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 Select, 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 Select 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. Select 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.