Purchasing a rental property is a big decision and one that requires a lot of research and planning. Buying an investment property poses many options and each property type has a benefit depending on the buyer’s goal. Auburn property management team, RPM Select, manages multiple types of properties, all with a variety of returns. Each property has a specific goal, targeted clientele, advantages, and disadvantages. Let us help you learn how to purchase your first investment property and educate you on the best selling points for renters so you can get the maximum return on your investment.
Financials of Purchasing an Investment Property
Planning ahead of time to purchase an investment property is a must. It requires a large amount of capital to put a down payment on a secondary or rental property. Unlike purchasing an owner occupied house, which requires a minimum of three percent down, a rental property down payment is a minimum of twenty percent. This is due to the fact that mortgage insurance is not allowed on a rental property. If you are purchasing a house in Auburn for the median home selling price of $475,000 according to Realtor, the minimum required down payment would be $95,000. Most people do not have $95,000 lying around. They get it through saving and investing. Auburn property management teams suggest investors plan ahead and know the price range of what they can afford when buying a rental property. In addition to the down payment, investors must consider the cost to finance an investment property. Interest rates are higher on rental properties compared to primary residences. A high interest rate could eat away at profit. This is where an all-cash offer can come in handy. It is make or break that investors and their real estate agents accurately calculate the margins.
Rental Property Margins
- Determine a Rental Price: Conduct a market research analysis to determine an accurate rental rate. Look at similar properties that are currently listed for rent within a 5 mile radius to see the competition. Similar properties would be ones with the same number of bedrooms and bathrooms, square footage within a 500 range, comparable upgrades and amenities, and lot size. Price your property high, but competitively
- Maintenance Costs: A good rule of thumb that Auburn property management professionals recommend is for investment property owners to set aside one percent of the value of the property to account for maintenance each year. Keep in mind that new properties will likely have lower maintenance costs while older properties will have higher maintenance costs. There will be some months where no maintenance will be needed, while others may require a larger amount to cover repairs needed.
- Other Costs: Investors must factor in the cost for homeowner’s insurance, property taxes, homeowner’s association fees, and additional property fees like landscaping, snow removal, or pest control. Rental properties do not stay rented 100 percent of the time. It is wise to consider the vacancy rate of the area that you are looking to purchase a rental property. Best Places states that Auburn, CA, has a vacancy rate of only 2.1 percent.
Be realistic with financial estimates when purchasing a rental property. Error on the side of being conservative in your numbers. Doing so will increase your chances of buying a profitable investment.
Purchasing the Right Rental Property
Buying the right property for the right investors is crucial in Auburn property management. Single family rental homes generally attract long term tenants, but they also cost a lot more than a condo. A condo provides a more affordable investment, but with the condo may come more transient tenants and an association fees. For the sake of long term tenancy, choose a single family home for a rental. Families with children who are enrolled in the school systems are likely to put down roots and stay for a few years in the rental property. When they are ready to vacate, they will likely do so during summer, when the rental rates are higher than winter and there is a vast number of renters seeking new homes. Look for a rental property that has at least three bedrooms and two bathrooms, provides an open and functional floor plan, a garage, and a yard. Purchase a rental home in a neighborhood that has high ranking schools, close proximity to shopping and dining, quick and easy freeway access, and parks. Prior to determining a property, research neighborhoods that allow rental properties. Homeowners associations often have restrictions or do not allow for rentals.
How Auburn Property Management Pros Can Help You
Owning a rental property is a 24-hour job that does not sleep. Whether it is a maintenance emergency or the property is in the leasing phase, property management can often leave owners feeling a heavy burden and sense of overwhelment. RPM Select is here to lift that weight. Our professional leasing team can offer investment property owners preferred member pricing on maintenance, affordable management fees that practically pay for themselves through our faster leasing times, achieve maximum rent prices, and provides affordable and preventable maintenance. Stop feeling overwhelmed with your rental property and call us today.
Choosing to turn a once owner occupied home into a rental house can be difficult for many homeowners. Homeowners who have put days or months of sweat equity into their homes, meticulously cared for every square foot by regular cleanings, and keeping up with repairs can all feel like it is getting tossed out the window by transferring their home over to a renter. But the truth about rental properties is that not all renters are messy. In fact, if landlords and Folsom property management teams do their homework, it is likely to have a tenant who cares for your house the way that you did.
Tenant Screenings and Rental History
It starts at the beginning. Carefully screen prospective tenants. When an applicant turns in an Application to Rent, there should be a section on the form where they must list rental or living history. This gives potential landlords the opportunity to contact previous landlords and inquire as to the type of tenants your applicants were while living in a different house. Landlords should ask questions like the following:
- How much was the monthly rent?
- Was rent paid on time each month and in full?
- Were there any late payments?
- If so, how many?
- Was an Unlawful Detainer filed?
- Was the property kept neat and clean by the tenant?
This information will give potential landlords a good picture of their applicants to let them know if they are responsible tenants. Along with verifying rental history, always check credit report scores, verify employment, and paystubs. Folsom property management team, Real Property Management Select, knows that taking action to find out more about your tenants will help protect you as a landlord.
Enforce Lease Agreement Rules
All lease agreements should have a clause regarding cleanliness standards. Clearly explain and outline what is expected of the tenants. If landlords fail to have a cleanliness clause in the agreement, then they will not be able to take action to correct an untidy tenant. Cleanliness clauses often consist of items like keeping personal belongings inside the property and out of sight from neighbors, routine vacuuming and dusting, washing dishes daily, wiping down appliances, scrubbing toilets and showers, reporting pests, and much more. Conduct routine property inspections of the inside and outside of the property to see that tenants are following the lease agreement rules. If you find that your tenant is not in compliance with the cleanliness clause or any other part of the lease agreement, landlords should first document and take pictures of noncompliance. Folsom property management teams and private landlords should then alert the tenant of the problem or issue, clearly stating where the lease agreement explains the rules, and ask the tenant to please comply within 48 hours. Go back to the property to re-inspect to see if the tenants are now in compliance. Remember to always post an Entry Notice notifying tenants of the date and time frame that you will be entering the premises. If you find that they fail to adhere to the lease agreement, consult with legal counsel to see if you have a case for eviction.
Clearly State Move-Out Guidelines
When a tenant turns in a 30 Day Notice to Vacate, leasing professionals should acknowledge a tenant’s intent to vacate by posting a receipt that they received the Notice to Vacate, along with cleaning guidelines, and instructions on how to return the house keys. My Move provides instructions for tenants to write a 30 Day Notice to Vacate to give to a landlord. Folsom property management professionals at RPM Select ask tenants to carefully and thoroughly clean the house or apartment prior to moving out, if tenants want to recoup the security deposit that they originally put down on the property. Cleaning guidelines generally cover the following:
- Move Out: Remove all belongings from the property. Any items left behind will be discarded at the cost of the tenant.
- Wipe Down: Clean countertops and wipe out cupboards, refrigerator shelves, and pantry shelves, clearing them of all debris and stains.
- Appliances: Clean all appliances, including the oven, stove top, microwave, dishwasher, and refrigerator. Pull appliances out and sweep and clean debris from behind and under them.
- Replacements: Replace burnt out light bulbs, stove drip pans, and filters on HVAC units and the range hood.
- Flooring: Scrub all tile, hardwood, or laminate flooring. Professionally clean carpeted areas and give the receipt of cleaning to Folsom property management. Doing so will provide proof of carpet cleaning and it will prevent that amount from being deducted from the security deposit.
- Walls: Inspect all walls and baseboards. Patch and paint as needed. Many property management firms allow for normal wear and tear at no cost to the tenant.
- Window Coverings: Clean and dust window coverings and blinds. Replace broken or damaged blind slats.
- Bathrooms: Scrub toilets, bathroom vanities, showers, and tubs. Remove any residue of film or build up. Wipe out vanity drawers and cupboards.
How Folsom Property Management Team, RPM Select, Can Help You
At RPM Select, our professional leasing team handles tenant screening, routine property inspections, and move outs for you. Let us deal with the hassle of property management while you rake in the returns. Call us today.
Managing rental properties requires landlords to take on multiple roles. One of these roles include acting as a Safety Officer. Part of Elk Grove property management is providing a safe and secure living space for tenants. Stimmel Law Firm states that this includes all aspects of Habitability Laws, implied habitability laws, and taking measures to deter intruders. Unsafe rental properties are a liability to property owners and can bring about legal troubles if an injury or accident occurs. Follow along below to discover how you can keep your rental property safe and limit your liability.
Safety Checklist for Rental Properties
Real Property Management Select takes every effort to reinforce and inspect rental properties for safety. Twice a year, our Elk Grove property management team conducts routine property inspections. During these inspections, our experts look for safety hazards, repairs, needed maintenance, and general housekeeping. A rental property must provide a safe and secure home for tenants. Property managers can conduct inspections following these items on our checklist.
- Structural Elements: Inspect the exterior of the property. Look for loose roof shingles, stucco or siding that is cracked or breaking off of the exterior of the house, secure hand railings, deck and patio railings, look for sidewalks with large raises or cracks in the concrete. On the interior of the property, inspect the flooring to make sure there are no tripping hazards, walls should be smooth to the touch without bubbling or cracking paint or mildew growth, toilet seats must be securely fastened, as well as glass shower doors.
- Common Areas: Elk Grove property management oversees all types of properties including single family homes, large apartment complexes, duplexes, and condos. Landlords that manage large apartment complexes should check common walkways and common areas to be certain they are clear of debris, trash, and tenant belongings and storage. Single family homes also have common areas that consist of the front and back yard, stairways, and hallways. Inspect these areas and see that residents keep a tidy yard by pruning and trimming overgrown trees and shrubs, mowing the lawn, and double check the handrails to see that they are tightly fastened.
- Electric and Gas: Turn on and off systems that use electric and gas. This includes appliances, furnace and air conditioning units, flush toilets, turn on fans and ventilations systems, and test elevators at large apartment complexes. The Elk Grove property management team at SAC-METRO also suggests testing and replacing batteries on smoke and carbon monoxide detectors. Limit your liability as a landlord and inspect these detectors twice a year.
- Pests: Look for signs of animals droppings, points of entry in screens and screen vents, look inside kitchen cabinetry and behind kitchen appliances, in the bathrooms, and in the bedrooms for signs of pests including mice, cockroaches, bedbugs, or carpet beetles. These are some of the most common household pests that can cause a big infestation with expensive treatment if not caught early on. Lease agreements should state that residents must report any signs of pests and comply with treatment.
How to Deter Intruders
There are many ways to keep a property safe from criminal intruders. As a landlord, take the necessary steps below to ensure your tenant’s safety. Elk Grove property management professionals have been trained in the many signs that invite intruders. Keep your property safe by making your property a zero access point for burglars and robbers.
- Lights: A well-lit home or apartment complex provides multiple benefits to tenants. It allows them to see clearly at night and avoid trips and falls while on the property. It also deters intruders. Alarm New England Company states that 34 percent of burglars enter through the front door. Turn on the porch light and keep the exterior of the home well-lit during evening hours. It is more difficult for intruders to sneak through a door that has a bright light shining on it, than if they were camouflaged by darkness.
- Tree limbs: Cut, prune and trim any tree limbs that would allow a burglar to climb the limb and enter a second story window. Trimmed trees also neglect to provide the coverage that intruders look to hide behind, so they will not be detected by neighbors or people driving by the house. The Elk Grove property management SAC-METRO leasing staff wants to remind landlords that overgrown or unhealthy trees could also cause damage to the premises if they are uncared for and fall onto the house in the event of a storm.
- Fences: Secure a padlock on gates to prevent unwanted guests from wandering into your front or backyard. Do not install tall fences or fences that provide full coverage in the front yard. Once again, this provides a nice hiding place for intruders. If you must have a fence in the front yard, choose a short picket fence or one with gaps between the fence slats.
- Doors and windows: Test all door and window locks. If a lock does not work, take action immediately and make a repair. Failure to do so could present a liability to a landlord or Elk Grove property management teams. Look around the edges of the doors and see that the door shuts tightly, leaving no gap or draft. Repair weather stripping as needed.
How Elk Grove Property Management Can Protect Your Home
RPM Select’s professional leasing staff takes pride in the proper care of rental properties. Our thorough and rigorous inspections help to protect client’s homes from maintenance, repairs, and unwanted criminal intruders. Protect your home and call us today.
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.
Summer is winding down, the kids are back to school, and the crisp fresh air is about to return. The fall is a perfect time for property owners and tenants to conduct house maintenance on rental properties before the cold temperatures arrive and you hunker down for a long winter’s nap. No one wants to be doing house maintenance, especially outdoors, during a cold winter storm. Preparing for fall and winter now will save property owners and residents time and money in the future. Rancho Cordova property management experts at RPM SAC-METRO conduct semiannual property inspections to make sure that all properties are ready to handle the cooler weather and precipitation. If a house is not kept in good condition before a winter storm makes its grand entrance, property investors can expect to get hit with major maintenance costs and inconveniences to themselves and their tenants. It is important to remember that landlords are not solely responsible for the care and maintenance of rental properties. Tenants sign a lease agreement stating that they will also care for and maintain a good, clean property. Let us review the responsibilities of both parties.
It is the responsibility of landlords and management companies to clearly explain the lease agreement to the prospective tenants at the time of signing. Doing so protects property owners and Rancho Cordova property management companies from mix-ups and misunderstandings with lease compliance. Lease agreements should clearly outline the responsibilities of tenants such as the following:
- Safety Hazards: Tenants should check for anything that may cause accidents or harm to themselves or their guests. This includes loose handrails or flooring that is lifted or buckling. Loose handrails that are located in common areas of large apartment complexes are checked annually by the local fire department. If any railing is loose or jiggling, the department will submit a ticket to the landlord or management company for repair. Handrails at single family homes are not inspected by the fire department and should be inspected by the resident. Check for electrical hazards. Touch each outlet and make sure that it is not hot to the touch. Insert and remove plugs from each outlet and check that no sparks are visible when inserting or removing the plug. Rancho Cordova property management teams require that fire extinguishers are inspected each year to see that they are fully charged. Each fire extinguisher should be charged once a year. Check the tag on the extinguisher to see when it was last charged. If you do not have fire extinguishers located throughout the house, look at this article from Life Safety Service to learn where to store fire extinguishers. Check smoke and carbon monoxide detectors and see that the batteries are working and that the detectors are installed to the proper areas. Check water and gas shut off valves.
- Filters and Vents: Clean and replace the filters on HVAC units, the furnace, and the range hood above the stove. The filters on these appliances help them to operate at full capacity and ensure the health and prolong the life of the appliances and units. Take the time to pull out appliances and vacuum behind them. Rancho Cordova property management experts agree that residents will be surprised at how much dust, dirt, and crumbs accumulate underneath and behind appliances. Cleaning underneath and behind appliances will help eliminate fire hazards.
- Doors and Windows: Open, close, lock, and unlock all doors and windows. See that they shut and seal tightly to prevent cold drafts from the winter’s air. A tight seal will also keep water at bay, preventing water damage on the interior of the home. Windows and doors that lock properly are crucial to the safety of tenants. Property owners are liable if a lock does not operate correctly and if it causes harm to the tenants. Lubricate door hinges if they are squeaky or difficult to open and close. Check and replace weather stripping as needed. Caulk around the window edges so that they are completely sealed. Check the silicone seals around the edges of the bathtub as well. Rancho Cordova property management professionals recommend that tenants remove any silicone that is moldy or damaged and replace it with fresh silicone.
- Deep Cleaning: Carpets and rugs take a beating from year to year as some residents wear shoes indoors. Take the time to deep clean the carpets either with a rented machine or a truck mounted cleaning system. You will be surprised at the amount of dirt that carpet cleaning machines can suck out of the tiny fibers of carpet. Scrub the hardwood or tile flooring and wipe down baseboards. Clean drain traps and drains in the dishwasher. Check faucets for dripping. Grind ice cubes in the garbage disposal to clean the blades and grind up a couple of lemon slices in the disposal for a fresh clean scent.
- Tidy Up Outdoors: Rancho Cordova property management teams require that tenants care for the landscaping of the rented property. Walk around the front and backyard of the property and clean up any debris from trees or shrubs. Prune the trees and shrubs so that they are not touching the exterior of the property. Cut any tree branches that are hanging over the property, as they can cause damage to the roof if they break. Remove all hoses from the spigots and store them inside. This will prevent pipes from freezing during the winter.
If residents find any maintenance that needs to be completed, please report it to your Rancho Cordova property management team for service.
Property managers and landlords are responsible for making any repairs that are received through a maintenance request ticket. It is important that landlords and management companies also take the time to inspect properties.
- Roof: Look at the roof carefully and inspect each area to see that the shingles are correctly fastened. Look for any shingles that are lifting or missing.
- Attic: Climb into the attic space of the property and turn off the lights during the day. If you can see daylight through the roof in the attic, make the necessary repairs.
- Walls of the House: Inspect the interior and exterior walls of the house. Rancho Cordova property managers should look for any signs of water damage. On the exterior walls, this includes water stains or discoloration to the paint. On the interior walls, this includes bubbling paint, warping paint, rotted baseboards, or stains.
- Flooring: Check that all flooring is flat and is not lifting or buckling. Damaged flooring can cause a tripping hazard which is a liability to property owners. Looking for signs of water damage which include bubbling of the flooring, especially in the bathroom near and around the shower or tub enclosure, toilet, or bathroom vanity.
- Appliances: Test all appliances by turning them on and off to see that they operate properly and to its full capacity. If any appliance does not operate, replace it.
The Rancho Cordova property management team at SAC-METRO wants our residents to enjoy a safe, clean and well maintained home. If you have additional maintenance requests, please contact the friendly professionals at SAC-METRO. We are happy and ready to serve you.
With the change in seasons comes a change to how properties are managed. Cooler temperatures means that structures must be inspected to make certain they are prepared to withstand the elements. Rain, hail, snow, falling leaves, wind storms and more can take a toll on a house if it is not in pristine condition. In addition to making sure a house is ready for fall and winter, routine property inspections can keep maintenance and repair costs at bay. Rocklin property management team, RPM SAC-METRO, has a don’t-miss-a-thing checklist that will keep properties in perfect condition and help property owners feel at ease knowing their house is safe during winter storms.
Start on the Outside
You’ve heard the saying, “don’t judge a book by its cover,” but that is exactly what SAC-METRO wants property owners to do when conducting a fall property inspection. Look at the house from the outside and judge harshly. Look at every window, roof shingle, rain gutter, downspout, door, sheet of paint, and siding. Look for anything that looks out of place. If a roof shingle is missing, make a note of if to schedule repair. Use a pair of binoculars to get a closer look at the roof if you feel uncomfortable using a ladder for access. Inspect the exterior walls or siding of the house and look for any water stains, which might be a sign that water is missing the rain gutter and trickling down the face of the structure. Rocklin property management experts recommend looking for crooked or saggy window casings, rotting wood, or slanting doors and staircases leading to the house. These could all be signs of water damager. Inspect the roof and sides of the house for any small holes in the structure that would allow rodents to enter or water to seep in. Replace any broken screens that should cover crawl spaces underneath the structure. Inspecting the outside of the house includes landscaping. Overgrown trees could pose a threat to the house as it could be an access bridge for animals. Large trees could fall on the roof after a heavy downpour, or even onto nearby power lines. Prune overgrown trees and all foliage. Trimming bushes and trees will allow you to better see and walk around the perimeter of the house, which allows for a more thorough inspection of your house in Rocklin. Property management companies recommend cleaning out any debris from the gutters. Dead leaves and branches can often be found inside rain gutters, which can cause overflowing gutters due to the blockage. Test all access gates and inspect fencing to ensure it is sturdy, functional, and properly installed. Look for cracks or raises in sidewalks and concrete and make repairs as needed to avoid tripping hazards or further lifting. Finally, turn off and remove hoses from the downspout to prevent the house pipes from freezing.
Take a Look Inside
Once you have made detailed notes about your findings on the exterior of the property, walk inside. You should have posted a proper Notice of Entry for your tenants if the property is occupied. This means a minimum of 24 hours notice, though most Rocklin property management firms try to give at least 48 hours notice. Enter from the front door and work your way through the property starting on the main floor. Look at all flooring, walls, windows, doors, cabinets, and countertops for any signs of water damage. Water is a property’s worst enemy. Bubbles or cracks in the paint or wallpaper on the walls is a clear sign of a hot water leak. Buckling and warping of the flooring is also a sign of a water leak. Take pictures of any of these signs. Remember that your lease agreement should require that tenants report any needs of maintenance immediately. This is to protect them and property owners. If a leak goes unreported or unnoticed for too long, it can turn a small repair into a big expensive one. Look around the edges of doors and windows. These are generally easy places for water to seep in. Replace caulking and weatherstripping as needed so that windows and doors shut tightly. Doing so will keep water out and prevent cold drafts from the winter temperatures. This in turn gives the furnace a bit of relief during the winter months. A pro tip from Rocklin property management team, SAC-METRO, is to inspect the attic during the day to look for any early warning signs that water, wind or snow could leak in. Turn off the lights and see if you can see daylight through any holes or slits. If you can see daylight, water will find its way inside.
Take a Closer Look with Rocklin Property Management Pro Tips
A leaking roof or window is not the only concern when it comes to water damage. While you have access to the property, take the time and inspect everything. Water heaters, furnace, HVAC units, and all kitchen appliances should be tested and inspected while inside the home. Look around the base of the water heater and check for any rust or cracks that could eventually burst and cause a flood. With the help of a flashlight, shine the light into dark places like the back corner of cabinetry or behind appliances. This is a prime location to find animal droppings. Schedule any pest control as needed. Turn on the water in the kitchen, bathrooms, and flush toilets. Inspect toilet seats and shower doors to ensure they are tightly fastened and will not cause harm to your tenant due to falling off of the track. Turn on the furnace to make certain it is working properly. The last thing Rocklin property managers want is a 3:00am wake up call from a tenant who complains it is 55 degrees inside their home because the furnace failed. Schedule annual maintenance for the furnace before the cold season begins. Furnaces are often powered by gas, so do your due diligence and test smoke and carbon monoxide detectors. To learn if your alarm is working, follow these instructions, courtesy of EHLERS Heating and Air Conditioning. See that they are properly installed and not removed from the ceiling. Replace batteries if needed. Clean out the dryer vents and remove lint as it as extremely flammable. Taking the extra time to complete these tasks can save landlords from big headaches or lawsuits in the future.
Schedule Maintenance as Needed
Maintenance on a house can be expensive in Rocklin. Property management companies warn landlords to avoid the do-it-yourself approach to save a few dollars. This route often leads to incorrect repair jobs, which then means a landlord needs to hire a professional anyway. Save yourself the time, money and liability and hire a professional licensed and insured maintenance technician. Notice that liability was listed above. If a landlord does a DIY job and it ends up causing harm to the tenant, the landlord can expect hefty legal fees coming his or her way. Licensing or registration of a business or maintenance technician protects the property owner by helping ensure that contractors meet the minimum insurance requirements. Using an unlicensed contractor can cost you in a number of ways.
How Rocklin Property Management Company, SAC-METRO, Can Help You
With nearly 30 years of experience, we are certain that we can help you with any property management needs. If you are in need of property management, rental property inspections, leasing, or find yourself with long vacancy times, give the experts at SAC-METRO a call.
Owning and managing a rental house sounds like a great investment. It is. But it is also a lot of work. If it were easy, everyone would be doing it. The hard truth is that landlords who own and manage a rental property often find that they have bitten off more than they can chew. Property management is a 24/7 job that requires availability, professionalism, extensive knowledge, experience, and organization. Many skill sets go into property management and if one skill lacks, the success of the rental property is at stake. Roseville property management experts at RPM SAC-METRO do not want this to be you. SAC-METRO wants to see all property investors succeed, whether it is with or without its services. If you find that your plate is too full single handedly managing a rental property, let us tell you how we can help.
Reduce Turnover and Vacancy
Every day that a rental property sits vacant is money out of a property owner’s pockets. The Department of Numbers found that the median gross rent amount in Sacramento in 2017 was $1,246. The 2018 median gross rent amount is not available until the end of 2019. If a property owner has a single family home located in Roseville, prices are a little higher than Sacramento. Pretend that you own a single family home with 3 bedrooms, 2.5 bathrooms, 1800 square feet, with a large backyard and beautiful upgrades. The rental price on this property could easily be $2,300 per month. That means the property is worth a little over $76 per day. If a property sits vacant for two weeks, that is $1,150 that landlords are missing out on collecting. This is the best case scenario. Roseville property management companies see rental properties sit vacant for weeks or even months. At SAC-METRO, our mission is to rent out houses faster than our competitors, while still finding highly qualified tenants. Data shows that we have the lowest vacancy rates compared to our competitors.
- Aggressive Marketing: Knowing the best places to advertise a rental property is paramount to the success of landlords. At SAC-METRO, our professional leasing staff has marketing down to a science. Posting an available rental property on websites like Zillow, Trulia, Craigslist, and Hot Pads have proven successful, as well as having a company website that allows potential renters to view our available properties. Place For Rent signs in the front yard of the property. Even if a potential renter does not drive by, neighbors will alert friends and family of the available rental in their neighborhood, which increases the amount of people who can share and market for you.
- Work Efficiently: As soon as a tenant turns in a 30 Day Notice to Vacate, landlords must be proactive in the turnover process. Roseville property management teams acknowledge a tenant’s Notice to Vacate with a form that tells them the official move out date, where to return keys, cleaning guidelines, and Security Deposit Disbursement information. Clear communication will help the move out process flow smoothly for both tenants and landlords. When acknowledging a Notice to Vacate, include a form that allows a tenant to opt in to a Preliminary Move Out Inspection. This means that about two weeks prior to vacating, the landlord will enter the property with the permission of the tenant, and conduct an inspection to make notes regarding repairs and replacements that will need to be completed during the turnover process. Preliminary Inspections greatly serve landlords for the better. This allows Roseville property management companies to get all of their ducks in a row. Upon the tenant turning in keys, landlords can already have vendors scheduled to enter and begin work on the property on the first day of vacancy. Work efficiently during the turnover process and schedule vendors back to back so that the home can get rent ready in record time.
- Treat Tenants With Respect: SAC-METRO has a known reputation through the greater Sacramento area for having long term tenancies. It is our priority to treat our tenants the way we would want to be treated. Our team of professionals treats everyone equally, makes themselves available 24/7, communicates clearly with tenants and property owners, and we have a Resident Club Rewards Program. Tenants who pay rent on time each month are invited to join the Resident Club, which offers discounts, deals, and coupons to places that people spend money everyday. Because our tenants are treated with first class customer service, they stay in their rental properties for as long as possible.
Roseville Property Management Tenant Qualifications
Finding the right tenant for a property should be a top priority for landlords. One of the worst decisions that a landlord can make is to lower his or her tenant screening standards just to fill a vacancy more quickly. This can lead to costly results, including eviction. Landlords should require that tenants make a minimum of at least 2.4 times the rental amount. This means that if rent is $2,300, the gross monthly household income of the tenants must be at least $5,520. Requiring a minimum gross monthly household income helps landlords know that tenants can afford to pay rent each month. This leaves enough room to pay for utilities on the house and all other living expenses. Do not accept tenants who have previously had an eviction on their credit check or who owe balances to companies or institutions other than medical or for schooling. Look at credit scores and do not accept an applicant with a credit score lower than 670. Credit scores give insight to property owners and Roseville property management companies, telling them if a prospective tenant pays bill on time and in full. Call and verify employment information and rental history. Doing so will prove that the applicant is employed and that he or she is a respectful tenant.
House maintenance is expensive. Beside the fear of eviction, landlords agree that expensive maintenance and damage to the property top their list of biggest fears when managing a rental property. Expensive maintenance can quickly eat away at months of profit. At SAC-METRO, we advise landlords and clients to set aside the amount of one month’s rent per year to account for maintenance costs. New properties will have lower maintenance costs than old properties. SAC-METRO uses this as a guideline so that maintenance costs will not take a heavy hit to profit margins or catch property owners by surprise. A private landlord pays market price for vendors and repairs. SAC-METRO clients get access to our Roseville property management Preferred Vendor Pricing. We have long standing relationships with many vendors in the area and because of that, we get discounts from the vendors, which we then pass on to our clients. In addition to preferred vendor pricing, proactive maintenance has proven to keep maintenance costs low. Conducting semiannual property inspections helps keep maintenance costs affordable. During our semiannual property inspections, both the interior and exterior of the properties are rigorously inspected. We check for any signs of water damage, pests, proper care of the property, occupancy guidelines, lease agreement compliance, and schedule repairs as necessary.
How SAC-METRO Can Help Investors
Our reliable property management experts have more than 25 years of experience in the industry. We do everything property management from marketing, collections, accounting, inspections, maintenance, leasings, move in and move outs. Our clients can always see updates and information on their rental property through our website’s Owner Portal. Our affordable pricing, shorter vacancy rates, reduced maintenance costs, and long term tenancies make it so that our Roseville property management fees pay for themselves. See the real potential that your investment property has to offer. Call us today.
When you think of a property management company, you probably only think that they serve property investors. But the truth is, property management companies have many categories of people and institutions that rely on them every day. All humans have basic needs. Some may argue there are only three basic needs, while an article released by Forbes argues there are six or more. Regardless of this difference in opinion, it is a popular belief to agree that at the top three human basic needs are water, food, and shelter. Shelter is needed throughout the entire world to protect our bodies against the elements, and property management companies can provide shelter to those who need it. This is how they serve renters. They can turn a shelter into successful investment properties for property owners. This is how they serve homeowners and individuals investors. Property management companies analyze and study housing trends and pricing which in turn helps institutions like banks, mortgage lenders, and investment bankers. The four main categories of people we serve as experts in property management in Sacramento are homeowners, individual investors, tenants, and institutions.
How Homeowners Rely on Property Management Companies
A home is a special place where one feels safe and comfortable. It is a place where we go to relax, to gather, to entertain, and to live. A home serves many purposes for different family dynamics. Whatever your family dynamic may be, if you have shelter, you have a home. Homeowners with single family homes, apartments, condos, or duplexes rely on RPM SAC-METRO if they choose to relocate, downsize, or find themselves unable to sell their home. A once owner occupied property can be quickly transformed into a cash flowing rental property with the help of our professionals at SAC-METRO. When relocating or downsizing, homeowners are presented with the option to sell their house or rent it out through companies that specialize in property management. Sacramento based company, SAC-METRO, understands that depending on the needs of your individual family, you may choose one option over the other. But if you choose to rent out your house, SAC-METRO is standing by waiting to assist you and turn your house into a positive cash flowing property. Our team of experienced professionals handles all things property management including getting a property rent ready, leasing, marketing, application processing, professional showings of the property, maintenance scheduling, rent collections, legal compliance, lease signing, move ins, move outs, and everything in between. Our company keeps the lines of communication open with its clients through an online Owner Portal. It is here that property owners can view financial statements, updates on accepted applications, the number of showings conducted at the property, security deposit disbursements, and communicate with our friendly staff. Homeowners hire the property management Sacramento experts at SAC-METRO because they can rely on us for stability, affordability, and expertise to avoid costly mistakes.
How Individual Investors Rely on Property Management Companies
It is no secret that investing in real estate can pay off big time. Some of the best ways that investing in real estate helps people get ahead is through property appreciation, having someone build equity for you, and passive income. However, managing a rental property can often feel like more than investors bargained for. Managing a rental property is a 24/7 job that requires availability, quick response times, and professionalism. Property management is a highly sought after industry by individual property investors. At SAC-METRO, we help investors avoid the daily hassles and headaches of property management in Sacramento. This includes maintenance, leasing, and communicating with tenants. We have more than 240 locations throughout the United States, which allows us to serve our clients without geographic barriers. Regardless of where a clients’ properties are located, they see better returns on investment than ever before or from any other property management company. We know each market because we study and analyze it constantly, and all of our locations are managed by local professionals. We are proud to achieve record high rental prices, affordable maintenance costs to clients, long term tenancies, highly qualified tenants, and record fast leasing times. Handling delinquencies is one of the most dreaded aspects of property management. SAC-METRO has the rent collection process automated and the ability to collect delinquent accounts professionally and quickly. Our team of experts work efficiently and follow proven processes that allow investor’s management fees to pay for themselves.
Tenants Rely on Property Management Sacramento Companies
Purchasing a home in Sacramento county is becoming increasingly difficult. An article released by ABC 10 News in Sacramento cites a study conducted by RentCafe that found that renters are now making up the majority of the population in some major cities across the United States, 42 out of 100, to be exact. Some of these cities include Stockton and Sacramento which are both major cities in California. RentCafe also found that over the last decade, the number of renters in the country increased by 23 million, while homeowners only increased by 700,000. The renter population has increased by about a quarter over the past ten years. Renters rely heavily on property management companies in Sacramento to provide them with shelter. Without the option to rent, they would be unable to afford to buy a house. Companies that specialize in property management in Sacramento provide renters with safe and habitable living conditions, free maintenance, and an affordable place to call home. Tenants who rent through SAC-METRO can expect first class customer service and a quick response time to all maintenance, even if the call comes in at 3:00am.
How Institutions Rely on Property Management Companies
Institutions like investment banks, mortgage lenders, and government entities contract with SAC-METRO to provide reliable and comprehensive investment management for their residential real estate portfolios. Asset management firms take investors capital and place it in diverse investments which include stocks, bonds, real estate, private equity and more. Real estate is a stable investment and companies that specialize in property management in Sacramento study and analyze real estate trends constantly, giving institutions some of the best insight in the real estate industry. Investment banks, mortgage lenders and government entities greatly benefit from the insight that property management companies offer to them.
Why You Need SAC-METRO
Whether you are a homeowner unable to sell, an individual investor, a renter, or part of an institution, SAC-METRO is here to serve you. We have over 240 offices throughout America, which means we can handle geographically dispersed portfolios. Thousands of property owners and investors rely on us everyday to get the job done. With nearly 30 years of providing a comprehensive property management service to property owners, we have perfected our system. We can also offer a full leasing service to property owners who are not interested in committing to a full property management contract. Nobody does property management in Sacramento better than us. Put our proven and experienced team to work for you. Call us today.