Property Management in Sacramento CA

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.

How to Get Cost Effective Maintenance with Sacramento Property Management Companies

“I have a maintenance request…” are some of the most dreaded words heard by a property manager. It does not have to be this way. Sacramento property management company, RPM SAC-METRO, wants to change the effect this sentence has on investment property owners. For unprepared property owners, these words cause stress and anxiety. For prepared ones, they are merely words that cause you to take some action and probably take a little bit of money from your maintenance savings account. Something all investment property owners should have. To make sure that you feel like a prepared property owner for maintenance, here are some tip from the professionals at SAC-METRO.

Establish a Maintenance Budget

You have heard the Scout’s motto, “Be Prepared,” and it is a good rule of thumb that property management companies in Sacramento follow. SAC-METRO recommends that property owners set aside one-to-two months of rent to account for annual maintenance costs. Another way to look at it is to set aside one percent of the value of the property for annual maintenance costs. If your property value is $300,000, set aside $3,000 for your yearly maintenance budget. Keep in mind that you may not use all of this but it is better to be safe than sorry. When establishing your annual maintenance budget, consider what appliance are old and new, what will likely need repairs or replacing this year, or any upgrades you intend to complete.

Sacramento Property Management Companies are Proactive

Nothing hits you with regret like a small maintenance request that went ignored and ultimately turned into a big maintenance request with high price tags attached to it. To avoid this from happening to you, respond promptly and immediately when maintenance requests are submitted. It is easy for property owners to adopt an “out of sight out of mind” attitude, and while a request may seem small to you, you are not the one living with the maintenance issue on a daily basis. Keep your tenants happy by taking action when they alert you of maintenance. By doing so, you will get two things in return: tenants who see that you respect your property, which will cause them to do the same, and long term tenants who are satisfied with their living conditions and will forfeit thoughts of moving elsewhere. Sacramento property management companies have also seen great success with keeping maintenance costs in check by conducting annual and biannual property inspections of the interior and exterior. Check and inspect appliances, structures, smoke and carbon monoxide detectors, evidence of any water leaks or water damage, the condition of the roof, rain gutters, evidence of mold or mildew, and pests. A thorough inspection can also include checking that residents are in compliance with occupancy guidelines and pet rules.

Communication is Key

Lines of communication must be kept open on both ends of the tenant-landlord relationship. It should be stated and clearly explained in the lease agreement and during the lease signing process that tenants must alert their Sacramento property managers of any and all maintenance needed on the premises. Landlords should respond quickly to all maintenance requests, immediately to maintenance emergencies, and should see repairs all the way through to ensure quality maintenance was conducted satisfactorily.

Removing Liability

Hire licensed and insured repairman and technicians to fix maintenance requests. It may be tempting to take the DIY road and try to save yourself a few pennies, but too often this road leads to landlords paying more money to correct the DIY job that they did incorrectly. By hiring licensed and insured companies, Sacramento property management companies remove any liability from themselves, and place it on the company they hired. This protects them from lawsuits because licensed and insured technicians must follow laws and codes to make sure the fix is legal and safe. If you do the repair yourself and if it results in injury or hazardous living conditions to your tenants, you are the one sitting in the courtroom.

Conduct Maintenance While Vacant

While completing your walk-through checklist upon a tenant moving out, address all maintenance issues while the property is vacant and in the turnover process. This does not guarantee there will not be maintenance requests once occupied, but it will cut down on maintenance requests once your new tenants moves in. Sacramento property management companies find that by doing maintenance while the property is vacant provides many advantages:

  • You do not inconvenience your tenants
  • You spend less time on maintenance because you do not have to maneuver around someone else’s belongings
  • You do not have to clean up after yourself since you are likely hiring a professional cleaning company anyway after all maintenance is completed like painting and flooring replacement
  • You are more likely to get quality and highly interested applicants when the property is clearly properly cared for and respected

How Hiring a Property Manager Can Save You Money

At SAC-METRO, our clients automatically get our preferred vendor pricing as soon as they sign a management agreement with our company. This means that all of our licensed and insured vendors give our clients discounts on their services. We not only save you money through our preferred vendor pricing, but we also remove the stress and anxiety that comes with responding to maintenance requests. Let the experts at SAC-METRO, who have more than 35 years of experience, manage your investment rental property for you. Call us today.

How Property Managers Get Homes Rent Ready in Record Time

You’re reliable and trustworthy tenant has just turned in their 30 Day Notice to Vacate and all you can think about is “how will I find another tenant as good as my last one?” At least that is what we hope you are thinking. If not, you’re thoughts might be, “how will I get my house rent ready and how soon until a new tenant can move in?” If this is where your mind goes, rest assured, we have the answer. At RPM SAC-METRO, our goal is make Sacramento property management a successful investment and business venture for property owners. No one likes to have a disruption in their cash flow. That is why our knowledgeable team of professionals at SAC-METRO has provided landlords with tips and tricks they can use during the turnover process to get their home rent-ready as quickly as possible.

Preliminary Move-Out Inspection

When a tenant give you a 30 Day Notice to Vacate, acknowledge their intent to vacate by giving them a list of cleaning guidelines and an official move out date. For example, if someone turns in a notice to vacate on January 15th, day one of the notice is January 16th. Count 30 calendar days to determine the move out date. This means their move out date is set for February 14th. Let them know that keys must be returned to their Sacramento property manager no later than midnight on the date of their move out, February 14th. Provide the tenant with the option for you to conduct a Preliminary Move Out Inspection. During this inspection, the property manager enters the home while the tenant is present to walk through the property and address any concerns, maintenance, or repairs needed upon move out. This gives the property manager a heads-up as to what condition the property is in prior to move out. During this inspection, the landlord should make notes of flooring, paint and wall, and appliance repairs or replacements, and much more.

Getting the Home Rent Ready Once Vacant

  • Day 1 of Vacancy (Feb 15th): Leave the first day of vacancy open for you and your maintenance technicians to walk through the property and test all appliances and determine what can be fixed versus what needs replacing. If appliances need replacing, order them immediately so they can be delivered in a timely manner. Maintenance technicians should also inspect all window coverings, countertops, baseboards, hardware, replace caulking and silicone in the kitchen and bathrooms, and change door locks.
  • Day 2 – 3 of Vacancy (Feb 16 – 17th): If it was obvious during the Preliminary Move Out Inspection that paint and flooring will need to be replaced, you should have already called your paint and flooring contractors to get on their schedule for February 16th and 17th. The most successful property management Sacramento companies schedule contactors back-to-back to cut down on vacancy times. Many contractors will recommend painting before new flooring, because even the best painters can accidently smudge or drip paint on unwanted surfaces.
  • Day 4 of Vacancy (Feb 18th): The property manager should walk through the property and ensure all work has been completed satisfactorily. Use this day to also install any new appliances so they are up and running by the time your first prospective tenant sees the property. Take updated photos of the interior and exterior. A recommended tip from the best Sacramento property management photographers is to turn on all interior lights and open window coverings to enhance the look and natural light of the room you are photographing.
  • Day 5 of Vacancy (Feb 19th): First day of showings.

How Sacramento Property Management Companies Set Rent Rates

It can be difficult to determine asking rent rates without doing your homework. If your asking rent rate is too low, you run the risk of getting less qualified and less sophisticated applicants. If your asking rent rate is too high, you run the risk of prolonged vacancy as tenants walk away disappointed with what you are offering versus your competition. SAC-METRO recommends conducting a Market Analysis. This can be done by searching for local housing ads from other Sacramento property managers that offer comparable characteristics to your house. Find homes that have the same number of bedrooms and bathrooms as your house, similar square footage and yard sizes, were built within the same time frame, and are located within a half mile to one mile away. What is their asking rent? How does the interior and exterior of those houses compare to what yours looks like? Are they remodeled or updated? Are they old and tired looking? Take these characteristics into consideration to determine your asking rent. Doing a Market Analysis can at least give you a ballpark figure on asking rent rates. Start your asking rent rate high. If no one expresses interest in your ad, lower the price a little.

Advertising Your Vacancy

Property Management in Sacramento can be disheartening to see all the options people have when renting. You may feel like a small fish in a big pond. That is why having a strong and attractive advertisement for your home can help reduce your vacancy time. Pick the best picture of your property as the featured image on your ad. This is often the exterior of the home which accentuates the curb appeal, or the kitchen, living or dining area. Go for the “wow factor.” Make people want to click on your ad to see more. Let renters know when the property is ready for move-in, the features the house offers, amenities, nearby entertainment, grocery stores, schools, and major roadways for commuting to and from work. Inform prospective tenants looking at your ad of additional costs for utilities and income requirements. Make your advertisement so attractive, people have to see it in person.

If you are like most landlords and want to keep your occupancy rate high while your vacancy rate stays low, call SAC-METRO today to learn more about how we do turnovers in record time.

How Property Management Companies in Sacramento Maintain Cash Flow

You have heard the phrase, “money makes the world go round.” In essence, money does solve a lot of problems, including a lot of problems in the property management industry. If only it were as easy as receiving a rent check in the mail on time, each month, then depositing it straight in the bank. The reality of this painted picture is not reality at all, unfortunately. Rent collection for property management companies in Sacramento is much more complex. RPM SAC-METRO has over 35 years of experience in rent collection, and welcomes you to take a crash course from the pros and discover how SAC-METRO ensures its clients maintain a steady cash flow of rent.

Rigorous Tenant Screening Process

Keeping the rent checks coming in each month starts at the beginning of the leasing process with the search for tenants. Establish your asking rent price, remember to start on the higher side of the spectrum, and determine what your income requirement will be for prospective tenants. A common rent-to-monthly income ratio is often somewhere between 2.4 and 3 times the monthly rent amount. If you are asking $3,000 for rent each month and want a 1:3 ratio, you would require a monthly gross household income of no less than $9,000. Sacramento property management companies let their income ratios be known up front to prospects to help weed out those who would not financially qualify. By doing this, landlords do not waste time showing properties to those who could not afford to live there.

Once you have determined your income qualifications and have an interested applicant, SAC-METRO runs background, criminal and credit checks. Credit checks are crucial to making certain you have a reliable tenant who pays their bills on time and in full. If you have a tenant who applies and all things look good except for their credit check, do not settle. Hold out for a more qualified tenant. You will be glad you waited for the right tenant. Hold each applicant to same standard as the other. This will prevent a discrimination lawsuit.

Require that tenants submit reliable income proof at the time they turn in their applications. The two most recent pay stubs, three most recent years of tax return documents, or six months of bank statements should suffice. You can and should verify employment by calling the human resources representative or manager listed on the application.

Property Management Companies in Sacramento Communicate Clearly

The lease signing process is an ideal time for landlords to set crystal clear expectations with their tenants regarding when rent is due, the amount of rent, how it should be paid or delivered, and what happens if they fail to pay. Too often property managers hear the phrase, “I didn’t know,” when referring to rent collection rules. Communicating rent rules keeps steady cash flow for landlords so they can continue to pay the mortgage, cover maintenance costs, and make a return on their investment. At SAC-METRO, on time rent payments are rewarded. Tenants who pay rent on time and in full each month receive benefits like coupons and discounts to local grocery stores, shopping and dining. If rent is not paid, document and follow through with proper legal notices. Consult your lawyer before moving forward with an eviction process. Sacramento property management companies must treat each tenant equally and will respect whether the tenant pays rent or not.

Automating Rent Collection in the Digital Age

We live in a time when the majority of people are attached to their screens. A Nielsen Company audience report found that the average American spends more than ten hours a day in front of a screen. This includes computers, television, smart phones, video games, radios, and tablets. Why not capitalize on this? Property management companies in Sacramento know that residents are more likely to pay their rent on time, when it is convenient for them. That’s why SAC-METRO created an automated rent collection process that allows residents to pay online, so it is at their convenience. When a payment is not received by SAC-METRO, there is an automated collections process. This automated system follows the rules set forth in the lease agreement pertaining to rent and follows all legal guidelines for the collection process. Having an automatic process helps eliminate tension between management and tenants. If the tenant still fails to pay rent, SAC-METRO consults with legal counsel before moving forward with an eviction to ensure all is done properly. SAC-METRO even offers an eviction protection program for clients. For a small fee, clients are protected from eviction costs, if one occurs. Though it rarely does due to SAC-METRO’s  rigorous screening process.

Sacramento property management is a tough business to navigate. Especially when rent collection is so crucial to the success of the business. Let the professionals at SAC-METRO handle the hassle of rent collections for you. With more than 35 years of trusted experience, you are sure to get your rent on time and deposited in full into your bank account each month. Call the experts at SAC-METRO today to get started.

Folsom Property Management Team Gives Advice for Tenants

Whether you are a first time tenant or have been renting for years, property management companies in Folsom know that the relationship between landlords and tenants are imperative to having a positive experience in the rental industry. Many factors contribute to a positive experience as a renter or landlord. RPM SAC-METRO has compiled an experienced list of things that tenants can do to maintain a positive relationship with management while they rent.

    1. Pay On Time: Rent collection happens every month and is a tedious task for landlords who manage multiple properties. The last thing property managers want to do is post a 3 Day Notice to Pay Rent or Quit on every door. When you sign your lease agreement with a Folsom property management company, clarify the day each month that rent is due. Mark it on your calendar, set a reminder on your phone, or set up automatic rent payments to make sure you do not forget to pay rent. This saves renters money in the long run because if you fail to pay rent on time, the majority of landlords charge late fees for rent payments. Some charge a flat rate while others charge by the day.
    2. Follow the Rules: Use your lease agreement as an outline to know what your property management company expects of you. Rules vary from landlord to landlord, so read your lease agreement at the time of move in. Lease agreement rules are not only there to protect the landlord, but residents as well. Many property management companies in Folsom have Quiet Hours that state residents must turn down their noise levels from nine o’clock at night until nine o’clock the following morning. While this may seems inconvenient to you if you plan to host a gathering, remember that next time when your neighbor chooses to throw a wild party, you will be rewarded with peace and quiet starting at nine o’clock that evening because of the Quiet Hours which are stated in your lease agreement. Failure to comply with lease agreement rules may result in a warning from management. If you continue to disregard the rules, your landlord may not renew your lease, or worse, have a valid reason to evict you.
    3. Communicate with your Folsom property manager: In every relationship, whether it is professional, friends, or romantic, communication is key to helping any relationship succeed. If you have a maintenance request, call your property manager to relay the information and how soon the request needs to be addressed. A thorough and concerned property manager should send a technician within 24 hours for minor maintenance, and immediately for a maintenance emergency such as a flood or fire. Living in a rental property can be difficult when you would like to decorate the house to make it your own. If there is a wall that you want to paint or pictures you want to hang, refer to your lease agreement for appropriate rules or call your property management team in Folsom to get their written permission before you proceed.
    4. Show Respect for Your Home: Consider this: if you owned the home yourself, would you do it? Too often tenants treat rental properties with disrespect simply because they do not own the home. They allow the landscape to take a turn for the worse and become overgrown with weeds, they allow their children to draw on the walls with markers, they fail to report a pest control infestation or a slow leaking pipe causing water damage to the flooring and sheetrock. All of these actions, or failure to take action, cause damage to the property creating lasting and costly problems. Show respect for your rental and your landlord or Folsom property management team will show even greater respect and gratitude for you. Keep in mind, many rental homes were once owner occupied and carry a sentimental value to those homeowners.

Folsom Property Management is an Investment and a Game

Just like learning how to play a new board game with friends on Sunday night, learning how to be a good tenant is like playing a game. Learn the rules by reading and understanding the lease agreement. Play by the rules and work together with your team, the property manager, and everybody wins and has fun. Landlords are typically renting out their house as an investment. They are hoping and planning on making income off of renting it out. When tenants fail to report maintenance requests or cause damage to the property on purpose, it hurts the bottom line of the landlord and often results in the tenant paying for the damages. Care for your rental in order to save yourself money. Good tenants are rewarded. Call your property management Folsom team, SAC-METRO, today to see how you can get into one of its rental houses.

Rent Out Your House Instead of Selling it in Slow Housing Market

You’ve heard all year, “it’s a seller’s market” and may have considered putting your house on the market. If you have not taken action yet to sell, don’t. New talk from Redfin CEO, Glenn Kelman, states that the market has seen a “significant slowdown” in recent weeks and while second quarter earnings came in as expected, Redfin’s third quarter forecast came in under what Wall Street projected. Talking specifically about the West Coast, including areas serviced by Elk Grove property management team, RPM SAC-METRO, like Seattle, Portland, and San Jose, Kelman states, “June sales were down in these markets by double-digits while inventory was up also by double-digits.” He states that new reports are now coming in showing that the East Coast is following the trend in places like Boston, Washington, D.C., Virginia, and areas of Chicago.

Why is the Seller’s Market Transitioning?

Many factors go into making the success of a seller’s market. Some real estate experts suggest that the recent slowdown in housing sales can be attributed to less new construction of homes and a short supply of existing homes for sale, which directly push housing prices so high, they become unaffordable to would-be buyers due to bidding wars. New taxes on imported lumber are also making the construction of new housing more expensive. Another direction to place the blame is on The Federal Reserve. With a flourishing economy, it intends to continue to raise interest rates, making a mortgage more expensive. Government-sponsored enterprise, Freddie Mac, expects the housing market to stay slow through the rest of 2018.

What Can Homeowners Do if They Don’t Sell?

Having your home listed for sale and not receiving offers or receiving low-ball offers, can be disheartening. Elk Grove property management company, SAC-METRO, does not want you to get discouraged if you need to relocate and are unable to sell. Renting out your home is a wise decision when the selling market takes a turn for the worse. As home prices rise, people are more likely to rent than buy. This turns the odds in your favor. Before you choose to rent out your home, may we suggest you consider the following:

  • Rent Amount: Do your market research to determine the asking rent you can achieve. Pull comparison rental properties in the immediate area to determine your rental price. In a bad economy, you may only be able to cover the mortgage. In a good economy, you will likely cash flow, especially in a city like Elk Grove. Property management experts warn against listing your rental house for too low. If you do this, you run the risk of attracting less qualified tenants. Be realistic with your asking rent.
  • Finding and Qualifying Tenants: Advertise your property across multiple outlets including print ads, websites, and word-of-mouth. Ask prospective tenants to fill out and submit an Application to Rent after they have walked through your property. Require an applicant’s two most recent pay stubs to verify their employment. If they do not receive pay stubs, six month of bank statements or two previous years of tax return documents would be sufficient. Verify the applicant’s employment and rental history. It is standard for property management companies in Elk Grove to ask for a deposit and rental application fee when an applicant returns the above mentioned documents. Check credit scores and conduct criminal background checks to ensure you have a reliable renter who is likely to pay rent in full and on time each month.
  • Signing a Lease: Require your tenants to sign a lease agreement at the time of move in. Ensure that your lease clearly explains each party’s obligations and responsibilities. SAC-METRO recommends that you contact a local lawyer to assist you in drafting a lease agreement to make sure it complies with all Fair Housing, rental, local, and insurance laws. Clearly communicate your expectations with tenants at the time the lease is signed. Conduct routine property inspections to make certain your tenants are adhering to all lease agreement rules.
  • Insurance Changes: Renting out your home with property management in Elk Grove is a great way to earn passive income. Before a tenant moves in to your property, change your homeowners insurance policy to a rental home insurance policy. Your original homeowners policy covers the structure of your house, the belongings inside of it, and any damage done to the property. A rental home insurance policy covers the structure of your home, legal fees, medical expenses and loss of rental income if repairs are needed.

Hire the Top Elk Grove Property Management Company to Work for You

With more than 35 years of experience in the rental property management industry, you can feel confident knowing your house is in good hands. SAC-METRO handles everything for you including advertising, showing your home, qualifying tenants, lease signings, move ins, rent collection, regular property inspections, move outs, maintenance, and repairs to the property. If you are needing to get out of your home, but cannot seem to get a fair asking price for your it, give SAC-METRO a call today.

Why Studies are Showing People Renting Instead of Buying

It may seem surprising, but multiple research studies conducted by Zillow and NYU show that people are choosing to rent instead of buy houses in major cities across America. Whether they choose to rent or are forced to rent due to affordability, the research results tell the facts. The facts that allow real estate investors like you to make more money. The stigma of renting has adapted to a positive light as renters find they can get more space for their money than with buying in a market with pre-recession prices. If you are looking to get into the rental property management Sacramento scene, there is a lot of money to be made off renters.

Major Cities that Saw Increases in Renters

A study conducted by Zillow researchers found that the amount of renters versus homeowners in America from 2006 to 2016 increased overall by 5 percent. Of the top 50 urban areas in America, 29 of them were made up of a majority of renters. That is more than 50 percent. Below is a list of the largest metro areas in the United States and the percentage of renters in 2016 in the urban area, as well as the increased percentage of renters between 2006 to 2016:

  • Albuquerque, New Mexico – Renter Rate: 39.6 percent, increase of 0.9 percent
  • San Francisco, California – Renter Rate: 62.1 percent, increase of 1.4 percent
  • Austin, Texas – Renter Rate: 55.1 percent, increase of 2.4 percent
  • New York City, New York – Renter Rate: 68.0 percent, increase of 2.4 percent
  • Omaha, Nebraska – Renter Rate: 43.4 percent, increase of 2.4 percent
  • Arlington, Texas – Renter Rate: 44.5 percent, increase fo 2.6 percent
  • Oklahoma City, Oklahoma – Renter Rate: 40.8 percent, increase of 2.9 percent
  • Fresno, California – Renter Rate: 53.5 percent, increase of 3.3 percent
  • Houston, Texas – Renter Rate: 56.9 percent, increase of 3.3 percent
  • El Paso, Texas – Renter Rate: 42.1 percent, increase of 3.4 percent
  • Fort Worth, Texas – Renter Rate: 42.9 percent, increase of 3.4 percent
  • Boston, Massachusetts – Renter Rate: 65 percent, increase of 3.6 percent
  • Los Angeles, California – Renter Rate: 64.1 percent, increase of 4.1 percent
  • New Orleans, Louisiana – Renter Rate: 53.7 percent, increase of 4.4 percent
  • Raleigh, North Carolina – Renter Rate: 50.9 percent, increase fo 4.4 percent
  • Tucson, Arizona – Renter Rate: 49.5 percent, increase of 4.4 percent
  • Sacramento, California – Renter Rate: 52.4 percent, increase of 4.5 percent
  • San Diego, California – Renter Rate: 54.3 percent, increase of 4.8 percent
  • San Jose, California – Renter Rate: 43.1 percent, increase of 4.8 percent
  • Baltimore, Maryland – Renter Rate: 54.3 percent, increase of 4.9 percent
  • Portland, Oregon – Renter Rate: 48.0 percent, increase of 5.1 percent
  • Tulsa, Oklahoma – Renter Rate: 50.7 percent, increase of 5.3 percent
  • Oakland, California – Renter Rate: 61.7 percent, increase of 5.4 percent
  • Chicago, Illinois – Renter Rate: 56.3 percent, increase of 5.6 percent
  • Denver, Colorado – Renter Rate: 50.0 percent, increase of 5.6 percent
  • Long Beach, California – Renter Rate: 62.3 percent, increase of 5.7 percent
  • Seattle, Washington – Renter Rate: 53.9 percent, increase of 5.8 percent
  • Dallas, Texas – Renter Rate: 59.2 percent, increase of 5.9 percent
  • Baton Rouge, Louisiana – Renter Rate: 53.2 percent, increase of 6.0 percent
  • Miami, Florida – Renter Rate: 69.9 percent, increase of 6.1 percent
  • Philadelphia, Pennsylvania – Renter Rate: 47.9 percent, increase of 6.1 percent
  • Jacksonville, Florida – Renter Rate: 43.4 percent, increase of 6.4 percent
  • Kansas City, Missouri – Renter Rate: 47.0 percent, increase of 6.4 percent
  • Columbus, Ohio – Renter Rate: 56.0 percent, increase of 6.5 percent
  • Washington, D.C. – Renter Rate: 60.8 percent, increase of 6.5 percent
  • Nashville, Tennessee – Renter Rate: 47 percent, increase fo 6.7 percent
  • Colorado Springs, Colorado – Renter Rate: 42.5 percent, increase of 6.9 percent
  • Indianapolis, Indiana – Renter Rate: 47.6 percent, increase of 7.0 percent
  • Milwaukee, Wisconsin – Renter Rate: 59.2 percent, increase of 7.0 percent
  • San Antonio, Texas – Renter Rate: 46.4 percent, increase of 7.2 percent
  • Minneapolis, Minnesota – Renter Rate: 53.3 percent, increase of 7.4 percent
  • Virginia Beach, Virginia – Renter Rate: 37.8 percent, increase of 7.4 percent
  • Phoenix, Arizona – Renter Rate: 47 percent, increase of 7.5 percent
  • Cleveland, Ohio – Renter Rate: 58.2 percent, increase of 7.7 percent
  • Charlotte, North Carolina – Renter Rate: 47.8 percent, increase of 8.2 percent
  • Atlanta, Georgia – Renter Rate: 58.7 percent, increase of 8.3 percent
  • Mesa, Arizona – Renter Rate: 40.7 percent, increase of 8.5 percent
  • Honolulu, Hawaii – Renter Rate: 58.3 percent, increase of 9 percent
  • Las Vegas, Nevada – Renter Rate: 47.3 percent, increase of 9 percent
  • Memphis, Tennessee – Renter Rate: 56.1 percent, increase of 11 percent

While the above list is mind-boggling at the percentage of people renting in major cities in 2016, it goes to show that housing prices are too high for people to afford to buy. They are choosing a lease over a loan. Rental property management in Sacramento proves to be an ideal investment and business venture with more than half of the residents identified as renters. Over a ten year period from 2006 to 2016, it saw a 4.5 percent increase in renters. Experts predict this number to increase as home prices are continuing to climb while inventory stays low.

Cities with the Most Shocking Numbers in the Rental Market

In the 2016 research study mentioned above by Zillow, the cities with the most shocking percentages of renters include San Francisco, New York City, Boston, Los Angeles, Oakland, Long Beach, Miami, and Washington, D.C., all coming in at over 60 percent. Notice that 50 percent of these aforementioned cities are located in California, where the rental market is strong. Memphis, Tennessee takes the cake with the highest percentage increase of renters from 2006 to 2016 with an 11 percent increase. The runner-ups were Las Vegas and Honolulu with a 9 percent increase.

Why are Housing Prices So High?

Sacramento rental property management companies have studied the reasons why housing prices are so high, making it unaffordable for even the first-time home buyer looking at a starter home. A Housing Outlook released by Forbes.com noted that a senior economist with Zillow ties the increased housing prices to a “tightened inventory, rise in prices, mortgage rates barely budging, and while new construction picked up at the end of 2017, it wasn’t at the starter price points where it was needed.” Economists also note that home prices are rising more quickly than wages, salaries, and inflation, tilting the more desired option for housing towards the rental market instead of home-ownership.

Sacramento Rental Property Management Going Strong

As the majority of residents in Sacramento continue to rent (at a 52.4 percent rate), real estate investors can feel confident in their investment and know that their financial portfolio is strong. While housing prices are at a high, there is still money to be made by purchasing a rental property. The demand for rentals is high enough in the area that landlords can still find high quality tenants. RPM SAC-METRO is the expert rental property management company in Sacramento and helps landlords avoid the headache of managing a real estate portfolio. Sit back and relax while SAC-METRO takes on the management side. Call us today.

Investing: Why Choose Single Family Homes Over Multi-Family Housing

You made the wise decision to invest in real estate, a portfolio that will leave your financial goals limitless. If you have already done your research, you have decided which type of property to purchase. If you are at the beginning stages of deciding to invest, let the experts of the top Sacramento property management company, RPM SAC-METRO offer their experience and research.

Why Single Family Over Multi Family?

Each has its pros and cons, but the answer is simple when it comes to making money. Single family homes make more rent money than an a single apartment or condo. You have a greater rental price markup for single family homes when you choose it as an investment over an apartment or condo. However, the tables turn when purchasing a duplex, triplex, or fourplex. When looking at vacancy rates, single family homes have higher occupancy rates and less turnover than multi family housing. This is generally due to the fact that the target audience for single family homes are families, with a few children. These children are enrolled in local schools, which entice the families to put down roots for longer periods of time than those who rent smaller spaces, like apartments, which have the flexibility to be more transient. Mortgage lenders see single family homes as lower risk investments than apartments. This is due to the fact that if the economy takes a turn for the worse, single family homes hold their value better than condos and apartments. Lenders accept lower down payments and will give lower interest rates to owners of a single family home over a multi family complex.

What Do Renters Look For In a Rental?

Sacramento property management companies know it is not rocket science when it comes to guessing what potential renters look for in a house. Aside from “location, location, location,” prospective tenants searching for single family homes typically want three bedrooms and two to three bathrooms. These clients usually have a couple children and desire a fenced backyard, close proximity to good schools, and a relatively quick commute to work. Many of the single family home renters are millennials which range in age from twenty-nine to thirty-six, which are in childbearing years, leading them to seek homes with multiple bedrooms. Millennials like modern, open floor plans, so if you are searching for an older home that does not offer an open floor plan, consider searching for a newer home if your budget allows, or find an older home that either already offers an open floor plan, or one that can be altered into an open concept for a relatively affordable price. Do your research on the schools in the neighborhood you are looking to buy. Schools with good reputations can easily sway a renter in the direction of your investment property.

How Sacramento Property Management Companies Capitalize on Technology

Single family home renters are made up of mostly millenials who, as property management companies know, are glued to their technology devices. According to a National Multifamily Housing Council 2017 study, 43 percent of residents who live is rental homes are in single family homes, while 36 percent reside in communities that offer five or more units for rent, meaning large apartment complexes. SAC-METRO knows how to reach the target audience in the 43 percent. The quickest and easiest way to reach prospective tenants is to advertise your single family home rental online, across multiple websites. Some of these include Zillow, Trulia, Hotpads, Craiglist, Facebook, and local classifieds within your community. The more platforms you advertise with, the more quickly you will fill your vacancy with high quality tenants. Some Sacramento property management companies are even using technology to their advantage by taking it one step further and utilizing smart entry, allowing prospects to “show themselves in.” Using smart access technology allows management companies to let vendors and technicians into the property during the turnover process to make repairs and updates to the property.

Is There Room for Growth?

The United States Unemployment Rate is holding steady at a 49 year low. As more Americans are employed and their incomes rise, the more house they can afford to rent. The U.S. economy on a whole is healthy and job wages are continuing to increase. Sacramento property management companies and investors alike see that mortgage lenders have tightened the parameters on borrowers, steering those in search of a home toward renting rather than purchasing a home. Housing prices are and have been highly inflated during the 2017 and 2018 calendar years and housing experts do not expect housing prices to drop until at least 2020. This means prospective renters of single family homes still need a place to live, but cannot afford to buy, yet. Real estate investors should capitalize on the rental market while they still can.

Invest with a Single Family Home Purchase and Hire SAC-METRO

If you are interested in growing your financial portfolio, investing in a single family rental home may be the right choice for you. The leader of Sacramento property management companies, SAC-METRO, has your back from the beginning to the end. SAC-METRO has over 35 years of experience in everything from advertising, to qualifying tenants, to managing the property, to the turnover process, to rent collection, and much more. It is a one-stop-shop for successful property investors. Call us today.

Why Rent Out Your House with Property Management Instead of Selling

Let’s say you’ve been a homeowner for 15 years, raised children in your home, held down a good and steady job in the community, made memories to last a lifetime, and cared meticulously for your home over the years. As time has passed, you’ve either outgrown the home as you have welcomed new babies or are ready to downsize as your children have moved out and grown up. Maybe after all those long years of hard work, it’s time to retire in a comfortable climate that promotes the desired lifestyle of laying by the pool, golfing, shopping, and visiting grandchildren. Or perhaps you are ready to upgrade your starter home. Whatever your circumstances, Sacramento property management company, RPM SAC-METRO, urges homeowners to carefully consider the decision of renting out your home versus selling.

Principal, Interest, Down Payments, and Closing Costs

During the first part of a 30 year mortgage, most of the money in your monthly payment goes to pay down the interest. Very few dollars go towards the principal of the loan amount. Of course this is dependent upon the length of the term, your interest rate, and down payment. Don’t let all those years of paid interest go down the drain. You made the monthly mortgage payments, now let someone else make them for you until the house is paid off.

Remember that large lump-sum of money you transferred from your bank account all those years ago the day you closed on the house? Down payments and closing costs account for a big amount of the money you spent on your home. Closing costs typically range between five and ten thousand dollars, which have nothing to do with the equity you gain your home. Selling your home, when you don’t need the cash to purchase another property, would be unwise.

Building Wealth and Equity Through Tenants

Sacramento property management companies know that purchasing an owner occupied property and living in that property for a few years works in your benefit if you plan to build wealth with real estate investments. Interest rates for owner occupied homes are directly affected by credit score, the type of investment property, and your down payment. Let’s pretend your interest rate would be 4.5 percent for an owner occupied residence. However, if you choose to buy a house with the immediate intent of renting it out, you could plan on an interest rate closer to 5.0 – 5.25 percent for a single family residence. This proves the benefit of property management in Sacramento, CA, when choosing to rent out your once owner-occupied home, and transition it into a tenant-occupied home. Lower interest rates.

Few things are as wonderful as having someone paying for equity in a house for you. As your tenant makes the required monthly payment, you are getting further along in your quest to build wealth in the real estate market. Put simply, your tenants are buying a house for you. If you eventually choose to sell the home, you get all the equity back, not the renters. Homeowners who transition their homes into investment properties must ensure the rent amount covers the all home expenses, as well as protects you during vacancy times. If it does not, you may reconsider your option to rent.

Some Things to Consider in Sacramento Property Management

Is it Profitable? If only it were as easy as collecting an on-time rent check once a month, renting out your house would be a piece of cake. Unfortunately, it’s not that easy. That’s why property management companies exist. They do the dirty work for you, sometimes quite literally. Before choosing to rent your your home, it is crucial to do market research to determine the rent rate you could ask for your property. Your asking rent rate must be sufficient to cover the principal and interest (mortgage), HOA fees, taxes and insurance, maintenance, advertising, vacancy, and Sacramento property management fees. If your asking rent rate covers these expenses and more, you are looking at a positive cash flow rental property – the best of all worlds.

How’s the Market? Just like home prices, the rent market has been on the rise in recent years. Some housing markets seems almost fail-proof with rising numbers – the Bay Area and Sacramento markets being some of them. Some homeowners feel the need to make big repairs to their home before selling in order to get top dollar, but when you choose to rent out your home, time is on your side. If you are short on funds right now, you might have the money for the repairs in six or twelve months. Renting out your home for now would allow you time to save for those repairs. And who knows, you might like renting out your house so much, you keep the property as a rental forever.

Are you coming back? In the fast-paced world we live in, we sometimes feel the need to make life altering decisions immediately. Decisions like, “should I sell or rent my home?” This decision should not be a hasty one. However, many homeowners relocate for jobs or retirement, and do not know where the next turn in the road will take them. They like the security of knowing they have a “home” to go back to, if things do not work out elsewhere. Selling and purchasing another home incurs costs. You save money and gain more equity in your home when you choose to rent it out with companies who specialize in property management in Sacramento, CA, like SAC-METRO.

Let someone else build your wealth through real estate investments by choosing to rent out your home with our expert team at SAC-METRO. Call us today.

Why You Shouldn’t DIY in Sacramento Rental Property Management

The DIY fad has been on the rise since the birth of the internet, finding ways to save yourself money by doing-it-yourself. While projects can be fun and get your creative juices flowing, you don’t want a property management project. Take it from real estate investors who have learned the hard way, or should we say, the “do-it-yourself way.” RPM SAC-METRO has found that DIY in property management most often leads to stress, loss of sleep, endless internet research on how to fix things when they break, and time-intensive research on how to adhere to the housing laws to avoid lawsuits.

Time is Money

Time is your most valuable asset. Think about it—you can always get more money, but you cannot get more time. Time is limited. Time is what gets stolen away from you when you choose to be a DIY landlord. It sounds harsh, but it is reality. Sacramento rental property management does not take vacations or holidays. It comes knocking on your door at 3:00 AM when you have to get up for work at 6:00 AM during a weekday. Or on the weekend when it’s your only day to sleep in. It calls your cell phone on Christmas morning while your family is wrapped up in the magic and tearing open presents. It comes emailing even when you are sitting on the beaches of Bora Bora with your sweetheart soaking up the warm sun and smell of coconut sunscreen.

Everything from inspecting the property on a tenant move-out to scheduling maintenance to paying vendors and ensuring they completed their work to advertising of the property, conducting property showings, proper tenant screening, lease agreement signings, collection of rent payments, chasing down rent payments when a tenant doesn’t pay, maintenance, and handling of the finances all takes time and energy. In addition, tenants want a landlord who is available. Allowing yourself to be available at all times helps with tenant retention and encourages renters to take better care of your property. Do you have time for all of this? If so, be our guest and DIY in the property management industry. If you’re like most people, you may reconsider and hire a Sacramento rental property management team, like SAC-METRO.

Be Friendly, But Not Friends

Finding a balance between good cop and bad cop can be difficult. You want your tenants to like you, but you also need them to respect you and the lease agreement rules. That’s why it is wise to be friendly, but not friends, with your tenants. Sometimes this can be a thin line in rental property management. Sacramento investors should think of their rental property as a business, and not as a personal asset. When you have the business mindset, you can easily stick to your lease agreement rules. For example, what will you do when your tenant comes to you and says they lost their job and their car broke down last week, leaving them with no money left to pay rent. While the sympathetic personal side of you will want to say, “I’m sorry to hear this. Please pay when you get your next paycheck,” the business side of you will say, two weeks down the road, “Where is that rent check? I never should have bent the rules like this.” Always follow the lease agreement rules and treat all tenants the same way. If you do not have the strength or firmness to be strict and follow your lease agreement rules, it would be wise to find a management team. Bending the rules for one tenant, but not the other, can lead to discrimination lawsuits.

Follow Sacramento Rental Property Management Laws

Failing to follow the housing laws, can lead to endless hours of stress, loss of money, and time in court. A recent lawsuit filed by The U.S. Department of Urban and Housing Development (HUD) against Facebook claims that the social media website which also allows users to advertise items for sale, including rental properties, was participating in housing discrimination. In the press release, HUD claims that rental property owners were able to control and select which types of Facebook users could see their ads, discriminating against race, color, religion, sex, familial status, national origin, disability, and zip code, all of which are protected classes under the Fair Housing Act.

Failure to treat all persons equally is a quick way to land yourself in court in rental property management. Sacramento rental properties are often patrolled by “secret shoppers.” These “secret shoppers” pretend to be interested in your property, but they are undercover agents for companies looking to file discrimination lawsuits against property owners and management companies who may be discriminating against protected classes of people. This is why it is so important to treat everyone equally when showing properties, accepting applications, and during tenancy. With so many housing laws, it is difficult to stay educated on all of them. SAC-METRO participates in regular education courses to stay informed on all local, state, and federal laws.

Save Yourself a Headache, Hire SAC-METRO

SAC-METRO’s management fees are so reasonable, they practically pay for themself. Our vacancy rates are lower than our competitors and our tenant retention is exemplary. We save our property owners time, money, stress, and the risk of lawsuits. Keep your rental property safe. Call the top Sacramento rental property management team, SAC-METRO today to receive a quote for service.