How Rancho Cordova Property Management Teams Find Reliable Tenants

There are few things as wonderful as Christmas, puppies, and babies. But if you are familiar with the rental property management scene, you know having a reliable tenant who pays rent on time each month and treats your property with respect, makes everyday feel like Christmas. The Rancho Cordova property management leader, RPM SAC-METRO, knows that your experience with your tenants can make or break how you feel about owning a rental home. With so many applicants and different factors that go into considering accepting a new tenant, SAC-METRO has provided landlords with a fool-proof way to keep your cash flow routine.

The Basics

Listing your home on the rental market is a big step for many landlords. Homeowners often have an emotional attachment to the home, making this big step a scary step. The California Real Estate Commission considers rental properties as business ventures, and they should be treated like one. The most successful Rancho Cordova property managers let go of their emotional attachments and get down to the basics:

  • Applications: Require that every person who is 18 years or older who wants to reside in your rental property fill out an Application to Rent. On this application, you will discover how many occupants wish to live in the residence, if they are employed, their income, rental history, and if the applicants have pets. Double check that the applicants have all signed and dated the bottom of their applications.
  • Income Proof: This can sometimes get messy. People are paid in a variety of different ways while some are self-employed. Always require that applicants submit sufficient income proof when they return their Applicant to Rent. Prior to listing your home on the rental market, Rancho Cordova property management teams need to establish a proper income to rent rate ratio. This ratio is often 2.5 to 3 times the rent amount. If your listing price is $2,800 per month in rent, the combined gross household income must be a minimum of $7,000 if your ratio is 2.5. Always looks at gross household income, not net. Most property managers consider proper income proof to be the two most recent pay stubs, six months of bank statements, or two years of tax return documents.
  • Credit Checks: It is difficult to rank one of these four rental selection basics above another, but credit checks along with rental history are arguably the most helpful. A credit check will tell you any outstanding debts that an applicant has. These can range anywhere from unpaid utility bills, to medical bills, to unpaid balances to previous landlords or management companies, and more. In the Rancho Cordova property management industry, credit checks alone can determine the outcome for an applicant. Landlords and managers should not accept any applicants who have unpaid balances to utility companies or previous landlords, but many do offer leeway to those with medical bill balances. If a tenant does have a small balance to a utility company, some landlords will give them the opportunity to pay off the debt that day and bring them proof of the payment as a condition of accepting the applicant.
  • Rental History: When screening your tenants, call previous landlords and management companies. Some good questions that Rancho Cordova property managers ask previous landlords. Answers to these questions can be very insightful and helpful in selecting the right tenant for your property.
  1. Did the tenant pay their rent on time and in full each month? If not, how many late payments were received?
  2. What was the rent amount when they lived at your property?
  3. Did the tenant take good care of the home or property?
  4. Was the tenant a courteous neighbor?
  5. Would you rent to this tenant again?

Rancho Cordova Property Managers Must Treat Everyone the Same

Be aware and educated on discrimination laws. Big corporations as well as private landlords must treat all applicants equally and with respect. Landlords cannot discriminate against religion, race, color, national origin, gender, familial status, or disabilities. Some local governments have also enacted that property managers cannot discriminate against sex, age, marital status, source of income, height, weight, sexual orientation, gender orientation, or public assistance recipients.

Do your due diligence and screen your applicants with uncompromising guidelines. The work you put in up front will pay off in the long run. You might find a tenant so good, they will stay for years and care for your house as if it were their own. Industry experts at Rancho Cordova property management team, SAC-METRO, adhere to a rigorous screening process to find clients only the best of the best. Our proven process helps property owners know they can depend on that rent check coming in month after month. Call us today to see how we can find you the perfect tenant and in record time.  

How Rocklin Property Management Companies Keep Maintenance Costs Down

When investors enter the property management industry for the first time, one of their biggest worries is maintenance costs. Too often, landlords find themselves unprepared for maintenance costs or did not see the need for repairs coming. When it comes to Rocklin property management, there are too many balls to juggle to be worrying about maintenance. RPM SAC-METRO wants to see property managers succeed, so here are a few tips from our professionals who have more than 30 years of experience in handling maintenance and repairs.

Be Proactive

The best time to address any sort of maintenance issue is when the property is vacant. During the turnover process, inspect and assess what repairs need to be completed. Inspect the property for safety hazards, ensure the appliances are working properly, change filters on the stove hood, air conditioning and furnace units, check the condition and quality of the flooring, make sure there are not any leaking pipes, signs of water damage, or mildew growth, and much more. For a general rental house inspection checklist from the city of Sacramento, click here. Once you have completed your inspection checklist, ask yourself, “would I want to live here?” If you can answer “yes,” then the property is most likely in good condition. Rocklin property management companies recommend that landlords study up on local codes to make sure your property is legally safe and rent ready. At SAC-METRO, we conduct routine property inspections during occupancy to stay on top of maintenance. We schedule regular gutter cleaning, fire extinguisher inspections, landscape inspections, pest control inspections when needed, and smoke and carbon monoxide detector inspections.

Quick Response Time

The best Rocklin property management companies know a quick response time for maintenance makes for happy tenants. And happy tenants stay long term. This sends a message to your tenants that you care for and respect your property. In return, they will too. When you phone rings, whether it is a 2PM or 2AM, answer the phone. Document in writing what your tenant’s maintenance request is, whether it is minor or an emergency. Act quickly to inspect or send a professional technician to inspect and make the proper repairs. Always hire licensed and insured professionals. This protects property owners from lawsuits and allows you to rest easy knowing your house is in good hands. If a tenant requests a minor repair, remember that small repairs to you might feel like a big deal to your tenants because they live with them every day. Keep lines of communication open between tenants and your Rocklin property management team to let them know you are there to help make sure the problems get resolved.

Who Pays for What? Rocklin Property Management vs. Tenants

If you own your home and and find a leaking pipe, there is no question who gets hit with the bill—it’s you. If you rent, all you have to do is call your landlord, who will most likely be the one flipping the bill. In California, property owners are legally bound to provide a safe and habitable living environment for tenants. It is a landlord’s responsibility to take care of repairs and maintenance so that residents can comfortably live in the dwelling.  If it is a maintenance repair that is caused by general wear and tear or a random repair, the landlord is responsible. However, there is a loophole. A tenant is responsible for payment of a repair is if they caused it to happen. Examples include punching a hole in the wall, trying to install a shower head that resulted in a pipe break, damage caused by your pet, breaking a window while throwing a football inside, or flushing a diaper down the toilet causing it to flood. Rocklin property managers can also require tenants to pay for damages caused by neglect or abuse while the tenant lived on the premises. Landlords must make prompt repairs to maintenance requests and uphold a comfortable living standard for their tenants. Property managers should clearly state in the lease agreement which repairs are paid by the landlord versus the tenant.  

Setting Money Aside for Maintenance

Deciding the correct amount of savings for a rainy day is too often underestimated by property owners. As a general rule of thumb, SAC-METRO recommends landlords set aside one percent of the value of the property for annual maintenance. If you property is valued at $300,000 a good way to be prepared for maintenance is to set aside $3,000 annually. This breaks down to $250 per month. There will be months where zero maintenance requests are submitted, and there will be months where you have a hefty repair bill. Either way, putting aside one percent is a safe way to protect yourself from draining your bank account when repairs arise.

Preferred Pricing with SAC-METRO

When you become a client at SAC-METRO, we provide you with our preferred pricing from our certified vendors. This ensures that our property owners keep maintenance costs low, while still getting quality work from licensed and insured technicians. Call our Rocklin property management team today to get cost-effective solutions through our extensive network of professionals. Our streamlined process for maintenance has never been better.

How Roseville Property Management Avoids Legal Pitfalls

There are many variables in property management that can lead to doing things legally or illegally. The local, state and federal laws and codes help property managers know and understand where to draw the line.

The Fair Housing Act protects certain classes of people against discrimination in renting, buying or applying for a mortgage. These protected classes include race or color, religion, national origin, sex, familial status, age, and those with disabilities or handicap. Roseville property managers must treat all of these protected classes equally. They cannot choose to deny a rental application based upon these factors.

The Americans with Disabilities Act is a civil rights law that protects people with physical and emotional disabilities in the workplace, in housing markets, transportation, and anywhere in public against discrimination. The purpose of this law is to ensure that people with disabilities have the same opportunities as those without a disability. Roseville property management companies must tread lightly here. If there is an applicant for your rental property who is protected under this class, we recommend you study up on this law or hire RPM SAC-METRO to make sure all is done in compliance with the law and that this applicant receives a Reasonable Accommodation request.

In addition to staying updated on revisions to the above mentioned laws, property managers must also be educated and in compliance with:

  • Habitability laws which ensure a tenant has a safe and comfortable living space
  • Hire licensed and insured contractors to complete maintenance and repair work on the property
  • Follow smoke and carbon monoxide detector laws
  • Handle evictions properly
  • Handle the rent collections process correctly and ethically
  • Keep all personal information confidential
  • Availability to take and respond to maintenance emergency calls

As you can clearly see, Roseville property management is not for the fainthearted. Knowing these laws and complying with them takes a lot of time and a lot of effort. However, it is worth the time and effort or the cost to hire a management team to avoid the following scenario.

A Real Life Experience from a Private Landlord Prior to Hiring SAC-METRO.

I thought I was a perfect candidate to do my own property management. I had nothing to lose. In reality, I had everything to lose. Three years ago, I got myself into some serious Roseville property management legal trouble. How many of my violations can you catch in the following story?

I started the day with a cup of coffee, sitting in my home office. I had just noticed an urgent email an important client sent at 5 a.m. when the phone rang.  

“The water from the back outdoor faucet is leaking,” my tenant said. I apologized for the inconvenience, then told her I would stop by to take a look at it shortly. I then returned to my email, and the rest of my day is history. I got sucked into my projects and completely forgot about the call. Days go by. Weeks go by. Three weeks later, my phone rang at 10:30 p.m. just as I was getting ready for bed. I decided to let the phone ring this time. I was too tired to deal with anything.

The next morning I listened to my voicemails. “The basement is flooding!” my panicked tenant said. “We just discovered it in our storage room. Everything is soaked!” I remembered the faucet from three weeks earlier and slapped my head. It was too late.

On the way over, I thought how I never planned on water issues when I started doing my own Roseville property management. To save money, I hired a friend who said he could do restoration, but the damage was double what it would have been three weeks earlier due to the increased damage, so I still lost any hope of any profit that month, or the next. He asked for the information of the tenant so he could follow up with her later on the leak and I provided both her email and cell phone number.

How Many Mistakes Did This Landlord Make?

  1. Failure to document that he received maintenance request.
  2. Failure to take action quickly and assess the situation.
  3. Failure to hire a licensed professional with liability insurance.
  4. Failure to document what course of action was taken to solve the problem.
  5. Failure to provide a safe living environment for his tenants.
  6. Failure to protect a tenant’s privacy and secure personal information.

Don’t let this be you. All of these mistakes were avoidable. Keep your profit and your sanity. Call the top Roseville property management team, SAC-METRO today to make certain you stay in compliance with all the laws.

How Property Managers Get Homes Rent Ready in Record Time

You’re reliable and trustworthy tenant has just turned in their 30 Day Notice to Vacate and all you can think about is “how will I find another tenant as good as my last one?” At least that is what we hope you are thinking. If not, you’re thoughts might be, “how will I get my house rent ready and how soon until a new tenant can move in?” If this is where your mind goes, rest assured, we have the answer. At RPM SAC-METRO, our goal is make Sacramento property management a successful investment and business venture for property owners. No one likes to have a disruption in their cash flow. That is why our knowledgeable team of professionals at SAC-METRO has provided landlords with tips and tricks they can use during the turnover process to get their home rent-ready as quickly as possible.

Preliminary Move-Out Inspection

When a tenant give you a 30 Day Notice to Vacate, acknowledge their intent to vacate by giving them a list of cleaning guidelines and an official move out date. For example, if someone turns in a notice to vacate on January 15th, day one of the notice is January 16th. Count 30 calendar days to determine the move out date. This means their move out date is set for February 14th. Let them know that keys must be returned to their Sacramento property manager no later than midnight on the date of their move out, February 14th. Provide the tenant with the option for you to conduct a Preliminary Move Out Inspection. During this inspection, the property manager enters the home while the tenant is present to walk through the property and address any concerns, maintenance, or repairs needed upon move out. This gives the property manager a heads-up as to what condition the property is in prior to move out. During this inspection, the landlord should make notes of flooring, paint and wall, and appliance repairs or replacements, and much more.

Getting the Home Rent Ready Once Vacant

  • Day 1 of Vacancy (Feb 15th): Leave the first day of vacancy open for you and your maintenance technicians to walk through the property and test all appliances and determine what can be fixed versus what needs replacing. If appliances need replacing, order them immediately so they can be delivered in a timely manner. Maintenance technicians should also inspect all window coverings, countertops, baseboards, hardware, replace caulking and silicone in the kitchen and bathrooms, and change door locks.
  • Day 2 – 3 of Vacancy (Feb 16 – 17th): If it was obvious during the Preliminary Move Out Inspection that paint and flooring will need to be replaced, you should have already called your paint and flooring contractors to get on their schedule for February 16th and 17th. The most successful property management Sacramento companies schedule contactors back-to-back to cut down on vacancy times. Many contractors will recommend painting before new flooring, because even the best painters can accidently smudge or drip paint on unwanted surfaces.
  • Day 4 of Vacancy (Feb 18th): The property manager should walk through the property and ensure all work has been completed satisfactorily. Use this day to also install any new appliances so they are up and running by the time your first prospective tenant sees the property. Take updated photos of the interior and exterior. A recommended tip from the best Sacramento property management photographers is to turn on all interior lights and open window coverings to enhance the look and natural light of the room you are photographing.
  • Day 5 of Vacancy (Feb 19th): First day of showings.

How Sacramento Property Management Companies Set Rent Rates

It can be difficult to determine asking rent rates without doing your homework. If your asking rent rate is too low, you run the risk of getting less qualified and less sophisticated applicants. If your asking rent rate is too high, you run the risk of prolonged vacancy as tenants walk away disappointed with what you are offering versus your competition. SAC-METRO recommends conducting a Market Analysis. This can be done by searching for local housing ads from other Sacramento property managers that offer comparable characteristics to your house. Find homes that have the same number of bedrooms and bathrooms as your house, similar square footage and yard sizes, were built within the same time frame, and are located within a half mile to one mile away. What is their asking rent? How does the interior and exterior of those houses compare to what yours looks like? Are they remodeled or updated? Are they old and tired looking? Take these characteristics into consideration to determine your asking rent. Doing a Market Analysis can at least give you a ballpark figure on asking rent rates. Start your asking rent rate high. If no one expresses interest in your ad, lower the price a little.

Advertising Your Vacancy

Property Management in Sacramento can be disheartening to see all the options people have when renting. You may feel like a small fish in a big pond. That is why having a strong and attractive advertisement for your home can help reduce your vacancy time. Pick the best picture of your property as the featured image on your ad. This is often the exterior of the home which accentuates the curb appeal, or the kitchen, living or dining area. Go for the “wow factor.” Make people want to click on your ad to see more. Let renters know when the property is ready for move-in, the features the house offers, amenities, nearby entertainment, grocery stores, schools, and major roadways for commuting to and from work. Inform prospective tenants looking at your ad of additional costs for utilities and income requirements. Make your advertisement so attractive, people have to see it in person.

If you are like most landlords and want to keep your occupancy rate high while your vacancy rate stays low, call SAC-METRO today to learn more about how we do turnovers in record time.

How Property Management Companies in Sacramento Maintain Cash Flow

You have heard the phrase, “money makes the world go round.” In essence, money does solve a lot of problems, including a lot of problems in the property management industry. If only it were as easy as receiving a rent check in the mail on time, each month, then depositing it straight in the bank. The reality of this painted picture is not reality at all, unfortunately. Rent collection for property management companies in Sacramento is much more complex. RPM SAC-METRO has over 35 years of experience in rent collection, and welcomes you to take a crash course from the pros and discover how SAC-METRO ensures its clients maintain a steady cash flow of rent.

Rigorous Tenant Screening Process

Keeping the rent checks coming in each month starts at the beginning of the leasing process with the search for tenants. Establish your asking rent price, remember to start on the higher side of the spectrum, and determine what your income requirement will be for prospective tenants. A common rent-to-monthly income ratio is often somewhere between 2.4 and 3 times the monthly rent amount. If you are asking $3,000 for rent each month and want a 1:3 ratio, you would require a monthly gross household income of no less than $9,000. Sacramento property management companies let their income ratios be known up front to prospects to help weed out those who would not financially qualify. By doing this, landlords do not waste time showing properties to those who could not afford to live there.

Once you have determined your income qualifications and have an interested applicant, SAC-METRO runs background, criminal and credit checks. Credit checks are crucial to making certain you have a reliable tenant who pays their bills on time and in full. If you have a tenant who applies and all things look good except for their credit check, do not settle. Hold out for a more qualified tenant. You will be glad you waited for the right tenant. Hold each applicant to same standard as the other. This will prevent a discrimination lawsuit.

Require that tenants submit reliable income proof at the time they turn in their applications. The two most recent pay stubs, three most recent years of tax return documents, or six months of bank statements should suffice. You can and should verify employment by calling the human resources representative or manager listed on the application.

Property Management Companies in Sacramento Communicate Clearly

The lease signing process is an ideal time for landlords to set crystal clear expectations with their tenants regarding when rent is due, the amount of rent, how it should be paid or delivered, and what happens if they fail to pay. Too often property managers hear the phrase, “I didn’t know,” when referring to rent collection rules. Communicating rent rules keeps steady cash flow for landlords so they can continue to pay the mortgage, cover maintenance costs, and make a return on their investment. At SAC-METRO, on time rent payments are rewarded. Tenants who pay rent on time and in full each month receive benefits like coupons and discounts to local grocery stores, shopping and dining. If rent is not paid, document and follow through with proper legal notices. Consult your lawyer before moving forward with an eviction process. Sacramento property management companies must treat each tenant equally and will respect whether the tenant pays rent or not.

Automating Rent Collection in the Digital Age

We live in a time when the majority of people are attached to their screens. A Nielsen Company audience report found that the average American spends more than ten hours a day in front of a screen. This includes computers, television, smart phones, video games, radios, and tablets. Why not capitalize on this? Property management companies in Sacramento know that residents are more likely to pay their rent on time, when it is convenient for them. That’s why SAC-METRO created an automated rent collection process that allows residents to pay online, so it is at their convenience. When a payment is not received by SAC-METRO, there is an automated collections process. This automated system follows the rules set forth in the lease agreement pertaining to rent and follows all legal guidelines for the collection process. Having an automatic process helps eliminate tension between management and tenants. If the tenant still fails to pay rent, SAC-METRO consults with legal counsel before moving forward with an eviction to ensure all is done properly. SAC-METRO even offers an eviction protection program for clients. For a small fee, clients are protected from eviction costs, if one occurs. Though it rarely does due to SAC-METRO’s  rigorous screening process.

Sacramento property management is a tough business to navigate. Especially when rent collection is so crucial to the success of the business. Let the professionals at SAC-METRO handle the hassle of rent collections for you. With more than 35 years of trusted experience, you are sure to get your rent on time and deposited in full into your bank account each month. Call the experts at SAC-METRO today to get started.

Why Auburn Property Management Teams Shouldn’t Show Before Prior Tenants Go

Receiving a 30 day notice to vacate from a current tenant can cause anxiety for landlords. “Who will I get as my next tenant? Will they pay on time? What if I have a long vacancy time? With these questions comes the anxiety to try and fill a vacancy as quickly as possible. You may think showing your rental property to new prospects while the current tenants are still living there will save you from having a prolonged vacancy. Auburn property management team, RPM SAC-METRO, warns landlords against doing this.

Pros and Cons to Showing an Occupied Property

Showing your rental property to potential renters while it is still occupied has its pros and cons. Some of the pros include the possibility to decrease your vacancy rate, continued cash flow, and not transferring the utilities into your name. The cons include posing an inconvenience to the current renter, the new prospect sees the previous “stuff” in the house instead of the actual house, damage to the property or unsightly messiness while the current tenant is moving, and the risk of not providing a proper Entry Notice before showing the unit, which causes legal problems. Showing an occupied unit has many factors that come into play in order to make it a successful showing.

Why it’s Best to Wait Until it’s Vacant

Auburn property management teams have found that 70% of rental applications are submitted within the first two weeks of a property becoming vacant. The reason for this is that vacant units show better than ones that are occupied. Residents who are shopping around for a place to rent generally want to move in within the next two weeks to 30 days. If the property is occupied and will continue to be for the next twenty-five days, your prospect is no longer interested. Remember, once the current tenant vacates, you need a few days to get your house rent-ready. As a landlord, it is easier to show a vacant property because you do not have to post an Entry Notice. You also do not have to limit the amount of showings each week, for fear that you will inconvenience the current resident.

If You Can’t Wait Until it’s Vacant

If you cannot wait until the property is vacant to start showing it, protect yourself and keep your current resident happy by following these protocols provided by Auburn property management professionals:

  • Post a Proper Entry Notice: California housing laws state that a landlord or property manager must post a minimum of a 24-hour notice to enter the property to show it to a prospective tenant. If you are managing a large apartment complex and have a vacant unit that looks the same as the occupied one, show the vacant one instead. If you are conducting a Preliminary Move-Out inspection, you must provide your current resident with a 48 hour notice to enter.
  • Limit Your Number of Entries: Try to keep the number of times that you enter the occupied home to a minimum. Be as specific as possible with time frames or extra times that you will be entering. Potential tenants may find it awkward to be in someone’s home while they are there. Or worse, if the resident is just getting in or out of the shower.
  • Be Considerate and Courteous: Whether the current resident is home or not, it is an inconvenience for them to be showing their home to prospective new residents. If the resident is not home, they still likely tidied up the place or if you are lucky, cleaned thoroughly. If they are home, you may interrupt work or family time. Professionals in property management in Auburn have been known to give residents a slight reduction in rent if they agree to show the property while they are still living there. Remember that they are doing you a favor. Showing the home that they are occupying does not benefit them in any way.

What the Top Property Management Auburn Team Does to Avoid Prolonged Vacancy

SAC-METRO is known in the industry for having shorter than average vacancy times. We attribute this to our proven rent-ready process. When a current resident provides our manager with a 30 Day Notice to Vacate, we instantly list the property on our website with pictures, video, and information about the property with a “coming soon” tag. We use previously taken photos and video from when the property was vacant in our advertisements. We compile a list of names for those people who have expressed interest in the property and contact them to schedule a time and date, once the property is vacant, for a showing. At SAC-METRO, you know our goal is the same as yours. Property Management in Auburn has never been so good. Call us today to receive a quote for us to manage your rental property.

Folsom Property Management Team Gives Advice for Tenants

Whether you are a first time tenant or have been renting for years, property management companies in Folsom know that the relationship between landlords and tenants are imperative to having a positive experience in the rental industry. Many factors contribute to a positive experience as a renter or landlord. RPM SAC-METRO has compiled an experienced list of things that tenants can do to maintain a positive relationship with management while they rent.

    1. Pay On Time: Rent collection happens every month and is a tedious task for landlords who manage multiple properties. The last thing property managers want to do is post a 3 Day Notice to Pay Rent or Quit on every door. When you sign your lease agreement with a Folsom property management company, clarify the day each month that rent is due. Mark it on your calendar, set a reminder on your phone, or set up automatic rent payments to make sure you do not forget to pay rent. This saves renters money in the long run because if you fail to pay rent on time, the majority of landlords charge late fees for rent payments. Some charge a flat rate while others charge by the day.
    2. Follow the Rules: Use your lease agreement as an outline to know what your property management company expects of you. Rules vary from landlord to landlord, so read your lease agreement at the time of move in. Lease agreement rules are not only there to protect the landlord, but residents as well. Many property management companies in Folsom have Quiet Hours that state residents must turn down their noise levels from nine o’clock at night until nine o’clock the following morning. While this may seems inconvenient to you if you plan to host a gathering, remember that next time when your neighbor chooses to throw a wild party, you will be rewarded with peace and quiet starting at nine o’clock that evening because of the Quiet Hours which are stated in your lease agreement. Failure to comply with lease agreement rules may result in a warning from management. If you continue to disregard the rules, your landlord may not renew your lease, or worse, have a valid reason to evict you.
    3. Communicate with your Folsom property manager: In every relationship, whether it is professional, friends, or romantic, communication is key to helping any relationship succeed. If you have a maintenance request, call your property manager to relay the information and how soon the request needs to be addressed. A thorough and concerned property manager should send a technician within 24 hours for minor maintenance, and immediately for a maintenance emergency such as a flood or fire. Living in a rental property can be difficult when you would like to decorate the house to make it your own. If there is a wall that you want to paint or pictures you want to hang, refer to your lease agreement for appropriate rules or call your property management team in Folsom to get their written permission before you proceed.
    4. Show Respect for Your Home: Consider this: if you owned the home yourself, would you do it? Too often tenants treat rental properties with disrespect simply because they do not own the home. They allow the landscape to take a turn for the worse and become overgrown with weeds, they allow their children to draw on the walls with markers, they fail to report a pest control infestation or a slow leaking pipe causing water damage to the flooring and sheetrock. All of these actions, or failure to take action, cause damage to the property creating lasting and costly problems. Show respect for your rental and your landlord or Folsom property management team will show even greater respect and gratitude for you. Keep in mind, many rental homes were once owner occupied and carry a sentimental value to those homeowners.

Folsom Property Management is an Investment and a Game

Just like learning how to play a new board game with friends on Sunday night, learning how to be a good tenant is like playing a game. Learn the rules by reading and understanding the lease agreement. Play by the rules and work together with your team, the property manager, and everybody wins and has fun. Landlords are typically renting out their house as an investment. They are hoping and planning on making income off of renting it out. When tenants fail to report maintenance requests or cause damage to the property on purpose, it hurts the bottom line of the landlord and often results in the tenant paying for the damages. Care for your rental in order to save yourself money. Good tenants are rewarded. Call your property management Folsom team, SAC-METRO, today to see how you can get into one of its rental houses.

Rent Out Your House Instead of Selling it in Slow Housing Market

You’ve heard all year, “it’s a seller’s market” and may have considered putting your house on the market. If you have not taken action yet to sell, don’t. New talk from Redfin CEO, Glenn Kelman, states that the market has seen a “significant slowdown” in recent weeks and while second quarter earnings came in as expected, Redfin’s third quarter forecast came in under what Wall Street projected. Talking specifically about the West Coast, including areas serviced by Elk Grove property management team, RPM SAC-METRO, like Seattle, Portland, and San Jose, Kelman states, “June sales were down in these markets by double-digits while inventory was up also by double-digits.” He states that new reports are now coming in showing that the East Coast is following the trend in places like Boston, Washington, D.C., Virginia, and areas of Chicago.

Why is the Seller’s Market Transitioning?

Many factors go into making the success of a seller’s market. Some real estate experts suggest that the recent slowdown in housing sales can be attributed to less new construction of homes and a short supply of existing homes for sale, which directly push housing prices so high, they become unaffordable to would-be buyers due to bidding wars. New taxes on imported lumber are also making the construction of new housing more expensive. Another direction to place the blame is on The Federal Reserve. With a flourishing economy, it intends to continue to raise interest rates, making a mortgage more expensive. Government-sponsored enterprise, Freddie Mac, expects the housing market to stay slow through the rest of 2018.

What Can Homeowners Do if They Don’t Sell?

Having your home listed for sale and not receiving offers or receiving low-ball offers, can be disheartening. Elk Grove property management company, SAC-METRO, does not want you to get discouraged if you need to relocate and are unable to sell. Renting out your home is a wise decision when the selling market takes a turn for the worse. As home prices rise, people are more likely to rent than buy. This turns the odds in your favor. Before you choose to rent out your home, may we suggest you consider the following:

  • Rent Amount: Do your market research to determine the asking rent you can achieve. Pull comparison rental properties in the immediate area to determine your rental price. In a bad economy, you may only be able to cover the mortgage. In a good economy, you will likely cash flow, especially in a city like Elk Grove. Property management experts warn against listing your rental house for too low. If you do this, you run the risk of attracting less qualified tenants. Be realistic with your asking rent.
  • Finding and Qualifying Tenants: Advertise your property across multiple outlets including print ads, websites, and word-of-mouth. Ask prospective tenants to fill out and submit an Application to Rent after they have walked through your property. Require an applicant’s two most recent pay stubs to verify their employment. If they do not receive pay stubs, six month of bank statements or two previous years of tax return documents would be sufficient. Verify the applicant’s employment and rental history. It is standard for property management companies in Elk Grove to ask for a deposit and rental application fee when an applicant returns the above mentioned documents. Check credit scores and conduct criminal background checks to ensure you have a reliable renter who is likely to pay rent in full and on time each month.
  • Signing a Lease: Require your tenants to sign a lease agreement at the time of move in. Ensure that your lease clearly explains each party’s obligations and responsibilities. SAC-METRO recommends that you contact a local lawyer to assist you in drafting a lease agreement to make sure it complies with all Fair Housing, rental, local, and insurance laws. Clearly communicate your expectations with tenants at the time the lease is signed. Conduct routine property inspections to make certain your tenants are adhering to all lease agreement rules.
  • Insurance Changes: Renting out your home with property management in Elk Grove is a great way to earn passive income. Before a tenant moves in to your property, change your homeowners insurance policy to a rental home insurance policy. Your original homeowners policy covers the structure of your house, the belongings inside of it, and any damage done to the property. A rental home insurance policy covers the structure of your home, legal fees, medical expenses and loss of rental income if repairs are needed.

Hire the Top Elk Grove Property Management Company to Work for You

With more than 35 years of experience in the rental property management industry, you can feel confident knowing your house is in good hands. SAC-METRO handles everything for you including advertising, showing your home, qualifying tenants, lease signings, move ins, rent collection, regular property inspections, move outs, maintenance, and repairs to the property. If you are needing to get out of your home, but cannot seem to get a fair asking price for your it, give SAC-METRO a call today.

Why Studies are Showing People Renting Instead of Buying

It may seem surprising, but multiple research studies conducted by Zillow and NYU show that people are choosing to rent instead of buy houses in major cities across America. Whether they choose to rent or are forced to rent due to affordability, the research results tell the facts. The facts that allow real estate investors like you to make more money. The stigma of renting has adapted to a positive light as renters find they can get more space for their money than with buying in a market with pre-recession prices. If you are looking to get into the rental property management Sacramento scene, there is a lot of money to be made off renters.

Major Cities that Saw Increases in Renters

A study conducted by Zillow researchers found that the amount of renters versus homeowners in America from 2006 to 2016 increased overall by 5 percent. Of the top 50 urban areas in America, 29 of them were made up of a majority of renters. That is more than 50 percent. Below is a list of the largest metro areas in the United States and the percentage of renters in 2016 in the urban area, as well as the increased percentage of renters between 2006 to 2016:

  • Albuquerque, New Mexico – Renter Rate: 39.6 percent, increase of 0.9 percent
  • San Francisco, California – Renter Rate: 62.1 percent, increase of 1.4 percent
  • Austin, Texas – Renter Rate: 55.1 percent, increase of 2.4 percent
  • New York City, New York – Renter Rate: 68.0 percent, increase of 2.4 percent
  • Omaha, Nebraska – Renter Rate: 43.4 percent, increase of 2.4 percent
  • Arlington, Texas – Renter Rate: 44.5 percent, increase fo 2.6 percent
  • Oklahoma City, Oklahoma – Renter Rate: 40.8 percent, increase of 2.9 percent
  • Fresno, California – Renter Rate: 53.5 percent, increase of 3.3 percent
  • Houston, Texas – Renter Rate: 56.9 percent, increase of 3.3 percent
  • El Paso, Texas – Renter Rate: 42.1 percent, increase of 3.4 percent
  • Fort Worth, Texas – Renter Rate: 42.9 percent, increase of 3.4 percent
  • Boston, Massachusetts – Renter Rate: 65 percent, increase of 3.6 percent
  • Los Angeles, California – Renter Rate: 64.1 percent, increase of 4.1 percent
  • New Orleans, Louisiana – Renter Rate: 53.7 percent, increase of 4.4 percent
  • Raleigh, North Carolina – Renter Rate: 50.9 percent, increase fo 4.4 percent
  • Tucson, Arizona – Renter Rate: 49.5 percent, increase of 4.4 percent
  • Sacramento, California – Renter Rate: 52.4 percent, increase of 4.5 percent
  • San Diego, California – Renter Rate: 54.3 percent, increase of 4.8 percent
  • San Jose, California – Renter Rate: 43.1 percent, increase of 4.8 percent
  • Baltimore, Maryland – Renter Rate: 54.3 percent, increase of 4.9 percent
  • Portland, Oregon – Renter Rate: 48.0 percent, increase of 5.1 percent
  • Tulsa, Oklahoma – Renter Rate: 50.7 percent, increase of 5.3 percent
  • Oakland, California – Renter Rate: 61.7 percent, increase of 5.4 percent
  • Chicago, Illinois – Renter Rate: 56.3 percent, increase of 5.6 percent
  • Denver, Colorado – Renter Rate: 50.0 percent, increase of 5.6 percent
  • Long Beach, California – Renter Rate: 62.3 percent, increase of 5.7 percent
  • Seattle, Washington – Renter Rate: 53.9 percent, increase of 5.8 percent
  • Dallas, Texas – Renter Rate: 59.2 percent, increase of 5.9 percent
  • Baton Rouge, Louisiana – Renter Rate: 53.2 percent, increase of 6.0 percent
  • Miami, Florida – Renter Rate: 69.9 percent, increase of 6.1 percent
  • Philadelphia, Pennsylvania – Renter Rate: 47.9 percent, increase of 6.1 percent
  • Jacksonville, Florida – Renter Rate: 43.4 percent, increase of 6.4 percent
  • Kansas City, Missouri – Renter Rate: 47.0 percent, increase of 6.4 percent
  • Columbus, Ohio – Renter Rate: 56.0 percent, increase of 6.5 percent
  • Washington, D.C. – Renter Rate: 60.8 percent, increase of 6.5 percent
  • Nashville, Tennessee – Renter Rate: 47 percent, increase fo 6.7 percent
  • Colorado Springs, Colorado – Renter Rate: 42.5 percent, increase of 6.9 percent
  • Indianapolis, Indiana – Renter Rate: 47.6 percent, increase of 7.0 percent
  • Milwaukee, Wisconsin – Renter Rate: 59.2 percent, increase of 7.0 percent
  • San Antonio, Texas – Renter Rate: 46.4 percent, increase of 7.2 percent
  • Minneapolis, Minnesota – Renter Rate: 53.3 percent, increase of 7.4 percent
  • Virginia Beach, Virginia – Renter Rate: 37.8 percent, increase of 7.4 percent
  • Phoenix, Arizona – Renter Rate: 47 percent, increase of 7.5 percent
  • Cleveland, Ohio – Renter Rate: 58.2 percent, increase of 7.7 percent
  • Charlotte, North Carolina – Renter Rate: 47.8 percent, increase of 8.2 percent
  • Atlanta, Georgia – Renter Rate: 58.7 percent, increase of 8.3 percent
  • Mesa, Arizona – Renter Rate: 40.7 percent, increase of 8.5 percent
  • Honolulu, Hawaii – Renter Rate: 58.3 percent, increase of 9 percent
  • Las Vegas, Nevada – Renter Rate: 47.3 percent, increase of 9 percent
  • Memphis, Tennessee – Renter Rate: 56.1 percent, increase of 11 percent

While the above list is mind-boggling at the percentage of people renting in major cities in 2016, it goes to show that housing prices are too high for people to afford to buy. They are choosing a lease over a loan. Rental property management in Sacramento proves to be an ideal investment and business venture with more than half of the residents identified as renters. Over a ten year period from 2006 to 2016, it saw a 4.5 percent increase in renters. Experts predict this number to increase as home prices are continuing to climb while inventory stays low.

Cities with the Most Shocking Numbers in the Rental Market

In the 2016 research study mentioned above by Zillow, the cities with the most shocking percentages of renters include San Francisco, New York City, Boston, Los Angeles, Oakland, Long Beach, Miami, and Washington, D.C., all coming in at over 60 percent. Notice that 50 percent of these aforementioned cities are located in California, where the rental market is strong. Memphis, Tennessee takes the cake with the highest percentage increase of renters from 2006 to 2016 with an 11 percent increase. The runner-ups were Las Vegas and Honolulu with a 9 percent increase.

Why are Housing Prices So High?

Sacramento rental property management companies have studied the reasons why housing prices are so high, making it unaffordable for even the first-time home buyer looking at a starter home. A Housing Outlook released by Forbes.com noted that a senior economist with Zillow ties the increased housing prices to a “tightened inventory, rise in prices, mortgage rates barely budging, and while new construction picked up at the end of 2017, it wasn’t at the starter price points where it was needed.” Economists also note that home prices are rising more quickly than wages, salaries, and inflation, tilting the more desired option for housing towards the rental market instead of home-ownership.

Sacramento Rental Property Management Going Strong

As the majority of residents in Sacramento continue to rent (at a 52.4 percent rate), real estate investors can feel confident in their investment and know that their financial portfolio is strong. While housing prices are at a high, there is still money to be made by purchasing a rental property. The demand for rentals is high enough in the area that landlords can still find high quality tenants. RPM SAC-METRO is the expert rental property management company in Sacramento and helps landlords avoid the headache of managing a real estate portfolio. Sit back and relax while SAC-METRO takes on the management side. Call us today.

Investing: Why Choose Single Family Homes Over Multi-Family Housing

You made the wise decision to invest in real estate, a portfolio that will leave your financial goals limitless. If you have already done your research, you have decided which type of property to purchase. If you are at the beginning stages of deciding to invest, let the experts of the top Sacramento property management company, RPM SAC-METRO offer their experience and research.

Why Single Family Over Multi Family?

Each has its pros and cons, but the answer is simple when it comes to making money. Single family homes make more rent money than an a single apartment or condo. You have a greater rental price markup for single family homes when you choose it as an investment over an apartment or condo. However, the tables turn when purchasing a duplex, triplex, or fourplex. When looking at vacancy rates, single family homes have higher occupancy rates and less turnover than multi family housing. This is generally due to the fact that the target audience for single family homes are families, with a few children. These children are enrolled in local schools, which entice the families to put down roots for longer periods of time than those who rent smaller spaces, like apartments, which have the flexibility to be more transient. Mortgage lenders see single family homes as lower risk investments than apartments. This is due to the fact that if the economy takes a turn for the worse, single family homes hold their value better than condos and apartments. Lenders accept lower down payments and will give lower interest rates to owners of a single family home over a multi family complex.

What Do Renters Look For In a Rental?

Sacramento property management companies know it is not rocket science when it comes to guessing what potential renters look for in a house. Aside from “location, location, location,” prospective tenants searching for single family homes typically want three bedrooms and two to three bathrooms. These clients usually have a couple children and desire a fenced backyard, close proximity to good schools, and a relatively quick commute to work. Many of the single family home renters are millennials which range in age from twenty-nine to thirty-six, which are in childbearing years, leading them to seek homes with multiple bedrooms. Millennials like modern, open floor plans, so if you are searching for an older home that does not offer an open floor plan, consider searching for a newer home if your budget allows, or find an older home that either already offers an open floor plan, or one that can be altered into an open concept for a relatively affordable price. Do your research on the schools in the neighborhood you are looking to buy. Schools with good reputations can easily sway a renter in the direction of your investment property.

How Sacramento Property Management Companies Capitalize on Technology

Single family home renters are made up of mostly millenials who, as property management companies know, are glued to their technology devices. According to a National Multifamily Housing Council 2017 study, 43 percent of residents who live is rental homes are in single family homes, while 36 percent reside in communities that offer five or more units for rent, meaning large apartment complexes. SAC-METRO knows how to reach the target audience in the 43 percent. The quickest and easiest way to reach prospective tenants is to advertise your single family home rental online, across multiple websites. Some of these include Zillow, Trulia, Hotpads, Craiglist, Facebook, and local classifieds within your community. The more platforms you advertise with, the more quickly you will fill your vacancy with high quality tenants. Some Sacramento property management companies are even using technology to their advantage by taking it one step further and utilizing smart entry, allowing prospects to “show themselves in.” Using smart access technology allows management companies to let vendors and technicians into the property during the turnover process to make repairs and updates to the property.

Is There Room for Growth?

The United States Unemployment Rate is holding steady at a 49 year low. As more Americans are employed and their incomes rise, the more house they can afford to rent. The U.S. economy on a whole is healthy and job wages are continuing to increase. Sacramento property management companies and investors alike see that mortgage lenders have tightened the parameters on borrowers, steering those in search of a home toward renting rather than purchasing a home. Housing prices are and have been highly inflated during the 2017 and 2018 calendar years and housing experts do not expect housing prices to drop until at least 2020. This means prospective renters of single family homes still need a place to live, but cannot afford to buy, yet. Real estate investors should capitalize on the rental market while they still can.

Invest with a Single Family Home Purchase and Hire SAC-METRO

If you are interested in growing your financial portfolio, investing in a single family rental home may be the right choice for you. The leader of Sacramento property management companies, SAC-METRO, has your back from the beginning to the end. SAC-METRO has over 35 years of experience in everything from advertising, to qualifying tenants, to managing the property, to the turnover process, to rent collection, and much more. It is a one-stop-shop for successful property investors. Call us today.