The Biggest Myth in Sacramento Rental Property Management

You did so many things right to get to this point as a rental property owner. You saved for a down payment. You did your market research to find renter preferences and price-matched rates. Then you finally purchased and remodeled your property. Now, you are ready to put up that “For-Rent” sign so you can start accepting applications.

You worked hard – not just anyone can get here – but let’s pause for a moment to correct a mini-myth that may make a big difference to your profits over time. It probably shouldn’t be you putting up that sign.

Myth: Self-management saves time and money.

Fact: In retrospect, many seasoned investors consider self-management one of their biggest mistakes. Do-it-yourself (DIY) Sacramento rental property management is time-consuming, money-exhausting, and profit-depleting.
Let us explain.

Self-Management is Time-Consuming

You will need to:

  • Meet licensing and educational requirements
  • Stay current with laws, regulations, and codes
  • Comply with trust accounting rules
  • Market strategically
  • Avoid vacancies
  • Manage cash flow  
  • Perform scheduled property inspections
  • Coordinate routine, cost-effective maintenance
  • Find the best rates on parts and labor
  • Take phone calls from tenants at all hours of the day and night
  • Collect rent or initiate fines and penalties when it doesn’t arrive
  • Evict when necessary

These activities can consume enough hours each month to equal a part-time job. And if you have multiple properties, just add more time to your schedule for each property.

Self-Management is Money-Exhausting

Here’s the formula for Sacramento rental property management. Figure out how much your time is worth, then times that by the number of hours you think the activities listed above will take you each month. Start with a low-ball estimate of 20 hours per month. If your time is worth $45/hr., then your calculation makes your monthly time worth $900.

Compare that to the typical rate of most property management companies, Sacramento included. It ranges from 8-12% of your monthly rental property value. Hence, if your rent is $1,000/month, a 10% flat rate fee would be $100.

The numbers speak for themselves:

Self-ManagementManagement by Property Management Companies, Sacramento
$900+ variable$100 flat*
*Average fee based upon $1,000/month property value.

If your wallet could talk right now, what would it say? Probably, “Call Real Property Management Select!”

Increase Profits with Professional Sacramento Rental Property Management

Real Property Management Select can take of everything on your property management to-do list plus more. Our goal is to minimize your costs by staying so on top of property care, maintenance, marketing, and legal protection so that bigger problems that could wipe out your profits never even have a chance to surface.
Stick to the facts. Learn from other investors and make the best decision of your Sacramento rental property management career. Call Real Property Management Select to plan your success today.