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What Sacramento Landlords Should Know About Interest Rates — Even If You’re Not Buying or Selling

Thu, 23 Apr 2026 20:00:02 GMT

What Sacramento Landlords Should Know About Interest Rates — Even If You’re Not Buying or Selling

What’s going on with interest rates?

As a landlord in Sacramento, you might think that rising or falling interest rates don’t directly affect you when you’re not actively buying or selling properties. However, interest rates influence the broader real estate market and the rental market, too.

Here’s what Sacramento landlords should know about interest rates and how they affect your rental investments.

Interest Rates and Resident Behavior

Interest rates can influence resident behavior, especially when it comes to renters' ability to buy homes. When interest rates rise, it often becomes more difficult for potential homebuyers to afford a mortgage, especially first-time buyers. This can result in more people staying in the rental market longer, which could be beneficial for Sacramento landlords in the short term. Higher rates might make your rental units more attractive, as residents put off purchasing a home.

When interest rates are low, more renters may feel financially secure enough to purchase their own homes, decreasing the overall demand for rental properties.

Interest Rates and the Cost of Home Improvement Loans

Thinking about upgrades and updates to your rental property?

Interest rates will matter, especially if you’re financing property upgrades or renovations. The current rate environment can affect how much you’ll pay for a home equity loan or line of credit. Lower rates mean lower borrowing costs, making it easier and more affordable to finance renovations that could increase the rent you can charge or improve your property’s overall condition.

With higher rates, however, financing may become more expensive, potentially delaying your plans or limiting the scope of improvements you can make. If you’re planning major renovations or repairs, it’s important to factor in how changes in interest rates could impact your financing options.

Interest Rates and Inflation

While you may not be actively buying or selling property right now, interest rates still play an essential role in how you manage your rental business in Sacramento. By understanding their impact on resident behavior, inflation, and the cost of improvements, you can be more aware of how to take the next steps in the management of your property. Those interest rates also impact refinancing and property values.

Keep an eye on interest rates and market trends, as they can provide valuable insight into how to optimize your property management strategies, keep your rentals competitive, and make smart financial decisions moving forward.

We’re always watching what the broader market and the local economy does. If you have any questions, please contact us at Sacramento Delta Property Management. We’ve been working with owners and investors to effectively lease, manage, and maintain investment properties for more than 40 years.

Strategic Upgrades That Help Sacramento Landlords Beat the Rental Slowdown

Thu, 26 Feb 2026 21:15:02 GMT

Strategic Upgrades That Help Sacramento Landlords Beat the Rental Slowdown

Have you noticed a slowdown in the Sacramento rental market lately?

It’s not your imagination. This is partly seasonal; traditionally the late spring and early summer see the highest demand. It’s also economical. People are feeling a bit uncertain about what they should be spending on housing, especially as prices continue to rise. So renters are staying where they are. If you have a vacancy, you’ll need to be extra creative when marketing your home.

One of the ways to be creative is to make some strategic updates. We’re not talking about the usual fresh paint and clean carpets, although those things are important, too. We’re talking about the types of upgrades that get the attention of residents who are looking for new homes to rent in Sacramento.

Energy Efficiency Upgrades

Energy efficiency is about much more than environmental stewardship or climate concerns. It’s a real selling point for renters, particularly in California, where utility costs can be high. Residents are increasingly looking for ways to reduce their monthly expenses, and energy-efficient features can make your property stand out.

Consider upgrading to energy-efficient dishwashers, refrigerators, and washers/dryers. Replacing old, inefficient HVAC systems with newer, more efficient models can lower heating and cooling costs. You can also install LED lighting throughout the property, and replace weather-stripping around doors and windows to better insulate the home.

These upgrades not only make your rental more appealing to eco-conscious residents but also help lower utility bills, which matters.

Smart Home Technology

The demand for smart home features has surged in recent years, and features such as smart thermostats, smart locks, and security cameras are increasingly becoming expectations for Sacramento renters. These features offer convenience, security, and energy savings.

A smart thermostat can allow residents to adjust the temperature remotely, while a smart lock offers keyless entry and enhances security. These upgrades are relatively inexpensive and easy to install, yet they make a big impact on the perceived value of your property.

Pet-Friendly Properties are More Popular

As more people adopt pets, offering pet-friendly features can be a powerful way to attract a wider pool of residents, even during a rental downturn.

Sacramento renters are often pet owners, and providing amenities that cater to their pets can make your rental stand out in a competitive market. Making your property more accommodating to pets can help you attract more residents while increasing the perceived value of your rental.

Create Curb Appeal

How to Protect Your Rental from Fraudulent Applications & Scams

Thu, 25 Dec 2025 21:00:09 GMT

How to Protect Your Rental from Fraudulent Applications & Scams

Are you worried that you’re being misled on rental applications?

Fraud and scams are increasing, and that’s due in part to technology making it easier for dishonest people and also because people are feeling desperate as they try to apply for homes that they may not be qualified to rent.

As Sacramento property managers , we want to help you protect your rental from fraudulent applications and common rental scams.

Applicant Looks Too Good to Be True?

Fraudulent applications often come with red flags that can be easy to overlook, especially when you’re eager to rent out your property . Be suspicious of applicants who:

Offer to pay more than the advertised rent
Are in a rush to sign the lease and move in immediately
Don’t ask questions about the property or lease terms
Provide overly flattering or overly vague responses during interviews

If you encounter an applicant who seems too good to be true, take extra precautions. Scammers often make quick decisions and offer inflated rental payments as a way to secure the lease quickly before you have time to conduct a proper background check.

Watch Out for Unusual Payment Requests

One of the most common ways rental scams occur is through fraudulent payment methods. If an applicant insists on paying by an unconventional method, proceed with caution. Always use verified payment channels, such as checks or online payment platforms that offer fraud protection. If they overpay you and ask for you to refund the overpayment before the check clears, it’s a huge red flag.

Scammers often use fake or stolen payment methods and may attempt to convince you that they’ve paid the security deposit or first month's rent before you’ve even signed a lease. Don’t hand over keys or sign any agreement until you’ve received cleared funds.

Application Fraud: What to Watch For

The foundation of preventing fraud is a solid resident screening process. Never rush through this step. Stay proactive, screen thoroughly, and trust your instincts, and you’ll minimize the risks while ensuring you find trustworthy residents who will treat your property with respect.

If you need help with the application process, we invite you to contact us at Sacramento Delta Property Management. We’ve been working with owners and investors to effectively lease, manage, and maintain investment properties for more than 40 years.

The Hidden Costs of DIY Landlording: Why Professional Management is More Cost-Effective

shighland@sacdelta.net (Sandy Highland) — Thu, 03 Jul 2025 20:00:00 GMT

The Hidden Costs of DIY Landlording:

Why Professional Management is More Cost-Effective

It’s tempting to manage your own rental property , especially if you think you’re saving money.

The truth is, you’re likely spending more than you should. And you’re definitely not earning what you could.

The hidden costs of being a DIY landlord are far higher than a monthly management fee.

What Is Your Time Worth?

One of the most significant costs of DIY landlording is the time commitment involved. Managing a rental property requires a substantial amount of time to handle maintenance requests, screen applications, handle evictions, and stay on top of rent collection. For many landlords, this time could be better spent focusing on other areas of their business or personal life. Time spent dealing with maintenance issues, emergency repairs, or legal paperwork is time that could be more profitably spent elsewhere.

A professional property manager has a team of experts and systems in place to handle all of these tasks efficiently. This allows you to focus on other ventures, knowing your property is in good hands. We give you your time back and leverage technology and systems to streamline the leasing, management, and maintenance of your rental property.

Legal Risks and Compliance

Renting out a property means complying with local, state, and federal laws, from fair housing regulations to security deposits and eviction protections. DIY landlords who aren’t up to date on the latest laws could inadvertently make mistakes that lead to legal action, fines, or costly lawsuits. For example, improperly handling a security deposit, failing to follow the correct eviction procedure, or violating fair housing laws can result in significant financial penalties.

A fair housing mistake, for example, can cost you $16,000 for a first offense . Why risk it?

Professional property managers are regularly attending legal seminars to stay updated on legal requirements and compliance standards, reducing your risk of costly legal troubles. We also handle lease agreements, eviction notices, and other paperwork, giving you the best chance to stay on the right side of the law.

DIY Landlords Spend Too Much on Maintenance and Repairs

While managing rental properties on your own may seem like a way to save money, the hidden costs of DIY landlording can quickly outweigh any initial savings. There’s also the opportunity cost. Why wouldn’t you want to leverage the advice and expertise of a team that knows the Sacramento rental market so well?

Let’s talk about what’s possible and how we can help you have a more profitable rental experience. Please contact us at Sacramento Delta Property Management. We’ve been working with owners and investors to effectively lease, manage, and maintain investment properties for more than 40 years.

Avoid Common Property Owner Mistakes with Professional Management

shighland@sacdelta.net (Sandy Highland) — Thu, 19 Jun 2025 20:00:00 GMT

Avoid Common Property Owner Mistakes with Professional Management

No one likes to make mistakes.

Typically, mistakes are easy to recover from, and ultimately not worth losing a lot of sleep over.

But when it comes to managing your Sacramento rental property , those mistakes can be expensive and difficult to fix.

We see a lot of common mistakes made, especially by owners who are managing their own home. Those errors could be avoided with the expertise and oversight of a professional property manager .

The risks can be overwhelming, and a professional property manager can help manage that risk and reduce liability.

Here are just a few ways that we can be particularly helpful.

Screening Applications

One of the most frequent errors made by property owners is not thoroughly screening potential residents. A simple background check, credit report, and rental history can give you a good sense of the resident’s reliability, but many landlords overlook this process or rush through it to fill vacancies quickly. Without proper screening, you risk attracting residents who may not pay on time, damage the property, or cause legal issues.

A professional property management company will have a refined screening process, ensuring that only qualified residents are selected. We verify income, assess credit scores, examine rental history, and follow all relevant regulations to avoid discriminatory practices. This careful screening can save you from long-term headaches.

Poor Maintenance and Repairs

Routine maintenance and timely repairs are essential for keeping residents happy and ensuring the property stays in good condition. Property owners often overlook or delay these tasks due to time constraints, lack of knowledge, or cost concerns. Unfortunately, this can lead to more significant issues throughout the life of your property, such as expensive repairs, dissatisfied residents, and potential damage to your property’s value.

A professional property management team can schedule regular inspections and maintenance, ensuring that small issues don’t escalate. We also have established relationships with trusted vendors, which often means quicker response times and better pricing for repairs. A proactive approach to maintenance not only keeps your property in top shape but also increases resident retention and satisfaction.

We can help you avoid those expensive maintenance mistakes and ensure your property’s condition and value are protected.

Inconsistent Rent Collection and Communication

Inconsistent rent collection or poor communication with residents is a common mistake for self-managing landlords. Delayed payments can affect your cash flow, and residents who feel they aren’t being listened to may cause unnecessary friction, leading to high turnover.

Property managers implement streamlined rent collection systems, ensuring timely payments through automated reminders or online payment portals. We also maintain open, professional lines of communication with residents, addressing concerns and resolving disputes before they escalate.

Marketing and Vacancy Strategies

Let’s talk about avoiding mistakes and creating a more positive and profitable rental experience. Please contact us at Sacramento Delta Property Management. We’ve been working with owners and investors to effectively lease, manage, and maintain investment properties for more than 40 years.

When Do I Hire a Property Manager? | Sacramento Property Management

shighland@sacdelta.net (Sandy Highland) — Thu, 05 Jun 2025 20:00:00 GMT

When Do I Hire a Property Manager? | Sacramento Property Management

Many rental property owners in Sacramento know right away that they want to work with a professional property manager . Others get started committed to handling everything themselves and then quickly find they do not have the time, expertise, or resources to effectively lease, manage, and maintain their rental properties.

The decision to hire a property manager depends on several factors, and understanding these can help you make the best choice for your property and your peace of mind.

We believe it’s always a good time to hire a property manager. Here’s when it’s absolutely essential.

Time Commitments Are Tricky

Managing rental properties requires a significant amount of time, particularly if you own multiple units. It can quickly begin to feel like a full-time job. If you have other commitments, such as a career or family responsibilities, you may find it challenging to juggle all these tasks. Hiring a Sacramento property manager can free up your time. We can also create better time management within the framework of your rental, using our technology and our systems to operate your rental property more efficiently.

Expertise in Local Laws

Avoiding legal mistakes is essential and also difficult. It’s easier than you may think to make an expensive legal error.

Sacramento has specific laws and regulations that landlords must follow, especially when it comes to rent control, security deposits, and eviction procedures. We have strict fair housing laws and an implied warranty of habitability. Understanding and complying with these laws is crucial to avoid legal trouble. Navigating these regulations can be tricky for those unfamiliar with local laws. It’s time to hire a property manager who is well-versed in California's rental laws when you have a dispute with a resident, you’re not sure what language needs to be included in a lease agreement, or you believe it’s time to evict a nonpaying resident.

Keeping Up with Maintenance and Repairs

Maintenance and repairs are inevitable when managing a property in Sacramento. If you're a hands-on landlord, you may find yourself spending weekends fixing leaky faucets or dealing with emergency plumbing issues. Property managers like us often have established relationships with contractors, vendors, and maintenance staff, ensuring timely and cost-effective repairs. We can also handle routine inspections to catch potential problems early before they become major issues.

We also have the benefit of enjoying better rates due to the volume of business we can provide to vendors and contractors.

Stress Management

Deciding when to hire a property manager ultimately depends on your personal circumstances, experience, and the time you're willing to invest in managing your property.

We’d love to learn more about your Sacramento rental homes. Please contact us at Sacramento Delta Property Management. We’ve been working with owners and investors to effectively lease, manage, and maintain investment properties for more than 40 years.

How to Get Your Sacramento House Ready to Rent

shighland@sacdelta.net (Sandy Highland) — Thu, 15 May 2025 20:00:00 GMT

How to Get Your Sacramento House Ready to Rent

It’s a mistake we see too often: landlords rushing to list their Sacramento rental house when it’s not quite ready to rent.

Take some time to prepare properly so you can be sure that you’re attracting well-qualified applicants and high rents. When your property is ready to rent, you can reduce your vacancy and get yourself started on a successful and profitable rental experience.

Here’s who we prepare homes in Sacramento for the rental market.

Clean and De-clutter the Space

The first step to getting your home rental-ready is cleaning and de-cluttering. A clean home not only looks more appealing but also shows prospective residents that you care about the property and want to maintain it well. Start by deep cleaning every room, paying extra attention to areas that residents will notice, like kitchens and bathrooms. Clean carpets, wash windows, and scrub tile grout to ensure everything looks fresh and inviting.

We recommend hiring a professional cleaning crew. They’ll be detail-oriented and thorough.

Make sure you remove any personal belongings or old furniture if you’ve been living in the house yourself.

Focus on Making Necessary Repairs

Before listing your property, take care of any maintenance issues . This includes:

Fixing broken appliances
Repairing leaks or drips
Touching up paint

Check the plumbing and electrical systems. If there are any safety concerns, such as faulty smoke detectors, broken locks, or cracked windows, these need to be addressed immediately.

A quick walkthrough of your home with a checklist of repairs will help you spot anything that needs attention.

Enhance the Curb Appeal of Your Sacramento House

First impressions are important when renting out a property , and the exterior of your house is the first thing potential applicants will see. Enhance your home’s curb appeal by mowing the lawn, trimming shrubs, and adding a few colorful plants or flowers to the front yard. If the paint on the exterior is chipped or faded, consider giving it a fresh coat. The driveway and sidewalks should also be in good shape, so repair any cracks or potholes. A clean, well-maintained exterior will make a big difference in how your property is perceived.

Invest in Some Interior Improvements

Look for ways to make your rental home more modern. Applicants in Sacramento are especially looking for smart home technology features and energy-efficient appliances and amenities.

Getting your Sacramento house ready to rent takes time, effort, and attention to detail, but it can make a big difference in who you attract and what you earn.

Schedule a tour with us today to ensure everything is rent-ready, and you have maximized your home's rent potential! Please contact us at Sacramento Delta Property Management. We’ve been working with owners and investors to effectively lease, manage, and maintain investment properties for more than 40 years.

How Much Can I Rent my Sacramento House for? Professional Management Advice

shighland@sacdelta.net (Sandy Highland) — Thu, 01 May 2025 20:00:00 GMT

How Much Can I Rent my Sacramento House for?

Professional Management Advice

It’s a question we get all the time: how much rent should I charge?

The answer is not an easy one. The rental value for your house in Sacramento depends on a number of things, including market demand and property condition and, of course, location.

Determining the ideal rent requires a combination of market knowledge, property features, and professional management advice.

That’s what we can provide, and we’re sharing our best advice to help you establish the optimal rent price for your Sacramento house.

Get to Know the Sacramento Rental Market

Before deciding how much to charge for rent, it's crucial to understand the dynamics of the local rental market. Sacramento’s rental market can vary significantly depending on the neighborhood, the competing properties, and the demand for rental homes.

In recent years, Sacramento has seen a surge in demand, with more people relocating from expensive cities like San Francisco, creating opportunities for landlords to take advantage of higher rental prices.

Talk to a Sacramento property manager about average rent prices, days on market, and other insights that can help you get a picture of how well the market is performing before you attach a rental value to your property.

Assess Your Property’s Features

Your rental price should reflect the unique features and condition of your property. Key factors to consider include:

Size and layout. Larger homes generally attract higher rents, but also factor in the number of bedrooms and bathrooms.
Condition and amenities. Newly renovated kitchens, updated appliances, and modern bathrooms can justify higher rental prices. If your property offers extras such as a swimming pool, a large backyard, or energy-efficient feature s, these can add value.
Location. Proximity to major employers, schools, public transportation, and amenities like parks and shopping centers can significantly impact rental prices. Sacramento’s downtown and suburban neighborhoods like East Sacramento, Midtown, and Roseville are often in higher demand.

Consider Hiring a Sacramento Property Management Company

Once you’ve set a rental price, be prepared to adjust it based on interest.

We’d welcome the opportunity to talk about the right rental value for your Sacramento rental house. Please contact us at Sacramento Delta Property Management. We’ve been working with owners and investors to effectively lease, manage, and maintain investment propertie s for more than 40 years.

Why Renting is a Smart Investment Strategy for Sacramento Property Owners

shighland@sacdelta.net (Sandy Highland) — Thu, 17 Apr 2025 20:00:00 GMT

Why Renting is a Smart Investment Strategy for Sacramento Property Owners

Sacramento has emerged as one of the most attractive real estate markets in the state of California. Known for its affordability compared to the Bay Area, as well as its growing economy and diverse cultural scene, we are finding that more and more property owners are opting to rent out their homes . This makes sense for a number of reasons.

Let’s take a look at them.

Strong Rental Demand

Sacramento has seen a consistent increase in population over the past decade. People are deciding to settle down here rather than in more expensive areas like San Francisco and Silicon Valley. With this influx of new residents, the demand for rental properties has grown.

As more people move to the area for jobs, education, or lifestyle reasons, the rental market continues to expand. This strong demand for rental housing translates into steady income streams for property owners. In particular, Sacramento’s diverse economy, which includes government jobs, healthcare, education, and technology, ensures that the demand for housing remains high year-round.

Property Value Appreciation

If you’re trying to decide whether to sell your property or rent it out, consider that holding onto it and renting it can allow that asset to grow in value. This is another key advantage of renting in Sacramento; there’s the potential for property value appreciation.

Property values in Sacramento have been steadily rising due to increasing demand. Owners who rent out their properties benefit from this appreciation, gaining long-term equity growth while simultaneously earning rental income consistently in the short term.

Over time, as Sacramento continues to grow, your property’s value could increase substantially. Renting allows you to hold onto your property as its value appreciates, while still earning a reliable income.

Tax Benefits

Everyone is looking for a way to enjoy lower tax exposures.

Renting out property in Sacramento also brings tax advantages.

Property owners can deduct a variety of expenses related to maintaining and operating their rental property, including:

Mortgage interest
Property taxes
Maintenance and repair costs
Insurance
Property management fees

These deductions can significantly reduce the property owner’s tax burden, making renting an even more attractive option.

Additionally, when the property is rented out for a significant portion of the year, it can qualify for various depreciation benefits. This can be a substantial advantage for property owners looking to maximize their returns.

Diversified Income Stream

Renting is a smart investment strategy for Sacramento property owners because it offers steady income, property appreciation, tax benefits, and financial flexibility. As Sacramento continues to grow and attract new residents, the rental market remains strong, providing opportunities for property owners to generate significant returns on their investment.

Will this work for you? Let’s discuss it. Please contact us at Sacramento Delta Property Management. We’ve been working with owners and investors to effectively lease, manage, and maintain investment properties for more than 40 years.

Can a Landlord Inspect the Home Once a Month?

shighland@sacdelta.net (Sandy Highland) — Thu, 20 Mar 2025 20:00:01 GMT

Can a Landlord Inspect the Home Once a Month?

While monthly inspections are not explicitly prohibited under California rental laws, frequent inspections could create unnecessary friction between landlords and residents.

California landlords and property owners are well aware that maintaining their properties is critical not only for preserving their value but also for ensuring resident satisfaction. However, questions often arise about how often a landlord can legally inspect rental properties.

A vacant property can certainly be inspected anytime. You’ll want to make sure there aren’t any unnoticed maintenance issues brewing and you want to keep the property safe. However, when we’re talking about a property that’s occupied by a resident, a monthly inspection is not recommended.

Understanding California Rental Laws on Inspections

Under California rental laws, landlords have the right to enter and inspect their rental properties, but the law is designed to balance this right with the resident’s right to privacy. Civil Code Section 1954 outlines the specific rules governing a landlord's access to a resident’s home.

When is Entry Permitted?

Landlords can legally enter rented property for specific reasons, such as:

Emergency Situations. For example, addressing situations like burst pipes or fire risks.
Repairs or Maintenance. To make necessary repairs or improvements.
Showing the Property. If the resident is moving out, the landlord can show the property to prospective renters or buyers.
Health and Safety Concerns. To comply with health or safety regulations.
Resident Consent. If both parties agree to the landlord's entry.
An annual maintenance survey. To stay on top of things like gutter cleaning, duct cleaning, and chimney cleaning and monitor the wear and tear to the property.

It is important for landlords to remember that once a resident moves in, the home becomes their private space. Excessive inspections without a valid reason can lead to disputes, frequent or early move-outs, or even legal action. Yes, this is a property that you own. But it’s also someone’s home, and your resident has a right to privacy and to quiet enjoyment.

California landlords must give residents at least 24 hours' written notice before entering the home. Notifications can be delivered by hand or posted on the door.

Can You Inspect the Home Monthly?

By respecting residents’ privacy and adhering to Civil Code Section 1954, landlords can legally and professionally manage their properties while maintaining strong relationships with residents.

If you’re unsure about your inspection policies or need guidance in navigating California rental laws, working with experienced property management professionals can make all the difference. Your business depends on proper relationships and compliant practices, which is why expert support is invaluable.

Please contact us at Sacramento Delta Property Management. We’ve been working with owners and investors for more than 40 years.

Short-Term Rentals vs. Long-Term Rentals: Which Benefits a Landlord Most?

shighland@sacdelta.net (Sandy Highland) — Thu, 06 Mar 2025 21:00:00 GMT

Short-Term Rentals vs. Long-Term Rentals: Which Benefits a Landlord Most?

At Sacramento Delta Property Management, our expertise is in the leasing, management, and maintenance of single-family homes and townhomes. We prioritize long-term rentals because we believe that delivers the most stability and the best profitability for owners. However, we recognize that short-term rentals are having a moment. So, we decided to put together a comparison of short-term and long-term rental homes so investors and landlords can decide for themselves which type of property will best align with their investment goals.

Short-Term Rentals

Short-term rentals are typically leased out for durations of a few days to a few months. These are popular for vacation properties, travelers, and those seeking temporary housing options. Benefits include higher per-night income potential, more flexibility, especially if you want to use the property yourself from time to time.

However, resident turnovers are frequent. That means more cleaning, more marketing, and more residents to manage as they come and go. You’ll also find that there are seasonal gaps in when your property is always occupied or often vacant. You need to be aware of legal restrictions that could be in place around short-term rentals. Your HOA might not even allow short-term rentals at all as many have prohibited it. Additionally, you must expect a lot of extra wear and tear on the property; that may be to any furnishings you provide (if it’s a furnished unit) or the frequent move-ins and move-outs, if it isn’t furnished.

Long-Term Rentals in Sacramento

Long-term rentals are leased for extended durations, typically one year or longer, and appeal to prospective residents looking for stable housing. These provide consistent income stability for you as the owner. You know that you’re getting a predictable amount of monthly rental income, and you know it will continue to come in for the duration of the lease term. This consistency is particularly appealing for budgeting and financial planning. With long-term residents, there is less frequent turnover , which reduces wear and tear on your rental home, costs related to marketing, cleaning, and finding new renters.

You’re also establishing relationships with residents, which can lead to smoother interactions and fewer conflicts. Residents who feel at home in your property are more likely to take care of it and stay for longer lease terms.

Investors may prefer not to rent for the long-term because monthly rents may not match the potentially high earnings short-term rentals can achieve during peak seasons, especially in high-demand destinations. There’s also limited flexibility. Long-term leases mean you’re locked into agreements . If you want to sell the property or use it for personal reasons, you’ll need to wait for the lease to end.

California also has additional protections when it comes to renters. A long-term lease must respect the state’s security deposit laws, implied warranty of habitability, and eviction protocols.

Key Considerations for Landlords

Should You Advertise to SHRA Voucher Holders Only? Why or Why Not?

shighland@sacdelta.net (Sandy Highland) — Thu, 20 Feb 2025 21:00:00 GMT

Should You Advertise to SHRA Voucher Holders Only? Why or Why Not?

If you’re a rental property owner completely focused on providing affordable housing in Sacramento , you could probably advertise your properties through the Sacramento Housing and Redevelopment Agency (SHRA) only. But, we don’t recommend it.

Finding qualified residents quickly is your primary goal, and while SHRA offers valuable resources, it’s important to weigh the advantages and disadvantages of limiting your marketing scope.

Benefits of Advertising Exclusively Through Sacramento Housing and Redevelopment Agency

SHRA provides a structured and effective way for landlords to connect with prospective residents, particularly those who qualify for affordable housing programs. Here are some key benefits of advertising through SHRA:

Access to a Targeted Audience

By listing your rental with SHRA, you tap into a network of prequalified applicants actively seeking affordable housing options. These prospective renters are more likely to make the screening process smoother and more efficient within the SHRA program.

Credibility and Trust

SHRA’s reputation as a trusted housing authority adds credibility to your listing. Residents are more likely to trust rentals endorsed by a reputable agency.

Compliance with Affordable Housing Programs

SHRA helps ensure your property is in compliance with affordable housing guidelines and assists with navigating the paperwork and regulations involved.

Free or Low-Cost Advertising Options

Many landlords are drawn to SHRA because it’s a cost-effective way to advertise properties. Listing fees, if any, are generally minimal compared to the costs of digital advertising campaigns.

Let’s Not Limit Your Sacramento Rental Property Marketing

While SHRA offers undeniable advantages, relying solely on this platform to market your property could limit your reach. It’s essential to consider a balanced approach that includes other marketing strategies.

Here’s why:

Expand Your Prospective Applicant Pool

While SHRA provides access to a targeted audience, not all qualified applicants exclusively search through the agency. Platforms such as Zillow , Facebook Marketplace, and other rental-specific websites allow you to reach a wider audience, increasing your chances of finding the right resident.

Compete in a Saturated Market

Sacramento’s rental market is highly competitive. By diversifying your marketing efforts and advertising online, you can stay ahead of competitors and attract a good resident more quickly.

Showcase Your Property Effectively

Online marketing platforms offer tools like high-quality images, virtual tours, and detailed descriptions to present your property in the best light. These visual aids can make your listing more appealing to potential renters compared to standard agency listings.

Maintain Flexibility

Online advertising complements SHRA listings, giving you the flexibility to update rental details, adjust pricing, and refine your strategy based on prospective applicant inquiries.

The Best Approach for Sacramento Landlords

We can help you. Please contact us at Sacramento Delta Property Management. We’ve been working with owners and investors for more than 40 years.

Why Can’t My Tenants Just Pay the Water Bill (or HOA Bill) Directly?

shighland@sacdelta.net (Sandy Highland) — Thu, 06 Feb 2025 21:00:00 GMT

Why Can’t My Tenants Just Pay the Water Bill (or HOA Bill) Directly?

Feeling frustrated as you try to figure out utilities at your rental property?

Sacramento has owner-owning utility billing, which means those water bills have to be in your name, even if a tenant is living at your property and using the water.

You can’t ask your tenant to pay your HOA bills directly, either. That’s going to remain in the homeowner’s name, no matter who is living there.

As Sacramento property managers , we’re asked to figure out utilities all the time. This is what we can tell you.

What is Owner-Only Utility Billing?

Owner-only utility billing is a system where the landlord manages and pays for all utilities related to the rental property, rather than passing this responsibility on to tenants. This includes utilities like water and garbage collection.

Instead of fluctuating utility bills confusing tenants, landlords can set a fixed rental price that factors in the costs of these utilities.

For many Sacramento landlords , it’s a way to simplify operations while maintaining stronger control over utility usage and costs. But it can also be a hassle.

Best Practices for Owner-Only Utility Billing in Sacramento

As the property owner, you’re ultimately responsible for the water bills and any other utilities that have to be kept in your name. Consider the following best practices to maximize benefits and minimize struggles.

Analyze Historical Utility Bills

Review the past 12 months of utility payments for your property. This will give you a baseline to estimate averages and factor an appropriate amount into your all-inclusive rent rate .

Invest in Efficiency Upgrades

Sacramento’s sunny climate makes energy-efficient appliances and solar panels a smart investment. Over time, these upgrades can reduce your utility bills while benefiting the environment.

Work with a Sacramento Property Management Partner

Managing utilities for multiple rental units can quickly become overwhelming. Partnering with a Sacramento property management company can simplify operations and ensure utility payments are handled efficiently.

HOA Fees and Owner-Only Billing

By taking charge of HOA fee payments, property owners can ensure timely and accurate payments, maintain a strong relationship with the HOA, and provide a seamless and hassle-free experience for their tenants.

We know dealing with owner-only systems within Sacramento can be challenging, and we’re here to help. Please contact us at Sacramento Delta Property Management. We’ve been working with owners and investors to effectively lease, manage, and maintain investment properties for more than 40 years.

Which Income Bracket Are Most Renters In?

shighland@sacdelta.net (Sandy Highland) — Thu, 23 Jan 2025 21:00:00 GMT

Which Income Bracket Are Most Renters In?

To effectively rent out a property , you need tenants who can afford to live there.

On-time rental payments are important to your profitability. Have you ever wondered about the income of the average tenant in Sacrament o?

We have some data to share about what people are earning and why they’re renting.

Sacramento Incomes are Rising

According to the U.S. Bureau of Labor Statistics, in 2023, the average hourly wage for Sacramento residents was $34.96. This is more than $3 per hour higher than the national average. The median household income in Sacramento, according to the U.S. Census, was $78,954 per year in 2022.

Recently, higher paying jobs have arrived in Sacramento, which means the average resident might be making a bit more than these numbers suggest. We also know that even as incomes have risen, so has inflation, making things (including housing) feel a bit less affordable, even if there’s more money coming in.

The U.S. Census Bureau also tells us that just over 50% of households in Sacramento are occupied by the home’s owner. This leaves a little less than half of the population renting.

Income Brackets Matter to the Rental Market

Income levels largely dictate renters’ housing preferences. Renters in higher income brackets may be drawn to upscale amenities and single-family homes in gated communities, while those with lower incomes often prioritize cost-effectiveness and accessibility.

By studying these trends, investors can gain insights that help them select the right properties for target markets.

Lower-Income Renters

In and around Sacramento, lower-income renters might make less than $40,000. This income bracket often forms a significant portion of many rental markets, especially in metropolitan areas with costly housing markets. These tenants tend to focus on rental properties with modest features but good proximity to public transportation, jobs, and schools.

Middle-Income Renters

Middle-income renters tend to earn between $40,000 and $75,000. They represent households with stable salaries, often working individuals or dual-income couples. They are often looking for well-maintained properties with modern conveniences, good neighborhood amenities, and reasonable commutes to work. This group tends to have slightly higher expectations for property quality but is budget-sensitive.

Higher-Income Renters

Plenty of people earning more than $75,000 still prefer to rent a home rather than buy one. Higher-income renters make up a smaller share of the rental market but typically they prefer flexibility, minimal maintenance responsibilities, and proximity to city centers.

Building Your Real Estate Strategy Around Renter Demographics

Who Do I Contact to See If I Can Afford to Be a Landlord?

shighland@sacdelta.net (Sandy Highland) — Thu, 09 Jan 2025 21:00:00 GMT

Who Do I Contact to See If I Can Afford to Be a Landlord?

You have a home that you won’t be living in any longer, and you’re wondering if you should rent it out. Or, you’re thinking about investing. Maybe you’ve always wanted to be a landlord and you’re looking for a way in.

Can you afford it?

This is a good question. If you’re wondering whether you can afford to be a landlord, contact a Sacramento property manager . We can tell you exactly what sort of expenses you should expect when it comes to leasing, managing, and maintaining a rental home.

When potential landlords contact us at Sacramento Delta Property Management, these are the things we tell them about as we’re exploring whether they’re financially ready to be a landlord.

Consider Whether You Have a Property Now - Or Need to Buy One

It’s more affordable to be a landlord when you already have a property. When you have to buy a home to rent out, you’ll need to budget for a down payment and a mortgage. If you’re thinking about renting out the property you’re currently living in, you’ll have to decide whether you can keep up with mortgage payments while renting it out. What if the rent you collect is less than the amount you pay in your mortgage?

There are different scenarios that can help different landlords, which is why contacting a property manager for customized advice is important. For example, if you want to buy a duplex and live in one of the units while renting the other out, you can likely afford to be a landlord because you’ll qualify for an FHA loan that requires a lower down payment.

Determining Cash Flow Expectations

Cash flow is one of the critical metrics for first-time landlords. To calculate cash flow, subtract your property expenses (mortgage, taxes, insurance, maintenance, fees, etc.) from your expected rental income. A positive cash flow means your rental income will cover expenses and provide additional profit. A negative cash flow indicates you may need external funds to manage the property.

Will a negative cash flow be financially problematic for you? If your answer is yes and your property expenses are high, you might not be able to afford being a landlord.

Preparing for Unexpected Costs

Smart landlords have an emergency fund for unexpected repairs and vacancies. You’ll have to respond to any maintenance requests from your tenants, and be financially able to make the repairs and upgrades that keep your property habitable. What if the tenant leaves behind damage that exceeds their security deposit? It’s important to make sure you can afford to save a bit of money every month in a reserve to cover costs like this. If you need a new roof and you cannot pay for it, your success as a landlord will be in serious jeopardy.

Can You Afford the Time?

What Is Driving Inflated Rent Amounts on Zillow?

Thu, 26 Dec 2024 15:00:18 GMT

What Is Driving Inflated Rent Amounts on Zillow?

What does Zillow say your rental property should be renting for?

Zillow is a pretty popular site for tenants to find homes and for owners and landlords to list them. For marketing purposes, it’s a great site. For the purposes of pricing your rental home, however, you might want to use more reliable data.

A lot of rental property owners feel somewhat misled by the rental estimates they find on Zillow. These “Zestimates” have been inflated recently, and it underscores the importance of accessing good data when you’re pricing your rental home. Don’t rely only on what you find on general rental sites like Zillow and others.

What’s driving these inflated rental amounts?

We did some investigating.

Estimates and Data for Sacramento Rentals

The first problem may be faulty or incomplete data. Remember that estimates are only as good as the information that’s provided to the algorithm making the estimate. Zillow has access to very generalized numbers. It’s going to be a more macro look rather than a nuanced dissection of a local zip code or neighborhood .

There’s also the matter of accuracy. Zillow may not have correct information about the homes that are listed on their site. That’s going to lead to potentially higher estimates. If a Zestimate says that your home could potentially rent for $2,500 a month, that could be due to the fact that they think you have more square footage than you do. Or, you’re listed as a three-bedroom when your home only has two.

Zillow's Zestimate relies heavily on publicly available data, and this means that it may not take into account certain factors that are likely to impact actual pricing.

Market Conditions and Zillow’s Estimates

Zillow also has less of an ability to factor in the current market conditions when they’re attaching rental estimates to properties. When pricing properties, seasons have an impact. The availability of inventory, too. Mortgage rates in the sales market will impact the rental market and the rents that owners are charging for their homes.

There’s less agility in a system such as Zillow, making it more difficult for them to make rental estimates with accuracy. This can lead to inflated estimates.

Pricing Your Sacramento Rental Property Accurately

Tips for Efficiently Managing Multiple Properties

shighland@sacdelta.net (Sandy Highland) — Thu, 21 Nov 2024 21:00:00 GMT

Tips for Efficiently Managing Multiple Properties

Renting out one home is easy enough for most landlords, but what happens when you begin to grow your portfolio of Sacramento rental properties, and you find yourself managing multiple investments?

As your portfolio grows, so do the complexities of your property management tasks.

The best thing you can do is partner with a Sacramento property manager . This will ensure all of your rental properties get the attention that they need and remain profitable.

These are just some of the things that need to happen when you are efficiently managing multiple properties.

Streamline Operations with Property Management Technology

Technology is our best resource when it comes to managing multiple properties. Property management companies already have this technology in place, and our software can automate routine tasks such as:

Rent collection
Maintenance requests
Tenant communication

We offer features like financial reporting, tenant screening, and document storage, helping you stay organized and informed. If you’re not working with a management team, make sure you’re investing in property management platforms and communication tools that can help you remain organized.

Build a Reliable Team for Multiple Investment Property Success

Efficient property management requires a team of skilled professionals. From Sacramento property managers and maintenance crews to legal experts and accountants, having a reliable team ensures smooth operations. Delegate tasks based on expertise, allowing you to focus on strategic decisions and property growth. There’s no need for you to be collecting rent or tracking expenses when you could be identifying additional investment opportunities, for example.

Implement a Comprehensive Financial System

Keep your finances organized by implementing a comprehensive system for tracking income, expenses, and tax obligations. Accounting software designed for property management can simplify this process, offering features like automated invoicing, expense tracking, and tax preparation.

Regularly review financial reports to assess property performance, identify trends, and make informed decisions about your portfolio. Your property manager can help with budgeting, forecasting, and keeping costs down as you continue to look for ways to maximize what you’re earning in the short term and the long term.

Stay Informed About Market Trends

The Sacramento real estate market is dynamic, and staying informed about industry trends is essential for making strategic investment decisions. Monitor economic indicators, local property values, and rental demand to identify opportunities and potential risks. You’ll need to pay attention to where rental values are landing and to what tenants are demanding in their next rental home. This will inform how you price your properties, establish renewal rates for lease renewals, and consider upgrades and updates to make your properties more attractive to current and new tenants.

Prioritize Effective Communication

By leveraging technology, building a strong team, and implementing strategic processes, you can streamline operations and enhance the performance of your multiple investments.

Let’s talk about how to keep your investments profitable and stress-free. We can help. Contact our team at Sacramento Delta Property Management.

Strategies for Dealing with Difficult Tenants in Sacramento Rentals

Thu, 07 Nov 2024 21:45:00 GMT

Strategies for Dealing with Difficult Tenants in Sacramento Rentals

There are dozens of excellent reasons to rent out a home, but most Sacramento landlords know that it’s not always smooth sailing. One of the most challenging aspects of rental property management is dealing with difficult tenants.

Those difficult tenants come in all shapes, sizes, and mannerisms. Maybe they’re frequently late with rent or disruptive to neighbors. Maybe they cause damage to the property or keep trying to sneak in an unapproved pet. Understanding how to effectively manage such people and situations is crucial.

Who We’re Dealing With: Understanding Difficult Tenant Types

Before you can effectively deal with problematic tenants, it’s important to understand the different types of problem tenants you may encounter:

Your Late Payer : This tenant consistently pays rent late, disrupting your cash flow.
Your Rule Breaker : Often disregards the terms of the lease, whether it’s hosting unauthorized tenants or keeping pets without permission.
Your Complainer : Constantly finds new issues to report, whether justified or not.
Your Disruptive Tenant : Causes disturbances that affect neighbors and potentially breach lease agreements.
Your Property Damager : Shows little regard for maintaining the property, leading to excessive wear and tear or outright damage.

Strategies for Managing Difficult Tenants

The way you manage your communication and your response to these difficult tenants will depend on the problem and their communication style. Always remain professional. It can be difficult, but you don’t want to escalate a dispute or cause further problems. Here are some of the best ways to manage those difficult residents without compromising your own reputation or putting your property at risk:

Proactive Strategies

1.Set Clear Expectations from the Start

Begin with a solid lease agreement that outlines rules and expectations clearly. Discuss these terms with potential tenants before and ensure everyone is on the same page.

2. Conduct Thorough Tenant Screening

One of the best ways to avoid difficult tenants is by screening applicants thoroughly. Use background checks, credit checks, and landlord references. A comprehensive screening process can help identify red flags.

3. Create a Late Fee Policy

For tenants who frequently pay rent late, make sure you have a late fee policy in place. This serves as a deterrent and should help mitigate late rent payments. Include this policy in your lease agreement.

4. Handle Complaints Professionally

When dealing with complainers, professionalism is key. Listen to their concerns, address any legitimate issues, and document all interactions. This practice not only helps resolve issues effectively but also protects you legally if disputes arise.

5. Address Rule Violations Promptly

For rule breakers, address violations immediately. Be firm but fair, reminding them of lease terms and issuing formal warnings if necessary. Consistent enforcement of rules helps maintain order and fairness among all tenants.

Always use the security deposit for tenant damage, and make sure you document every detail, from inspection reports to communication during the tenancy.

Emerging Neighborhoods in Sacramento: Where to Invest Next

Thu, 24 Oct 2024 20:00:00 GMT

Emerging Neighborhoods in Sacramento: Where to Invest Next

Sacramento is enjoying growth both in the local economy and the population, which makes it a desirable real estate market for investors who live here and afar. Whether you’re buying your first property or adding new rental homes to an expanding portfolio, we have some thoughts on which neighborhoods will deliver the most profitability.

Here are some of the emerging neighborhoods in Sacramento that you don’t want to miss.

Investing in Sacramento Real Estate

Sacramento’s real estate market has displayed significant resilience and growth over the past few years. The city’s appeal is largely attributed to its affordable housing in comparison to neighboring markets like San Francisco and Silicon Valley. This is a city that’s also becoming a hub for tech companies and startups, contributing to an increasing demand for housing. The Sacramento Bee recently reported the city experienced a 10% increase in home prices over the last year, with predictions of continued growth.

Key Factors Driving Growth

Population Growth . Sacramento's population is expected to reach 1 million by 2040.
Job Opportunities . The city has seen an influx of tech companies and is home to several government agencies, creating diverse job opportunities.
Infrastructure Development . The ongoing improvements to transportation links, schools, and healthcare facilities make Sacramento an attractive place to live.
Lifestyle Appeal . Its proximity to lakes, mountains, wine country, combined with a vibrant downtown, enhances the desirability of Sacramento.

Top 5 Emerging Neighborhoods for Real Estate Investment

1. Oak Park

Historically known for its rich cultural heritage, Oak Park is undergoing a major transformation, attracting a diverse demographic of renters. The average home price is under half a million dollars, and there’s a lot of investment potential . A lot of local businesses are setting up shop here, and there are ongoing infrastructure and public transport improvements.

2. North Natomas

Located just north of downtown Sacramento, this area is becoming increasingly popular due to its spacious homes and good schools. This is a highly desirable neighborhood across tenant demographics because it’s an easy commute to Sacramento’s downtown area, but a residential enclave that’s big on green spaces, parks, and trees. The airport is also close by, and there’s abundant recreation and dining in the area.

3. West Sacramento

Just across the river from downtown Sacramento, West Sacramento has been making headlines for its affordable housing and vibrant community events. Properties here are affordable, likely to rise in value, and the neighborhood is close to parks and waterfront spaces.

4. South Sacramento

With its rich cultural diversity and increasing number of amenities, South Sacramento is becoming a hotspot for renters and buyers looking for residential homes that are affordable. Great shopping and dining can be found here, and there are good schools and hospitals in the area.

5. Midtown Sacramento

Investing in Green Technology for Rental Properties: Costs and Benefits

shighland@sacdelta.net (Sandy Highland) — Thu, 10 Oct 2024 20:00:08 GMT

Investing in Green Technology for Rental Properties: Costs and Benefits

As new fires continue to plague California, the climate and our environment is on everyone’s mind. Sustainable living has surged into the spotlight as a top priority for individuals, businesses, and governments in California and across the country. From solar panels to smart home devices, technology aimed at reducing energy consumption and carbon footprints has become more accessible and affordable than ever.

Real estate investors have an opportunity to invest in green technology and make their rental properties more appealing, efficient, and cost-effective.

The Costs of Going Green

When it comes to investing in green technology, the initial upfront costs can be a significant barrier for many investors. However, these costs vary depending on the type of technology being installed, the size and location of the property, and any existing infrastructure that may need to be upgraded or replaced.

Smart Home Devices

Smart home devices, such as programmable thermostats, smart lighting, and home automation systems, are an area where investors can make their properties more energy efficient. While the costs of these devices can range from $200 to $2,000, the return on investment is almost immediate. You’ll attract more tenants and higher rents.

Energy-Efficient Appliances

Upgrading to energy-efficient appliances is another way to make rental properties greener. While the average cost of replacing a standard appliance with its energy-efficient counterpart can vary widely (from $600 for a refrigerator to $2,000 for a washer/dryer combo), the upfront investment can be recouped through reduced energy bills and increased property value over time.

Insulation and Weatherproofing

Improving insulation and sealing drafts is another way to enhance the energy efficiency of rental properties. Depending on the size of the property and the extent of the work required, the costs can range from $1,000 to $5,000. However, the energy savings achieved through better insulation can lead to significant long-term reductions in heating and cooling costs.

The Benefits of Investing in Green Technology

Despite the initial costs associated with implementing green technology, the long-term benefits often outweigh these expenses. Here are some of the key advantages for property investors:

Reduced Energy Costs

One of the most immediate benefits of going green is the reduction in energy costs. By investing in energy-efficient appliances, better lighting, and improved insulation, property owners can significantly lower their utility bills, leading to increased profit margins.

Attracting Eco-Conscious Renters

With more people prioritizing sustainability in their daily lives, properties equipped with green technology are increasingly appealing to eco-conscious renters. In fact, a 2022 survey found that 70% of renters would pay more for a property that boasts energy-efficient features. By investing in green technology, property owners can tap into this growing market and potentially increase rental rates .

Increased Property Value

In addition to attracting more tenants, properties that incorporate green technology tend to have a higher market value compared to those that do not. According to research conducted by the National Association of Realtors, homes with energy-efficient features sold for an average of 9% more than their traditional counterparts. This means that when it's time to sell, property owners who invested in green upgrades can expect a solid return on their investment.

Trends Shaping the Future of Green Technology in Real Estate

Looking ahead, several key trends are expected to shape the green technology landscape in the rental property market:

Increased Demand for Smart Home Technology

As smart home devices become more affordable and accessible, the demand for these technologies is expected to grow.

Emergence of Green Building Certifications

Exploring the Impact of Interest Rate Changes on Sacramento's Rental Market

shighland@sacdelta.net (Sandy Highland) — Thu, 26 Sep 2024 20:00:00 GMT

Exploring the Impact of Interest Rate Changes on Sacramento's Rental Market

Real estate investors know that interest rates affect more than just mortgage payments. Rising rates can lead to decreased buyer activity, which may shift demand from home purchases to rentals. In Sacramento, where home prices have surged in the last five years, this could create opportunities for investors. However, you’ll want to weigh the higher rates against a backdrop of increasing rental prices.

In this blog post, we’ll explore how interest rate changes impact Sacramento's rental market, and what investors should consider in the coming months.

Understanding the Current Interest Rate Landscape

The Federal Reserve has raised interest rates several times since early 2022. These hikes were implemented to combat inflation, which soared to a 40-year high in mid-2022. Historically, as inflation rises, so do interest rates. Conversely, when inflation rates begin to drop, the Fed often responds by cutting interest rates.

According to recent data, inflation has been steadily declining, suggesting a potential easing of interest rates in the near future. However, in mid-2024, we’re still waiting for a drop.

The Effect of Rising Interest Rates on Home Buying

Increased interest rates directly impact mortgage rates, making home buying more expensive. According to a recent report from the California Association of Realtors, the average 30-year fixed mortgage rate is currently around 7.5%. This increase has already contributed to a slowdown in home sales across the state, with Sacramento experiencing a 31% drop in year-over-year sales in July of 2024.

When home ownership becomes less affordable, many prospective buyers remain in their rentals. This shift in demand can create a competitive rental market, driving up prices and occupancy rates.

The Effect of Rising Interest Rates on Rent Prices

While increasing demand for rentals is typically good news for landlords, it’s important to note that rising interest rates can also impact supply. Higher borrowing costs may lead developers to delay or cancel new construction projects, exacerbating the existing supply-demand imbalance in Sacramento’s rental market.

Rents are higher than they’ve ever been in Sacramento right now, and that’s partly due to the higher interest rates that homebuyers have to pay.

What Can Investors Expect in the Coming Months?

The Federal Reserve's decision-making process regarding interest rates is influenced by a variety of economic indicators. Here’s what we’re watching:

Potential Rate Cuts. The Fed's recent comments suggest there may be discussions about potential rate cuts in the upcoming months. However, any cuts would likely be gradual and may not significantly impact borrowing costs for some time.

Increased Rental Demand. With home buying becoming less affordable due to high interest rates, more individuals are likely to turn to renting as a viable option.

Supply Chain Constraints. The ongoing effects of supply chain disruptions and labor shortages may hinder new construction and development projects in Sacramento.

Navigating Tenant Laws in Sacramento: An Investor's Guide

shighland@sacdelta.net (Sandy Highland) — Thu, 12 Sep 2024 20:00:02 GMT

Navigating Tenant Laws in Sacramento: An Investor's Guide

Rental laws in California are notoriously tenant-friendly. If you’re renting out a home here, you likely understand that there are laws around fair housing , rent control, just cause evictions, support and service animals, security deposits, and habitability standards that must be followed.

Recent legislation has strengthened many of the existing tenant protections and also impacted areas such as e-bike storage, organic waste recycling.

Let’s take a look at the best way to navigate tenant laws in Sacramento to ensure you remain in compliance.

Stay Informed and Follow Updates

In July of this year (2024), there was a dramatic change in how much landlords can collect as a security deposit. You would have missed this if you were not paying attention. There are exceptions, but generally the law now states that you can only collect the equivalent of one month’s rent as a security deposit, whether your property is furnished or unfurnished.

If you’re renting out a multifamily property in Sacramento, you need to provide clearly marked organic waste recycling bins. And you cannot prohibit the storage of an e-bike or an e-scooter.

There are new protected classes in the state fair housing laws. Enforcement requirements are stricter around habitability laws.

You need to follow these laws and keep up with the current and pending legislation if you want to invest in Sacramento real estate and avoid expensive legal mistakes.

Document Every Process

It’s important that you document everything in order to protect yourself from complaints, disputes, and lawsuits. In order to navigate tenant laws, you have to make sure tenants know where you stand when it comes to:

Tenant screening
Cleaning and maintenance standards
Pet policies
Rent collection
Subletting

Your lease agreement is the best way to document all of your expectations and your tenant’s responsibilities. We also recommend that you document your standard rental criteria for potential applications. Put your tenant screening process in writing so you can demonstrate it’s objective and fair. Keep every piece of tenant communication, whether it’s an email or your notes following a phone conversation or an in-person encounter.

Invest in Professional Sacramento Property Management

If you don’t know the difference between a pet and a service animal and an emotional support animal, you need a Sacramento property manag er.

If you don’t know whether your property is covered by rent control laws, you need us.

If you have not changed your lease agreement in a decade to reflect the new laws and required language, it’s time for us to talk.

Contact our team at Sacramento Delta Property Management. We can help you navigate the legal landscape in Sacramento real estate.

What a Professional Sacramento Property Manager Can Do That a DIY Landlord Cannot

shighland@sacdelta.net (Sandy Highland) — Thu, 08 Feb 2024 21:00:00 GMT

What a Professional Sacramento Property Manager Can Do That a DIY Landlord Cannot

Managing a rental property isn't as easy as it may seem. DIY impulses are strong in our culture, and while many landlords think they are doing the right thing by managing their Sacramento rental properties themselves, it’s very easy to lose money and put your investment property at risk when you manage on your own.

If you’re not already working with a Sacramento property management company, it’s time to consider what a management partner can do for you that you simply don’t have the resources or technology to do on your own. Even if you have a lot of experience with rental homes, there will come a moment when you’re paying more because you don’t have the relationships or experience that a professional can bring to the table.

Here are some of the things a professional Sacramento property manager can do that a DIY landlord simply cannot.

Lower Vacancy Rates

A professional property manager has the experience and knowledge to keep your property occupied. Property managers can help with:

Setting the right rental value
Marketing the property
Showing properties
Screening applicants

Landlords who work with property managers have lower vacancy rates, and their properties spend less time unoccupied. Professional managers also do a better job of retaining residents, which means vacancy and turnover costs are much lower.

Legal Knowledge and Compliance

California is one of the most resident-friendly states in the U.S. If you don’t know the laws, it’s easy to make an expensive mistake.

Professional property management companies have an in-depth understanding of the laws and regulations governing rental properties. We invest in professional development and training. That means there’s more knowledge around fair housing, eviction, rent control, Section 8 residents, security deposits, and habitability. We can keep you in compliance and help you avoid potential issues and fines. A professional property manager can draft and negotiate lease agreements , as well as help enforce lease agreements and manage eviction proceedings when necessary.

Cost-Effective Property Maintenance and Repairs

DIY landlords may have trouble finding vendors who are licensed, insured, and affordable. Property managers already have these relationships in place.

With a professional property management partnership, landlords access a lot of peace of mind knowing that any maintenance and repair needs will be addressed promptly. Property managers can arrange for repairs, schedule routine property inspections, and ensure that the property is safe and habitable for residents.

As a DIY landlord, you cannot negotiate the best rates like a property manager can.

That’s because we provide our vendors, contractors, and service providers with a high volume of work. That gives us the economic leverage to access deep discounts and preferred rates. We save you money on repairs and upgrades.

Peace of Mind

Why suffer? Partner with a property management company so you can earn more, spend less, and have a more enjoyable rental experience. Your residents will appreciate the professional management, too.

If you’d like to hear more about our services, please contact us at Sacramento Delta Property Management. We have been working with owners and their investment properties for more than 40 years.

Lease Agreement Terms Sacramento Landlords Should Consider Adding

shighland@sacdelta.net (Sandy Highland) — Thu, 25 Jan 2024 21:00:01 GMT

Lease Agreement Terms Sacramento Landlords Should Consider Adding

A strong lease is an essential component when you’re renting out a Sacramento home . You need to make sure it protects you and your property. It needs to outline the requirements and the responsibilities of your residents, and it needs to comply with all state, local, and federal housing standards and laws.

You know what you must include; a rent collection policy, maintenance processes , contact information, etc. What should you consider adding, even if it’s something that’s not in a standard lease?

We have some ideas that will provide additional protection for your property. Even a minor loophole can leave you unable to evict a resident, collect overdue rent, or charge a security deposit for damage. It’s important that you cover every possible base.

Here are a few tips on what you should consider adding.

Limits on Guests

If your resident has a guest staying for a week, that’s no big deal.

What if that guest stays for a month? Or, two months? Or, longer?

You’ll need to establish when a guest becomes a resident. Establish a limit for how long guests are permitted to stay in the property, and what the procedure will be for the guest to apply for residency and be added to the lease agreement . You don’t want to have an open-door policy for people who have not been properly screened, approved, and added to the lease.

Clear Move-Out Instructions

A resident moving out seems like it should be easy enough.

Often, it’s not. This is where there’s the largest chance for a dispute with your departing resident. Without clear move-out instructions, they’re likely to expect that their security deposit will be refunded to them in full.

California law requires that you offer your residents a pre-move-out inspection so they know what to expect in terms of deductions and to plan for any repairs they can make before leaving the property.

Include this in your lease, and make sure you offer the inspection a week or two before their targeted move-out date.

Additionally, let your lease reflect what your resident will have to do in order to complete the move-out process. This may include:

Returning the keys to a specific place at a specific time.
Leaving a forwarding address for the security deposit return.
Returning the property to the condition it was in when they received it.
Cleaning.

Be clear and direct so there isn’t any confusion during or after the move-out.

Legal Language

We recommend including additional information in your lease, which reflects resident responsibilities and new state laws that have gone into effect over the last four or five years.

Your lease should address:

Fireplaces. If there’s a fireplace in your property, stipulate how it should be maintained and used. Include all safety and maintenance requirements.
Mold. Let your residents know what your expectations are around preventing it.
Bedbugs. Like mold, this is something your residents must work to avoid. Your lease can include how to minimize the risk of infestation.
Rent control. Always disclose whether the property is included in statewide rent control laws or exempt.
Prop 65. We recommend providing residents with a “clear and reasonable warning” about hazardous materials or chemicals in the property.

Terms Every Lease Agreement in California Should Include

Thu, 11 Jan 2024 21:00:00 GMT

Terms Every Lease Agreement in California Should Include

If you’re renting out a property in California, it is essential to have a written lease agreement to protect you, your investment, and your residents. A legally compliant and enforceable lease agreement outlines the expectations between a landlord and a resident, and without a solid agreement, you will have little control over the rental process.

Understandably, drafting a lease agreement can be complicated, especially in a state like ours, where there are numerous protections in place for the residents who are renting your home. There are also legal disclaimers and language that’s specific to California law that you must include.

Here are a few of the most important terms that every lease agreement in California should include. Remember to have your residential lease reviewed by an attorney or a Sacramento property manager before you execute it.

Basics: Names, Contact Info, Property Info

The first and most crucial step is to identify the parties involved in the tenancy. The names of the landlord(s) and resident(s) should be written in the lease agreement along with their contact details. Don’t forget to identify your property managers, if applicable.

A lease agreement must also include a description of the rental property, including the address, unit number, and any restrictions that the landlord may have concerning the use of the rental property. Mention which appliances are included and whether there is any access to outbuildings or amenities, such as a fitness or community center.

The rental agreement should specify the duration of the tenancy. This could be a fixed lease term, such as six months to one year or a month-to-month rental. If it is a fixed lease term, the agreement should also state what happens when the lease ends, such as whether it can be renewed or extended.

Rent Collection Policy

The lease agreement must also outline the payment terms, including the amount of rent, the due date and method of payment, late fees, and possible penalties if the resident fails to make payments. You’ve likely collected a security deposit, so your lease should clearly indicate the security deposit amount, how it will be used, the resident’s right to receive an itemized security deposit statement, and what is expected of the resident before the deposit is returned.

Maintenance and Repairs

Residents have a right to a property that is safe and habitable. A lease agreement must specify how maintenance and repairs will be handled, including what types of repairs are the resident’s responsibility, how maintenance requests should be made, and how they will be prioritized based on urgency. Who is responsible for landscaping? Make sure the lease reflects that responsibility.

Rent Control Language

The Resident Protection Act of 2019 went into effect in 2020 and introduced statewide rent control as well as just cause eviction provisions to the entire state. Your property is either covered by or exempt from this law. The lease must have language stating whether the rental increases are bound by the rent control laws or exempt from them.

Disclaimers and Addenda

There’s a lot more information that must be included in your lease agreement, and we’d love to talk to you about pet policies, how to address utilities, and what to say about pest control.

Please contact us at Sacramento Delta Property Management. We’ve been writing lease agreements for more than 40 years in our experience as residential property managers. We’d be happy to help.

How to Minimize High Tenant Turnover in Your Sacramento Rental Property

shighland@sacdelta.net (Sandy Highland) — Thu, 28 Dec 2023 21:00:01 GMT

How to Minimize High Tenant Turnover in Your Sacramento Rental Property

There are a lot of good reasons to avoid resident turnover. If you find your property is becoming vacant again after every lease term, you need to implement some strategies that will minimize such high turnover.

Let’s take a closer look at how you manage your rental property and evaluate where changes need to be made. Turnover is expensive. It’s frustrating. The Sacramento rental market being what it is today, it’s also unnecessary.

Here are some of the ways we minimize turnover as Sacramento property managers .

Provide a Competitive and Updated Sacramento Rental Property

Residents are less likely to leave homes that they love. If you want to avoid turnover, make sure your property is an attractive and welcoming home. Invest in some curb appeal and keep up with landscaping. You can typically roll the costs of lawn care right into the rental amount.

Make sure the home is in excellent condition when your residents move in. This will make it easier for them to maintain throughout the tenancy. Pay attention to upgrades and updates that help your property stand out in a crowded market. Offer the amenities residents are looking for. If they can find them in your home, they are likely to stay in place longer. Provide in-unit laundry. Welcome pets. Install smart tech features such as video doorbells and smart thermostats.

Responsive Communication Retains Residents

Responsiveness and communication are critical when you want to keep residents happy and reduce your vacancy and turnover rates. This is where it can be beneficial to work with professional Sacramento property managers. A management company will maintain ongoing communication and develop excellent relationships with your residents. If you are managing on your own, make sure your resident’s questions are being answered and needs are being met. Remain responsive and accessible.

Your residents will need to know how to contact you. It’s vital to be available 24 hours a day in case there’s an emergency at the property. Send an email or make a phone call every now and then just to check-in.

Prioritize Maintenance Requests

One of the main reasons residents decide to move out of a rental property is that their repair requests are ignored. You don’t want to create an expensive vacancy this way. Be responsive, even to routine repairs.

Emergencies require an immediate response. A property owner who is focused on avoiding resident turnover will respond with the same sense of urgency when there’s something simple needed. Don’t ignore the small stuff.

Make sure you’re prioritizing preventative maintenance . Pest control is important and you’ll want to have the HVAC system inspected and serviced annually. This will increase efficiency, and your residents will appreciate the lower utility bills.

Reduce Resident Turnover with Market-Based Rental Increases

A deciding factor in whether a resident will renew a lease agreement or look elsewhere is the amount of rent they’re paying.

While most renters expect an increase at renewal time, anything that’s too high will likely drive away your residents. If you’re going to increase the rent, take a good look at the market. Perhaps you’ll feel justified in raising the rent by 5 percent based on the data you’ve seen. Consider raising it by 2 or 3 percent instead, and let your residents know that you’re keeping the rent lower than the market value of your property because you value their tenancy.

Pros and Cons of Renting Your Sacramento Home to Relatives

Thu, 14 Dec 2023 00:16:33 GMT

Pros and Cons of Renting Your Sacramento Home to Relatives

Is it okay to rent to a family member or relative?

Here’s a short answer: maybe. But, probably not.

Here are a few things to think about.

Will that Family Member Pay Rent on Time?

At the beginning of what should be a business relationship, of course you expect your relatives to pay rent on time. But life happens. There could be a change in employment or a surprise financial hardship or something else. When that occurs, be prepared for questions such as:

I get paid next Friday. Can I pay the rent a little late?
Can I pay less this month?
Can I skip this month?
You’re not going to charge me a late fee, are you?

It’s important that you establish and enforce a consistent rent collection policy for all of your tenants – even those to whom you happen to be related.

Will your Family Member Assist in Maintaining the Home?

Something else to think about is whether that family member who becomes your resident will take care of the property and keep it in good condition. Is your relative something of a handyman? That’s a positive, and it might help you maintain your property . Maybe they can repair the fence or tighten hinges and locks or even take care of minor plumbing or electrical issues.

But, be careful of the over-zealous types. You could find yourself with someone who wants to do a mild remodel or perhaps paint a few rooms wild colors. They might move around your appliances or do something that you aren’t happy about.

Ending the Tenancy but Not the Relationship

Even though the resident/landlord relationship is ending, you want to make sure the family relationship doesn’t end as well.

At Sacramento Delta, we can protect you from any awkward exchanges with your family member when they’re renting a property from you. We treat every resident the same way, and we establish three pillars of qualifications before we move anyone into your home. These are:

Strong credit.
Positive rental history. We don’t want to talk to former residents and hear about noise complaints and late rental payments. We want to know your residents kept the properties they lived in previously in good condition.
Verifiable income. We want to make sure your resident can pay rent on time consistently every month.

If you have any questions about how we would manage your property with a resident who is a relative – or with any resident at all, contact us at Sacramento Delta Property Management. We’ve been managing properties for over 40 years, and that is service you can trust.

Preparing Sacramento Property Owners for 'Normal Wear and Tear' at Resident Move-Out

shighland@sacdelta.net (Sandy Highland) — Thu, 30 Nov 2023 21:00:01 GMT

Preparing Sacramento Property Owners for 'Normal Wear and Tear' at Resident Move-Out

We’re talking about a topic we have covered a couple of times: property wear and tear versus property damage and how it impacts the security deposit and move-out. Previous blogs have discussed what kind of life expectancy exists for paint, carpet, and those types of things, but today, we’re talking about the expectation of owners when it comes to resident move-outs.

Common Expectations of Sacramento Rental Property Owners

Sometimes, we have a resident who stays in place for a while; maybe three to five years. Most property owners expect that when we get their property back, it looks brand new. Your property only looks that way when it’s actually brand new.

When we get a rental home back, it’s been lived in.

Whether the resident was there for three yeasr or five years, the home will look lived in. The furniture is gone, so you can see marks on the floor and pathways along high traffic areas. Photographs and art are off the walls, so you can see where those things hung.

Paint will clearly be needed, and carpet will likely be needed, too. One way to mitigate the shock of wear and tear is by doing interior surveys on a regular basis. This is a window into how the resident is treating the property and an indication of what we’ll have to do when the resident does move out. We want to be prepared for wear and tear repairs and updates. Our owners can create a savings account for turnover expenses and the longer a resident stays, the more money gets saved for those eventual expenses.

Preparing Owners for Wear and Tear and Damage

On average, residents with Sacramento Delta stay in place between three and five years.

We like to remind owners that a lot of wear and tear comes from the Sacramento climate. People love our warm, sunny days - this is one of the things that makes Sacramento a great place to live. But, it creates a bit of extra wear and tear. That sunlight fades paint and carpet. Your window coverings could fade and fray, too. The lines holding blinds together can begin to break down, and those blinds won’t stay the same color they once were. It’s normal.

There is only so much preparation that can be done when we’re talking about damage. Maybe a resident hung a large television on the wall and used extra-large bolts, which left holes. We expect residents to pay for that because it’s not normal wear and tear.

There might be tears in the carpet. If residents did not report that carpet was coming apart in transition areas and it’s frayed and beyond repair, that’s something we’ll charge the security deposit for. If the baseboards are chewed up, we’ll consider that damage as well.

Professional Sacramento Property Management

Also, if these are residents who pay rent on time, take care of the property, and generally make the rental process easy, we might want to be careful about rental increases at renewal time. We want to make sure they have a great experience and stay longer. When you can reduce turnover, you can also reduce what you’re spending on wear and tear. The work is less frequent. Completing full paint and carpet refreshes every seven years is far more cost-effective than doing it every two or three years.

The lines between normal wear and tear and property damage over time can be blurry. If you haven’t been doing property management as long as we have, it’s harder to determine. Contact us at Sacramento Delta Property Management. We can use our 40+ years of experience to make the move-out experience less confusing for you.

How to Be a Good Landlord in Sacramento

Thu, 16 Nov 2023 21:00:00 GMT

How to Be a Good Landlord in Sacramento

We’re talking about what it takes to be a good landlord in Sacramento .

On the surface, you might think a good landlord is maybe lenient and gives residents a couple extra days on the rent and doesn’t charge a late fee. Maybe you think a good landlord gives out gifts. Those things are nice, but they don’t make a good landlord.

To be a good landlord, you have to provide high-quality housing in a sustainable manner. There are multiple steps required to get there.

Inspect Your Sacramento Rental Property

Being a good landlord starts with a vacant house . Before a resident moves in, you have to thoroughly inspect your property. Make sure the house is in really good condition and note anything that needs improvement. Check light switches and outlets. Check the cabinet doors and drawers.

Be thorough. You want the house to be in good condition and professionally cleaned. Then, it’s ready to be listed on the rental market. This is the first step in being a good landlord: offer a great house.

Select the Right Sacramento Residents

After the house is ready, you want to be strict on who you allow in the property. This is an important part of being a good landlord because if you don’t get the right resident, you can’t be a good landlord. When they’re not paying rent on time or causing damage, it’s hard to be a good landlord.

Take your time choosing an applicant. Use a written application and provide standard qualifications so they know what’s required. Use that standard criteria and you’ll find a good resident while avoiding fair housing trouble.

Move-In Process

Once you’ve found a resident, make sure they can move in within one to two weeks of approval. You want them to pay rent and the security deposit up front. Have them sign your high-quality lease which protects both you and your residents.

Document the condition of your property, and have residents sign off on the move-in condition report. Take a lot of pictures so you’re clear on how the house looks when residents move in. Give them time to check the home out themselves and add anything to that report.

Maintenance Responsiveness

After your resident moves in, you’re looking at maintaining the house . Be responsive with repair requests. You might not be able to repair things right away, but if there’s a hold up, a good landlord lets their residents know what it is.

Conduct Annual Inspections

A good landlord inspects the property annually. Check the condition of the home to catch any maintenance items that need to be addressed. There may be clogged gutters or other preventative repairs that are needed. You want to check out what items need attention. Water damage, for example, is especially something to look for. Small drips can become big problems. Let residents know this is a standard maintenance inspection.

Commit to Rent Increases

Most residents will understand that expenses go up every year. Some people think a good landlord doesn’t increase rent. It’s a nice thought, but you need to keep up with the costs that are increasing so you can repair the roof and the HVAC. You’ll need enough income to cover current expenses and have some money in a reserve when a big repair is needed.

Increase rent once a year and stay within market rents. You don’t want to charge more than what the competition is charging, and you want to give residents incentives to stay in the property.

Provide Resident Incentives

A good relationship with your residents may include incentives such as a waived late fee if they run into a problem. Or you can write them a thank you note for maintaining the house. Some residents do an exceptional job with your property, and you might give them a gift card to a restaurant.

Move-Out Process

Once your resident turns in the keys, you have 21 days to return their security deposit. Send a check if they’re getting money back. Include an itemized list of any expenses that you deducted, and don’t forget the invoices.

These are the basics of being a good landlord. If you need any help with your quest to be a good landlord, please contact us at Sacramento Delta Property Management. We have been helping landlords do better for more than 40 years.

Do You Know the Difference Between Federal & California Fair Housing Laws?

shighland@sacdelta.net (Sandy Highland) — Thu, 26 Oct 2023 20:00:01 GMT

Do You Know the Difference Between Federal & California Fair Housing Laws?

What are the fair housing laws you need to follow when you’re renting out a home in California?

This can be a complicated topic, but it’s an important one. Fair housing laws were enacted at the federal level to prevent discrimination in the sale, rental, and financing of properties in the housing industry.

The Civil Rights Act was passed in 1964 to prevent discrimination based on race.

In 1968, the act was amended to include a prohibition against discrimination based on a number of other protected classes. This law prevents landlords from refusing to rent to someone based on additional, specific characteristics.

Protected Classes: Federal Law versus California Law

The seven federally protected classes are:

Race
Religion
National origin
Color
Sex
Disability
Familial status

You cannot refuse anyone housing based on those things. In California, however, there are 13 more protected classes in addition to those at the federal level. These include:

Marital status
Sexual orientation
Age
Ancestry
Medical condition
Genetic information
Gender identity
Gender expression
Source of income
Citizenship
Primary language
Immigration status
Veteran and military status

As you can see, the California protections go quite a bit further than the federal fair housing protections.

What Are Fair Housing Laws Designed to Do?

Fair housing laws are in place to prevent discrimination and allow equality within the housing industry.

At Sacramento Delta, we are committed to staying compliant with all state and federal fair housing laws. We do it to protect all of the people we work with: rental property owners, Sacramento property managers , real estate agents, brokers, lenders, newspapers, insurance agents, architects and developers-- and this is just a brief list. We do this because anyone can be named in a complaint or a lawsuit.

To stay compliant with fair housing laws, you must be informed and educated on all of the current laws and any amendments that are included in the laws and can take place at any time.

Understanding fair housing laws is especially important in California. This state is known for leading the way in all laws, whether we’re talking about rent control or eviction, Section 8 housing or fair housing laws.

When you’re renting out a property in California, you have to be aware of and compliant with the law before a tenancy, during a tenancy, and after a tenancy. If you’re not careful, your marketing materials can be found to violate fair housing laws.

Maintenance Processes for Successful Sacramento Property Management

shighland@sacdelta.net (Sandy Highland) — Thu, 12 Oct 2023 20:00:01 GMT

Maintenance Process for Successful Sacramento Property Management

Maintenance is never easy, and it’s never fun to deal with. But, it happens to every rental property in Sacramento , so you need to understand how the process works. At Sacramento Delta, we try to make it as smooth and painless as possible.

Let’s take a look at our maintenance process so you know what should be included when routine repairs are needed at your property.

Troubleshooting Maintenance Complaints

When a call comes in that maintenance is needed, the first thing we do is try and figure out what the resident really needs. We listen to the complaint and we try to get to the bottom of what’s going on at the rental property.

We’re looking for an opportunity to do some basic troubleshooting with the resident so we don’t send a vendor over to the property if we don’t have to.

Contacting Vendors for Sacramento Rental Home Repairs

If we cannot walk the resident through a simple fix, we will contact one of our preferred vendors to take a look at the problem and provide us with an estimate.

When the work is fairly easy and inexpensive, we’ll have them go ahead and complete the repair. Our threshold is typically at $250. If the repair is less than that, we’ll have them go ahead and do it so we don’t have to bother our owners.

However, if the repair is for more than $250, we’ll contact the owner and present the estimate. Owners will tell us to proceed or they might want to use their own vendor. We’re flexible.

Emergency Repairs After-Hours

Repair needs don’t always happen during regular business hours.

For after-hours emergencies, we work with a team of licensed property managers in Sacramento who are on-call. There’s always someone to take that emergency call. The property managers working with Sacramento Delta are familiar with our process. They can look into your account and make sure everything is handled in the manner that you prefer.

Once the immediate need is addressed, we proceed from there.

Collecting Repair Bids and Estimates

If there’s a larger maintenance project that a property needs, we gather a number of bids and present those estimates to the owner. We have a full list of vetted vendors we work with, and they’re all licensed and insured. When work needs to be done, as the property owner you’ll have several options:

Choose one of our vendors based on their estimate
Use a vendor of your own whom you prefer
Do the work yourself

You’ll find we’re very flexible and committed to handling maintenance and repairs in a way that works for you as the property owner. Our vendors are excellent, but we’re happy to work with anyone you’d like to perform the repairs.

Factors to Consider When Determining A Rental Rate

shighland@sacdelta.net (Sandy Highland) — Fri, 10 Mar 2023 21:00:00 GMT

Factors to Consider When Determining A Rental Rate

We are always getting asked how much rent a property can earn on the Sacramento rental market. So today, we’re talking about our process for coming up with the best rental amount for your property.

Putting together some comps is easy to do, but you have to remember that Sacramento is a diverse community. Even within a single zip code, there’s often a lot going on. How your property fits into the equation is determined by having a property manager look at your specific property. By working closely with a Sacramento property manager , we can get you the best rent.

Evaluating and Pricing a Sacramento Investment Property

We need to see your home to effectively price it. Google images and maps can help, but we need a true perspective on your rental home and its condition. We want it sparkling clean and beautiful before we list it on the market, and when we look at photos online, they might be from years ago. We need to know how it looks right now. The biggest benefit to you when pricing your home is allowing a property manager to meet you at your property.

Accessing Accurate Sacramento Rental Market Data

Third party sites like Zillow and Rent-O-Meter list the last advertised prices for any given rental property. It does not mean a home rented for the price that you see. If a rental home is marketed at $4,000 per month but it never rents, that rental price contributes to the analytics of what the market is in the area. It’s not accurate, and you’ll need more reliable data when you’re pricing your property.

Attracting Sacramento Tenants with the Right Rent

Well-qualified tenants are smart with their money. They won’t overpay for a property.

You also have to consider what type of tenant will be looking for your rental home. For example, a property that’s 2,500 square feet with four bedrooms, four bathrooms, half an acre of land, and RV access will likely take some time to rent. When the owner wants to earn $3,500, it’s going to be even harder to rent. There is a particular person who will be looking to rent that kind of property, so it might take a couple of months to find a tenant. It’s harder to rent these properties out, so the price point has to be intentional.

Doing the Math on Sacramento Rental Values

Owners who price correctly and even $100 or $200 under market will find long term tenants. We work with tenants who have been in place for more than 30 years, effectively paying off the owner’s mortgage. This type of tenancy saves owners from turnover costs and vacancy loss.

We do want you to get top dollar for your rental property, but we’ll counsel you around the importance of avoiding a long vacancy. You don’t want to pay that mortgage every month while waiting for a tenant willing to pay your higher price.

The goal is to reduce vacancy, have the best tenant in your property as long as you can, and increase your ROI. Hopefully, these helpful tips can give you a better experience.

If you’d like some help, please contact us at Sacramento Delta Property Management.

Rent Control: Does It Apply to Me & How Do I Know? | Sacramento Property Management

shighland@sacdelta.net (Sandy Highland) — Fri, 24 Feb 2023 21:00:01 GMT

Rent Control: Does It Apply to Me & How Do I Know? | Sacramento Property Management

Rent control is a loaded topic and one of the most frequently asked questions we get is: does it apply to my property?

We are happy to tell you everything we know about rent control from a Sacramento property management standpoint. But if you have any legal questions about rent control and how it applies to your current tenant or property, we will always refer you to an attorney for those specific answers.

Current rent control laws were passed in 2019 and went into effect in 2020. We’ve been dealing with rent control as well as COVID, so there’s been a near-constant state of emergency in California that affects how much rent can be raised.

A lot of property owners assume their homes are under rent control, but often they are not.

Single-Family Homes in Sacramento and Rent Control

If you own a single-family rental home that’s not part of a real estate LLC, your property is exempt from rent control. Properties included in rent control are:

Multifamily properties over 15 years old
Duplexes over 15 years old
Properties owned by a corporation or a real estate LLC.

There are a lot of questions about what’s permitted. For example, you can only ask a tenant to vacate a rent controlled property for a couple of reasons:

You or an immediate family member is moving into the unit
You’re remodeling or renovating due to necessity and not just free will. After a renovation or repair, you have to offer the property back to the prior tenant at the same rate they were paying before they had to move.

Homes subject to rent control also include rent caps. You can only raise a tenant’s rent within city limits at 5 percent plus inflation. Within county limits, it’s at 6 percent plus inflation. Each county in California is different.

Inflation rates fluctuate annually. Last year, it was 3 percent and this year it’s 8 percent.

Our best practice is to keep all rental increases under 10 percent. We’ve been in a state of emergency since the Sonoma wildfires, so keep your increase at or below 10 percent. Otherwise, a tenant could potentially think you’re making an illegal rental increase and then you’re facing a lawsuit.

Raising Rent When You’re Exempt from Rent Control

Renting out a single-family home, we recommend staying in line with rent control fundamentals.

You can ask a resident to vacate without cause and there are different rules to raising the rent, but we would never recommend that you raise the rent more than 10 percent even if the rent control laws do not cover you.

Why Rent Control Doesn’t Hurt Your Sacramento Investment Property

Just cause eviction requirements give us a bit of concern, but rent control is fair and reasonable as it pertains to the properties we rent out. Part of managing this process and all new laws is talking with your property manager. We can help you understand what looks like a reasonable rental increase. We know the market and we provide some of the best practices that you’ll find in the property management industry.

Our job is to keep you (and ourselves) out of court.

We also want to be fair to tenants because in our experience, happy tenants lead to happy owners.

If you have rent control questions, please contact us at Sacramento Delta Property Management.

How Do I Choose a Property Management Company in Sacramento?

shighland@sacdelta.net (Sandy Highland) — Fri, 10 Feb 2023 21:00:01 GMT

How Do I Choose a Property Management Company in Sacramento?

We are commonly asked how a landlord or a rental property owner should choose a property management company . This question comes in regularly, and we always advise people to work with a company that belongs to NARPM and has designations and certifications.

Let’s talk about what that means and why those associations and certifications are important.

At Sacramento Delta, we’ve been doing property management for single-family homes since 1983. We have some experience in helping people choose a management company, and these are our best tips.

NARPM Member Sacramento Property Management Companies

NARPM is the National Association of Residential Property Managers. It’s a professional, national organization that focuses on residential properties, specifically single-family homes. Managing a single-family residence is different from managing multi-family buildings and units in those properties.

There are a lot of choices for property management in Sacramento. When you’re renting out a single-family home, you want to make sure you’re working with a management company that understands and specializes in single-family homes. It makes a difference.

NARPM puts a lot of effort and resources into property management education. Property managers involved in the association are interested in staying up to date with the laws and best business practices in the industry. Property managers are networking with and learning from other property managers.

We recommend that you focus your search for a property manager on those professionals who belong to NARPM.

Property Management Designations and Certifications

Next, look at the designations and certifications that a property manager has. This shows an interest in the property management industry and a commitment to professional growth. Here are the three main designations that you should look for when choosing a property manager:

Residential Management Professional (RMP)
Master Property Manager (MPM)
Certified Residential Management Company (CRMC)

All of these designations mean something different. The RMP and MPM are personal designations and the CRMC is a company designation.

At Sacramento Delta Property Management, we are a CRMC designated property management company. This designation means that we have a master property manager on staff. It also means we have over 500 units of experience. This is established and categorized by how many properties we manage and how long we’ve managed them.

A specific level of expertise is required to get this designation. To earn that CRMC designation, a company has to pass an audit, which is rigorous and includes a handbook and a checklist that’s 20 pages long.

The idea of the audit is to make sure a company is set up for success. They check to ensure the office is structured to handle property management tasks and residents and maintenance needs. They audit for processes that include security deposits, hiring of staff, contracts, and procedure manuals. They want to see consistency with property management.

The benefit of choosing a property management company with a CRMC is that you know there’s been a lot of background checking. They meet rigorous certification standards, and the process is managed by an association specializing in single-family rental homes .

Questions to ask When Interviewing a Sacramento Property Management Company

shighland@sacdelta.net (Sandy Highland) — Fri, 27 Jan 2023 21:00:00 GMT

Questions to ask When Interviewing a Sacramento Property Management Company

Initially, when owners contact a Sacramento property management company , they want as much information as they can gather. As you’re talking to a lot of different property managers, all of those details can begin to run together.

At Sacramento Delta, we do a good job of figuring out what an owner really needs by the questions they ask. There’s always concern about pricing and we also talk to owners who need some help setting expectations.

The job of a property manager is to give you the best care of your investment property. When you’re diving into some specific interview questions, here are some of the things to remember.

Sacramento Property Management Pricing

You need to know what you’re really paying for.

People often ask about hidden fees.

Owners will come to us and ask what additional fees they’ll have to pay on top of the management and rent-up fees that they expect.

In our company, there is only one additional fee, and it’s completely optional.

This is the Interior Survey Program, and you can enroll in it if you want to.

What his fee covers is an interior inspection. We go inside and complete a full inspection, with a report that comes out to 30 or 40 pages. The price is $150, and it’s paid annually.

This inspection covers the city requirements for the Rental Housing Inspection Program. When you go through the city, it costs $127, and you get a yellow piece of paper verifying your compliance. With our program, you pay $150 for the complete inspection, and you still get that yellow piece of paper.

Our fees are standard and transparent:

The rent-up fee is what you pay one time when we initially place a tenant.
The monthly management fee is paid every month and easily deducted from your incoming rent.

We are committed to being transparent with our clients, and we value their investment. These are the three standard fees for our company, and one of them is optional.

A lot of the owners we talk to don’t believe us.

They’ve probably seen sample management contracts with a whole list of fees and add-ons. Some companies will charge for every single thing they do for you. There might be utility billing or an extra charge for paperwork.

We try to keep it easy.

We provide start to finish property management so you don’t have to wonder if you’ve signed up for a certain service. You know it’s included when you’re working with our team.

Managing Property Management Expectations

When we talk about pricing your property, we’re committed to setting a reasonable rental value. We never want to price your home at the top of the rental market because we’re selective about attracting highly qualified applicants . To get those applicants, the property has to be priced competitively.

Ask about how your property will be priced, marketed, and leased. You don’t want a company that over-promises and under-delivers. We do the opposite: we under-promise and over-deliver.

If you have any questions about finding the right property management company, please contact us at Sacramento Delta Property Management.

What Makes The Best Rental Home in the Sacramento Valley Area?

Fri, 13 Jan 2023 21:00:00 GMT

What Makes The Best Rental Home in the Sacramento Valley Area?

If you’re an investor looking for an opportunity to buy a rental property , what should you be looking for in the Sacramento Valley area?

Today, we’re sharing some of the characteristics that make the best rental investment property .

Affordable Rental Values for Sacramento

First, you want a property that will be affordable. In the Sacramento region, the median salary is just over $72,000 per year. This breaks down to $6,000 a month in income. Our applicants must earn three times the rental amount, so you’re looking for a property that will earn an average of $2,000 per month in rent.

This isn’t to say there aren’t plenty of people earning more than that. But, they’re usually more concerned about their finances. They don’t want to be rent-poor. They may be saving to buy their own home. So, look for a property that will rent in the $2,000 per month range. You’ll find it’s the most rentable range.

Three Bedroom/Two Bathroom Sweet Spot

The best rental property to buy in Sacramento is a three bedroom, two bathroom single-family home. This is the most sought-after rental home. It has to be in good condition, too. Most of the renters looking for these properties are leaving the multi-family life and they want more space and privacy. They’re looking for a home that’s clean and move-in ready. They want the extra bathroom and a secure garage. They want outdoor space and they like the extra bedroom because they’re working from home now.

Sacramento Rental Property Location

One thing the rental market and the sales market has in common is location.

This is a big part of the picture when you’re looking for the best investment property . You want to buy a house in a neighborhood that looks safe. By safe, we mean that when you look down the street you don’t see bars on the windows and chain link fences around the perimeter of each property. Those things will make tenants not want to rent your home.

Ask yourself these questions:

Would you feel comfortable having a child play in the front yard unattended?
Would you move into this house yourself?
Does it look like a friendly neighborhood?

You want an environment that’s comfortable and attractive to tenants.

This is a good example of why flips don’t always do well. You can renovate a distressed property into a gorgeous home inside and out, but if that home is on a street no one wants to live on, you’re going to have it vacant and you won’t earn back what you’ve invested.

Offering a Well-Maintained Rental Property

No one wants to rent the Taj Mahal. It may seem like a novelty at first to rent out a six-bedroom home with a pool and marble floors, but the rent will be so high that your tenants, if you find them, will not stay long. Higher rents lead to higher turnover.

There are a lot of property owners thinking about 1031 exchanges . You’re better off buying two smaller houses when you do a 1031 exchange than one giant mansion.

Finally, find a Sacramento-based Realtor who knows the local market. We can refer you to professionals who specialize in the investment experience.

If you have any questions about investing in Sacramento rental homes , please contact us at Sacramento Delta Property Management.

Why You Should Hire Licensed, Independent Contractors for Your Sacramento Rental Property

Fri, 30 Dec 2022 21:00:01 GMT

Why You Should Hire Licensed, Independent Contractors for Your Sacramento Rental Property

At Sacramento Delta Property Management, we always hire independent contractors for the repairs and maintenance that’s needed at the properties we manage . Why do we do that instead of hiring our own in-house staff?

There are many reasons that we prefer hiring independent professionals. We’re taking a look at the three key reasons behind that decision in today’s blog.

1. Providing Owners with Competitive Pricing

The first reason is price. We live in a free market, and everyone likes a good deal. This includes property managers . We like to get a lot of value when we buy a service or a product. When we work with independent maintenance vendors and contractors, we have the ability to shop around.

If we have a large maintenance or a project that needs to be done at an owner’s property, we ask for multiple contractors to provide their best estimates for what the work will cost. This allows us to get our best deal. When we get the best deal, our owners get the best deal.

This process also helps us gather second opinions when necessary. Sometimes, a vendor who we solicit for a bid can offer a better solution than what we thought we needed to do.

2. Flexibility with Sacramento Maintenance

Working with a large network of independent vendors and contractors also provides a lot of flexibility. Whether we need a roofer, a fence repaired, an HVAC service, or a restoration project, we know that there are specialized professionals in our network who can respond to the exact need that our properties may have.

Instead of relying on a team of generalist maintenance professionals, we have the flexibility to ask for estimates from specialists. Whatever your project happens to be, we have vendors who can give us an estimate and an idea of what the scope of work would likely be.

Maybe you’re wondering if you should repair or replace something.

Our vendors will make a recommendation. If you repair, you’ll likely save some money. But, the life of that repair may only last a year or two. But if you replace, you will have to spend a little more money now, but the property will look good and the replacement will last for decades.

That’s the flexibility we have with our vendors and contractors.

3. Achieving the Best Customer Satisfaction

We also work with independent and licensed vendors because they provide us and our owners with the best customer satisfaction. Customer service sounds cliché, but here’s the deal. Our independent contractors want the repeat business that a property management company like ours can provide. They know that Sacramento Delta manages a lot of properties. They want our business, and to ensure they keep getting our business, they provide first class customer service and satisfaction.

We insist on quality service, excellent communication, and competitive prices. When they can deliver that, we keep calling them. It’s a win/win and everyone benefits.

Should You Allow Pets in Your Sacramento Rental Property?

Fri, 16 Dec 2022 21:00:00 GMT

Should You Allow Pets in Your Sacramento Rental Property?

Before you rent out your Sacramento property , you’ll need to decide whether or not to allow pets in your property. Should you let tenants move in with dogs and cats?

We’re discussing some of the benefits of welcoming pets into your rental home as well as a few of the risks that you’ll need to consider when making this decision.

Expanding Your Sacramento Tenant Pool

Let’s start with a benefit because it’s a pretty significant one.

When you allow pets into your Sacramento rental property, you will have a lot of renters and potential prospects interested in your property. Studies show that 70 percent of American renters have at least one pet. So, if you’re not allowing pets, you are cutting down a huge percentage of the potential tenants who will be interested in your property.

If your property is not getting a lot of interest because you won’t consider pets, you’re looking at a longer vacancy. When your property is vacant for a long time, you lose rental income.

Protect your property and reach more tenants by allowing pets but establishing limits. For example, you can set a pet weight limit. We always require renter’s insurance for pets over 40 pounds.

You can also set a pet limit. Usually, there’s a maximum of three pets allowed per property.

A good pet policy will protect your property even while you allow tenants to move in with pets. It means you don’t have to leave your home vacant.

Pet Risks: Sacramento Rental Property Damage

A common risk that a lot of rental property owners worry about is that a tenant’s pet will damage your property. Keep in mind that typically, whatever damage that is caused by a pet will be covered by the security deposit that’s collected before the lease term begins. The majority of pet damage is easily repaired and paid for with the tenant’s deposit.

Increasing Tenant Retention

Here’s another benefit: Renters with pets are more likely to renew their lease agreement at the end of the lease term. This tenant retention is good for you and your investment. It keeps your annual cash flow and income consistent.

Service and Companion Animals in Sacramento

If you’d like to talk through the risks and benefits of allowing pets in your property, please contact us at Sacramento Delta Property Management. We can help you put together a strong pet policy and even a pet screening process that can help you feel better about allowing pets into your property.

Sacramento Management Advice: How Do You Measure the Success of Your Real Estate Investment?

Fri, 05 Nov 2021 20:00:05 GMT

Sacramento Management Advice: How Do You Measure the Success of Your Real Estate Investment?

How do you know your real estate investments are successful?

Ask this question to a group of experienced investors, and they’ll all have different answers. Your success looks different from the next investor’s success. That’s because you each have different goals, you’re working in different markets, and you’re growing a portfolio of vastly different properties.

While defining success with a real estate investment can seem a bit subjective, you want to have metrics that can be reliably used to tell you whether or not a particular property is doing what you want it to do.

Here are some of the ways you can determine the success of your Sacramento investment properties .

Calculate Your Capitalization Rate

One of the most common metrics you’ll hear in real estate investing circles is capitalization rates. Your cap rate will help you make good decisions by estimating your potential return on a property. Most investors will use cap rates to compare different properties in a market before they buy.

It’s an easy calculation. Divide the annual net operating income by the cost of the asset or its known value. High returns require low cap rates.

Look at your Net Cash Flow

Hopefully you have documented the rental income and expenses you’ve earned on your rental property investment. With an income and expense report for your investment property, you can calculate your net cash flow to determine how your property is performing.

Calculate the gross income for the year subtracting the total expenses for the property, which provides the net operating income (NOI). If you have a mortgage or investor partners on the property, deduct your debt service payment to get your net cash flow of the property.

The net cash flow can help you establish whether you’re earning enough on the property right now. There’s not necessarily a target number, and cash flow can take a while to accumulate. But if you’re experiencing negative cash flow on a property you’ve owned for more than a decade, there’s probably something wrong. If you’re earning $200 a month, you’ve got a rental property that’s performing well.

You can go a step further to measure your Cash on Cash returns. Take the net cash flow of the property and divide it by your initial investment. This number will change year by year depending on market strength, rental values, and rental property vacancy .

Is Your Property Value Appreciating?

Investing in real estate for cash flow is a great idea, but in the Sacramento market you’ll want to invest for appreciation as well. Holding a real estate investment delivers capital appreciation. If the property is appreciating steadily over time but produces limited cash flow, its value in the real estate market is going to earn you high returns when you sell. Evaluate your own appreciation by following the market’s rate of appreciation against what your property is valued at.

Vacancy Costs Impact Performance

Watch your expenses, especially vacancy. You might be surprised, while you’re evaluating your performance, to find that vacancies are killing the profits you expected. There’s an average economic vacancy rate for residential properties, and you don’t want to be higher than that rate with your own portfolio. If all of your properties are occupied, you’re in good shape and it might even give you the opportunity to raise your rent a bit, since a vacancy wouldn’t hurt as much as it would if you were starting from a point of lower occupancy.

How Long Do I Have to Wait to See a Return on My Real Estate Investment?

Fri, 22 Oct 2021 20:00:04 GMT

How Long Do I Have to Wait to See a Return on My Real Estate Investment?

If you’re like most real estate investors, you decided to invest because you want to make money. It can be a bit off-putting to spend a large amount of money on a Sacramento rental property that may not earn you any money for a while.

The pace of your earnings and returns will depend on a number of factors that are specific to you. It will depend on how you’ve financed your property, what type of property you own, and what your plans are for it now, in a year, in five years, and in 20 years.

There are few things to keep in mind as you’re waiting to see a return on your real estate investment.

Make Investing a Long Term Strategy

For a while, buying a home and then flipping it was a popular way to immediately earn a lot of money on your investment. That’s not really the case anymore. People are choosing to buy and hold their real estate investments. This means you have to be prepared for the long haul.

Your real estate investment is going to make you money, especially when you have a reliable resident in place who is paying rent and taking care of the home. You might not see a profit right now or in the next year or even in the next handful of years.

That’s okay, because ROI isn’t something that can be measured at the beginning of your investment cycle. You’ve made an investment that a resident is helping to pay for. The longer you’re willing to hold onto that investment, the higher your returns and earnings will be.

Capital Appreciation and Increasing Value

Most investors in Sacramento don’t start earning money in the first months that they own a rental property. Usually, the amount of rent you collect will not exceed the expenses associated with the rental property.

Instead, you’ll earn ROI through capital appreciation. This is the increase of a home’s market value compared to its purchase price or acquisition cost. When you factor appreciation into your investment strategy, you’ll see that it will help you earn the income you’re hoping for as the property increases in value. Sacramento real estate values will increase, and so will your appreciation and ROI.

Increase ROI with Smart Leasing and Property Upgrades

You’ll earn more money on your investment property faster when it’s well-maintained, modern, and attractive to high quality residents . One of the best and easiest ways to increase what you earn is by making some cost-effective upgrades. You’ll wait longer to see returns if your kitchen has appliances that are 40 years old. Make sure the home is clean, painted, and shows well.

If your home is new and already in great condition, don’t spend a lot on upgrades now. To really maximize your investment, you’ll want to wait until you need to begin replacing things such as floors, appliances, and fixtures. Upgrade your property during turnover periods so you can ask for higher rents. This will increase your short term income and your long term return on investment.

Why is It Important to Build a Strong Real Estate Team Before Investing in Rental Properties? | Sacramento Property Management Expertise

Fri, 08 Oct 2021 20:00:31 GMT

Why is It Important to Build a Strong Real Estate Team Before Investing in Rental Properties? | Sacramento Property Management Expertise

Surrounding yourself with professional experts is the best way to ensure you have a successful investment experience as a real estate investor. Before you invest in rental properties, build a strong real estate team that can provide the support, answers, and resources you need.

In our experience, there are several professionals you need to have available when you own rental properties. Put together a team of people who have extensive experience dealing with investors in your local market.

How a Real Estate Agent Can Help

While it’s easy enough to go online and find plenty of listings and available properties, working with a real estate agent will set you up for success. Your agent will help you identify opportunities and negotiate the best terms. There’s no upfront cost to you, either. Typically, your agent’s commission will come from the seller.

Work with a real estate agent that has experience with investors. You also want someone who is well-connected within the local real estate and investment community.

Lenders are Required for Real Estate Investing

Your mortgage professional is another important member of your real estate investing team. Building relationships with conventional and private money lenders is a good way to diversify how you pay for investment properties. You might want to develop a relationship with a small community bank or use the credit union you currently work with for your personal funds. There are also benefits to large national banks.

There are a lot of different ways to fund your rental property purchase. Gather all the information you can from all the professionals you can, and start building relationships with lenders who will help you not only with your first purchase, but all the investments you plan to make down the road.

Legal and Financial Support

It will help to have an accountant, a bookkeeper, or both. This will help you stay organized financially, with an accurate and detailed record of incoming rents and outgoing expenses. As you start generating more wealth and have more properties to account for, you’ll need a good accounting platform and software that allows you to document and report on your earnings at tax time. A professional accountant can help prepare your personal and business tax returns, and can offer you solid advice and tax recommendations as they apply to your investments.

A lawyer is going to be necessary as well. You’ll need someone to review your lease agreements and other real estate documents. You may find yourself needing to evict a tenant, defend yourself in court, or dispute a claim or lawsuit. Having a relationship in place with an experienced real estate attorney will provide peace of mind and instant expertise.

Sacramento Property Management Partners

Most importantly, you’ll need a professional Sacramento property manager who can help you lease, manage, and maintain your rental properties. A property manager can help you before you even buy a property by explaining the amount of rent you can expect to receive and outlining any repairs or updates that will be necessary on a home before it’s ready for the rental market. You’ll also have access to vendors and contractors who will respond to any work that needs to be done before, during, and after a tenancy.

How Do I Know if a Property is a Good Rental Investment? | Sacramento Property Management Help

Fri, 24 Sep 2021 20:00:02 GMT

How Do I Know if a Property is a Good Rental Investment? | Sacramento Property Management Help

Evaluating a potential rental property is a process that should start with your investment goals . You can’t know if a particular home is a good rental investment unless you know what you’re hoping to accomplish. Do you want cash flow or is long-term appreciation more important? Are you going to rent the property out to long-term residents or short-term guests?

Once you’ve established your own investment goals, there are a few things you need to check off your list before you acquire a new piece of rental real estate. These factors will be important for almost all investors - regardless of the particulars you’re seeking.

Choose a Rental Investment in a Desirable Location

You already know that when it comes to real estate, location matters. It matters to the residents who will rent your property, and that means it must matter to you. Most of the renters we work with in Sacramento are looking for a home that’s close to shopping, grocery stores, hospitals, schools, and highways. They want options for dining and recreation.

Walkable neighborhoods are also popular with residents who are tired of driving and parking. An investment property that’s remote and difficult to access will not be a good deal for you. Buy something that’s not going to incur a long vacancy period. You’ll have to lower your rental amount to attract residents when your rental property isn’t well-located.

Have a Professional Inspection Before You Buy

You’ve heard the expression “good bones.” That’s an important part of a good real estate investment.

It’s often tempting to buy a fixer upper. After all, the price is usually attractive, and you can get excited about putting your own touches on the home. But, remember this isn’t a home you’re living in yourself. It’s a rental property, and you’re going to want to collect rent as soon as possible . Buying a home that isn’t in great condition means that you’ll have to sink a lot of resources into it and spend a lot of time fixing it up. You can’t afford that as an investor.

Look for well-maintained property that is ready to rent right now. Have the home inspected thoroughly by a professional inspector and a local property manager in Sacramento . That will tell you if any repairs or updates will be needed before you list it on the Sacramento rental market.

Calculate What You’re Likely to Earn

Location and condition are critical when you’re choosing an investment property. You also have to make sure it makes you some money.

Take a look at what you’ll spend on it and what you can expect for rental income. Your property manager should be able to conduct a comparable market analysis that tells you what kind of rents you can expect. Compare this to the expenses you’ll face, including vacancy time, repairs, insurance, taxes, and management fees. Make sure you’re comfortable with the cash flow that you’ll earn. No one invests in property to lose money.

What Does a Sacramento Property Owner Need to Know About a 1031 Exchange?

Fri, 10 Sep 2021 20:00:03 GMT

What Does a Sacramento Property Owner Need to Know About a 1031 Exchange

Selling a rental property means paying taxes. While many investors simply consider that to be the cost of doing business, there’s a way to grow your investment portfolio and delay the payment of those taxes. It’s called a 1031 Exchange. This program allows you to defer those capital gains taxes if you reinvest the earnings from your sale into another purchase.

This is an excellent way to stay in the Sacramento market and reduce your tax liability.

There’s a lot you need to know, however. While a 1031 Exchange allows you to keep more of the money you’ve earned and establish a more effective long-term investment strategy, you have to follow its specific rules and timelines.

Here’s what you need to know.

Benefits of a 1031 Exchange in Sacramento

To defer those taxes on the sale of your rental property, you can buy a new investment property – or several properties – that are similar to the one you’re selling. Similar does not mean exactly the same. You can sell one single-family home and buy two condos. Or, you can sell one apartment building and buy two single-family homes. There are plenty of options.

This makes sense when you know you’ll have a large tax exposure from the sale of your investment property. Perhaps you bought a single-family rental home for $200,000 10 years ago, and now you’re able to sell it for $500,000. The $300,000 profit will be taxed. In this situation, a 1031 Exchange will save you quite a bit.

You will also benefit from the 1031 Exchange if your rental property is older and in constant need of maintenance. Selling a home with ongoing repairs will allow you to reinvest the proceeds into a newer property that will provide better cash flow.

How to Take Advantage of a 1031 Exchange

Specific steps need to be taken when you want to defer your taxes with a 1031 exchange.

Make sure your property qualifies for this benefit. This tax program is meant for investment homes. You cannot sell the home you’ve been living in and reinvest the money to buy a vacation home.
You’ll need to exchange with a like property or properties. The new property you choose must have a value that is the same or higher than the original property. If you walk away from the exchange with any profit, they will be taxable.
Find one property, two properties, or three to exchange with your current property.
Use an intermediary and don’t take any of the cash from the sale of your property. The intermediary will hold your funds until they can be reinvested in your new purchase. Ask your Sacramento property managers for a referral.

Timelines for the 1031 Exchange

There are critical deadlines included in this transaction, so pay attention to the timelines.

You’ll need to identify a replacement property within 45 days of selling your original property. This doesn’t mean you have to buy it - you simply must identify it. Then, you have 180 days to close on the new sale. The entire exchange must take place within the 180 days (meaning you don’t have 45 days plus 180 days – the clock does not reset).

The 1031 Exchange is one good way to keep all of the money you earn off the sale of an investment. Remember this isn’t a completely tax-free option. You are technically deferring the payment of your taxes. However, the current law allows you to do a 1031 Exchange as many times as you want. If you want to leave your investment property to your children or beneficiaries after you die, they’ll receive a step-up, which will let them avoid all the taxes you deferred.

First Time Buying Rental Property? 3 Things You Need to Know as a New Investor

Fri, 27 Aug 2021 20:00:02 GMT

First Time Buying Rental Property? 3 Things You Need to Know as a New Investor

Buying a rental property for the first time can be exciting and rewarding. It can also be confusing and complex. If you’re not already working with experts, make sure you surround yourself with some professional partners who can help you get off to a successful start. You’re investing in real estate to make money, and mistakes can be costly.

When you’re buying a rental property in Sacramento or the surrounding area, you’ll have to get your financial ducks in a row and schedule inspections. You’ll need to buy the proper insurance and get your property ready for the rental market.

Once all of those preliminary details are taken care of and you’ve closed on the deal, you’re officially a landlord.

Three essential things can help you move forward successfully and profitably.

Place the Right Tenants

If you’ve never rented out a property before, you probably have little experience with tenants. It’s important to understand that the residents you place will make or break your rental experience. If you allow a bad tenant to rent your home, you’ll find yourself spending more time and money than you want to collecting rent , enforcing the lease agreement, and protecting your investment. A great tenant, however, will pay on time, communicate well, and help you take care of your home.

Find an application that’s compliant with all of California’s laws as well as federal fair housing requirements. You have to screen every application consistently, and you need to be protective of your applicants’ data and financial information. When you’re screening, check these important things:

Nationwide eviction check
Employment and income verification
Credit check
Rental history check

Many investors and landlords neglect to talk to former landlords, but this is important. You can ask if rent was paid on time, if there was any property damage left behind, and if that landlord would rent to the tenant again.

Prepare to Maintain your Rental Home

Prepare for maintenance. You’ll want a maintenance plan in place for emergency and routine repairs as well as preventative maintenance. Emergencies will require an immediate response. When a tenant calls because there’s no water or a flood or a fire, you have to have relationships in place with vendors already. Responding to routine issues with the same care is also important. It will protect the condition of your investment and serve your tenant relationship.

Preventative maintenance also protects the condition of your home and allows its value to increase reliably. Don’t put off maintenance work, and always hire licensed and insured vendors and contractors.

Work with a Professional Sacramento Property Management Company

We would love to share some additional real estate investing tips with you. Please contact us at Sacramento Delta.

Should You Require Renters Insurance as a Landlord? | Sacramento Property Management

Fri, 13 Aug 2021 20:00:02 GMT

Should You Require Renters Insurance as a Landlord? | Sacramento Property Management

When you’re renting out a Sacramento property , it’s important that you do everything you can to ensure the investment is properly insured. Your own insurance policy can be relied upon to protect you from liability, catastrophes, and loss of rent.

Your s need protection, too, and that’s why it’s a good idea to require renters insurance.

Renters insurance is an affordable and easy way to bring resident’s protection and peace of mind. It’s important that residents buy their own insurance to cover their possessions as well as any risk that can come from accidents or disasters.

Understanding Renters Insurance: A Definition

Renters insurance will usually include liability coverage, protection for a resident’s personal belongings, and sometimes coverage for additional living expenses in case the rental property becomes temporarily uninhabitable.

Accidents can and will happen, and if there’s damage done to a renter’s possessions or someone gets hurt while they’re visiting, renters insurance can reduce a resident’s overall risk and cost. This type of coverage applies to all renters, whether they’re leasing a single-family home or a unit in an apartment building.

Coverage Provided by Renters Insurance

The most important benefit to most residents who purchase renters insurance is the coverage provided for their personal property. If a pipe explodes and water damages furniture or a tree falls through a window and takes out some valuable electronics, the renters insurance policy will cover the cost to replace or repair those things.

Many residents assume their landlords would cover those replacements, but a landlord’s insurance policy will not cover those items. Under a landlord policy, liability and the structure of the home is covered; a resident’s personal property is not. So, residents need a renter’s policy to make sure they don’t suffer a major loss if something happens at the home.

The renters policy will also cover liability. If a resident accidentally leaves a stove on and burns down half the kitchen, the renters insurance will cover the repairs that are necessary. This will save the resident from a lot of out-of-pocket expenses, protect his or her security deposit, and provide some relief to the landlord. It also provides help with expenses if that fire requires a resident to move into a hotel for a few days while the damage is repaired. Everyone is afforded some extra peace of mind when a renters insurance policy is in place.

Renters Insurance is Affordable

Why Sacramento Rental Owners Fire Property Managers - Top 3 Reasons

Fri, 30 Jul 2021 20:00:04 GMT

Why Sacramento Rental Owners Fire Property Managers - Top 3 Reasons

Changing property management companies can be stressful, and many owners stay with bad managers longer than they should because they’re worried about the transition. You have to think about your time, your investments, and your ROI. You also have to think about your residents. Staying with a company that isn’t performing won’t be good for anyone.

There are certain red flags that will tell you it’s time to fire your property manager and find someone who can do a better job for you and your investment. Today, we’re highlighting the top three reasons owners and investors decide to move on.

Fire Your Property Manager When Communication is Unresponsive

The communication between a property owner and a property manager needs to be open, transparent, and reliable. If you’re leaving messages for your property manager that aren’t returned, or it takes weeks for them to respond to an email, you might want to consider working with someone else.

A good property management company will embrace and invest in technology, making communication much easier. They should provide an online portal where you’re able to see everything pertaining to your property and get most of your questions answered. However, your property managers should also be available for phone calls, texts, and emails.

Property managers also need to communicate well with residents. If you aren’t getting the responsiveness and accessibility you need from your property manager, your residents probably aren’t getting great communication either. This becomes a major problem when residents need to discuss maintenance or their rent payments. Don’t hesitate to fire your property manager if you aren’t getting the communication you need.

Fire Your Property Manager if Accounting Statements are Inaccurate

Your property manager must provide you with a regular accounting statement and detailed reports as needed so you know how your property is performing financially. You should get a monthly statement with your rental payment that breaks down how much you earned in rent and other fees and how much you spent in maintenance, management, and other expenses.

This information should also be available to you online, in your owner’s portal. As an owner, you are entitled to a clear and accurate accounting of your investment. If there are mistakes every month or you have to ask for an explanation because you don’t know what any of the math means, you probably aren’t working with the best property management company.

Fire Your Property Manager When Vacancy and Turnover are High

Avoiding turnover is another important function of a professional Sacramento property management company . If you have a good resident in place, your manager should be doing everything possible to keep that resident in place, paying rent, and caring for your property. If you’re not getting your home rented quickly or you’re losing residents after every lease ends, you need to consider working with someone else.

If you’re experiencing any of these issues with your current property managers, we have some solutions. Contact our team at Sacramento Delta Property Management.

When Do I Hire a Property Manager? | Sacramento Property Management

Fri, 16 Jul 2021 20:34:42 GMT

When Do I Hire a Property Manager? | Sacramento Property Management

Smart investors know that hiring a Sacramento property manager before you acquire an investment property is a good idea. If you already own a rental unit or an entire portfolio of properties, it’s also a good time to hire a professional management company.

What we’re saying is – it’s always a good time to access the expertise and resources available to you through professional Sacramento property managemen t .

If you’ve been managing on your own and things have gone smoothly, that’s fantastic. However, things can change quickly in the rental market and the laws are only growing more complex. If you’re thinking about working with professionals, we want to help you understand the benefits and advantages to that decision.

Property Management before You Invest

Your Realtor is going to give you good advice on negotiating a purchase price and showing you the available inventory. However, a property manager can bring a different set of skills to investors before they buy a rental property. When you work with a property management company before you close the deal, you can expect:

Rental value estimates for the property you’re considering.
Data on property vacancy , turnover, and days on the rental market.
Advice on upgrades or updates that will be needed to get the property rent-ready.
Strategic marketing plans for leasing and resident retention.

Once you have a property manager providing advice during the purchase process, it will be a smooth transition into the leasing and management process. Your property manager will already know the property and understand your investment goals.

Property Management after You Invest

If you’ve already signed on the dotted line and taken possession of your new investment property, it’s still a good time to hire a professional manager. You’ll need someone to get the property ready for the rental market. Whether there are simply cosmetic upgrades that are needed or more complex maintenance projects, your property manager will know who to contact and how to stay on schedule.

You’ll need a property manager to market the home, screen renters, and handle the leasing process. During the tenancy, you’ll want to rely on your professional partners to handle maintenance and resident relationships and keep you compliant with all the changing state and federal laws. Evictions are complex and best avoided. If you do need to evict tenants , you’ll need help from a property manager to ensure it’s a “just cause” eviction and to prevent expensive mistakes.

Hiring a Property Manager When Your Current Company Fails

Maybe you’ve been working with a Sacramento property management company, but you’re not receiving the services or the value that were promised. In this case, don’t wait too long to make a switch. Property management will only help you if it’s good property management. You need a team that can help you earn more and spend less on your investment.

Most of our new clients come to us from other property management companies because there’s a lack of communication, a lack of service, or more problems than solutions.

How to Collect Rent | Sacramento Landlord Handbook

Fri, 02 Jul 2021 20:00:02 GMT

How to Collect Rent | Sacramento Landlord Handbook

Successful landlords will provide several ways for residents to pay rent. This contributes to on-time payments and reduces the risk of having late or missing rent.

Rent collection is one good reason to work with professional Sacramento property managers . Most management companies will have a sophisticated software system that allows residents to make their payments online and even schedule them in advance. It’s efficient and secure, and it’s more important than ever with the global health pandemic still an active and ongoing crisis. Online rental payments are contactless and can be managed from the safety of a resident’s home.

Today, we’re sharing some rent collection tips that may help you get the rent paid consistently on time and with minimal hassle.

Include Rent Collection Policies in Your Lease Agreement

Your process for collecting rent must be spelled out in your lease agreement . You’ll need to provide all the necessary information about rental payments and how they are handled. The lease should include:

How much rent is due every month.
When the rent is due every month.
How the rent should be paid every month.
What types of grace periods or late fees are in place.

Be specific and clear. For example, perhaps rent is due on the first of the month, and then considered late on the fifth of the month. Late fees could be $50 or $75 or a percentage of the rental amount. Stipulate all of that in your lease.

Enforce Your Rent Collection Policy Consistently

Once you have the rent collection policy in writing, make sure to enforce that policy consistently. If you let your residents pay late one month without consequence, you’re going to leave them thinking they can always pay rent late.

In a normal Sacramento rental market, there’s little need for flexibility. With the COVID-19 virus holding on and the CDC issuing an eviction moratorium for residents who have been financially impacted by the pandemic, you may have to work with residents who cannot pay rent or are struggling to pay on time every month. Work with them and try to get payment arrangements in place. Collect what you can.

Many renters who cannot pay are protected from eviction, so you’re going to have them in place for a while. Your best option is to communicate and work together. Make concessions if you have to.

Offer Different Rent Collection Methods

Most residents today prefer paying for everything electronically rather than writing out checks and looking for stamps and envelopes. No one wants to go to a mailbox or drop off rent in person. So, provide that service for your residents and offer online or digital payments.

Remember that while this is often the preferred way to pay, it’s not the only way. Some of your residents may not be as comfortable with technology, so give them other options when it comes to paying rent. Let residents pay with a check or a money order if they’d prefer. As long as your residents have options, they’re likely to meet their rent payment obligations.

Rental Property Renovations That Are Cost Effective | Sacramento Property Management Tips

Fri, 18 Jun 2021 20:00:02 GMT

Rental Property Renovations That Are Cost Effective | Sacramento Property Management Tips

The Sacramento rental market is competitive, and when you can offer a modern, attractive, and well-maintained property, you’ll be able to attract high quality residents and charge more rent.

This doesn’t mean you have to completely remodel an otherwise well-maintained home. You don’t have to add rooms or install Jacuzzi bathtubs in all the bathrooms. Instead, you should focus on specific and cost-effective upgrades that will increase your rental value.

Focus on Walls with Fresh Paint

A fresh coat of paint brightens your walls, and it’s rarely expensive. Many landlords settle for touching up the faded parts or fill in the holes between residents. Paint entire walls. Even better – paint the entire house. It will make a difference in how the home shows.

Everyone loves a little color, but you are trying to appeal to a wide range of potential residents, so keep the walls a neutral color. Consider shades like eggshell and off-white. You can paint trim and baseboards a different color to add interest and texture and to make the house look new.

Hard Surface Flooring is Better for Your Investment

Carpet has been the standard in Sacramento rental homes, and if you decide to keep carpeting in your property, make sure it’s professionally cleaned and free of stains and tears. Don’t try to get too much life out of an old carpet. Residents won’t be thrilled with that.

If you’re looking for more rent, consider installing upgraded flooring. Some types of vinyl look great and don’t cost a lot. Faux hardwoods are also popular. These are cleaner and easier for residents to maintain. You’ll also have a longer lifespan, which means you won’t be cleaning and replacing carpet every year.

Sacramento Landscaping and Curb Appeal

Provide a welcoming and inviting atmosphere at your rental property, whether it’s a single-family home or a unit in a multi-family building. When residents see an attractive exterior, they can get excited about living there. This type of curb appeal can also translate to higher rents . Mow the lawn and trim the trees and weed the flower beds.

Upgrade Your Lighting Inside and Out

Lighting is a big part of an attractive rental property. Start with the exterior lighting, and make sure there’s enough of it. Your residents want to feel safe at night, and you’ll want to be sure exterior doors, walkways, and parking areas are well-let and easy to see from the street or inside the property.

Inside the home, make sure the lighting is bright and modern, especially in the kitchen and the bathrooms. Ceiling fans are popular, especially in bedrooms and living rooms. Take a good look at your lighting and make upgrades wherever you can. It doesn’t have to be expensive, and it will make your home look good .

Reasons Your Sacramento Rental Property Is Still Vacant

Fri, 04 Jun 2021 18:55:34 GMT

Reasons Your Sacramento Rental Property Is Still Vacant

Currently, vacancy rates are higher than normal, and if your property is affected, it could be due to the market climate right now in the wake of the COVID-19 pandemic. You don’t want to assume that, however. When a home is well-maintained and priced correctly, good residents are usually in a hurry to rent it.

Today, we’re looking at several reasons that your Sacramento rental property might still be vacant, and what we can do to get it rented as quickly as possible.

Check Your Sacramento Rental Price

A property won’t rent unless it’s priced correctly.

Maybe you’ve priced it according to what you think the home is worth or the amount that you need to cover your own monthly mortgage payment and expenses. Sometimes, owners will look at rental prices on sites like Zumper or Zillow. Those rental estimates can help, but you need reliable data in order to accurately price your home.

We know a lot of owners will start with a high price just to see if there’s any interest in that range. But, it’s a risky and potentially expensive strategy. residents are smart, and they know what they’re willing to pay. The market drives the price, not your own expectations. Poor pricing will leave your home unoccupied.

If you’re not sure what your rental value might be, talk to a professional Sacramento property manager . Vacancy is expensive, and pricing your home competitively will ensure it doesn’t stay vacant long.

Presentation and Property Condition

A rental property needs to show well, and your home may not be renting because of its condition. If it looks old, worn, or disordered, qualified residents are not going to rent it. Look for problem areas like stains on the carpet, broken blinds in the windows, or scratches on the paint. Your kitchen appliances shouldn’t be the green or yellow models from 1975. Clean up your property before you put it on the market so it’s ready to show well . Invest in a bit of curb appeal.

Spending a little money to update and improve the home is worth the investment. You’ll be able to attract better residents and you’ll get them in place quickly. Take a look at small repairs you can make. New window treatments, updated hardware on faucets and cabinets, and a full coat of fresh paint can make a big difference.

Marketing and Advertising Your Sacramento Rental Home

A good marketing plan can help you rent your home out faster. If you aren’t getting any attention, it could be due to bad marketing. Maybe your photos aren’t the greatest or you’re not listing the home on any of the top rental sites.

If prospective residents cannot see your listing, they cannot express interest in it. Make sure you know where and how to market and advertise your home. Almost everyone is looking online. You’ll have to be savvy with how you post your listing.

Before the pandemic, open houses were a great way to generate interest in a rental home. We’d often have multiple applications come in from one open house showing. However, that’s a bit more challenging now, and you’re better off with virtual open houses or contact-free showings. With these new restrictions, you want to be as responsive as possible. Make it easy for prospective residents to see your home and fill out an application. Offer special deals such as a discount on the first month’s rent or a waived parking fee. This is a good time to be creative.

Is a Home Warranty on My Sacramento Rental Property Worth It?

sacramentodeltapm.social@gmail.com (Blog Writer) — Fri, 21 May 2021 20:00:02 GMT

Is a Home Warranty on My Sacramento Rental Property Worth It?

We understand the inclination to purchase a home warranty for your Sacramento rental property, however it’s not a great idea. These warranties are marketed as a way to save you money, but they can actually be incredibly costly and not worth your investment.

If you’re considering a home warranty for the property you occupy yourself, it may be to your financial advantage. But when it comes to rental homes – they aren’t good for you and they aren’t good for your residents.

Preventative maintenance programs and routine inspections are far more effective when it comes to saving money and protecting your investment.

Communication often Stalls with Home Warranties

The concept of a home warranty is that when something in the property breaks, the warranty company will replace or repair it at no cost to the homeowner.

However, that’s often not what happens.

In our experience, we’ve found that there’s often a lack of communication and transparency when it comes to warranty companies. There are some good ones out there, but we don’t think the warranty company is usually interested in serving the best interests of the policy holder or the people living in the home. They’re in business to make money, and in order to make money they have to cut corners and deny claims.

Two or three days may pass before a vendor is even sent out to assess the problem at your property. That may be tolerable if you’re the one living in the home and you’re in no hurry to have an issue fixed. But residents expect to have their maintenance issues addressed immediately.

Home Warranty Companies Are Slow

Keeping your Sacramento rental property safe and habitable is your responsibility as a landlord. Waiting for a home warranty company to complete work in a timely manner will damage your relationship with your residents and may put your property at risk. They do not work quickly, and there is rarely a sense of urgency.

Suppose the furnace breaks during the coldest week of the winter. As your Sacramento property managers , we’d have our vendors out there right away to fix the problem and restore heat to the property. The warranty company, however, may spend a week just diagnosing the problem and then another week waiting for parts and then another week fixing the issue.

That’s terrible customer service and unfortunately, it’s not uncommon.

Meanwhile, your resident is upset and likely not going to renew their lease agreement.

Home Warranties Don’t Deliver High Work Quality

We have also run into some issues with the vendors that home warranty companies use. They are not always the best, and that can result in faulty or incomplete work. Using low cost vendors is a great way for home warranty companies to save money, but it’s a terrible way to protect the condition of your investment.

Your Sacramento property management company will have access to great vendors and contractors who do professional work quickly and for cost-effective rates.

Costs versus Service with Home Warranty Companies

If you read the fine print of your home warranty, you’ll realize that not everything you expect to be covered will actually be covered. There’s very little value to be found in a home warranty, even if you buy an older home.

How to Professionally Handle Resident Disputes at Your Sacramento Rental Property

Fri, 07 May 2021 20:00:05 GMT

How to Professionally Handle Resident Disputes at Your Sacramento Rental Property

One of the most common challenges landlords and property managers have when it comes to renting out multifamily properties is neighbor disputes and resident complaints. Whether it’s a duplex or an apartment building, you have people living together who have their own schedules and lifestyles.

Some of the most common complaints we here from our residents in Sacramento rental properties are surrounding noise, the treatment of common areas, pets, and parking.

Dealing with drama between residents doesn’t have to destroy your investment experience. But it can make things more complicated, and we have some tips to handle these things professionally and fairly.

Provide all Residents a Strong and Detailed Lease

When residents are arguing over loud music in the middle of the night, guests parking in reserved spaces, and pet messes on sidewalks and walkways, you’ll want to be able to manage those neighbor disputes with a detailed and consistent lease agreement. Your lease is your best opportunity to keep all of your residents following the same rules.

Make sure all of your residents have signed a solid lease agreement that details all the rules and expectations of their tenancy. This creates a safe environment, where harassment and threats are not tolerated. The lease should stipulate the conditions of the property that create a comfortable and peaceful environment, where there is little noise or nuisance.

Be specific. A requirement that “quiet hours” are respected is common in Sacramento lease agreements for multi-family properties. This could be between 10:00 p.m. and 6:00 a.m., for example, where music and noise must be kept to a minimum.

Create a Policy for Dispute Resolution

It’s reasonable to expect your residents to solve their conflicts and problems on their own. They are, after all, adults. Sometimes, it’s simple. A resident making too much noise won’t realize how clearly neighbors can hear their television. A conversation between the two parties is a good place to start.

If this doesn’t work, your residents will need instructions for how to file a complaint about neighboring residents . You should acknowledge their complaint so they know you’re taking their comfort and safety seriously. It’s frustrating when one resident complains weekly about another residents barking dog, but your resident wants to be heard, so show that resident you respect their aggravation. If there’s nothing you can do about the problem, be honest about that and explain why your hands are tied.

Document All Neighbor Disputes

Document everything.

If the complaint from one tenant reflects a lease violation from the other tenant, you will need to make contact with the resident in question and ask them to come into compliance. Loud parties at 2:00 a.m. may violate the quiet clause in your lease, and a barking dog is a problem if the lease does not allow pets. Put the details and the timeline in writing so you can identify the lease violations that may be present. This will help i f you have to evict .

Resident Screening in Sacramento

The best way to deal with resident disputes is to avoid them. In a multifamily property, you’re always going to have personality clashes between neighbors. Noise and other complaints come with the territory. But, if you can limit the risk of disputes and disruptions, you’ll create a better rental experience for yourself and your residents.

During the screening process , pay attention to resident history. Residents who move every year may have a history of causing problems at their buildings. Call landlord references. Do all the checking that you can within the guidelines of state and federal fair housing laws.

Unexpected Costs of Owning a Sacramento Rental Property & How to Budget for Them

Fri, 23 Apr 2021 20:00:06 GMT

Unexpected Costs of Owning a Sacramento Rental Property & How to Budget for Them

Owning a Sacramento rental property can be a great investment. You have the potential to earn some positive cash flow, and when you hold onto the property for several years, you’re also earning a healthy ROI while the asset appreciates and your tenants help you pay down the cost of the mortgage.

There are costs associated with every investment, however, and you need to be prepared for them. Make sure these unexpected things are included in your budget so you’re not surprised at the expenses that are associated with your rental property.

Budget for Vacancy and Turnover Costs

Many investors run their numbers and project their financials without considering that their rental properties won’t be occupied 100 percent of the time. You may need to spend a few weeks or even a few months finding a tenant. When one tenant moves out, you’ll have to invest in cleaning and preparation, and then you’ll have to advertise and market the rental property .

Vacancy costs are especially expensive because it’s money that you can’t really recoup. The longer you don’t have a tenant in place, the more your investment costs you. You’re not receiving rental income, and at the same time you’re also required to pay for the utilities and the upkeep.

Minimize these costs with a strategic marketing program. You want to get a well-qualified tenant in place as soon as possible. Once you have a great resident, focus on tenant retention so you don’t have to face a vacancy every year.

Deferred Maintenance and Emergencies

Deferred and unreported repairs will cost you a lot more than you could possibly budget for.

So, don’t put off those minor repairs. Make them right away. Take a preventative approach to maintaining your home; otherwise, those emergencies will become more frequent and more expensive. There will always be maintenance costs, so make sure you have a reserve fund or a savings account set aside for potential repair bills.

Be responsive when those maintenance requests come in from your tenants. You want to preserve the condition of your home and avoid complex and costly repairs. You also want to keep your tenants happy. Responsive maintenance saves money.

Bad Tenants Come with High Costs

Hopefully, you’ve never had a bad tenant experience and you never will. They can be expensive. A bad tenant will pay rent late or not at all. A bad tenant will cause property damage and will violate the terms of your lease. You’ll spend more time and money than you want to on evictions , maintenance, and renovations. There may be legal fees, extra cleaning charges, and who knows what else.

Unless you want to spend a lot of money on bad tenants, be sure your screening process is on point. You need to be thorough and consistent so you aren’t losing money on terrible tenants.

These are just a few of the things that investors and landlords rarely anticipate when they begin to rent out a home. We know your bottom line is important, and we’d like you to know that working with a professional Sacramento property manager is one of the best ways to keep your income up and your expenses down.

For more information, please contact us at Sacramento Delta Property Management. We specialize in helping owners minimize their costs and have a successful investment experience with their Sacramento rental properties.

Changes in California Rental Laws & What Sacramento Landlords Need to Know

Fri, 09 Apr 2021 20:00:05 GMT

Changes in California Rental Laws & What Sacramento Landlords Need to Know

Understanding the landlord and resident laws in California is critical if you’re going to rent out a property in Sacramento. The problem is that these laws change all the time. This year alone, we have implemented new rent control and just cause eviction laws. There are new requirements for accepting applications for Section 8 residents and in cities like Oakland, landlords can no longer run a criminal background check prior to screening an application.

These are just the new laws. There are also existing laws pertaining to security deposits, fair housing, and habitability. Staying up to date on the laws pertaining to your rental property could be a full-time job. It’s a great reason to work with a professional Sacramento property management compan y .

Add to all of these new laws the COVID-19 pandemic and the continuing protections that some residents have against evictions. It’s become a legal nightmare, and if you’re not an experienced landlord or you’re running into legal questions about what you can and can do as you lease, manage, and maintain your rental property – a Sacramento property manager can be an invaluable resource.

Today, we’re providing a highlight of the most urgent laws that you need to know before renting out a Sacramento home.

New California Rental Laws: Rent Control and Eviction

Statewide rent control went into effect on January 1, 2020, limiting the amount that many landlords can raise rent from year to year. There are a number of exceptions in this bill, so if you’re an individual landlord renting out one single-family home, for example, the restrictions will not apply to you. However, if you’re renting out a multi-family property and it’s more than 15 years old, you’ll need to limit your rental increases to five percent plus the cost of living increase set by the Consumer Price Index. There are a lot of nuances and whether your property is covered by the rent control law or not, you’ll need to communicate with your residents and change the language in your lease agreement .

Evictions have also changed. You can still evict residents with cause, meaning if they stop paying rent or violate the terms of your lease agreement, you should go ahead and evict them. But, if you simply don’t want to renew the lease or you have other plans for the property that requires you to remove them from the home, you’ll be required to pay a relocation fee that’s equivalent to one month’s rent.

Screening Residents and Section 8

Another new law that Sacramento landlords need to be aware of pertains to how you market your home and screen residents . In the past, you could actively advertise that you did not accept Section 8 residents for a property.

You cannot do that anymore.

When you’re screening residents, you need to consider Section 8 applicants. All of your screening criteria can remain the same, but when it comes to your income standards, you have to consider a housing voucher as part of an applicant’s income. You cannot deny a Section 8 resident if all their other qualifications meet your criteria.

Fair Housing Laws and Discrimination

The federal, state, and local fair housing laws require that you treat all applicants and residents fairly and consistently. You cannot discriminate based on race, color, religion, national origin, sex, familial status, disability, sexual orientation, and income source. There are a few hot topics in the fair housing and discrimination space when it comes to how landlords rent out their homes. The first is disparate impact and criminal backgrounds. Some communities are preventing you from using criminal history when you’re screening residents. Disparate impact laws protect applicants from classes that have historically been discriminated against.

There’s also the matter of emotional support animals, therapy animals, and service animals. While each of those animals are in their own class and come with different certifications and requirements, they are all the same in that they are not legally considered pets. If you deny a resident with an emotional support animal because you have a no-pet policy, you’re going to find yourself in some expensive legal trouble.

California Security Deposit Laws

Security deposit laws are also important, mostly because it’s one area where landlords make a lot of mistakes. There are limits to how much you can collect in a security deposit, but the real trouble seems to come with the way a security deposit is returned. You have 21 days after a resident moves out to return the security deposit and/or an itemized accounting of why money was withheld and what it’s being used for.

There are frequent disputes between what should be considered resident damage and what should be considered normal wear and tear. Your move-in inspections and move-out inspections need to be well-documented. You are legally required to walk through the property with your residents before they move out to give them an indication of what you might deduct. If you lose a security deposit lawsuit, you can be accountable for paying the residents three times the amount of the initial deposit.

COVID Eviction Moratoriums

Landlord Tenant Laws and Regulations Explained by a Sacramento Property Manager

Fri, 02 Apr 2021 20:14:19 GMT

Landlord Tenant Laws and Regulations Explained by a Sacramento Property Manager

When you are renting a property out to tenants, you need to be aware of the laws and regulations involved in rental properties. A specific area we’re talking about today is serving notices. There are a few common situations in which you would serve a notice on a resident living in your property.

When you aren’t receiving rent, a common notice to serve is the Three Day Notice to Pay or Quit. This gives your resident three days to come up with the overdue rent, or leave the property. Something to remember on this notice is that you should only demand the amount of rent. Don’t include the late fees or any other charges. If the resident only has to come up with the rental amount, you have a better chance of collecting that money. Keep it simple and easy so there are not any hang ups if the situation does escalate to an eviction and you find yourself in court.

Another notice you might service is the Three Day Notice to Perform Covenant or Quit. In this situation, you might have a resident who is causing damage to the house or not abiding by the lease that you both signed at the beginning of the tenancy. The idea here is to give your residents notice that they are violating the contract. You are allowing them some time to fix whatever issue needs attention, and you’ll prevent further problems.

Finally, there is the common 30 Day Notice or 60 Day Notice to Quit the Lease. This is pretty standard and you will serve that at the end of the lease when you don’t plan to offer a renewal to your tenants. The length of time with this notice depends on how long the resident has been living in your property. If the resident has been there for over a year, you have to give 60 days’ notice. If the resident has been there less than a year, or the lease will terminate after one year, you can provide 30 days.

Always serve a notice correctly. Check with your attorney or a professional property manager on the correct way to get a notice served so it works and you don’t find yourself repeating the process. If you have any questions about notices and how to serve them, please contact us at Sacramento Delta, and we’d be happy to help you.

Sacramento Property Management Update - How to Handle Tenant Evictions during Coronavirus

Fri, 02 Apr 2021 20:14:18 GMT

STATE OF CALIFORNIA AND CITY OF SACRAMENTO BAN EVICTIONS DUE TO COVID-19 FINANCIAL HARDSHIP & STATE OF EMERGENCY

Governor Newsom issued an executive order effective immediately (3/16/2020) that prohibits the eviction of residents who are unable to pay rent because of a substantial decrease in income. This order protects residents who are subject to a layoff, reduction in work hours, or significant out-of-pocket medical expenses as a direct result of Covid-19.

MORATORIUM ON BANK FORECLOSURES

Also, the executive order requests financial institutions to implement an immediate moratorium on foreclosures, which may provide relief to rental owners who are unable to collect rent from their residents. This executive order expires May 31, 2020 unless extended by Governor Newsom.

MORATORIUM ON BANK FORECLOSURES

The Sacramento City Council also implemented an emergency ordinance (also effective immediately) that places a moratorium on evictions due to non-payment of rent if residents demonstrate that the inability to pay rent is due to COVID-19. Residents must notify their landlord or Sacramento property manager in writing before rent is due, provide verifiable documentation of the reason, and pay the portion of rent that they are able to pay.

Unlike the statewide executive order, the moratorium on evictions passed by the Sacramento City Council only applies to rental properties within the city and will remain in effect until the termination of the local public health emergency is declared by the Sacramento County Public Health Officer. Once the public health emergency is over, residents have 120 days to pay all unpaid rent. The moratorium on evictions will end after this 120-day period.

Click here for the full text of Governor Newsom's executive order.

For more information about how to handle non-payment of rent during this pandemic or anything else related to Sacramento property management, please contact us at Sacramento Delta; we'd be happy to help.

How to Calculate How Much Rent to Charge for Your Sacramento Investment Property

Fri, 02 Apr 2021 20:14:10 GMT

How to Calculate How Much Rent to Charge for Your Sacramento Investment Property

When you’re ready to price your Sacramento rental property, you need to take the pulse of the local rental market. While every investment property owner has an idea about what they’d like to earn in rent every month, the market will ultimately drive your property’s price and rental value.

Some of the most important things to consider when you’re pricing your investment property are:

Comparable prices for homes similar to yours.
Property condition and upgrades
Location of the rental home
Time of year

Establishing the right price is always a balancing act. You want a competitive price that will attract the best residents, but you don’t want to price your home too low and risk losing income. Reliable data about the market, competing properties, and length of vacancies can help, so work with a Sacramento property management company when you can.

Conduct a Comparable Rental Analysis

Before you price your own rental property, you need to know what similar properties are renting for in your area. You’ll need to do a comprehensive and detailed comparable market analysis, which you can do on your own with the data you have access to or with the help of a Sacramento property management company.

If you’re gathering research on your own, you can find some information on sites like Zillow and Trulia, but remember that there’s a big difference in what a property is listed for and what it actually rents for. If you notice that homes like yours are listed for $3,000 per month, that’s great. But, if they’re on the market for three or four months before they’re rented, the price may be too high.

Sacramento Rental Property Location

Everyone knows that location is an important factor in real estate. It affects your sales price and also your rental price.

You’ll be able to charge higher rents when your property is located in an area with good schools, easy commuter routes, and within proximity to shopping, grocery stores, and other types of retailers and recreation. These factors stack up well compared to rental homes that are in more remote locations or in neighborhoods that most residents work hard to avoid.

When you’re comparing your home to the competition in order to price it accurately, make sure you’re looking at homes in the same neighborhood as your own. Rental prices can change from neighborhood to neighborhood and even from street to street.

Property Condition and Upgrades

There’s not much you can do about the Sacramento rental market or your property’s location and size.

However, you can control its condition. Well-maintained properties will earn more rent than those that are old, worn, and falling apart. Make sure your home shows well and looks modern and inviting when you’re renting it out. You’ll earn higher rents and attract better residents.

Consider making a few small and inexpensive upgrades. Fresh paint, new floors, and minor improvements can help you earn more in rent. For example, if you put in ceiling fans or energy efficient appliances, you’ll be able to ask for more rent every month, and your residents will appreciate the lower energy bills. New hardware on the cabinets and drawers can make your kitchen look brand new. Upgrade the lighting and the window blinds.

These small things won’t cost you a lot, but they’ll help you earn more money every month.

Time of Year Impacts Rental Values

A lot of rental property owners fail to consider the time of year when they’re renting out their home, and both your price and your vacancy days will be influenced by whether it’s early summer or the middle of winter.

Most tenants decide to move during the spring and summer months. Therefore, you’re going to have a larger pool of people looking for a new home. This allows you to charge a little more in May and June than you might charge in December. Very few people are willing to move during the holidays or in the middle of the school year.

These are just a few of the factors that influence how you price your home. If you’d like to talk about your specific investment property, contact us at Sacramento Delta Property Management.

What Type of Insurance Policies Fully Cover Rental Property Investments in Sacramento?

Fri, 02 Apr 2021 20:13:59 GMT

What Type of Insurance Policies Fully Cover Rental Property Investments in Sacramento?

Insurance needs to be a part of every Sacramento investor’s risk management plan. The uncertainty of our personal property and economic stability has been more apparent than ever, as we emerge from a year of pandemics, wildfires, floods, and general unrest.

You know that your rental property is worth a lot of money, so make sure you’re investing in the right insurance policies and the most comprehensive coverage. For new investors or first-time landlords, insurance can be confusing, especially if you’re renting out a home that you once lived in yourself.

As you’re evaluating and updating your insurance coverage, there are a few key things to consider.

Homeowner and Landlord Insurance

Homeowner insurance will not cover you sufficiently when you’re renting out a property. If you once lived in the home that you’re now leasing to residents, make sure you convert that homeowner policy to a landlord policy. The insurance you buy as an owner/occupant will cover you and your property and your personal possessions, but when you no longer live in the home, the coverage changes. Make sure you speak to your agent or your insurance company to make this change. Otherwise, potential claims may be denied.

A good landlord policy will cover your dwelling and provide liability protection. The dwelling coverage will pay to rebuild or replace your home in the event of a loss. Other structures on your property will also be covered, such as fences, garages, or storage sheds. The liability portion of this policy is essential because you’ll need to be covered if your resident or a resident’s guest gets hurt while at your property.

Loss of Rent Coverage for Sacramento Rental Property

You need loss of rent coverage when you’re insuring your Sacramento rental property.

If your residents need to move out of the property because it’s inhabitable or needs a major repair, you want to make sure you don’t lose any rental income. No one likes to imagine the worst case scenario, but if there’s a major fire that requires renovations and your residents need to be relocated, you’ll still be responsible for your mortgage payments. Having coverage for lost rental income will save you from an even larger loss.

Consider Additional Insurance Protection

Most insurance policies cover dwelling and liability and maybe loss of rent.

There are additional coverage options that can be advantageous as you seek to protect your investment. For example, insuring yourself for building code upgrades may be worth the low increase to your premium. If you need to repair or replace your home, you might find that the building codes have changed since your home was first built 20 or 30 or 50 years ago. To upgrade the plumbing, the wiring, or the air ducts in your rental home, you’ll face costs that are much higher than you may have anticipated when you bought the property. You’ll be covered for those increased costs with building code coverage.

If your rental property is going to be vacant for a while during repairs or renovations, you might need to buy extra insurance to protect it until it becomes habitable. Many investors are choosing insurance to protect them against things like bed bugs.

Require Renter’s Insurance

While your landlord policy will protect your structure and defend you against liability claims, it won’t pay to replace any of the resident’s personal belongings. Therefore, you should require renter’s insurance from your residents. This will protect them and it will also give you an extra layer of protection.

If your resident starts a fire by leaving a stove on, your policy will be protected and their insurance will cover the claim. It’s actually quite inexpensive for residents, and a good way to keep the value of their belongings safe.

Talk to your insurance agent, or contact our team at Sacramento Delta Property Management if you’d like to talk further about protecting your Sacramento rental property.

What are the Risks of Leaving a Sacramento Rental Property Vacant & How to Avoid Them

Fri, 02 Apr 2021 20:13:50 GMT

What are the Risks of Leaving a Sacramento Rental Property Vacant & How to Avoid Them

Vacancies are risky. Not only do you end up losing a lot of money that you’ll never be able to earn back, you leave your property vulnerable. There’s no one there to let you know when a leak begins under a sink, and if termites or other pests take up residence, they could do some real damage before you realize they are a problem. Vacant homes are often susceptible to vandals and squatters.

You want to avoid a vacant property, for the good of your investment home and to get your income flowing and your ROI stabilized. Avoid the risks of vacancy with these tips.

Provide a Well-Maintained and Attractive Sacramento Rental Home

Avoid vacancy by providing an attractive and appealing Sacramento rental home.

You want to make sure that your property is clean and functional. Good residents will avoid homes that are dirty, run down, or plagued with broken windows, peeling paint, and appliances that at the point of breaking.

Curb appeal is your opportunity to make a good first impression, and the condition of your property from the exterior will often help prospective residents decide whether they want to see the inside of your home. When you do have residents inside the property, make sure there’s plenty of light and a welcoming atmosphere. You want residents to imagine themselves living in the home. You can avoid vacancy when your property is move-in ready from the moment you begin the marketing and showing process.

Price Your Property According to the Sacramento Rental Market

The next step in ensuring you don’t have a long vacancy period is to make sure you price your rental property correctly. Owners want to earn as much as possible, and that’s important. Your rental value should bring in as much rent as possible every month. But, don’t sabotage that goal by overpricing your home. Check the pulse of the market and respond accordingly. It really doesn’t matter how much you think your home is worth or how much you want to earn in order to cover your mortgage and other expenses.

It’s the market that drives the price, every time. Residentss are educated and they know what they’re willing to pay. If your home is overpriced, they won’t bother looking at it, and your vacant property will continue to lose far more money than it would have if you had lowered your price a bit. Don’t invite the risk of a long vacancy by over-pricing your property.

Focus on Retaining Sacramento Residents

Keeping your current residents is an obvious way to prevent vacancy and avoid risk. Resident turnover creates a vacancy, and your turnover costs will also add up. You’ll have to clean, market, and fix up the property when one resident moves out and another prepared to move in.

Good residents will renew their leases year after year if you’re responsive to maintenance, available to help them with questions, and willing to communicate honestly and transparently. Show your good residents that you value and appreciate them. Be sensible when considering rental increases and let them know you appreciate on-time rental payments. Provide a good rental experience.

Work with Professional Sacramento Property Managers

Working with a professional Sacramento property management company can help you reduce vacancy. Property managers understand the market and its trends. We can help you establish a rental value and get your property ready for the rental market. You’ll have access to strategic marketing and advertising resources, and you won’t have to worry about why no one is interested in your home. Professionally managed properties also have a higher rate of resident retention, and when a vacancy does occur, we can check up on the home and ensure it’s not falling into disrepair or attracting any problems.

We’d be happy to tell you more. Contact our team at Sacramento Delta Property Management.

How to Achieve a Better Relationship with Your Residents

Fri, 02 Apr 2021 20:13:41 GMT

How to Achieve a Better Relationship with Your Residents

Happy residents lead to happy rental property owners, and establishing and maintaining a good relationship with your residents is critical to your investment success. Retaining great residents increases what you earn because it prevents vacancy and turnover costs.

Smart landlords will establish expectations with their residents before the keys and first month’s rent are even exchanged. Once you have your residents in place, work on the relationship throughout the residency. Be responsive and available, and let them know you value their business.

If you’re looking for a path towards a better resident relationship, we have some ideas.

Provide a Stress-Free Move-In Process

You know what it’s like to move. There are a million details to manage and it’s stressful. Even if your new residents are excited about your property, they’re still stuck in the process of moving.

You can help eliminate some of that stress for your new residents by providing a move-in process that’s transparent, easy, and effortless. Answer all their questions about the lease and their responsibilities ahead of time. Make sure the home is clean, functional, and ready for them. Provide an introduction to how things work – show them how to turn the appliances on and where to find the air filters. These things will make a big difference during the early part of the residency.

At the beginning of the lease period, talk to your residents about what you expect. Discuss the lease and answer their questions. Your residents need to know how they should pay rent and what they’re responsible for in terms of maintenance and landscaping. All that information should be in the lease, but if you talk about it, you can reinforce those things and demonstrate your willingness to communicate.

Keep talking about these things. Reinforce the things you assume they already know. Residents want to hear from you, and they want to feel secure in what their responsibilities are. No one likes surprises or misunderstandings.

Respond Promptly to Maintenance

Nothing is more important to your resident relationship than the way you handle maintenance. Responding to repair needs with a sense of urgency protects the condition of your property and shows your residents that you care about their comfort and safety.

Don’t make promises that you have no intention of keeping. If you say you’re going to fix something, fix it. After the work has been done, follow up with a call or a text to make sure the residents are pleased with the results.

You’ll also need to be available in case there’s an emergency. A resident is going to get very frustrated if there’s a major issue like toilets that aren’t flushing or air conditioning that isn’t working and you are impossible to get in touch with. Be ready to respond, and make sure your residents understand that you can be counted on to take care of both emergency and routine repair issues.

Respect Your Resident’s Privacy and Space

It’s true that you own this home, but it’s your residents who are living in it. Respect their space and their privacy. You won’t be able to maintain a positive relationship if you’re showing up at the property every few weeks. It’s annoying, even if your intentions are good.

Your residents want to be left alone to enjoy the privacy and quiet of their home. While conducting an inspection during the course of the residency is reasonable, schedule it well in advance.

When you’re working on your resident relationships, remember that communication, transparency, and responsiveness are important. We can help you manage – contact us at Sacramento Delta Property Management.

Sacramento Landlord’s Guide to Successfully Advertising Their Rental Property

Fri, 02 Apr 2021 20:13:31 GMT

Sacramento Landlord’s Guide to Successfully Advertising Their Rental Property

Advertising your rental property requires a lot more than an online ad and a yard sign. Your advertising plan has to be strategic in order to be successful, and you’ll need to know who your ideal residents are and how to reach them.

A good advertising campaign will result in the placement of a high quality resident quickly, and for the maximum rent. There are a few things you need to know before you begin advertising a rental property in Sacramento.

Make your Sacramento Home Rent-Ready

Before you list your property on the market, you have to make sure it’s move-in ready. Prospective residents won’t want to see a home that’s almost ready. They’ll want to imagine moving their things in right away. So, make sure you’ve created some curb appeal so that the property feels welcoming and looks attractive. Have the entire place cleaned and make sure everything is working and functional.

Don’t start advertising your home until you’re ready for prospective renters to see it. Everything needs to look, smell, and feel fantastic.

Proper Pricing: Know the Sacramento Rental Market

Your advertising needs to include your rental price, and this will make the difference between residents flocking to see your home or ignoring it completely. Your rental value will depend on a number of factors, including location, size, condition, and the strength of the market.

Pay attention to the market. You need to know your competition, and you need to know what the average days on market will be for the area. If rental properties aren’t moving because there’s a lot of inventory, you may need to price the property more competitively. If it’s a great market and inventory is low, you can afford to price it a little higher.

Knowing how long homes like yours stay on the market will help you establish the right price and set your expectations for how long it will take to rent it. These things impact your advertising strategy, and need to be considered.

Online Advertising in Sacramento

The best place to advertise your Sacramento rental property is online. Yard signs still work for some properties; if potential residents are driving or walking through the neighborhood, they might see a house for rent and inquire. However, the best way to reach the most potential residents is by advertising your property on the most popular rental sites. Make sure you have exposure on sites like Zillow, HotPads, Rent.com, and Zumper.

An effective advertisement has outstanding photos. Make sure your pictures are high quality and shot with great lighting and from advantageous angles. Include photos of the front of the property, the kitchen, bedrooms, and bathrooms. If there’s outdoor space, have a great picture of that, too. The listing should be descriptive and highlight the best features of your property. Don’t forget to include pertinent details such as price, number of bedrooms, whether pets are allowed, and your contact information.

Be Responsive When Scheduling Showings

When interested prospective residents contact you, make your response a priority. If you don’t return phone calls or messages, you’ll lose those prospects. Good residents have plenty of options, and they won’t waste their time chasing you down. Schedule showings and facilitate easy applications.

Part of advertising your home is tracking your results. You need to know how many leads you should be expecting from prospects weekly. This will tell you if there is a problem. If your property isn’t getting any interest, you might have to adjust the price. If it’s getting plenty of showings but no one is applying, there might be a problem with its condition or the way it shows. Always ask for feedback after every viewing. This will help you make any necessary adjustments.

If you’d like some help advertising your rental property successfully, please contact us at Sacramento Delta Property Management. We can help you quickly and effectively lease your property.

Who Is Responsible for What? Sacramento Landlord vs. Resident Responsibilities

Fri, 02 Apr 2021 20:13:21 GMT

Who Is Responsible for What? Sacramento Landlord vs. Resident Responsibilities

Deciding whether a landlord or a resident is responsible for a repair or an issue at your Sacramento rental property can be tricky, especially if the expectations and responsibilities aren’t clear in the lease agreement.

Make sure your rental contract spells out what your residents need to do while living in your property. Discuss the lease with them, and make sure everyone is on the same page in terms of what you will take care of and what the residents need to handle.

Landlord Responsibilities in a Sacramento Rental Property

Landlords are responsible for providing their residents with a safe and habitable home, and for maintaining that home throughout the residency.

If you’re renting out a multi-family property or several units in an apartment building, it’s important that you maintain and clean the common areas. Common areas are anything spaces or structures within the building that all residents use, or outside the unit’s door. This will include hallways, parking lots, fitness centers, lobbies, and the outdoor space in front of and behind the building. If a resident actually damages something such as an elevator or causes problems with the pool, you can hold that resident responsible. But, when it comes to maintaining those common areas, it’s ultimately the landlord’s duty.

A landlord is also required to care for any of the appliances that were provided with the property when the resident moved in. If the dishwasher breaks down, you have to repair it or replace it.

You also have to pay attention to all state, federal, and local laws, regulations, and housing ordinances. Make sure you know what’s required of you as a landlord, and you have to stay up to date with the constantly changing laws in California. There are a lot of new mandates this year, and if you’re not up to speed on everything, talk to a Sacramento property management company that can keep you in compliance.

Responsibilities Shared by Landlords and Residents

Both landlords and residents are responsible for things like smoke detectors and air filters. You have to make sure the smoke detector and the cooling system in your property work. But, the resident has to be responsible for changing batteries and air filters. Make sure this is in your lease.

Landscaping and lawn maintenance may also be a shared responsibility. Sometimes, landlords will provide professional landscaping twice a year, for example, but you expect the resident to mow the lawn in the summer.

You could also hire a professional lawn service to take care of mowing, weeding, mulching, and other responsibilities, and then include the cost of that service in your rent. The same can be done with pools and spas. You don’t necessarily want the residents handling pool chemicals, but since they are enjoying the pool, they should be responsible for contributing to its care and maintenance.

Resident Responsibilities to a Sacramento Rental Home

Your resident is responsible for paying rent on time, taking care of the property, and preventing any damage. A good resident will communicate transparently and let you know when there’s a repair that’s needed. Sometimes, residents will hesitate to report problems because they don’t want to get blamed for it. Make sure your residents understand that you need to know about repairs right away, regardless of who is at fault.

Residents should be expected to make minor repairs. A garbage disposal can be easily reset by residents, for example, and they can also handle things like keeping drains free from clogs and preventing mold from growing in the shower.

It can be helpful to give your residents a bit of an orientation when they move in. Show them how things in the property work, and explain what they should handle themselves and what they should report to you as a maintenance need. Communication can really solve a lot of the confusion about who should be responsible for what.

If you have any further questions regarding resident and landlord responsibilities or anything pertaining to property management and leasing in Sacramento, please contact us at Sacramento Delta Property Management.

Understanding Reasonable Accommodation vs. Reasonable Modification

Fri, 02 Apr 2021 20:12:59 GMT

Understanding Reasonable Accommodation vs. Reasonable Modification

The Fair Housing Act requires that all rental property owners provide their residents with equal opportunities to rent and enjoy their home. This means you have to provide accommodations and modifications for any residents or applicants who have disabilities.

What does this mean?

We’re talking today about your legal responsibilities as a landlord and rental property owner, and how we can help you stay compliant with all fair housing laws as a professional Sacramento property management company.

Fair Housing and Reasonable Accommodations

An accommodation is a change in the rules, policies, practices, or services that are offered to help a resident with a disability fully enjoy and use their home. A disability, remember, can be physical, mental, emotional, or intellectual. An example of an accommodation would be providing a parking space close to the door if a resident lives in a condo complex. When you’re renting out a home to a resident who has a physical disability, an accessible parking space closer to their home will be an accommodation that you make as a landlord.

Another example of an accommodation is a service animal or a companion animal. If you have a policy of not allowing pets into your rental home but a qualified resident has a Seeing Eye dog or an emotional support animal, you’ll need to make that accommodation and permit the animal in the house. It’s not a pet; it’s an accommodation.

As a Sacramento property management company, we have found ourselves accommodating a resident with a disability by changing the way we communicate. Residents who have visual or hearing impairments might need an alternate way to communicate when rent is due or they have questions about the terms of their lease. We have to make sure those residents get all the necessary information. This is an accommodation they need, and you have to be prepared to meet it.

Fair Housing and Reasonable Modifications

Modifications would be when you modify the property for a resident with a disability. You may have to change the structure of the home. For example, you may need to install ramps outside or grab bars in the bathroom. Perhaps you’ll need to lower the entrance threshold for someone who uses a wheelchair.

The residents are responsible for paying to modify the home. You can share the expense as a property owner, especially if you want to keep that modification in place. But, it’s not legally required. Ultimately, it’s the resident’s financial responsibility when modifications need to be made. Your responsibility as the property owner is in permitting the modification and doing whatever you can to reasonably facilitate that process.

Hopefully, this helps you to understand the difference between a modification and an accommodation when it comes to renting out your Sacramento rental home. Keep in mind that if you rent to a resident with a disability, you need to do these things for fair housing purposes.

Please contact us at Sacramento Delta Property Management if you have any questions about modifications and accommodations. We’d love to tell you more and be of any assistance.

What is a Protected Class Under Federal Fair Housing Laws? Guide To Sacramento, CA Fair Housing

Fri, 02 Apr 2021 20:12:43 GMT

What is a Protected Class Under Federal Fair Housing Laws? Guide To Sacramento, CA Fair Housing

Fair housing laws have come a long way since the original Fair Housing Act. The federal law prohibits discrimination against seven protected classes when it comes to housing. The Fair Housing Act was written in 1968, and passed in April of that year.

This law is a huge factor in the way you advertise your rental property, screen residents for your home, and manage your property and your relationship throughout the residency. There are often updates and changes that must be followed. Disparate impact, for example, is a main concern when it comes to screening residents for criminal backgrounds, but it wasn’t even thought of back in 1968 when the original law was written.

Fair housing mistakes are extremely expensive for landlords and property owners. If you’re not working with a Sacramento property management company that knows the law inside and out, you could be putting yourself at unnecessary risk.

Today we’re talking specifically about protected classes, and what this means for the way you lease and manage your rental home.

Federal Fair Housing Protected Classes

The federal Fair Housing Law protects the following classes of people against discrimination in rental housing. You cannot discriminate or deny housing based on:

Race.
Skin color.
Religion or creed.
National origin or ancestry.
Sex.
Physical or mental disability.
Familial status.

These are easy enough to understand. Complications arise when owners make mistakes unintentionally. For example, if you advertise your home as “close to churches” or “perfect for a single professional,” you may be discriminating inadvertently. You can no longer market your rental property with “No Section 8” terminology because Section 8 residents are entitled to apply for your home, using their housing voucher as proof of income.

Not many landlords intentionally set out to discriminate against religions, races, or disabilities. But, the way you advertise your home and the way you talk to prospective residents can have consequences. Make sure you know what you can and cannot do in terms of these protected classes.

California Fair Housing vs. Federal Fair Housing

California is a little different when it comes to fair housing. The state has even more protected classes than those listed by the federal law. In California, we get into protected classes that cover sexuality, age, veteran’s status, and citizenship.

Protected classes have rights that are easy to misunderstand. For example, a resident with a disability has the right to move into your home with a service or support animal, even if you don’t allow pets. Those Section 8 residents who are qualified have a right to live in your home even if they get their income from a government housing program.

Following fair housing laws is a lot more complex than simply making a policy of not discriminating against those protected classes. You have to have policies that reflect equal opportunity when it comes to advertising, screening, leasing, and managing your home.

We can help. If you have any questions about fair housing or anything pertaining to Sacramento property management, please contact us at Sacramento Delta Property Management.

How to Create a Strong Rental Agreement? Sacramento Property Management Tips

Fri, 02 Apr 2021 20:12:33 GMT

How to Create a Strong Rental Agreement? Sacramento Property Management Tips

A rental agreement is a binding contract that you sign with your residents, agreeing to the terms and conditions of the tenancy. It’s designed to protect you, your resident, and your property in case there are disputes or questions about responsibilities and requirements.

Lease agreements are all different and typically reflect the property that’s being rented and the unique rules and expectations that the owner has for the residents and the tenancy. What’s important is that you’re using a strong rental agreement that’s legally compliant in California. Don’t pick a random template that you find on the internet because it may not cover all of the disclosures and addenda that California requires.

Your lease should be detailed and specific. We’re sharing some of the most basic and pertinent pieces of information that must always be included.

Contact and Identifying Information

The lease agreement should start with identifying information. You need the names, addresses, phone numbers, and email addresses for all residents, owners, and if applicable – Sacramento property managers. Any dependents who are living in the home but not listed as financially responsible parties on the lease should also be included. You should also describe the property that’s being rented out. List whether it’s a single-family home or an apartment, if it’s furnished, and which appliances are included.

Rent Collection Policy and Lease Term

The lease agreement also needs to reflect the term of the lease. It needs a start date and an end date, and then it needs to reflect what happens at the end of the lease period. Your lease should state whether it automatically renews, or if it moves to a month-to-month lease.

Make sure to include your rent collection policy. This ought to reflect how much rent is due, when it should be paid, and how it should be paid. You’ll need to include information on grace periods and late fees as well as the amount of the security deposit that was collected. You now need to indicate whether your property falls under the statewide rent control act or whether it’s exempt.

Establish Landlord and Resident Responsibilities

Make sure your lease reflects who is responsible for what. Address the utilities and lawn care and pool care and who pays for those services. You’ll want residents to reference how maintenance should be reported if there’s a repair issue. A good lease tells residents what they’re responsible for during the lease period.

Rules and Requirements

The lease needs to identify what is allowed and what isn’t allowed in your property. If you don’t want any smoking, make sure the lease prohibits it. If you don’t want more than one car per resident parked outside, the lease should say that. If you want guests to stay no longer than three days, make sure that language is in the lease.

When you’re renting out a property in an HOA, you’ll also need to provide the resident with a complete copy of HOA rules and regulations. You should indicate in your list that the resident will be responsible for any fines or penalties incurred as a result of their behavior.

Amendments and Addenda in Rental Agreements

There are a number of addenda that need to be included in a California lease agreement, specifically information on lead based paint and mold disclosures. Your lease must advise residents about the registered sexual offender database in case they want to look at data for the neighborhood and it must also address chemicals and pesticides used in any pest control measures that are taken against things such as bed bugs and termites.

Extra Considerations with Your Sacramento Lease Agreement

Make sure your lease is clear and concise. Use a font that’s large enough for a reasonable person to read. In fact, when it comes to referencing rent control, there are specifics about the font that needs to be used. The verbiage must be in 12-point font. Make sure you pay attention to this; you don’t want your lease thrown out in court because the font you chose was too small.

We spend a lot of time writing rental agreements and we work closely with legal experts. If you need help with your rental agreement or anything pertaining to our leasing and management services, please contact us at Sacramento Delta Property Management.

Companion Animal vs. Service Animal

Fri, 02 Apr 2021 20:12:20 GMT

Companion Animal vs. Service Animal

Pet policies are often easy to come up with when you’re renting out a Sacramento property. Either you’re going to accept them or you’re not. If you do provide a pet-friendly policy, you can place any restrictions you want on size, age, and breed.

Companion animals and service animals are a little different, however, and they can cause some confusion and mistakes among landlords and property owners who don’t understand the law and protections for people with disabilities.

Today, we’re sharing some of the things you need to know to avoid making some expensive legal mistakes.

Companion and Service Animals are Not Pets

Service animals and companion animals or emotional support animals are not pets. According to federal and state law, they are accommodations that you must make for residents and applicants who have disabilities.

This means that you cannot deny an application or a resident's request to have a service animal or a companion animal if they are legally entitled to one. If you say no or explain that you’re a pet-free property, you will find yourself in violation of numerous fair housing and discrimination laws.

You are also prohibited from charging a pet deposit, pet rent, or a pet fee when a resident has a companion or service animal.

Understanding the Role of Service Animals

Service animals are protected by the Americans with Disabilities Act (ADA). They are trained to do work or perform tasks for the benefit of an individual with a disability. That disability could be a physical, sensory, psychiatric, or intellectual. Examples of a service animal would be a Seeing Eye Dog or a Seizure Response Dog. These animals often come with credentials and are easily identified. They can be any breed, age, or size.

Understanding Companion Animals

Companion animals are also referred to as emotional support animals or therapy animals. These animals are usually part of a prescribed treatment plan administered by a medical professional. They provide companionship and often treat depression and anxiety. Unlike a service animal, they don’t have any special training. However, they do qualify as accommodations under the Fair Housing Act. Just like with service animals, you must allow them because they are not considered pets.

With service animals, you are not permitted to ask for documentation or certification. However, with a companion animal, you can ask to see the written treatment plan from a certified medical or healthcare professional. You have the authority to talk to the doctor or therapist and review that professional’s credentials.

Protecting your Sacramento Rental Property from Damage

Many landlords don’t allow pets in their homes because they worry about property damage.

While this concern is understandable, you will face damages that are more expensive and punitive by violating the ADA or the Fair Housing Act. You must allow otherwise qualified residents to move in with their service animals or their companion animals, otherwise you will be out of compliance with some very serious housing laws.

The resident is still responsible for the animal, and must clean up after it and ensure it behaves and isn’t a nuisance.

If you have any questions about how to navigate the area of companion animals and service animals, please contact us at Sacramento Delta Property Management. We’d be more than happy to help.

How to Handle Medical Marijuana For Your Rental Property

Fri, 02 Apr 2021 20:12:10 GMT

How to Handle Medical Marijuana For Your Rental Property

The housing laws in California have been changing dramatically, and with medical marijuana legal in the state, there’s a lot of confusion about what is and is not permitted in your Sacramento rental property. If your property is a non-smoking home, you aren’t required to allow your residents to smoke marijuana – even if it’s prescribed for medical reasons.

Having a strong lease agreement is important. Understanding the scope of the law is also important. If you’re uncertain about how to handle this, reach out to a local Sacramento property management company that can help.

Marijuana is Illegal Under Federal Law

Medical marijuana is legal in 33 states, including California, but it’s still an illegal substance in all forms and for all reasons under federal law. If you have residents who need medical marijuana, they are required to register with the state and obtain a medical marijuana card. This will require them to provide the state with documentation from a physician.

In 2016, recreational marijuana was declared legal in California. However, there are still restrictions on where, how, and when it can be used.

Marijuana and Your Sacramento Rental Property

There are many ways for medicinal marijuana to be consumed. Some people take it in an edible form and others use oils. Many users also vape or smoke it, and that’s where you have the most freedom in placing restrictions on how marijuana is used in your rental home.

You are permitted to keep your rental properties smoke-free. This means that residents and their guests are not allowed to smoke anything in your house or at your property. The smoking restriction would include cigarettes and marijuana. There’s no legal protection that allows for smoking when you prohibit smoking at your property.

Smoking Policies and Your Lease Agreement

The best way to protect yourself and your property is by including a non-smoking policy in your lease agreement.

Everything that happens at your rental property starts with your lease agreement. You need a strong lease with specific expectations and responsibilities for your residents. Don’t be vague; you don’t want to simply include a “no-smoking” phrase. Be specific about what isn’t allowed. List everything from tobacco to marijuana to vaping products.

Communicate with Your Residents

Have a conversation with all of your new residents before they move into the property. While most of your lease signing and communication may be electronic, you want to make sure that you’re clearly establishing the rules of living in your property. Explain that you are renting that property to the residents with the expectation that there will be no smoking of any substance.

Set clear standards and consistent boundaries. When you have done this in writing and in person, there is no excuse for your residents to violate the lease agreement or to smoke marijuana in the property, even if it’s medicinal. They cannot claim they didn’t know it wasn’t allowed. If you discover something that violates your no smoking policy, address it immediately.

If you’re wondering how the laws pertain to your specific investment, contact us at Sacramento Delta Property Management. We’d be happy to tell you more about this and talk about any of your property management questions.

How Additional Insured Can Help Sacramento Landlords

Fri, 02 Apr 2021 20:11:52 GMT

How Additional Insured Can Help Sacramento Landlords

At Sacramento Delta, we are property management experts who know a lot about insurance. But when it comes to insurance matters, we want you to hear directly from an expert in insurance. So, we’ve invited Kurt Bullock with Bullock Insurance to talk to us about what it means to add your property manager as an additional insured to your policy. It can be difficult for a lot of our new clients to understand, especially if they’ve never heard of it before.

Liability Coverage for Owners and Property Managers

If you have an income property and you hire a property manager, you’ll usually end up signing a management agreement. In that management agreement, there is usually an indemnity clause. When you add your property management company to your landlord policy as an additional insured, you’re protecting everyone who deals with the property and the tenants.

For example, if a tenant had a party and a guest was injured and there was a lawsuit, both the landlord and the property owner would be named in the lawsuit. So, when that lawsuit gets turned over to your insurance company for representation, you want all parties to be protected from liability. This is called premises liability. A few carriers will include this for you without any charge, and it’s the best way to protect your property.

Property owners have a laundry list of policies available to them when they’re buying insurance to protect their investment property. As property managers, we provide our owners with eviction protection. We don’t cover the loss of rent because there’s an insurance rider for that. When you have lost rents, you can recover that money through your policy.

Serving Tenants Better as an Additional Insured

During the fires in Paradise and the floods in Houston, we also found out that property managers who were listed as an additional insured on the owners’ policies were able to get help for their tenants faster. We have a lot of investors who don’t live in California, and getting to the site of a disaster right away is impossible. When the property manager is an additional insured, we can act on your behalf immediately. That’s an added benefit that we didn’t know existed until we saw our fellow NARPM members go through it. It’s another good reason to add your property manager as an additional insured.

Additional Insured versus Additional Interest

Sometimes, a landlord insurance policy will add a property management company as an additional interest. That is different than additional insured. They kind of sound the same but additional insured means the property manager is covered under the liability section of the policy. Additional interest simply means that when the policy experiences a change, such as a renewal or cancelation notice, the property manager will get a copy of that notice. It does not offer any liability protection at all. There is no protection when a management company is named as additional interest. It’s a huge difference, and you want to make sure you’re adding the company as an additional insured.

If you have any questions about this, please reach out to us at Sacramento Delta Property Management, and we’d be happy to share more information.

Performing Rental Property Maintenance Like A Professional in Sacramento

Fri, 02 Apr 2021 20:11:38 GMT

Performing Rental Property Maintenance Like A Professional in Sacramento

Rental property maintenance requires responsiveness, budgeting, and a great network of professional vendors and contractors. All of us work at Sacramento Delta Property Management to ensure the properties we manage are well-maintained. Today, we’re talking a bit about our process as a professional property management company.

Working with Trusted Vendors

You need to always be on the lookout for good vendors. In our industry, if someone hears about a great vendor, everyone tries to get to them and they get booked up quickly. We’re constantly looking for competitive rates with our vendors, and we do work with some awesome long-term vendors. Many of our maintenance partners have even been with us for over 35 years. Some will only work with Sacramento Delta and smaller companies. This makes it easier to keep the rates low. They don’t have to advertise or market themselves because they get enough business from us.

Maintenance costs are always on the rise. We do our best to keep costs contained, but there is always inflation, and repairs and parts are not going to cost what they did five years ago. Many of our owners benefit from our discounted pricing negotiations with our best vendors. When you work with us, you get a much better price than you would if you were self-managing or getting your management services elsewhere.

Invoicing transparency is important to property managers. As an owner, you’ll receive the original invoice with the exact information from the vendor. There is no hiding anything and we don’t have any hidden costs or upcharges. The owner gets the exact original invoice and we only keep a copy of it for our records. Transparency is important and so is documentation. We like for each property to have a detailed record of exactly when and how things were repaired.

Comparing Maintenance Prices

We also have a long list of licensed and insured contractors to choose from for our bigger ticket items. We will always get second or third opinions when necessary. These vendors are insured and licensed and bonded, so if something is not done completely or correctly, we can always go back to them and have it handled. They are liable for the work that they do, and a lot of times we won’t even pay an invoice until we get a clear photo of the completed work.

For larger projects, we keep things as cost-effective for our owners as possible. We are always looking for ways to save money for our clients because at the end of the day, we want the best-case scenario.

It’s not uncommon for our clients to send one of their own vendors out to get an estimate after we have provided our own estimates. Usually, our vendors are more affordable.

Gathering competing quotes isn’t always possible. If it’s an emergency and a new furnace or HVAC system needs to be repaired immediately, we get it done because it’s a habitability issue. We can’t have tenants without a place to live.

In-House Maintenance is not Always Best

In-house maintenance is always an interesting process for repairs, and it has both benefits and drawbacks. There can be some pretty high bills when companies use their own maintenance teams. Having a neutral third party take care of these repairs will provide more accountability. And, it reduces liability.

The main goal is to get the item fixed, not to make additional money off our owners. Upcharges and additional fees just for coordinating maintenance is not something we agree with as a company. This is included in your management fee and should not be charged additionally.

We are very transparent, and we are never going to throw in hidden fees, especially for maintenance. Our clients also appreciate getting to know our vendors. They know our HVAC guy or our plumbing guy and they know they can trust the work.

At Sacramento Delta, we have a motto that deals with the four “F-s”. Those F-s are:

Be Friendly
Be Flexible
Follow Up
Fix the problem

If you’d like to know more about our maintenance process, please contact us at Sacramento Delta Property Management.

Tenant Not Paying Rent? Sacramento Property Management Advice on What to Do Next

Fri, 02 Apr 2021 20:11:26 GMT

Tenant Not Paying Rent? Sacramento Property Management Advice on What to Do Next

As professional property managers, we have some strategies for when tenants don’t pay rent. Sometimes, landlords want to jump straight to eviction. But, you really want to avoid eviction if you can. It’s costly and time-consuming.

Today, we’re talking about how we handle tenants who aren’t paying on time.

Property Management and Eviction

Eviction is always available to us, but we like to take steps to avoid that. Everyone has different circumstances that come up in their lives, and I think you do need to take that into consideration. You also want to stay compliant with fair housing laws.

A professional property management company understands the importance of treating all tenants equally. We work hard to communicate and maintain a positive relationship with all our tenants so that if rent doesn’t come in, we can call them and see what’s going on. It could have been an accounting error or something with the mail, but whatever the situation is, always give them an option to respond and at least rectify the situation.

Make sure all late fees are paid along with the rent if it is indeed late. If the tenants aren’t going to have rent for another two weeks, we always call the owner to figure out how that is going to affect their own finances. If you’re relying on that rent payment to make your mortgage payment, you may have a strong opinion on what we do next.

Three Day Notice and Payment Plans

There’s always an option to immediately serve the Three Day Notice to Pay or Quit and move forward with an eviction. However, sometimes it’s better to talk to the tenants and come up with a plan. It provides accountability to the tenants while avoiding eviction. Keeping a good tenant in place for the long term is always the best option for your investment. Some of our tenants have been with us for 10 years, and we don’t want to lose them over one month of late rent. When you evict, you have to pay eviction costs and worry about a vacant property. Tenants who run into temporary financial trouble appreciate when we’re willing to work with them to avoid the eviction process.

Another thing is if it is just a tenant that is delinquent on a regular basis and they are not ever going to be able to catch up, you may need to give them a change of terms. Give them a longer notice so they have time to prepare if they cannot rectify it instead of jumping right to the attorney. Unfortunately, this is also contributing to the housing crisis. But we do want to make sure our owners are getting paid and that tenants are held accountable to their lease terms.

Fair Housing Act

Always be fair and work with your resident. Try to understand their situation and where they are coming from before jumping right into the eviction process. We think you should always treat your tenant the way you would want to be treated.

The most thing that we stress is that the Fair Housing Act is important and cannot be violated. We can’t offer a payment plan to one tenant but not another. It’s the same with late fees; you cannot waive them for one tenant but enforce them for another. It sets up a presumption of discrimination.

Fairness is appreciated by everyone. So, set your standards and stick to them. Then, there are no questions asked. You have a happy owner and a happy tenant.

For more information about how a professional property management should handle late payments or rent collection, please contact us at Sacramento Delta Property Management.

What to Look for When Choosing a Property Management Company in Sacramento

Fri, 02 Apr 2021 20:10:58 GMT

What to Look for When Choosing a Property Management Company in Sacramento

Choosing a property management company is an important part of your investment success. You want to work with a property manager who understands your goals and your needs as well as the unique needs of your rental property. Today, we’re sharing some things you should look for when you’re finding a Sacramento property management company.

Property Management and Property Type

You want a property manager who has experience working with properties like yours. Multi-family and single-family homes require different types of management. Every one of our California property managers does hold a license to sell real estate if we want to. But, instead of looking for a real estate agent, look for a property management company that understands your home and can help you execute effective rental management.

Transparency and Property Managers

Transparency is a big thing. Property managers and owners should always be 100 percent transparent with each other. You don’t want upcharges or invoices and statements that don’t make sense. Owners don’t want to see hidden fees or surprises. Communication is important in a property manager.

Legal Knowledge and Expertise

You also always want to make sure the different property managers that you are considering are all up to date on the current local, state, and federal laws. That will protect you from liability and lawsuits.

At Sacramento Delta Property Management, many of our team members hold board positions with our local NARPM chapter. This puts us in an excellent position for staying up to date on the current legislation. We know a little bit more than those around us.

With a position as the education chair on the board, we can collect and share all the available information regarding laws that have an impact on how we do our job for our clients. We also get to educate others on property management and the industry’s best practices. When you’re looking for a property management company, make sure they’re involved in NARPM and make sure they understand the laws.

These requirements change on an annual basis. A couple years ago, smoke detectors were required in all the bedrooms and the year before that we had carbon monoxide detectors required in the hallways. Now, we have to be careful not to use mini blinds with strings. There are constant changes within the market, and property managers who deal with that on a regular basis are always going to be in the know. So being up to date on education and actually having an agent that looks into your best interests as far as longevity for your property and the legal rights of their tenants is really important.

We always start the rental process by giving the owners and the tenants a document that informs them of what their rights are.

Check the Rental Agreement

When choosing a property management company, you also want to make sure that they have a flawless rental agreement. This is especially important if you already have a tenant in place and you are just choosing a property manager to take over. Update your rental agreement because there are new clauses that get added yearly.

Look for a Certified Residential Management Company, or a CRMC. Property managers who gain this certification have to go through audits and complete extra training to be given that distinction. It is a highly coveted honor and there are only a handful across the country who have this. We’re proud to be one of those companies.

Education is important with our team. You need to look for a property manager who never stops learning.

If you’d like more information about choosing a property manager, please contact us at Sacramento Delta Property Management.

Expert Tips on Avoiding Security Deposit Disputes

Fri, 02 Apr 2021 20:10:30 GMT

Expert Tips on Avoiding Security Deposit Disputes

Security deposit disputes can be quite common, especially if there’s a lack of communication and expectations are not discussed ahead of the tenancy and the move-out process.

Today, we’re talking about how landlords can avoid security deposit disputes with their tenants and how a property management company can help with documentation and distinguishing damage from wear and tear.

Document Everything

Treat every move-in process like you are going to end up in court.

In that head space, you are documenting everything as if it’s going to be presented to a judge. Photographs are always the biggest benefit you can offer when it comes to move-in inspections. You want to thoroughly document how the property looked before move-in so you can compare it to how things look at move-out. Open cabinets and drawers and take pictures showing that everything was thoroughly cleaned prior to the tenant taking possession. Really note every little thing. If it does not say it was cleaned on the move-in inspection report, then how do we really know it was?

Document everything no matter how big or small.

Wear and Tear and Life Expectancy

Property managers are good at taking into consideration the life expectancy of the household items that are worn down during a tenancy. If there is a hole in the door that the tenant caused but the hole is on an original door from when the home was built in 1950, the price of that door is probably $20 minus depreciation. When it comes to carpets, if the tenant was there for three years and had a pet that ruined the carpet, you technically can only charge them for the time remaining with the carpet since the life expectancy for the actual carpet is really only seven years.

Owners need to be aware of what they can actually charge the tenant for versus what is considered wear and tear. Fairness is important, and you have to know what you’re responsible for as a landlord and what tenants can reasonably be charged for after moving out of a property.

Re-Evaluate any Tenant Dispute

If the tenant is disputing some of the charges against them, you do need to re-evaluate. You should never just automatically assume you are right and try to nickel and dime the tenant. Always re-look at things and decide if the life expectancy of the items you are charging the tenant for has passed or if there is room to negotiate.

At the end of the day, our owners decide what should be charged, but as property managers we work hard to educate our owners. You need to know whether a dispute is really worth the $100 you’re arguing over.

Strong Lease Agreements are Critical

It is also important to have a really good rental agreement in place. This will tell you what you can charge the tenant for throughout the tenancy. Just yesterday, we had to refund a tenant a full deposit because there was no move-in inspection report from a previous management company. We couldn’t charge them for anything because nothing was documented upon move-in.

Conduct an interior inspection from time to time, especially if you have a tenant that has been in place for five years. Things may have gone wrong, and documenting them on an annual basis gives you a timeline to refer to so you know when things broke or needed repairs. It’s easier to distinguish wear from damage. Having accurate records of when things were repaired and replaced can always help when a dispute is present in regards to the security deposit.

If you have any questions or need some help with a security deposit, please contact the property managers at Sacramento Delta Property Management.

Expert Advice for Reducing Vacancies in Your Sacramento, CA Rental home

Fri, 02 Apr 2021 20:10:20 GMT

Expert Advice for Reducing Vacancies in Your Sacramento, CA Rental home

Vacancies are extremely expensive for landlords, and if you’re working with a great property management company, you can count on some strategies to keep your vacancy rate low.

Today, we’re discussing how we prevent and reduce vacancies in the properties we manage at Sacramento Delta Property Management.

Tenant Relations and Retention

Keeping tenants in place is an excellent way to reduce vacancy. This is why we are quick to build a strong relationship with our residents. Property owners and tenants have a partnership, and as property managers, we negotiate and facilitate that partnership. We are here to make sure things go smoothly and to take care of things inside the home. If we can accommodate your needs as an owner as well as the needs of your residents, we’ll reduce your vacancy. People undervalue their tenants sometimes, and that’s a huge mistake. These residents are paying part of your mortgage and helping you keep expenses down on your investment.

Provide a Rent-Ready and Well-Maintained Home

We always conduct an inspection before placing the property on the market so we’re sure it’s ready for great tenants.

The current condition has to be excellent. We look at cleaning, paint, flooring, etc. You don’t want to offer a home that isn’t move-in ready because a potential tenant is looking for their home. They want to be able to picture their family there or their friends there. They want to imagine their possessions inside that home immediately.

Make sure the home is rent-ready. Some people do not think having fresh paint on the walls is a big deal because new tenants will just hang things over the wall anyway. But, tenants notice the paint. Everyone has their own level of cleanliness, but you want to be able to eat off the floor when preparing for new tenants. You should walk into a bathroom and see the toilet sparkle and shine. Let prospective tenants envision themselves in that space. This will reduce your vacancy period.

Always have the place repaired and prepared. A tenant will not want to be told that the fence will be fixed before they move in or the walls will be painted. They might have heard that before from other landlords, and they won’t trust it. A property will sit on the market longer if the fence isn’t fixed and the walls aren’t painted.

The expectations are set from the beginning when getting a home rent-ready. You are setting a standard for the tenants when you provide a well-maintained home. If you provide a home that has clean carpets, fresh paint, etc., you are really going to have a tenant that values the time and energy you put into getting it ready for them. Cleaning is a one-time charge for the owner. After a tenant moves out, if they have not cleaned the home, they will be charged because cleaning is not a wear and tear item. So, having high cleanliness standards really pays off and the tenants will appreciate it.

We screen for the most highly qualified tenants. So, we want to provide a property that those tenants will want to live in. This keeps vacancy rates low.

Pay Attention to Property Pricing

Make sure the property is not overpriced. This can definitely cause long vacancy periods.

If the property has been on the market a few days and you haven’t heard anything or gotten any potential leads, get with your property manager about your price. We have had several properties in the same neighborhood just lingering out there for a while. They may all have different prices but sometimes there’s just no interest. So, we’ll adjust the price as necessary to try and get good tenants interested. Lowering the price will actually save you money because you’ll have a shorter vacancy period. A vacant home earns you no money.

If you’d like some help avoiding vacancy, please contact us at Sacramento Delta Property Management.

Achieving the Highest ROI for your Rental Property as a Sacramento Landlord

Fri, 02 Apr 2021 20:10:08 GMT

Achieving the Highest ROI for your Rental Property as a Sacramento Landlord

Achieving a great return on investment, or ROI, is the goal of every rental property investor. We’ve invited Bob, a real estate agent with Keller Williams, to talk to us about ROI on today’s blog. We will often have people buying rental property ask us about whether a particular property will provide a good return. We’ve asked Bob to shed some light on what that means and how to increase your own ROI.

Understanding What Factors Impact ROI

Whether you’re buying an investment property or selling one you currently own, you’ll want to know what kind of value it holds on the market. Rental projections are important numbers, and so are numbers like what the property could rent for and how long it may remain vacant before you earn any money on it. Those are two key factors.

Other areas to look at when figuring out the ROI would be the costs to remodel or clean up the home before it’s ready for the rental market. You would have all of that answered after the property inspection or the home inspection was performed. Other items on the list that may impact your ROI include property tax including assessment taxes, management and maintenance fees, and insurance expenses. Once all that is put together on a spreadsheet, you should review it and maybe take it to an accountant or a CPA. The amount of ROI you can expect often depends on your financial situation at the time.

Working Together with Real Estate and Management Partners

At Sacramento Delta Property Management, we do not sell real estate. At Keller Williams, Bob helps people buy and sell homes. When you’re planning to buy a rental property and you need to know what you’ll have to spend and what you can expect in terms of rent and ROI, it’s important to talk to both of us. We each do different things every day, and you’ll need a lot of expertise in order to make the right decision and have a successful investment experience.

Keeping the buying and selling part of your transaction separate from the property management portion of your investment will help you gain as much expertise and as many resources as possible during this process. I love referring clients to Realtors when they want to buy something, because they really are experts at what they do. Bob knows how to buy and sell solid real estate property and he knows how to deal with non-owner occupied properties. He definitely gives us a lot of support on the investment side, which is great.

Property management that’s professional and experienced allows you to earn more on your rental property. We keep your tenants happy and paying rent. The last thing we want are hostile tenants. We want to get a good understanding of how they feel. Tenants are just as much a part of earning more ROI as your rental value and your vacancy rate.

We’d love to tell you more about how to earn a better return on your Sacramento investment property. Please contact us at Sacramento Delta Property Management.

How to Get Your Sacramento House Ready to Rent

Fri, 02 Apr 2021 20:09:34 GMT

How to Get Your Sacramento House Ready to Rent

Prospective owners we talk to want to know what will get top dollar for a rental property. That’s an important question, and if you want to earn as much as you can, your property has to be rent ready. This is different than what you would do to get the property ready for the sales market. With a rental, someone will be moving in and living there. A renter needs to have an idea of what living there will feel like.

Give the Property Fresh Paint

A fresh coat of paint looks clean and nice, and the color should be neutral. It’s hard for tenants to picture themselves living there if taste-specific colors are on the walls. So, neutrals like soft whites go a long way. If one room is purple and another one is orange, prospective tenants will have to visualize their children and their guests in those rooms. It can be hard to determine whether their own furniture and décor will match. Neutrals are always better.

Eliminate Personal Clutter from the Home

Take away any personal items. You don’t want to have mail on the counter or a ton of pictures on the walls and picture frames all over the surfaces. Remove personal items in the bathroom, and make sure that beds are made. When someone is coming through the property or you’re doing showings, less is more. Many times, owners will stay in the property until a tenant moves in. Edit out what you can, because it’s hard for people to picture how they will live there if all of your stuff is there.

Pay Attention to Kitchens and Bathrooms

Kitchens and bathrooms are the biggest items that prospective tenants look at, especially when you have people who love to cook. You want good appliances and rooms that are clean, updated, nice, and in neutral colors. Cabinetry and cupboards should look good. This doesn’t mean you have to do a whole kitchen remodel. But, if the varnish on the cabinets is off and they don’t look clean, you’ll want to paint or replace them. The $200 you’ll spend to paint cabinets will make a huge difference.

We also have vendors who do wonderful things with linseed oil. Your cabinets will look brand new. You can also update hardware and replace faucets. A new microwave, fresh paint in the bathroom, and a new toilet seat cover are all inexpensive updates that tenants will notice.

Manageable Yards and Landscaping

You might think you’ll be able to charge more rent because you have a huge yard and some lovely fruit trees. This might be great if someone is buying your house, but renters are not interested in taking care of fruit trees. Your large yard will only mean higher costs for you because you may need to hire a gardener. These things need to be maintained during a tenancy. So, something that you might see as a plus – a big yard – might be narrowing your tenant pool to large families only.

Market for the Season

In the summer, when it’s 100 degrees, having a pool is a plus. It can generate more money. Tenants find it’s a lot more fun to rent a house with a pool than it is to own a house with a pool. It’s attractive to renters because they don’t have to worry about the maintenance. In the winters, we’ll shift to promoting your fireplaces and your garages.

Another good way to make your home attractive to potential renters is by advertising your energy efficient appliances. If you have solar, that’s great too. Like you, renters don’t want to pay huge electric bills.

This is a good reason to have a property manager. We know what people are looking for, and we know how to market your property according to the season.

Properties Must Sparkle and Shine

Finally, cleanliness is the most important thing to consider when you’re getting your house ready for the rental market. Think of it as a hotel room. When you walk into a hotel room, you notice if it’s clean. You don’t want to feel like you’re staying in a place that someone else just stayed in. It should be airy, open, and neutral. It has to sparkle and shine.

We offer complimentary tours of your property that can help you prepare it for the rental market. If you have any questions, please don’t hesitate to schedule a tour or contact us at Sacramento Delta Property Management.

Benefits of Renting Out Your Elderly Parents’ Home When They Move

Fri, 02 Apr 2021 20:09:19 GMT

Benefits of Renting Out Your Elderly Parents’ Home When They Move

At some point, you may realize that one or both of your parents cannot stay in their property. We get a lot of calls from people who need help, and at Sacramento Delta, we have been personally involved in our own parents’ decisions to downsize. Maybe your parent is moving into a nursing home or moving in with one of their children. It’s better to make these decisions when your parents feel involved and supported.

Renting Out a Parent’s Home

Maybe you and your siblings cannot decide what to do with your parent’s home. It’s overwhelming enough to come up with a plan to take care of a person – your parent. They might feel like moving out of the home is very final. That can be scary, and saying goodbye to a house is hard. When you choose to hold onto the property and rent it out, the situation can seem more hopeful for your parent. We have dealt with this in the past, and it gives parents and their adult children more peace of mind.

Professional Property Management for Your Parent’s Home

Sometimes, the adult children live in New York or across the country, and they are already stressed because they know it will be hard to take care of their parent. Moving mom or dad out of a place they have lived in for 40 or 50 years is difficult. You’ll need someone who can effectively manage the property, and keep it in good shape. A good property manager can even generate some income that can help pay for your parent’s care. Sometimes, you’ll need to use the rental income to pay for assisted living and nursing home care.

Put Off Difficult Decisions

There are many benefits to renting the property out, and one of the major benefits is that it puts off some big decisions. You don’t want to squabble with family members or leave your parents feeling like they don’t have a say. Renting the house out allows you to revisit decisions later and focus on caring for your mom or your dad.

This is something we want you to think about because we are emotionally connected to this topic, and we understand your desperation and your concerns.

If you have any questions about what to do or how to move forward, please contact us at Sacramento Delta Property Management. We know what it’s like to be overwhelmed, and we can help you start this conversation.

How Much Can I Rent my Sacramento House for? Professional Management Advice

Fri, 02 Apr 2021 20:09:05 GMT

How Much Can I Rent my Sacramento House for? Professional Management Advice

When investors are making decisions, they will ask about rental value. They need to know how much rent their property will earn. There’s a benefit to having a professional property manager look at your property. That’s far more reliable than just running the numbers.

Start by Checking Rental Websites

Agents at Sacramento Delta specialize in specific neighborhoods and territories. So, right off the bat, we know the local market. Then, we look at websites to get an idea of what properties are renting for. We have a lot of information on our database too, because we manage over 2,000 properties. That’s a lot of resources to help us provide a rental value.

Visiting a Property to Assess Value

Sacramento Delta offers complimentary appointments, where our agents go out and look at your property. This is something you should take advantage of as a property owner. Those websites don’t tell the whole story, and being in the field helps us to more accurately price your property. A three bedroom, two bathroom house in the same neighborhood won’t always have the same rental value. One may be a 1950s home and one might be a brand new home. It’s hard to compare one to the other. The property’s condition has a huge impact on the rental price, and so do amenities like pools and fireplaces and new paint.

All these factors play a role. Having an agent specific to that territory working on your rental comp will ensure you get an organized, accurate, and detailed estimate. Often, our agents live in the neighborhoods they serve. So when something pops up, we know what’s trending. We can easily see the competition.

It’s really important to make that complimentary appointment so we can give you a good rental analysis. We want the full picture, and it benefits your bottom line.

Take advantage of our expertise!

If you have any questions or you’d like to schedule a complimentary analysis, please contact us at Sacramento Delta Property Management.

Why Choose Sacramento Delta to Manage Your Sacramento Rental Property

Fri, 02 Apr 2021 20:08:25 GMT

Why Choose Sacramento Delta to Manage Your Sacramento Rental Property

Today we want to help you make a decision on which company to choose as your property manager in Sacramento. At Sacramento Delta, we have been in business for 30 years. That means we can offer you a lot of experience. We also have a broker on staff who spends a lot of time focused on education. He ensures our entire staff is very well-educated on all the latest and greatest laws and technology that affect our industry and your property. Staying educated and informed is very important to us, which is why we are affiliated with the National Association of Residential Property Managers (NARPM). In fact, we are one of the few companies to hold a designation from that organization which certifies us in property management.

We do a great job of marketing the properties we work with. Our website is excellent, and we also advertise on a number of other extremely popular websites. In addition to advertising online, we post very large signs with great visibility. We always have a large number of people to choose from when we are looking for tenants. Our qualifying standards are probably the strictest in the area, and we stand by them firmly. The process is thorough and we make sure the person moving into your house takes good care of it and pays rent on time.

Last but not least, Sacramento Delta’s communication skills are outstanding. We often get calls from people who are frustrated with their management companies because they can’t get their phone calls returned. Owners might have maintenance questions or need to know why rent hasn’t been paid yet. If they can’t get their calls returned, they can’t keep up with how their property is doing, and that can be a big problem. Our property managers spend a lot of time out in the field, doing all of the things you would expect them to be doing. They’re inspecting properties and meeting with owners and residents. We have an excellent support staff here in the office to answer your phone calls and your questions until the property manager can get back to you. We have no problems with communication, and we pride ourselves on how well we keep our owners informed about what’s going on with their rental properties.

When you’re making a choice, look for a property management company that you can count on. If you have any questions about the service we provide, please contact us at Sacramento Delta.

What Your Sacramento Property Management Company Should Do for You

Fri, 02 Apr 2021 20:08:12 GMT

What Your Sacramento Property Management Company Should Do for You

When you’re looking for a property management company to take care of your single family residence in Sacramento, you should pay attention to three particular things; price, communication and education.

Price

There is no standard cost for the management of single family homes in Sacramento. Some companies will work by charging you a percentage of the rent and others will have a flat fee. What you need to know is what you’re getting for the cost. Find out what kinds of services are included in what you’re paying. For example, does your property management fee include the payment of utility bills and property taxes? Find out if maintenance bills are paid, and if there is a surcharge. Some property management companies offer eviction protection and that’s important, because you want to know if the company stands behind the tenants they select for your property. Find out if they are willing to pay for evictions, or if you’ll be left to pay it yourself.

Communication

The way your property manager communicates should be very important to you. The most difficult thing in our field is that many property managers are out of the office half the time. They are inspecting properties and showing properties and meeting with owners and residents and vendors. You still need to get your questions answered, however. Make sure you work with a property manager who has a staff of people who can help you while the property manager is unavailable. There should be a written policy in place for responding to your emails and phone calls. You want to know your property manager is going to get back to you within a particular amount of time.

Education and Experience

A property manager will guide you through the local, state and federal laws involved in rental properties. Therefore, you want a property manager with a lot of experience and a lot of ongoing education. Find out how long a property manager has been in business. Always choose someone who is affiliated with the National Association of Residential Property Managers (NARPM). Your best bet is to get a property manager who is designated and certified by that organization. This is a group of professionals who spend hundreds of hours staying current in every issue pertaining to property management. They are dedicated and committed managers.

If you have any questions about what your property manager should be doing for you, please contact us at Sacramento Delta Property Management.

Talk to a Property Manager Before Buying a Sacramento Rental Property

Fri, 02 Apr 2021 20:07:17 GMT

Talk to a Property Manager Before Buying a Sacramento Rental Property

When you’re searching for the best investment property in the Sacramento area, there are a few specific things to consider. We always recommend that you talk to a property manager before you buy so you know you’re buying a property that people are going to want to rent.

Knowing the rental value of a home is really important. A property manager can give you sound advice about what a particular property will rent for in the existing market. You’ll need to get comparables of actual rentals in the area. This requires a lot more detail than what you’ll find on Craigslist or other sites online. Property managers have firsthand knowledge of actual rents, and that information is far more accurate than what you’ll find online or from a sales agent.

Price is really important to potential renters. They are looking for a fair price, and they’re willing to pay it. They will not even consider looking at your home if it’s priced above the market. Therefore, you really need to consider the rental rate before you buy an investment home. Be willing to take advice from your property manager and negotiate.

Remember that there’s a rental loss associated with your property when it sits on the market. You don’t want to buy it and then leave it vacant for months and months because you’re not going to be able to get the rental price you had hoped for. The market does not care about your mortgage. This can be a hard thing for an owner to accept.

It’s important to understand what is important to a potential renter who is well qualified. You want to buy an investment property that will appeal to a great tenant. They want a property that is safe, clean and well maintained. It should smell good and be inviting. They want to be proud to call that property their home. This is the kind of renter you want.

Finally, you have to consider a home’s features before you buy it. Important features are square footage, number of bedrooms, the size of those bedrooms and whether there is central heat and air. In Sacramento, we have summers that see temperatures over 100 degrees. Location is important as well. Some families will pay a premium if the property is located in a preferred school district.

If you have any questions about how to find an ideal investment property in Sacramento, please contact us at Sacramento Delta Property Management. We have specialists in all areas of the city and we can help you set and reach your property investment goals.

Sacramento Tenant Stops Paying Rent? How to Handle Eviction

Fri, 02 Apr 2021 20:07:00 GMT

Sacramento Tenant Stops Paying Rent? How to Handle Eviction

Today, we are going over the basic steps that may lead up to an eviction when a tenant stops paying rent. There are a couple of things you need to do right away to minimize any expense that comes along with the eviction process.

First, contact the tenant. If you don’t receive rent and you have no explanation, make a phone call to find out what’s going on. Sometimes, it’s a simple error that can be easily fixed. Maybe the rent was mailed in, and it got lost. Or, perhaps the resident simply forgot to pay. When the issue is an easy one to fix, you should go ahead and take the time to do that so you don’t have to go through with the eviction.

If your phone calls go unanswered and you still have no explanation for why rent has not been paid, you serve a Three Day Notice to Pay or Quit. As we have discussed in a previous blog, it’s never a good idea to include late fees or other charges in your Three Day Notice. That will only confuse the issue. Your Notice should require rent only, and it should give the resident three days to catch up.

If the Three Day Notice doesn’t work and time is up, you will need to move forward with the eviction. At this point, we recommend you refer the problem to an attorney who is experienced in evictions and knows the procedure well. Evictions can be complicated and even the slightest error can have consequences for you, so get an attorney.

Some property management companies will cover attorney fees when you have to file for eviction. When you begin working with a property manager, find out what kind of protection is included against the costs of an eviction process.

If you have any questions about eviction, or you’d like more information on how a property manager can help you handle it, please contact us at Sacramento Delta Property Management.

How to Properly Screen Sacramento Tenants to Avoid Eviction

Fri, 02 Apr 2021 20:06:43 GMT

How to Properly Screen Sacramento Tenants to Avoid Eviction

Screening and processing applications requires a lot of time and attention, especially if you want to get good residents into your property who are going to take care of the home and pay rent on time. As property managers, we know that a lot of evictions can be prevented with extra precautions during the screening process. Here’s what we do at Sacramento Delta Property Management to ensure we are putting the best possible renters into our properties.

Run a credit check

It’s important to read through the entire credit report. This will tell you whether an applicant’s credit history is acceptable for our standards. You want to be careful about renting to people who have a hard time managing money and credit or who demonstrate a history of not paying their bills.

Verify income

You want to find out how much money an applicant makes, and then you want to see documentation that proves what the applicant says is earned. You can do this by talking to the employer or reviewing pay stubs and tax forms. We require a renter to make at least three times the amount of monthly rent. Make sure the applicant earns enough money to pay rent every month.

Verify rental history

Whether the applicant was a renter or a homeowner previously, you need an idea of how that person treated the properties he or she has lived in. For renters, we always contact the applicant’s current landlord as well as one previous landlord. It’s important to get a rental history that is actual and factual. If the applicant was a homeowner, we check county records to ensure they did own the home listed on the application.

Look for red flags

Always pay attention to any red flags that come up during the screening process. These will tell you if the person wanting to rent your home is truthful. You want them to be honest, and you also want them to be reliable. Take red flags seriously.

If you have any questions on tenant screening, or you’d like information on how to handle the application process, please contact us at Sacramento Delta.

Handling Security Deposits and Normal Wear and Tear for Your Sacramento Home

Fri, 02 Apr 2021 20:06:20 GMT

Handling Security Deposits and Normal Wear and Tear for Your Sacramento Home

As rental property owners, all of us want our homes to come back to us in the same great condition that they were in when we rented them out. Unfortunately, that does not always happen. There will always be something that needs attention; maybe the cleaning wasn’t done properly, or light bulbs weren’t changed. You may have miscellaneous items that need to be deducted from the security deposit.

When you handle the security deposit, you have to be aware of the law. In California, you have 21 days to return a security deposit to a resident. If you don’t, that resident can sue you for up to two times the amount of the deposit that was given. That’s not a situation you want to be in.

After a resident moves out, you’ll need to walk through the property to assess the condition. A check in sheet is a great tool that can help you determine what you should and should not charge the security deposit for. You can complete this on your own or with the tenant at the time of move in. It will tell you the state of the home when the resident moves in, and you’ll be able to compare it to the state of the home when that same resident moves out.

Remember that you must allow for normal wear and tear. It’s not always easy to determine the difference between damage and wear and tear. This is one reason why hiring a professional property manager can be useful. Generally speaking, paint has an expected life of three years and carpet has a six year life span. If your resident moves into a freshly painted home and then moves out after a year, you might notice some areas on the wall that need touch up paint, or maybe nail holes need to be filled in. It’s natural to want to charge the tenant for the entire amount because they got a freshly painted home when they moved in. However, you are required to give them their one year wear and tear credit.

Deciphering what portion of the paint bill should be charged to the tenant can be complicated, and this is what we do on a daily basis as property managers. In the end, most security deposits will have some deductions on them, and you have to do it right. For example, if you keep more than $125 of the deposit, you must provide the residents with receipts for the work that was done. We think it’s a great idea to include those receipts no matter what the amount. It eliminates confusion and enhances communication.

If you have any questions on how to return a security deposit or distinguish between damage and wear and tear, please contact us at Sacramento Delta Property Management.

Sacramento Maintenance 101 – Preventative, Emergency and How to Budget

Fri, 02 Apr 2021 20:06:03 GMT

Sacramento Maintenance 101 – Preventative, Emergency and How to Budge

Managing the maintenance on your rental home requires you to be prepared for both preventative repairs and emergency issues. You also need to have a budget in place so you can pay for the necessary repairs and replacements.

Preventative Maintenance

Your regular preventative maintenance routine should include things like caulking. Caulk around the toilet and the tub to avoid leaks. Pay attention to your gutters. You should only have to clean out the gutters once every year, and it will save you a lot of money on larger repairs that can become necessary if your gutters aren’t regularly cleaned. Another thing you should do annually is to have your heating and air conditioning systems serviced. To ensure those systems continue to work well, leave your tenants with a supply of filters and instruct them to change those filters every 30 days. You will save on repairs and it will be a longer time before you have to replace that system completely.

Emergency Repairs

It is crucial to have someone available 24 hours a day for emergencies. Your tenants cannot wait until the next business day to call someone about a plumbing crisis, a break-in, falling trees or collapsed fences. When you have someone available 24 hours a day, it means someone is always looking out for your house. Your emergency availability will save you from having to make more expensive repairs that can happen when additional damage is caused to the home.

Budget

When you take preventative measures and you provide 24 hour emergency service, you are protecting your home and yourself against expensive repairs. However, we all know that things still happen. Appliances break, water heaters leak and fences fall down during storms. Heaters and air conditioning systems get old. You have to be prepared for these things, so have a budget in place. It helps to keep track of when you purchase these items and how much maintenance has been done on them. You’ll know what to expect and when to prepare to buy new things.

If you have any questions on managing the maintenance on your rental home, please contact us at Sacramento Delta. We deal with these issues every day, and we’d be happy to help you.

How to Get the Most Money for Your Sacramento Rental Property

Fri, 02 Apr 2021 20:05:46 GMT

How to Get the Most Money for Your Sacramento Rental Property

When you want to maximize the income potential on your rental property, the first and most important thing you can do is minimize vacancy. It’s well known that the longer your property is vacant, the more money you are going to lose. When you work towards keeping those vacancy periods to a minimum, there are a couple of things to consider.

First, a lot of owners like to do their own repairs. This is certainly understandable – why pay a vendor to do what you can do yourself? Doing your own repairs can save you money as long as you do them right away. If you don’t have the time to make those repairs quickly, your home is going to stay vacant longer. Maybe you only have weekends to do the work or one day per week. If that’s the case, it will actually save you money in the long run to have a vendor do the necessary work. It’s a deterrent during showings when there are repairs that need to be made. Every day your property is vacant, you’re losing that rental income.

You also have to set the correct rental price. Sometimes, just a difference of $50 will leave your property vacant longer. We tell owners that it’s okay to set your rental price at $50 or $100 above the market for one week. However, if you don’t get any hits from qualified tenants, you want to bring it back down to what the rent should be according to the market, and it will rent much quicker.

When you get your applications in from interested tenants, it’s imperative to screen them properly. This will save you time and money in the long run and it will also save you from damage to your property. Stick to your guns on your qualification requirements and you’ll have great, high quality tenants.

Owners often ask if they’ll get more rent by changing the counters in the kitchen to granite or by remodeling the entire home. Typically, the answer is no. If the property looks clean and it really shines, it won’t matter if you have tile from the 1980s. As long as it’s clean and it looks good, you’ll get a good tenant. You won’t get that money back that you spend on an expensive remodel and granite countertops aren’t going to bring you $10,000 in extra rent.

If you have any questions on maximizing your rental income, or you’d like to discuss these tips in greater detail, please contact us at Sacramento Delta.

Inspections: How a Sacramento Property Manager Protects Your Rental Home

Fri, 02 Apr 2021 20:05:10 GMT

Inspections: How a Sacramento Property Manager Protects Your Rental Home

It is imperative that you inspect your property at least one time every year. This is important to do even if the tenants are paying rent on time, you’ve had no complaints and you think they are really wonderful people. You have to walk through your rental home and do an inspection annually. Not only do you want to check out the general living conditions, you also want to look for neglected maintenance issues.

A lot of times, great tenants aren’t going to want to bother you with too many repair requests. Or, they’re worried that you’ll raise the rent if they call with maintenance concerns. That’s not a good thing, because as you know, small problems can often lead to big problems that are more expensive to fix. So do your inspections. Check under the kitchen sink to make sure there isn’t anything leaking. Lots of people store their household cleaners there, but they often don’t think about checking the pipes and the floor under the sink. Take a look at the windows and the window sills. Check the HVAC filter as well as the sprinkler systems and sprinkler valves. Turn the faucets on and off, and make sure you don’t have an inefficient toilet.

These are the things that can save you and your tenant a lot of money and also protect your investment. Make sure any neglected maintenance you find doesn’t continue. The inspection is a great opportunity to address any concerns your tenants might have. Let them know you won’t raise the rent due to calls for maintenance and repairs.

We always recommend that you take a lot of pictures to go with your inspection paperwork. This is important because it documents your property. Take pictures of everything, including what looks good. You don’t want to photograph the problem areas only. When you document everything, it will help you in the long run. Maybe the tenant will dispute the disposition of the security deposit, and you’ll need to prove how the home looked during the last inspection. Or, perhaps an insurance issue will arise. You might have a roof leak and maybe the insurance company will try to claim that it looks like an ongoing issue. You’ll have pictures from six or 12 months ago that show there was no leak, and it’s not an ongoing issue.

If you have questions about inspections or how a property manager can help you conduct them, please contact us at Sacramento Delta, and we’d be happy to help you.

Why Choose Sacramento Delta to Manage Your Rental Property

Fri, 02 Apr 2021 20:04:51 GMT

Why Choose Sacramento Delta to Manage Your Rental Property

Today, we’re sharing a few of the reasons that Sacramento Delta Property Management is the right company to manage your rental home. We are rated Number One in the residential single family property management category by the Sacramento Business Journal, and here’s why:

Experience: We have been in business since 1983, and some of our first customers are still with us today.

Property Management Sacramento: Leasing

One of the most important services we provided is placing a qualified resident in your property. Our website connects to hundreds of online rental marketing companies. We are one of the strictest property management companies around today, providing firm qualifying standards and guidelines for potential renters.

We guarantee our placements with an eviction protection program. Our team is sure to place qualified residents who can pay rent on time and take good care of your property.

Property Management Companies near Me: Sacramento Offices

We have seen it all, and we are well-staffed to handle any situation. We have two offices in specific Sacramento neighborhoods and the contiguous counties. Each of our property managers has an office-based assistant, so there is always someone to take your call, even when your property manager is out marketing properties, doing showings, or meeting with inspectors and conducting property surveys.

Property Management Sacramento: Communication and Education

Communication is our top priority. We are available by phone, text, and email. Property owners change management companies most often because of poor communication. We are aware of that, and we make it easy to reach us.

Another reason to choose us is our continuing education. Ted White, our owner and broker, focuses on making his staff the most knowledgeable in the area and the industry. There are many property management companies statewide. But, we are one of only 20 companies in California that hold the designation of Certified Residential Management Company by the National Association of Residential Property Managers (NARPM). We have successfully completed a rigorous audit of policies, procedures, and business methodology.

We continue to be involved in the new laws and legislation affecting you each year. We maintain positions on the local Sacramento board of NARPM.

We’d love to earn your business and learn more about your property management needs. Contact us at Sacramento Delta Property Management, and find out why we’re someone to count on.

A Sacramento Property Managers Guide to a Seamless Move-In Move-Out Process for Your Residents

Fri, 26 Mar 2021 20:00:02 GMT

A Sacramento Property Managers Guide to a Seamless Move-In Move-Out Process for Your Residents

If a resident is going to complain about a rental experience, it’s usually due to miscommunication or unclear expectations during the move-in and move-out process. These are confusing periods and they’re extra stressful for residents, who are focused on settling into a new home.

Resident turnover can be difficult for property owners as well, and today we want to help you have a better experience when your Residents are moving in and moving out.

Property Move In and Move Out Inspections

A move-in inspection checklist is critical.

Conduct a thorough inspection of the property before your residents move into it. You want to make sure everything is functional and clean. Run all the faucets and flush all the toilets. Check the appliances and the electrical outlets to be sure they’re working. Run the heat and the air conditioning, and check under sinks and tubs for leaks or drips. If there’s anything that needs a repair or a replacement, make sure you take care of it before the move-in date.

You also need to have the property thoroughly cleaned. Hire professionals who can pay attention to details. You want the ceiling fans dusted and the baseboards polished. Tubs and tiles should sparkle.

Once all of this is done, take pictures of every room in the home. This is the best way to document the condition of your property so you know how it looks when the residents move in. This inspection report will be invaluable at the end of the tenancy, when the residents are moving out and you’re inspecting for any damage that was done during the course of the lease.

Sacramento landlords are required to offer their residents an initial move-out inspection before they vacate. Not all residents are going to accept this offer, but you have to make it. If they do want to conduct a walk-through with you, inspect the home the same way you would if the property was empty. Point out any of the things that are needed to be fixed or replaced in order to ensure the full security deposit is returned.

This can put your resident’s mind at ease as they prepare to leave their home. After they leave, you can conduct your own inspection and make the appropriate decisions about the security deposit.

Creating Positive Resident Relationships

The move-in process is an excellent opportunity to establish a positive and respectful relationship with your new resident. At Sacramento Delta Property Management, we create relationships with our residents that inspire full cooperation and positive transitions during the move-in and move-out periods.

As we are handing over the keys and discussing all the things that the residents need to know about the property, we also talk about our expectations. Our residents always understand their responsibilities and the requirements of the lease agreement. We let them know that rent must be paid on time, we discuss how to report maintenance issues, and we talk about our expectation that the property is returned to us in good, clean condition.

Effective Resident Communication

Tue, 16 Mar 2021 15:39:35 GMT

How to Ensure Your Residents Are Safe | Sacramento Property Management

Your main priority as a rental property owner is to protect the condition of your investment and to preserve its value. However, you should be thinking about your residents as well. Keeping your residents safe is part of your responsibility as a landlord. If the property or the living conditions are in any way uninhabitable or unsafe, you could be looking at a lot of liability.

You also want to keep your residents safe and happy because you’re a good person.

We have some ideas on how to ensure your residents and your property are safe. As professional Sacramento property managers , safety is a priority.

Crime Prevention in Sacramento Rental Properties

No one wants to think about worst case scenarios. Help your residents prevent the dangers that might be lurking in the neighborhood, the city, the community. Crime isn’t something that most of us think about every day, and that’s what the criminals are counting on.

Be preventative. Make sure all doors and windows lock securely at your rental properties. Ensure there’s enough exterior lighting so that residents feel safe walking from their cars to their home. Trim back any tall bushes or trees that may be obscuring the view out of windows. Offer alarm systems. All of these things will make residents feel more secure and reduce the risk of being victimized.

Keeping Residents Safe from Deferred Maintenance and Emergencies

As an owner, you need to keep your property habitable and well-maintained. This includes working smoke detectors and carbon monoxide detectors. Make sure the HVAC system is working the way it should and make preventative measures like gutter cleaning, pest control, and dryer vent vacuuming a priority.

At the very least, we recommend:

Checking and cleaning refrigerator coils.
Flushing the water heater.
Servicing and inspecting your HVAC.
Cleaning lint out of dryer vents.

When a tenant does report a maintenance need, take care of the issue right away. Document when it was reported and what you did to solve the problem. Don’t make your residents wait for things like heat, air conditioning, running water, electricity, and other issues directly related to habitability.

COVID-19 Concerns and Pandemic Safety

Residents are less tolerant of having strangers in their homes, thanks to the pandemic. We don’t blame them. Keep your new and existing residents safe by providing contact-free showings, lease signings, and maintenance visits whenever possible.

Repairs will continue to be necessary. When you need to send a vendor or contractor over to the property, take a few precautions. We recommend:

• Asking the residents not to be at home when the repair is made.

• Requiring masks and gloves to be worn whenever possible and safe by your maintenance team.

• Instructing your vendors or contractors to provide extra cleaning on any surfaces that were touched during the repair.

• Taking extra pictures and notes to document who was in the property, what was done, and what the end result looked like.