It is no secret that investing in real estate can make you rich. Look at moguls like Carl Berg, Sam Zell, and Stephen Ross, who have net worths pouring over the billion dollar mark. While these investors are few and far between, investing in real estate does have the power to unleash a generous amount of return on investment. The Sacramento Bee News reports that the City of Sacramento ranked sixth place on the top ten list of the largest cities, based on population, in California. Surrounding communities like Roseville, CA, ranked sixth place for the top ten cities under 300,000 with largest numeric change, and Rocklin, CA, ranked fourth place in the top ten fastest growing cities in California. Statistics like the above mentioned suggest that Sacramento property management has the potential to be a goldmine. And it is.
Rent Cafe reports that the average rental price in Sacramento is $1,404 with an average apartment size of 823 square feet. The year over year change is four percent. Sacramento has an increasing amount of renter occupied households. Rent Cafe also reports that 41 percent of the households in Sacramento are renter occupied, while 58 percent are owner occupied. That means that nearly half of all households in Sacramento are renters. This means that finding a qualified renter for your home should be plentiful. The most affordable neighborhoods for renters include Airport, Brentwood, and Carleton, where the average rental price is $906 per month. The most expensive neighborhoods in the Sacramento area are Tahoe Park South, Tallac Village, and West Tahoe Park, where the average rental price is $2,520 per month. This information is important to note because rental prices affect home sale prices. And vice versa. If you have not already purchased a rental property in Sacramento, look into these neighborhoods based upon your spending budget. Sacramento property management company, Real Property Management Select has also noticed that economic recovery has impacted the housing market. Sacramento is one of the last counties in California to reach pre-recession job recovery. However, job growth in Sacramento is expected to meet the increasing population growth in 2019. The FT Journal reports that Sacramento has been increasing in population by one percent each year since 2008. All of these newcomers need a place to lie down each night, and that is where investors make their fortunes.
Tax Breaks for Rental Property Owners
There are many ways that property investors can put more money back into their pockets by taking advantage of simply tax breaks. Did you know that a real estate investor can write off any interest paid to the mortgage lender on the loan for the rental property? Sacramento property management teams and landlords can also write off interest paid on a credit card that was used for supplies or service on the property. The money spent on repairs, goods, or services, performed on the property are also able to be written off during the same tax year that they were paid. Personal property costing up to $2,000 that was purchased for the property including appliances, furniture, or gardening tools can be written off within one year. Traveling costs including flights and driving miles may be deducted as long as they were intended to inspect and repair the property. Mileage used to upgrade or make improvements cannot be deducted. For a more thorough list on tax deductions that you may qualify for as a Sacramento property management landlord, view Nolo.
How to Manage a Rental Property and Stay Out of Legal Trouble
The ins and out of rental property management can make anyone’s head spin at times. It takes education, practice, and experience to feel comfortable managing a rental property. The most important thing that investment property owners can do is to educate themselves on the federal, state, and local housing laws. This is where many landlords can make minor mistakes that can cost them the annual profit margin on their rental property. Fair housing laws, anti-discrimination, and habitability laws, ensure that all prospective applicants and tenants are treated equally and not discriminated against based on age, sex, religion, national origin, familial status, disabilities, and that their living conditions are safe and habitable. In addition to staying updated and educated on housing laws, the Sacramento property management team at RPM Select strives to treat everyone with the Golden Rule in mind. Treat others the way you would want to be treated.
Why You Need Sacramento Property Management Company, RPM Select
Taking on the role of a landlord is a 24/7 job. Are you prepared to make yourself available everyday of the week and at every hour of the week? Let the professionals at RPM Select handle the daily stresses of Sacramento property management for you. We provide full leasing and property management services including leasing, advertising, move ins, move outs, lease agreement renewals, maintenance, maintenance emergencies, turnover, showings, and deposits. Contact us today.