Owning a rental property comes with risk. Being a do-it-yourself landlord isn’t as simple as collecting a rent check every month. Rental investing is a demanding, 24/7 job. To be successful, you need to understand the costs and complexities of managing rental properties. Sacramento investors make costly mistakes when they attempt to go about it alone without the proper knowledge and expectations.
When Partnering with Professional Property Management
Rental investments bring a better return with professional Sacramento property management services. At Real Property Management Select, we understand the rental industry and work hard to increase your bottom line. If you want to be a profitable landlord, you must know all the pros and cons of owning a rental home.
What Being a Landlord Requires
Being a landlord is as simple as receiving an in full and on time rent payment then seeing your bank account funds increase every month, right? Wrong. If only it were that easy. Being a rental investor can be an expensive journey if you do not know how to maintain and safeguard your property. What must you consider before becoming a landlord? Here are our top eight suggestions:
- Think About Time Constraints – Every aspect of Sacramento property management takes time, energy, and effort. You do not get to stop being a landlord on nights, weekends, or holidays. Those emergency maintenance calls can come at any time of the day or night. But maintenance is just the tip of the iceberg. The entire leasing process takes a considerable amount of time such as preparing your home to be rent-ready, advertising your rental, coordinating home showings, conducting tenant screenings, creating a lease contract, and more. A rental investment is a time investment.
- Understand All Laws and Regulations – Violation fines are hefty and legal pitfalls hurt your cash flow. Follow all levels of the laws – federal, state, and local. Specific laws and regulations apply to property owners. Be aware of collection and eviction laws, property inspection regulations, local city ordinances, state property code laws, and trust accounting laws when handling security deposits and rental payments.
- Create a Firm Lease Contract – Outline tenant responsibility versus landlord responsibility. This will eliminate disputes down the road. A well-written lease protects you as the homeowner. It is your chance to communicate your expectations and set firm-but-fair rent policies.
- Treat Tenants with Kindness – Your landlord/tenant relationship carries a direct financial impact on your investment business. Your tenants are more likely to better maintain your home when they see you care. On the other hand, tenants who feel wronged or are unhappy with your service will leave. View yourself not as just a homeowner, but a business owner. The bottom line is that tenant turnover costs you money. Your kindness increases your odds of seeing a steady profit.
- Complete a Rigorous Tenant Screening – Careless tenant screening is asking for trouble. Your financial stability hinges on placing qualified tenants. Verify tenant income and rental history. Conduct background and criminal checks. Require an application for every tenant over the age of 18. A thorough tenant screening sets you up for success.
- Keep Up on Maintenance – Do not skimp on maintenance. Be proactive. Respond to tenant needs. Address any safety or health issues. Reliable Sacramento property management services create satisfied tenants. Ignored maintenance requests produce unhappy tenants, leading to tenant turnover. Diligent maintenance pays off and is worth your time and money.
- Make a Budget – It is important to account for unexpected costs. Money flows both ways with a rental investment. You must save and account for the costs of home repairs, vacancy times, insurance costs, legal fees, and property taxes. If a simple home repair has you in a panic, you need to reconsider your cash flow management. Reality is that not everyone is cut out to be a DIY landlord.
- Remember Regular Home Inspections – Always conduct home inspections. It is the easiest way to know the status of your rental and protect yourself as a homeowner. Inspections are a time to catch maintenance problems before they escalate into expensive fixes. You can also look for signs indicating your tenants are not complying with the rules of their lease.
The Reality of Rental Investing
You must have a game plan before becoming a rental investor. If you want to be profitable, Sacramento property management requires an in-depth understanding of the rental industry. Being a landlord involves a lot of work no matter how ideal the tenants or how new the home. Before taking the plunge, consider:
- Time Constraints
- Laws and Regulations
- Lease Contracts
- Tenant Interactions
- Tenant Screening
- Maintenance Requests
- Costs and Budget
- Home Inspections
Benefits of Professional Sacramento Property Management Services
You can trust the Sacramento property management services of Real Property Management Select. Our team wants to see you succeed. We help you avoid costly mistakes and set realistic expectations for your rental business. Even the most inexperienced landlords can be profitable when partnering with Real Property Management Select. See what our experienced team can do for you. Put our hassle-free leasing cycle to the test. Give us a call today.