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Real Estate Investment Tips

Your success as a rental home investor heavily relies on finding and keeping responsible tenants. To be profitable, you need quality tenants that will pay rent on time and in full each month, plus respect and care for your property. Certain characteristics of a rental home attract or detract different types of tenants. If you are looking to purchase an investment property, the professionals at Real Property Management Select offer a few guidelines to help you find a home that will bring a good return.

What to Consider in a Rental Property

Tenants are just like any other consumer – a customer shopping around for a product that will fit their needs for a great price. As a leading Sacramento property management company with more than 30 years of experience, we know what tenants want in a rental home. When searching for the ideal investment, there are a variety of factors to think about.

Location and Accessibility

Some rental properties are easier to lease than others. The location of a home carries a direct impact on your financial success as a landlord. Even a well-maintained home will be difficult to rent out if not in a great location. But what makes a great location?

  • Proximity to schools – Being close to schools makes a big difference in real estate, especially in a good school district. A school district with a high rating is particularly helpful.
  • Distance to local shopping – Tenants care about where the nearest grocery store and shopping outlet is located. Being near a nice commercial district is very beneficial.
  • Accessibility to public transportation – This is all about having easy access to the bus, train, and other mass transit. Beyond that, being by a freeway is important to those who commute by car.

While these are positive features in a home, they can also have a negative effect as well. A home that is too close to a freeway is undesirable, such as a house where the backyard faces a highway. Or beware of a home directly in the high traffic zone of a school. The twice-a-day traffic created by buses and parents dropping off or picking up children can be a deterrent for tenants.

Safety and Crime Rate

Tenants want to feel safe. Find a home where there is little to no crime. Check the crime statistics. Browsing through the neighborhood can help you get a feel for the area. Are people out and about enjoying walks and playing with their children outside? Can you spot neighbors conversing one with another? Do you see litter, graffiti, or abandoned buildings nearby? Are there large apartment complexes in the area? Does the neighborhood have a high ownership rate or are there a fair number of “for rent” signs?

HOA Regulations

There are pros and cons to buying a home in a neighborhood with a Home Owners Association. From Carmichael to Rocklin, property management companies may offer to explain how HOA regulations will impact you. Real Property Management Select is a Sacramento property management company that goes above and beyond that. Our experts have the knowledge and expertise to help you follow the rules that specifically apply to landlords. We do not want to see you hit with violation fines or hidden fees.

On the other hand, there are financial benefits to renting out a home within an HOA community. You can set a higher rent rate if the neighborhood offers certain facilities. Tenants will pay extra to have access to a pool, clubhouse, and community gym.

Floor Plan

During a walk-through, prospective tenants need to be able to envision living in the home. Some houses make that difficult if they have an unusual floor plan.

  • Avoid quirky layouts – Stick to standard floor plans. Better yet, find a home with an open floor plan that flows well. Also, an overly customized home is not very user-friendly.
  • Stay away from a home with less than 1,000 square feet – Too small of a home will work against you. Look for a home with 3 or more bedrooms and 2 or more bathrooms. Also, watch out for homes that lack a clear master bedroom or have no master bathroom.
  • Look at overall storage space – How many closets are in the home? Is there a pantry? What about a laundry room?

If you find a home that does not match these standards, consider renovations. Remodeling a home is a good option if you are careful to find cost-friendly ways to improve the home.

Features and Amenities

Amenities make you profitable. The more a home offers, the more you can charge in rent. Does the home have a fireplace? Is there an A/C unit or a swamp cooler? Are there ceiling fans in the bedrooms? Laundry hook-ups available? What about a specific spot for a microwave? Before buying a home, think of what features will bring you the best return.

Overall Condition

Purchasing a home can be an overwhelming process, especially if you hope to make money on it. Remember to consider:

  • Location
  • Safety
  • HOA Regulations
  • Floor Plan
  • Amenities

In addition to these characteristics, you must evaluate the overall condition of a home. Homes more than 15 years old tend to require more maintenance repairs and necessary upgrades.

Why Partner with a Sacramento Property Management Company When Buying an Investment Property?

From Folsom to Rocklin, property management companies all across the greater Sacramento area offer various services. The experts at Real Property Management Select are committed to helping you buy the perfect investment property. We understand the rental market and have the resources to help you locate a home that will bring a good return.

But our assistance doesn’t stop there. We offer a comprehensive list of services to help you be a successful homeowner once tenants move in. Our hassle-free leasing cycle is designed to increase your cash flow and minimize common landlord mistakes. We take over those tedious everyday duties of managing a rental property. Leave the midnight emergency maintenance calls to us.

Don’t trust just any Sacramento property management company. Give Real Property Management Select a call today and learn more about our proven processes. Put our experienced team to work for you.

What Tenants Look for in a Perfect Rental Home

Right now is a great time to be a rental investor. More and more people are renting long-term and willing to pay for a quality rental. But some investment properties are easier to rent out than others. Homes that meet certain criteria bring a better return compared to houses that lack particular features.

Attracting Qualified Tenants

Tenants are picky. The type of home you invest in makes all the difference. You want a house that attracts qualified tenants – a home that tenants can envision living in. When tenants are happy with their living conditions, they stay longer which means less tenant turnover and fewer vacancy periods.

The Features That Bring the Best Return

What features should you look for when purchasing a rental investment? The rental property management Sacramento team at Real Property Management Select knows what makes a successful rental property.

  • Storage and Closet Space – Storage space is an important feature of a home. More storage areas increase the value of a house. A sufficient amount of closet space in each bedroom is a necessity too. The ideal rental home would have ample storage space and plenty of room to organize items. This includes a formal pantry, walk-in master closet, linen closets, laundry room, mudroom, and cabinetry in the garage.
  • An Open Floor Plan – According to Time, “the days of compartmentalized rooms all separated by walls and doors are gone, and the era of connected living continues to be one of the top new home trends.” Many families are “looking for an open floor kitchen plan, as it allows people to flow to and from the heart of the home during gatherings.” Quirky or unusual layouts are an immediate turnoff to tenants. Updated Flooring – The type of flooring in a rental home either attracts or detracts tenants. A dirty carpet is an eyesore. A property with gross floors appears poorly maintained, even if it is up-to-date in other ways. Homes with tile, hardwood, or laminate floors handle wear and tear well and require less upkeep. Plus, they carry more appeal. An article on Balance makes this suggestion to investors: “Since it is a rental, you want the material you choose to be cost-effective, but you do not want to be replacing floors every year, so you need to choose something that is also durable.”
  • Location – Location plays a critical role in how you go about rental property management. Sacramento investors see more headaches and hassles with rental properties in a neighborhood with high crime rates, increased vacancies, and depreciating home values. Our Sacramento property management services help you locate the best areas for a rental investment. You need to consider factors such as the quality of schools, proximity to local shopping and amenities, and closeness of public transportation and large interstates.

What To Do When Your Investment Property Isn’t Ideal

There are ways to make the most of a rental property even when it is less than ideal. If your rental property does not exhibit every perfect feature, do not discount its ability to bring a good return.

  • What can you do when a home has little-to-no closet space? An article on Forrent offers a few solutions. It states, “Whether you remove the already-installed shelves or just complement what is there, adding shelves to a closet provides more surface area to stack and store bins, baskets, and other small items.” Also: “Consider removing closet doors to create more visual and usable space … Replacing big, outward-swinging or bi-fold doors with a curtain can help you use an awkward closet more fully (since you can access more of it) and arrange a tight room differently (since you don’t need to account for door clearance).”
  • What can you do when you cannot afford to replace the floors? Find a home improvement you can afford. A fresh coat of paint on the walls or new window blinds will transform a room. A new front door sets the tone for the entire home before you even walk in. Updated appliances make a kitchen come to life.
  • What can you do with a poor floor plan or an overly customized home? There are several ways to alter an existing floor plan. Knock out a non-load bearing wall. Add on a great room. Expose a ceiling by tearing down ceiling drywall. But if you do not want to dive into major renovations, there are other ways to give a room a different appearance. Install new light fixtures. Paint it a color that makes the room look open.

Professional Rental Property Management Sacramento Investors Can Rely On

Dependable property management in Sacramento is available. You can trust the rental property management Sacramento team at Real Property Management Select. With more than 30 years of experience, our experts understand the rental industry and know how to increase your bottom line. We work hard to provide the best Sacramento property management services because we want to see you succeed. Whether you are new to rental investing or a seasoned landlord, we can help you improve your cash flow and get a better return on your property. Learn more about our hassle-free leasing cycle and proven processes. Put our team to work for you. Call Real Property Management Select today.

Common Mistake #2: Poor Location Selection

Sacramento property management owners know some rental homes are easier to lease than others.

Even the best Sacramento property management owners can make mistakes. But many common mistakes can be avoided by turning to Real Property Management Select, the top company in property management. Rancho Cordova landlords trust our experts to increase cash flow and improve efficiency in their investments. We help homeowners avoid common mistakes that happen with property management. DIY investors may not understand the risks of managing tenants and properties, but we do. That’s why thousands of satisfied customers can vouch for Real Property Management Select for all their concerns about property management.

Rancho Cordova landlords know that some rental properties are easier to lease than others. Don’t let your listing fall by the side of the road. Avoid one of the top rookie mistakes in property management by selecting a great property for your investment. This is real estate, after all, so the top priority in Sacramento property management is location, location, location. Some key factors to a choosing a great location includes:

  • How are the local schools?
  • How close are public transportation and shopping centers?
  • Is the area in a safe neighborhood without crime?

These are just a few ideas to get you thinking about what makes a great location pick for a rental home. Keep in mind different cities have different ordinances and regulations, which can considerably impact your decision. Our Sacramento property management team is a local expert and can give directions when you are in the purchase phase of property investing.

Not all markets are created equal, so search for neighborhoods with lower vacancy rates, higher rent, and appreciating values. This is where the local expertise of Real Property Management Select comes in handy. Our professionals have decades of experience, along with ethical training and local knowledge of the area markets.

Finally, the knowing the type of home renters are searching for is an important factor when making your buying choice. More and more families are looking to rent instead of buying a home. Typically, these families want safe neighborhoods, along with homes that have three plus bedrooms, a fenced yard, or are less than 15 years old. For an easier Sacramento property management experience,  owners should avoid small or quirky home layouts and properties on busy streets which can turn off prospective applicants. A standard layout will do much better than an odd floor plan.

Real Property Management Select can help landlords make a selection decision with the prospect of becoming a successful, long-term rental property management. Rancho Cordova homeowners trust the quality service and expert help from the top property management company in the nation. Real Property Management Select is ready to work for you.

 

How to Select a Rental Investment Property

 

Real Estate Investing in Sacramento: Property Management Fundamentals

When picking a property to invest in, doing your homework pays off. Following these few basic steps will help you choose a property that will give you the best opportunity for a profitable investment.

Focus First on Location

All Sacramento property management companies will tell you that the location is equally important as the home. Surroundings impact its appeal as a rental property. The quality of local schools, accessibility of shopping, availability of public transportation and the safety of the neighborhoods are all factors that will influence a potential applicant’s decision to rent. It is important to take all of these into account before you purchase your property because they cannot be changed once you have invested in a particular location. Be smart and choose the property wisely before you are committed to the area.

Fulfill Common Expectations

Though every home has its qualities, there are a handful of attributes that are always in demand.  A property that is relatively new (ideally less than fifteen years old), one with a traditional layout, with 3 or more bedrooms and at least 2 bathrooms is best. Rent rates of $1100 to $1400/month have also shown to be the best investment for property owners.

Avoid Property Selection Pitfalls

Sometimes it’s helpful to discuss what not to do in Sacramento property management. Companies that have been around as long as Real Property Management Select have seen it all. From experience, we can tell you to avoid homes under 1,000 sq. ft. Homes with a yard without a fence or on a busy street are also more difficult to rent. If no bedroom stands out as the master with more space, look for another property. Avoid quirky layouts or homes that have been overly customized. Lastly, if the home is more than 25 years old, keep shopping.

Thinking about property investment in Sacramento? Property management professionals can make all the difference. Real Property Management Select brings the perspective of thousands of investors over two decades. Put our experience to use in finding the best property for your investment. Call for a free neighborhood analysis today.