself dreading it every month. Companies who specialize in property management in Sacramento have automated rent collection processes that allow tenants to pay rent online, at their convenience. At the time of lease signing, property managers should clearly outline when rent is due, the correct amount, what happens if they fail to pay, and how they can pay. The old method of dropping a paper check off at the management office is outdated. Tenants now want the convenience of paying online, with the click of a button and RPM SAC-METRO is keeping up with the times. Having an automated system in place if tenants do not pay rent can be a life saver. Software systems can release a 3 Day Notice to Pay Rent or Quit directly to tenants. Say goodbye to the days of posting notices on front doors. Your life just got a whole lot easier. 

Legal Compliance

If you are looking to fork out a huge amount of money, simply make a legal mistake. Chances are a lawsuit will be filed and you will find yourself in court with hefty legal fees. It is imperative to your success as a property manager in Sacramento that you are educated on federal, state, and local laws. Below is a list of some common laws that property managers need to know to protect themselves on a daily basis.

  • Fair Housing Act
  • Americans with Disabilities
  • Age Discrimmination Act
  • Title VI of the Civil Rights Act
  • Habitability Laws 

Property Inspections

Make it a priority to inspection your rental property biannually. During your property inspection, look at the interior and exterior. If the property is occupied, post a proper Notice of Entry and give ample notice. During your inspection, look for broken pipes, signs of leaks, proper seals on windows and doors, check all door and window locks, test appliances, change filters on air conditioning and heating units, look for signs of pests or overcrowding of residents, and all lease compliance issues. Conducting biannual property inspections will allow managers and property owners to catch maintenance problems while they are still small. Small problems that become big and worse, cost more money, cause an inconvenience to tenants, and more damage to the property.

Why You Need Property Management Sacramento Experts at SAC-METRO

With all of the complexities of managing your investment property, we want to assure you that there is an easier way. When you hire SAC-METRO, you can rest easy knowing that your property is a top priority to us and that everything from the leasing phase to the move out phase will be taken care of properly and legally. Make the most money on your investment by calling us today

How Property Management Companies in Sacramento Get Multi-Family Properties the Best Return on Investment

Managing a multi-family property takes time, knowledge, expertise, and top notch customer service. It is a job that requires around the clock care and availability. If you are a property owner, you know that you need someone who can deliver this and more. At RPM SAC-METRO, our professional leasing agents have been rigorously trained in all aspects of property management and are ready to better serve you. We provide our clients with everything our competitors offer, and so much more. When you join the SAC-METRO property owner’s club, you can expect to keep tenants, maximize revenue, and turnkey property management services.

Decreased Vacancy Rates

The moment a property becomes vacant, the clock is ticking for property management companies. Sacramento rental homes are especially in high demand and require managers to take immediate action upon vacancy. Every day that a rental property sits vacant, it costs our property owners money. We have your best interest in mind and our leasing professionals conduct thorough walk throughs of the property as soon as they receive keys from the previous tenants. They inspect and take notes as they walk the property and schedule vendors and repairs accordingly. They know that time is of the essence and schedule vendors back-to-back to minimize the days your property is not actively in the rent-ready stage. Because of our desire to take immediate action, our clients experience, on average, lower vacancy rates than properties offered for rent by our competitors. 

Careful Screening Methods

Clients of SAC-METRO enjoy long term tenants due to our rigorous screening methods. We only accept the most qualified applicants who pass our tough requirements. We require that all applicants who are 18 years old and older submit a signed and dated application to rent. This application tells us where they currently live, their past rental history, employment information, monthly expenses, if they have ever been evicted, and more. Property management companies in Sacramento must do their due diligence of verifying this information. SAC-METRO also requires sufficient income proof which consists of the two most recent pay stubs, 6 months of bank statements, previous two years worth of tax return documents, of an official offer letter typed and signed on company letterhead. Always verify rental history and employment information by calling previous landlords and current employers. For a list of questions that we ask previous landlords, click here. Always run a credit check and criminal background check so you know if your tenants are responsible with paying their bills and to limit your liability as a landlord. 

Streamlined Rent Collections

One of the ways to prevent late rent payments is to communicate clearly and effectively when rent is due, where it can be paid, the penalty if the payment is late, and the correct amount due each month at the time of lease signing. Property management companies in Sacramento must keep up with the times in regard to technology. Very few tenants still pay with a paper check. The majority of renters want an electronic rent payment service, and SAC-METRO can deliver. Our online tenant portal allows tenants to pay rent with the click of a button and be done within seconds. We also have an automated alert system that tells us who has failed to pay rent and the course of action that needs to be taken. If rent is unpaid after your grace period, you must deliver a 3 Day Notice to Pay Rent or Quit to the unpaying tenant. If they still fail to pay rent, you should contact your legal counsel for directions moving forward with filing an Unlawful Detainer. 

Get Cost Effective Maintenance with the Top Property Management Companies in Sacramento 

When property owners hire property managers, they often get the privilege of discounted prices from vendors. Clients of SAC-METRO enjoy even deeper discounts than the average management company offers. We hire only licensed and insured vendors who have proven track records. Many of our vendors have been servicing our multiple properties for years, and are highly skilled and trusted in their industry. At SAC-METRO, we believe in preventative maintenance. We conduct biannual property inspections to assess needed maintenance, make repairs before they turn into big maintenance issues, ensure tenants are in compliance with the lease agreement, and care for any seasonal maintenance. Proactive maintenance saves our property owners thousands of dollars every year. Our experienced professionals also act promptly when maintenance requests are received in an effort to keep costs down, tenants happy, and caring meticulously for your property. 

Professional and Trusted Staff

It takes a lot of trust and homework to find a property management company in Sacramento that is right for you. It takes interviews, asking the right questions, and comparing prices to make an educated decision for your investment. SAC-METRO is known for having three decades of experience, highly trained professional leasing agents, skilled and thorough vendors, and most of all, trust. Our expertise serves us well in all areas of property management and allows us to protect our clients and get them the best return on investment they have yet to see. Put your faith in us, call us today

Your Guide to Faster leasing with Sacramento Rental Property Management Company, RPM SAC-METRO

The quicker you can find a new tenant, the better. True or false? True, unless you are lowering your standards to fill the vacancy more quickly. What if we told you that you could have both; fill a vacancy in record time and find a highly qualified tenant who is respectful of your property? It can be difficult to find, but it is possible in rental property management. Sacramento team, Real Property Management SAC-METRO, has a proven leasing process that gives property investors the package deal. Below is a step-by-step guide that has been proven over and over again to shorten vacancy times and get property owners the type of tenant they deserve.

Act Quickly

Everyday that your property sits vacant, it costs you money. For example, if your rental price is $2,175 and your property sits vacant for two weeks, you have lost out on $1,015 cash flow. When your property is occupied, it brings in $72.50 every day. Think about it, that money goes a long way. It can buy groceries, fuel for your car, or pay your cell phone bill in two or three days. Sacramento rental property management professionals at SAC-METRO are aware of the impact vacancies can have on your bottom line. That is why they act quickly to get the property rent-ready. Getting a property rent-ready includes rekeying the property, maintenance, paint, carpet cleaning or replacement, re-caulking of tubs, showers, and sinks, taking care of any updates, cleaning of the property, and much more.

Determine a Rent Rate

One of the biggest mistakes landlords can make is marketing their rental property at the wrong price. If you price it too low, you will fill the vacancy quickly, but run the risk of lower quality tenants. If you mark the rent price too high, you will find yourself with a prolonged vacancy. Rent prices in rental property management in Sacramento must be handled delicately. The industry experts at SAC-METRO have more than 30 years of experience in conducting market comparisons. They research which properties are currently listed for rent, what amenities are included in the property, the location of the property, and services offered in order to determine an accurate rental rate.

Advertise Aggressively

The easiest and most efficient way to advertise a rental property is through online platforms. Renters want to see a variety of properties in the quickest and easiest way possible. The internet allows them to do exactly that. They can scroll through websites and click from one property to the next, all from the comfort of their couch. Start with advertising on some of the top used rental home search sites like Zillow, Hotpads, Craigslist, Trulia, and your local online classifieds in Sacramento. Rental property management teams should also advertise on their websites. Place “For Rent” signs in the front yard or outside the complex of your condo to maximize the amount of people that see your property is available for rent.

Respond Quickly

Answer all inquiries on demand. Make yourself available to answer phone calls, text messages, emails, and walk-ins. The best time to talk to someone interested in your property is when it is convenient for them. When you respond immediately to inquiries, you are more likely to find your tenant quickly. In addition, many rental home seekers are calling multiple properties back-to-back and can easily lose track of which property is which. A quick response time helps prospective applicants know if they are sincerely interested in your property. The best rental property management Sacramento teams schedule professional showings within a 24 hour time period of accepting an inquiry. Try to get your interested applicants in to see the property very quickly. The further out the appointment is, the less likely they are to follow through and show up to it.

Applications

When it comes time to accept rental applications, require that all people who are 18 years or older submit a filled out and signed application. When they return their application, they must also provide sufficient income proof, an application fee, and a security deposit. Once you have verified that you have all of the above mentioned documents, conduct background checks. These checks should include credit, criminal, and rental history verification. Sacramento rental property management team, SAC-METRO, collects applications from as many applicants as possible. Doing so gives them the opportunity to pick the highest qualified tenant.

Lease Signing and Move-in

The leasing stage of rental property management in Sacramento is often the most stressful. Once you have reached the lease signing step, you can breathe a small sigh of relief. When it comes to signing the lease agreement, clearly explain each paragraph to your new tenant to ensure they understand everything that is expected of them. Allow them enough time to read every word of their lease agreement before signing it. Clearly outline when rent is due each month, how they can pay rent, the correct amount of rent, what happens if they fail to pay, how to communicate maintenance requests, tenant rules while on the property, and more.

Why You Need the Best of Rental Property Management in Sacramento

When you choose SAC-METRO, you can expect regular leasing updates and first-class customer service. We get our clients the most qualified tenants, lock them in for longer lease terms, and we do it all in record time. Do not allow yourself to lack the resources or knowledge to rent your property efficiently. Increase your cash flow and reduce your stress. Call us today.

How Property Management Companies in Sacramento Avoid Evictions

Evictions are easily one of the most expensive and stressful situations a landlord can find themselves in the property management industry. They are costly, time consuming, and must be carried out perfectly and with proper legal counsel to be valid. Private landlords and professional property management companies in Sacramento can do their homework for hours on tenants; checking credit, verifying income proof, checking personal references, and conducting background checks, but the truth is, an eviction can fall on even what appears to be the safest and most reliable tenants. Life happens, income can be uncertain at times, or tenant circumstances and lease agreement compliance can change. There is no guarantee that you will be eviction-free as a landlord. But there are some precautions that landlords can take to protect themselves.

Screen Thoroughly and Rigorously

If you have experienced the leasing phase of property management, you know that with each application, comes a new scenario. You may think you have found the perfect tenant, but as you run their application, you find their credit score is in the high 500’s. Or their income is not sufficient. Or they have had an eviction on their record within the past seven years. You find yourself getting frustrated and desperate to lock in a tenant. Do not fall victim to settling for a tenant who does not qualify. Property management companies in Sacramento warn landlords to keep their tenant screening standards high, regardless of how long it takes to find a tenant. Below is a list of some of the most common reasons you can legally deny a tenant application:

  • Low credit score: If a credit score is lower than 620, you can reject a tenant application. Credit scores show landlords if tenants pay their bills in full and on time.
  • Insufficient Income: A good rule of thumb is to require a minimum of at least three times the rent amount. If rent is $2195, the tenants gross household monthly income must be at least $5,268. This ensures your tenants makes enough to not only pay rent, but also pay their monthly bills and everyday expenses.
  • Failure to Provide Income Proof: Property management companies in Sacramento state that sufficient income proof is defined as the following: two most recent pay stubs, previous year’s tax return documents, six months of bank statements, an offer letter on official letterhead, or a social security benefits statement. Always verify the income by contacting the human resources department of the applicant’s employment.
  • Pets or Smoking: If an applicant states that they have a pet and you have a no pet policy, you can legally deny their application. Be careful that you do not deny a service animal. Cigarette smokers are not a protected class. You can have a no smoking policy in your lease agreement without discriminating against any protected classes.

There are many more legal reasons you can deny a tenant application, but the ones mentioned above are the reasons landlords see most often.

Property Management Companies in Sacramento Handle All Eviction Correspondents Legally

Evictions are often unexpected, but always stressful. As a landlord, it can be frustrating to not handle things your way. Evictions must be carried out in accordance to the law. Legal counsel will often advise landlords to have no verbal contact with their tenants during the eviction process, as this could halt the process. If you have a legal reason to evict a tenant, counsel with your lawyer. Here are a few reasons that property management companies in Sacramento can legally evict a tenant:

  • Failure to pay rent on time
  • Criminal activity
  • Causing damage to the property
  • Unapproved pets
  • Unauthorized tenants
  • Indoor smoking on the property
  • Subleasing of the property
  • Nuisance complaints
  • Threats against other tenants

Evictions can take as long as four to six weeks to be completed and can cost upwards of $5,000 if the tenant decides to contest the eviction in court. If no contest from the tenant, court fees can cost between $400 and $750. This does not include the loss of rent during the eviction, cleaning fees, or hauling fees if the tenant fails to remove their personal items from the property.

RPM SAC-METRO’s Eviction Protection Program

Property management companies in Sacramento know that the eviction process takes an emotional toll on landlords. That’s why Real Property Management SAC-METRO created the Eviction Protection Program. This is a program that costs property investors a low monthly fee, that protects them if an eviction occurs at their property. This low monthly fee pays for the filing, legal fees, and court costs in the event of an eviction. It does not cover a writ of possession or the move out costs of the tenant.

Why You Need SAC-METRO

Collections and evictions are part of business in this industry. With SAC-METRO, you get trustworthy service from professionals who have more than 30 years of experience in property management. Whether it is an eviction, lease compliance issues, or you simply need help finding the right tenant, we have your back. There is a reason we are ranked as one of the top property management companies in Sacramento. Call us today.

Additional Services Offered by RPM SAC-METRO, The Leader In Property Management In Sacramento

The majority of property management companies require that you hire them for the whole kit and kaboodle. They want your money and they will find ways to mask hidden fees without you noticing. Unfortunately, this can put a bad taste in property investor’s mouths for the rest of the management companies who are honest and upfront about all costs. At RPM SAC-METRO, our clients will never find a hidden fee or extra cost they did not expect. We simply do not operate that way. We put our client’s needs first and make that our priority in property management. Sacramento property investors can hire SAC-METRO for as much or as little work as they need and we always respect their wishes. We offer additional services to accommodate all investors.

Lease-Only Service

One of the most exhausting and risky tasks that landlords can participate in is the marketing and leasing phase of property management. Many things can go wrong during this crucial time if they are not educated and cautious in their proceedings. Landlords can run into hiccups in Fair Housing Laws, accept applicants with bad credit or rental history, fail to market in the right places, or neglect conducting market comparisons to ensure they will get top dollar for their rental. SAC-METRO is the top pick for investors for property management in Sacramento because these mistakes will never be made with us on your side. If you are looking to rent out your property faster, find highly qualified tenants, market aggressively, and have all things done legally, you need SAC-METRO. We offer lease-only contracts to property owners who do not need the continued management service once the property is occupied. You are not obligated to any other fees or contracts when you choose the lease-only option. Some of the things that are included in the lease-only contract include the following:

  • Re-Keying of the property
  • Repairs and updates to the property
  • Cleaning of the premises
  • Aggressive marketing and advertising
  • Showings of the property
  • Rigorous tenant screening process
  • Curb appeal maintenance
  • Lease signings

Once your tenant has moved in, we move out of your way and your bank account. If you desire more help after this process, we would be happy to assist you.

Preferred Vendor Partnerships

Maintenance costs can be expensive and inconvenient. Our clients who participate in a Sacramento property management contract with SAC-METRO will get access to our preferred vendor pricing and partnerships. We hire only licensed and insured vendors who have reputable track records. They offer us deep discounts on service and parts, which we pass on to our clients. Whether it is a small repair to a garbage disposal or a leaking pipe that has caused thousands of dollars of damage, you no longer have to worry about high maintenance costs eating away at your profit. And no more phone calls to multiple vendors or waiting for quotes to come rolling in. Our professional property management Sacramento team works quickly and efficiently to respond to maintenance requests from tenants and schedules the proper vendors. Clients who participate in our vendor partnerships remove liability from themselves, which in turn protects them from legal fees in the future.  

Eviction Protection Program

Did you know that one in seventeen renter households between the years of 2000 and 2016 received eviction filings against them? According to data collected by The Eviction Lab at Princeton University, one in forty households were actually evicted during this time. Did you also know that an eviction can cost a property owner roughly $6,000 – $8,000 and can take four to six weeks? Just think of the monetary losses and headaches evictions can cause for property owners. The risk of eviction is not worth it. As the leader in property management in Sacramento, we take every precaution to prevent an eviction for our clients. We have a rigorous and proven tenant screening process, which has helped us achieve a less than one percent eviction rate. But we cannot guarantee it will not happen. That is why we offer an Eviction Protection Program to our clients. Our Eviction Protection Program costs $19/month and covers the following:

  • Servicing the Complainant with a Notice to Vacate
  • Preparation of Paperwork and Filing
  • Lawyer Fees
  • Two Appearances in Court
  • Court and Filing Fees
  • Coordination with Law Enforcement for Notices to Vacate
  • Writ of Possession

Do not gamble with the risk of eviction. Keep your investment safe and let us protect you from an expensive eviction.

Why Clients Get the Best Sacramento Property Management Service From SAC-METRO

If you are looking for the most experienced and professional property management team, SAC-METRO is the choice for you. We handle all things property management including turnover, maintenance, property inspections, marketing, showings of the property, application processing, lease signings, rent collection, evictions, and renewals of contracts. You can rest easy knowing our 30 years of unmatched experience has served us well in protecting property investors. Call us, the leader in property management in Sacramento, today.

Why Property Management Companies in Sacramento See Single Family Homes As the Most Profitable Investment

Should I invest in a multifamily property or a single family property? It is a decision that all property investors debate. The reason for the debate is that both prove to be profitable, but investors choose between the two types of properties depending on their holding strategy, exit strategy, and affordability. Property management companies in Sacramento are seeing investors get huge returns on investment on single family homes. Many factors play a role in these returns including appreciation, affordability, rent rates, management, and the stigma that surrounds the term “renters.”

Affordability and Appreciation

Home values have slowly been on the rise since 2008 and investors who bought single family homes back between 2008 and 2015 are seeing big appreciation gains. If you did not get into the investor housing game back then, it is not too late. Housing prices are still affordable due to relatively low mortgage rates and single family homes are cheaper to purchase than a multifamily complex. Even more important than those variables are rising rent rates. Record high rent rates are allowing property management companies in Sacramento to get top dollar for their clients who own single family homes. Property owners are cash flowing better than ever in 2019 thanks to the supply and demand in the rental market, driving up rent rates.

Easier Lending Terms

Single family homes have easier lending terms than multifamily complexes. You only have to put down between 10 and 15 percent for a down payment. On multifamily housing, buyers are required to put down between 25 and 30 percent. Interest rates are also lower for single family properties, but keep in mind that lenders change interest rates based on the home being owner-occupied versus renter-occupied. Mortgage rates are hiked up for renter-occupied single family housing. Property management companies in Sacramento report seeing mortgage rates increase between 0.25 and 0.50 percent for renter-occupied dwellings.

Easier to Manage

Plain and simple, a smaller property is easier to manage than a large property. For starters, less maintenance goes into a single family home than a multifamily property. Maintenance costs are lower, the amount of time that you spend on maintenance is less, and a fewer number of tenants means not as many things should go wrong due to tenant error. Property management companies in Sacramento also see that less yard maintenance is a bonus for owners of single family homes. Owners of multifamily complexes need to hire a landscaping company to care for the lawn, plants, flowers, trees, and sprinkler system. On the contrary, the renters who occupy a single family home are generally required to maintain landscaping. Management companies enforce the lease agreement rules that state they must care for the landscape. Showings of the property during vacancy are less stressful and less frequent. The more units you have, the higher the risk for vacancy. Sacramento property management companies know that single family homes generally attract renters who plan to stay in the home for a couple of years. They are also more likely to have children, so school schedules and job stability keep them from moving often.

Buy and Hold

Single family homes will always be in demand. When you purchase a single family home for the purpose of an investment, you have a bigger buyers market to pick from when you are ready to sell. Selling a single family home can attract buyers who plan to occupy it as well as buyers who are ready to rent it out with the help of property management companies. Sacramento property investors have switched their previous business models from buy and flip, to buy and hold. A few reasons why the buy and hold strategy is working for property owners right now is that rent rates are sky high, the demand for rental properties is high, and the newer generation does not value the “settling down” mindset as much as people did in past years. Millenials are on the go and enjoy the flexibility of not being tied down by home ownership.

High Income Clientele

Renters of single family homes have changed as the economy has changed. Property owners are seeing more stable and reliable tenants in their single family homes than with multifamily housing. RPM SAC-METRO, the top rated Sacramento property management company recently reviewed results released by the U.S. Census which states that the number of high income renter-occupied households was increasing faster than owner-occupied households. They defined high income renters as those making $150,000 annually or more. The stigma that once surrounded the term “renter” is obsolete.  

Why You Can Trust SAC-METRO, the Top Property Management Company in Sacramento

If you have a single family home for rent and need a management company, you can put your trust in SAC-METRO. Single family homes make up 70 percent of our nationwide portfolio.  We have more than 30 years of experience in the property management industry and have proven to our clients that we know this business better than our competitors. If you want the best, call us today.

How Sacramento Property Management Companies Make You Big Bucks When You Invest in Rental Properties

If you are looking for a safe and stable investment, invest in property. Sure, the stock market might be easier to throw your money into and let some bigwigs on Wall Street manage your fund, but unlike the stock exchange, property is fairly stable, predictable, and can yield big returns on your investment. Yes, it takes a lot of work and education on your part if you plan to manage it on your own, but if you hire a property manager, you get to sit back and relax while they do the hard work and you reap the rewards. One of the best Sacramento property management companies, RPM SAC-METRO, has seen these large returns on investment come into the hands of their faithful clients. Below are some of the reasons why we believe property investments are the best and easiest way to make your money grow.

There are More Renters than Homeowners

The American dream of homeownership is changing for residents around the country. According to US Census data, between the years of 2006 and 2016, twenty-two of the nation’s largest cities have more renter-occupied housing than owner-occupied. Sacramento has just over 50 percent of its residents living in renter-occupied housing. As a resident of Sacramento or the surrounding areas, you have every opportunity to seize the moment and make your money grow in Sacramento. Property management companies are seeing renters migrating from the Bay Area over to Sacramento in search for a safer neighborhood, larger home and yard, and affordability. Years ago, the stigma that surrounded the word “renter” meant they had less money than homeowners. However, this stigma has greatly changed over the past ten years. A new study released by Apartment List found that during the past decade, the number of high income renters has increased to forty-eight percent, nationally. They define high income renters as those who make $100K or more. This means investors are now leasing their properties to tenants who have stable incomes, are more likely to be able to pay their rent each month, and who are able to care for the home.

Tax Breaks for Renters

Renting is an attractive option for millenials who are constantly on-the-go and continually searching for better job opportunities, which may come at the cost of moving frequently. In addition, renters can receive tax breaks. If Senate Bill 248 was to become law, it would be the first time the tax credit for renters would be raised since 1979. This bill is aiming to help California renters who are struggling to pay rent as prices continue to rise. Sacramento property management companies expect single parent renters could see a tax credit ranging from $60-$434, while single people without dependants could see an increase of $160 in their tax returns. In the past year, rent prices in Sacramento have jumped nearly two percent, and that follows an eleven percent increase in the previous year. Investment property owners have never seen returns this great.

There is Safety in Property Investments

People are always going to need a place to live. That is the way it has always been and the way it will always be. The real estate market can fluctuate, but the demand will always be strong. Property owners can find peace of mind knowing that investing in real estate has worked for millions of people before and is still working for them today in Sacramento. Property management companies see a variety of investment properties ranging from single family homes, to condos, duplexus, single apartments, entire apartment buildings, or office buildings. No matter your budget, an investment property is attainable for those looking to make more money. There are multiple ways to make money off of a property investment. Perhaps the most obvious is cash flow through monthly rent, but the best and easiest way is through property appreciation. The real estate market can be your best friend when you are presented with opportunities to buy low and sell high. During the market crash in 2007, many investors who stayed informed were able to capitalize on expanding their property portfolio by purchasing properties for cents on the dollar. Today, these properties are worth two times the amount they paid in 2007 through 2009. As an investment property owner, you are also eligible for tax benefits and write offs.

You Can Hire it Out to Sacramento Property Management Companies  

Possibly the best reason of them all is that you do not have to be present to make money. Unlike a dentist, lawyer or doctor who only make money if they are present or are actively participating in “billable hours,” investment properties bring cash flow while the property owner is off living life to its fullest. This is not to say that property management takes zero time and energy, because it is quite the opposite. However, you can outsource your work to a management company. There are many Sacramento property management companies to choose from, but our highly recommended team at SAC-METRO has with more than 35 years of experience and can handle all things property management for you. Our management fees are competitive and because of our faster than average leasing times, our fees practically pay for themselves. So if you don’t feel like going to work today or in the future, no problem. SAC-METRO has your back. We keep the cash coming into your pocket whether you rise and shine in the morning or have a lazy day watching Netflix in bed. Call us today.

Don’t Sell. Rent Out Your House with Sacramento Rental Property Management

If you are a homeowner in the Bay Area or a surrounding community like Sacramento, you are sitting on a gold mine. This should not come as news to you. If you have even poked your head out of the window for five minutes in the last ten years, it would be impossible not to notice how sky-high home and rental prices have become. But because home prices are at a near all-time high and mortgage rates are climbing, the affordability to potential homeowners has become obsolete. This is why America is seeing more renters than homeowners. Did you know that a UC Berkeley study discovered that between the years of 2006 and 2016, more than 3.8 million additional households became renters of single family homes instead of homeowners? No matter your circumstances, if you are looking to get out of your home, Sacramento rental property management company, RPM SAC-METRO, is certain it can help you turn your house into a cash flowing rental property.

The Mass Exodus from the Bay Area

The Bay Area is seeing an exponential increase in the number of people seeking to move away from the highly congested region. A new study by Redfin found that approximately 24 percent of home searches conducted online by residents living in the Bay Area are looking elsewhere for housing. That is up from 19 percent the previous year. Some of the communities that Redfin reports residents are looking to move to include Sacramento, Portland, Seattle, and even Austin, Texas. Sacramento rental property management companies are able to confirm these findings, as they have seen a classic supply and demand shortage, causing rental rates to rise. A report released by Hotpads found that rent prices in Sacramento rose faster within the last 12 months than in any other major city in the United States. An annual study that was recently released by Joint Venture Silicon Valley backs up the above mentioned findings. It reports that Silicon Valley gained roughly 20,500 foreign immigrant last year, while 22,300 residents relocated away from the area to other regions and states.

How the Mass Exodus Benefits Sacramento Homeowners

Sacramento rental property management teams see this outward migration as a big opportunity for homeowners. While Sacramento is less expensive than the Bay Area, working professionals are willing to drive the distance. Employees are able to keep their current high paying jobs in the sought-after tech industry while sacrificing the quick commute so they can have a more affordable living space for themselves and their families. Sacramento real estate agent, Devone Tarabetz, states she has collected clients from San Jose, San Francisco, Oakland, Milpitas, and Petaluma within the past year. She states “affordability” as the number one reason for the relocation. The median home price in Sacramento in $360,000 versus $775,000 in San Francisco, although not all relocating individuals are buying. This is where things get exciting for Sacramento residents who are already homeowners: if you are looking to move, you can bet your bottom dollar that you can find a highly qualified renter to occupy your house, turning it into a cash flowing property.

High Income Renters in Sacramento

At SAC-METRO, we are one of the highest ranked Sacramento rental property management teams in the region, and we pride ourselves on finding quality tenants for our clients. Not only do we have a rigorous screening process, but an Apartment List study shows that the number of high-income renters has grown more than 48 percent nationally in the past decade. In Sacramento, it’s even higher with a 61 percent increase in high-income renters. The study identifies high-income renter households as those that earn at least $100,000 per year.

So why are the wealthy renting instead of buying? It goes back to 2008 when loose lending guidelines lead to a mortgage crisis, forcing homeowners to foreclose on their homes they could not afford. Sacramento rental property management teams have seeing the aftermath of the mortgage crisis which has lead to tightened lending regulations and multiple barriers of homeownership. Another factor that comes into play giving Sacramento high income renters is that the Bureau of Labor Statistics found that annual wage growth was up just under two percent, while home prices are up more than five percent.

Why You Need the Best Sacramento Rental Property Management Team on Your Side

If you find yourself looking to make extra money by renting out your house in Sacramento, you need SAC-METRO on your side. With more than 35 years of experience in the industry, we know property management. Future homeowners have been forced to wait longer before buying their first house due to the economy, and you, as a Sacramento homeowner can benefit from it. Clients can depend on SAC-METRO to handle all things property management – from marketing the home, to getting it rent ready, finding you the reliable and clean tenant that you expect, taking care of all maintenance scheduling and contracting on the home, and much more. Let us make you rich. Call us today.

Sacramento Homeowners Are Renting Instead of Buying a Home

Navigating the waters of choosing to rent out your home or list it for sale can be difficult. There are so many options and what-ifs that present themself with either decision. There are many pros and many cons to each. It comes down to the personal decision of the homeowner determining what is best for them. Property management companies in Sacramento are seeing a large increase in the amount of properties that are listed as rentals in comparison to for sale signs. With mortgage interest rates hovering around five percent at the start of 2019, purchasing a house is becoming increasingly unaffordable. It is not a buyers market. It is a renters market. That is why choosing to list your house for rent can prove to be a very profitable choice in this economy, and here’s why.

Why Is Buying a House Unaffordable?

Many factors play a role in making housing affordable and unaffordable, but recent reports released at the beginning of 2019 are taking a look back at 2018 to see exactly what the market did to land the U.S. in an unaffordable housing market. Last year, unemployment nearly hit a fifty year low while the amount of job openings were high. You would think that with more citizens employed, they would have more money to spend and be purchasing houses. However, mortgage interest rates also increased putting the once affordable house, out of reach for even the well-employed. Property management companies in Sacramento know that these five percent mortgage rates may not seem high to those over the age of 40 who bought a house in the past with rates between ten and fourteen percent. But the increase between four and five percent is making all the difference for millenials.

In 2018, home builders built fewer affordable new single family houses than in past years. Reports show 50,000 affordable single family homes around 1,400 square feet were built in 2018 compared to the typical 200,000 in normal years. Instead, builders have their eyes set on expensive apartment complexes and executive housing. Let’s not forget that the price of building materials, including lumber and gypsum, have also increased over recent years. Builders are also running into stiff zoning restrictions and higher permitting costs in urban areas where the affordable housing shortage is especially tight.

How Homeowners Can Make Money In a Renters Market

Property management companies in Sacramento see houses listed for sale sit on the market for months without selling. All of the above mentioned reasons are to blame for this discouraging situation. Homeowners need not worry about selling their home for less than it is worth just to get it off the market. They have another choice. A choice that can result in big cash flow. Listing a home for rent in a renters market is the smart choice if you do not need the equity out of your home to purchase a new one. HotPads released a recent report showing that in 2018, renters paid a record $504.4 billion in rent compared to 2017’s whopping total of $12.6 billion. Going along with the increased amount Americans spend on rent, Pew Research Center has also found that more households are renting than at any point in the past 50 years. Sacramento property management companies not only saw an increase in the amount of people renting, but also an increase in the rental price from 2017 to 2018. San Francisco takes the cake with the highest monthly average rent price for a one bedroom apartment at $3,535. New York City falls slightly behind that at $2,895. While Sacramento might not at as high at $3,535 per month for a one bedroom, it is still very high at $1,140 per month as of January 2019. That is a 3% increase from 2017. These rent increases allows property owners the opportunity to make money despite not being able to sell their house. They will experience low vacancy rates due to the apprehension of would-be home buyers. A high demand for rentals helps drive up the rental price because of basic supply and demand economics. Not only can property owners expect to find a large pool of quality prospective tenants, but also the potential to make big bucks.

Why Property Owners Need the Top Property Management Company in Sacramento

Renting out your house is no easy task. Many property owners underestimate the time, organization, stress, and overall management duties that a rental home requires. RPM SAC-METRO is the leader of property management in Sacramento and has a proven track record for over 30 years. SAC-METRO has lower vacancy rates than its competitors, while continuing to provide quality service and find highly qualified applicants. SAC-METRO handles everything for property owners including conducting market research to ensure you get top dollar in rent, marketing the house, showing the house, conducting a rigorous tenant screening process, signing lease agreements, handling and scheduling of maintenance, rent collection, property inspections, move-outs, and turnovers. We know you have a choice from many different property management companies. Don’t make the mistake of hiring the wrong property management company. Sacramento is where all your rental investment dreams become reality. Call SAC-METRO today.

How Sacramento Rental Property Management Companies Avoid Legal Troubles

An investment property is designed to generate cash flow, giving you income or extra spending money. This is attainable when you carefully follow all federal, state and local laws along with ethics and do your research when choosing the right property. It is easy to lose this income or extra cash flow when you fail to adhere to laws, codes and regulations. Failure to follow laws can cost property owners so much money in legal fees, it wipes bank accounts clean. Do not let this be you. This situation is avoidable and Sacramento rental property management leaders at RPM SAC-METRO are here to support you and protect you against making these avoidable mistakes.

Know Your Laws

This task alone may feel overwhelming, as there are so many laws that you must following the second that you label your property as a rental property. Some laws are put into place to protect property owners and others are to protect tenants. Either way, you must follow them. Here is a list of some of the most common laws that property owners must know to dodge lawsuits:

  • Americans with Disabilities Act: Sacramento rental property management teams are not allowed to discriminate against any person who has a disability. This civil rights act protects tenants from being discriminated against for their race, sex, national origin, or religion. It also covers those with mental or physical disabilities. This is where the gray area starts for many property owners. If a tenant fills out an application and says that they have a service animal, that is not considered a pet. Even if you have a “no pet” policy, a service animal must be allowed at no additional charge. Property owners also cannot inquire as to what the disability is. They can only ask if the service animal is required for the disability. Remember, a disability does not need to be severe, obvious, or permanent to qualify for the needs of a service animal. If a tenant needs to make modifications to the property in order to make it functional for their disability, they can fill out a Reasonable Accommodation Request. Modifications to the property are to be paid for by the person with the disability who is requesting the change.
  • Fair Housing Act: This is a federal act that rental property managers in Sacramento must follow. This act applies to those in protected classes from being discriminated against in purchasing or renting housing. Protected classes include race, color, sex, age, familial status, national origin, or disability. Property owners cannot pick and choose their tenants by discriminating against these protected classes when renting or advertising, and cannot intimidate or harass anyone based on these characteristics. A recent article published by USA Today states that Facebook allows landlords to discriminate in housing ads on their social media website, HUD alleges. This means, HUD claims Facebook is allowing property owners to target only prospective tenants they would want to see their ads and can filter by race, sex, age, color, familial status, national origin or disability. Do not filter who is allowed to view your property in online ads, who is shown your property in person, or who you ultimately choose to be your tenant.

Make certain you are not violating either of these laws, along with many others not listed above. Be conscious of what you ask prospective applicants and tenants. Do not discriminate against anyone who is classified as a protected class. Follow a rigorous screening process and treat everyone equally.

Evictions in Sacramento Rental Property Management

This is another area that can land property owners in hot water if done incorrectly. Evictions are sensitive and must be done in compliance to the law. Afterall, if you evict someone, you are taking away their shelter and putting a mark against them on their credit report. This could follow them around for years when seeking future housing. Before moving forward with filing an unlawful detainer after failure to pay rent, seek the legal advice from your attorney. Evictions can happen if a tenant is not in compliance with lease agreement terms. A few of the most common lease agreement terms that property owners see getting violated include failure to pay rent, not following occupancy guidelines, or failure to comply with a “no illegal drugs” policy. The most common reason Sacramento rental property managers see the cause for eviction is failure to pay rent. If rent is not received on time, property managers can post a formal three-day notice to pay rent or quit. If three days pass by and still no rent payment is received, contact your lawyer for proper guidelines on how to collect rent or start the eviction process. Remember, that you cannot evict someone for failing to pay their late fee associated with late rent. For example, if rent is $2,500 and the late fee is an additional $35, and the tenant comes through with the payment of only $2,500, you are no longer able to evict them. The $35 late fee can be collected later. Do not accept partial rent payments. This requires landlords to itemize daily rent fees and can lead to a messy eviction process.

Document Everything

Possibly the best way Sacramento rental property management professionals can protect themselves against legal woes is to document everything. We are not saying it is easy or fun, but we are saying it is necessary. Make the time to put everything in writing. It is difficult to recall every maintenance request, what was done to solve the maintenance request, or every conversation you have had with tenants regarding lease violations, and much more that property owners deal with daily. By documenting these things, you create a paper trail that can protect you if a tenant or applicant tries to sue you. You can document the old fashioned way by handwriting notes, opt to type notes on your computer, or utilize property management software that allows a note taking option on resident files. Date and time stamp your documented notes.

Do not take your chances in falling victim to costly legal fees. Contact the leader in Sacramento rental property management, SAC-METRO today. Let us protect you.