Sacramento Property Management

Properties to avoid-

 You will obviously want to avoid Sacramento property management properties that are difficult to rent: NO RENT, NO CASHFLOW.

Difficult to rent properties could be properties that are located next to an unattractive, boarded up home or the home itself could be dilapidated. If you were to rent this type of property, you could expect to bring in much less rent than a similar property in good condition. Curb appeal is an important yet often overlooked aspect. Curb appeal is one of the main things a tenant will first consider when they are looking for their next possible home. Don’t overlook curb appeal.

Other Sacramento property management properties to avoid are those that are in need of serious and expensive repairs. A property in need of serious repair could cause you to star in the next hit movie..Money Pit 2. J Serious repairs could be considered the following: Structural issues, rot, water damage, foundation problems and many, many more.

If you do want to proceed with properties that have serious damage, we would then consider that property a fixer-upper. Fixer-upper’s can produce excellent income but there are careful considerations you must make when looking at these type of properties. Here are a few suggestions:

How much time will it take to rehab the property?

How much money will it take to rehab the property?

Cost of acquisition of the property?

Added costs of the repairs need?

Total investment expected?

 Many successful Sacramento property management landlords invest in fixer-uppers. Often times they will do the work themselves to keep costs low and as minimal as possible. However, their work is usually related to minor projects such as minor plumbing, carpentry, etc. So if you are not handy, you may want to stay clear of these properties. For major repairs landlords will still contract with a profession local company to do the work. The work usually contracted out could be: Replace roof, Foundation, etc.When working on a fixer-upper do not overlook cosmetic updates. Cosmetic updates that will need to be done include: painting, carpet, etc.

Sacramento property management can be used to optimize your important real estate investment and you should identify a property management company that is proactive, identifies problems quickly, and can correct them before it destroys your cash flow. Be sure to contact us if you are need of property management and want to experience the difference.

When you decide to participate in Sacramento property management, often times you ask yourself- where do I start? Our suggestion is you start with becoming an expert in property selection because before you can become a successful real estate investor you first need to own real estate. There are pros and cons to every property, and in this series of posts we will be going through them.

 Our first topic is- What is the best type of property to own for real estate investing and rental income?

 The obvious answer is the property that will produce cash flow for you! It does not matter if the property is multi-family, commercial, condo, mobile home, single family residence or any other property type. The most important concept is that someone else will pay for your mortgage or use of the home.

 Sacramento property management can also involve the use of farmland and undeveloped commercial real estate. Farmland is often rented by the owner to the farmer who uses it to produce crops/income. Undeveloped commercial real estate can be used doe used car sales lots or storage use among other things. But normally we stick with real estate that provides housing. Real estate that provides housing will always provide rental income.

 When involved with Sacramento property management it is important to consider the amount of bedrooms the property has and also the area the property is located in. For example, high crime rate areas will produce a lower rental income than one that is in a safer area or near a park or school. Also when considering bedroom type you can attract certain types of tenants. For example, if you owned a four-bedroom home you would most likely attract a family or if you owned a loft/studio you would attract a single person.

 When it comes right down to it, any type of property can produce income but it is best to work with your team to analyze the potential property for investment success.

If you are in need of Sacramento property management service or advice feel free to contact us at any time.

The information in this article does not constitute legal advice.  The authors are not licensed attorneys.  Readers should seek the counsel of a licensed attorney in pursuing the recommendations in this article.

Most real estate investors have certain objectives they strive to meet when investing in or managing real estate, including:

• Minimizing risks, potential liabilities and possible lawsuits
• Providing for efficient estate transfer to family
• Growing wealth
• Providing for a good retirement
• Growing cash flow

 Sacramento property management companies share many of these objectives, and use specific business strategies to achieve them.  Individual real estate investors can and should adopt these same business strategies to achieve maximum returns from investments.  The mantra for investor:  manage your property – whether it’s your first rental or a house on the street where you grew up – like it’s a business. 

 Start treating your real estate investing like a business with the following three winning strategies:

 1. Setup Legal Entities for Asset Protection.

Sacramento property management companies adopt a corporate identity when investing in real estate opportunities, and use tax-advantaged entities, like pension funds, for investment.  Individual investors can pursue similar asset protection strategies. 

• Never invest in your own name.
• Decide when to invest with tax advantaged entities (Pension Fun) and strategies (1031 exchange) versus tax disadvantaged entities. (More to follow on this subject on our next post.)

 2. Develop a Business Plan.

The purpose of a business plan is to convert your ideas into clear and precise strategies. A business plan:

• Provides realistic and detailed financial objectives,
• Includes a plan for your marketing, sales and operation functions of your real estate business,
• Assists with increasing capital or the sell of your business.

 If you haven’t explored goal-setting or marketing strategies, the business plan will steer you in that direction, assisting you in developing a well-rounded business approach.  In addition, the business plan serves as a communication tool, so that you can convey your particular goals and strategies to other members of your investment team. 

 Web sites like www.score.org provide templates for business plans. 

 3. Establish a Team that Will Support/Advise in Your Business.

You don’t have to – and shouldn’t – invest on your own.  Like many business areas, real estate investment benefits from the support of a consultant team, and most Sacramento property management companies will not operate without one.  We recommend the following team members:

• Attorneys.  Having access to accurate and current legal information can have a huge positive impact on your business, and competent attorneys tailor their advice to your particular situation. Because attorneys specialize in specific fields, it may be necessary to form a working relationship with a range of legal professionals that specialize in areas like:
  • Corporate Law
  • Eviction Processes
  • Real Estate Law
  • Tax Law

• Accountant.  An accountant does not just ensure proper book-keeping.  Accountants can help you track and organize financial data in ways that help you to better manage your business.  Your accountant can provide customized reports that assist in identifying strong revenue sources and potential financial losses.  An accountant can also assist you in projecting how proposed changes to your business – such as buying additional properties or increasing rent – might improve revenues.  Look for an accountant that specializes in working with real estate professionals.

• Mentor.  There are a number of successful investors in the Sacramento area that may be willing to impart some invaluable lessons learned.  Be looking for opportunities to form a mentoring relationship with one of these investors.  Make networking a part of your business plan – actively meet with successful people in your business; take these successful people out to lunch, sit down with them and find out about their experience and background.   Having a great mentor can help you stay motivated, learn the business faster with fewer and less costly mistakes, adopt good business habits and best practices.

For more information on how to put these strategies to use or if you just want the best Sacramento property management company working for you, contact us.

There is a good article in the Sacramento bee today going over rental rates declining for Sacramento property management.  Graphic from the article is posted below-

Sacramento Property management companies have the expertise and experience to manage rental property. In addition their knowledge about current laws and changes to laws affecting rental housing is a real asset.

They are able to fair and firm but friendly with tenants whereas if you were having to be the front person and you personality does not accommodate those three previously listed traits, you may be in trouble as a landlord.

Sacramento property management will handle all the bookkeeping, including rent collection. As part of the bookkeeping they will usually track your monthly income and expense, automatic portfolio valuation, and track your loan to value and net worth on properties.

Most companies will also have an online presence with websites that provide detailed information and photos of their available rentals. As well as services to their tenants, such as: Online rent payment, utilities information, update contact information and request maintenance services.

They also have contacts and preferred pricing with many vendors in case repairs or any type of work need to be done on the rental home. You can usually also trust that these vendors are well qualified, licensed and insured who can quickly get the work done. Some work examples that property managers can coordinate are: Emergency repairs, trash removal, grounds keeping, janitorial, and security.

A professional Sacramento property management service can manage the day-to-day needs of your real estate investment, while minimizing vacancies and maximizing the cash flow. Rental property managers handle the marketing of your property utilizing both “on the ground” tactics and via the Internet. Such websites as craiglist, rentometer, and Google base are used for Internet exposure. While it is important to fill the vacancy it is equally important to find a good tenant. Property management companies should screen all tenants thoroughly by analyzing their income, past rental history and references.

Sacramento property management can be used to optimize your important real estate investment and you should identify a property management company that is proactive, identifies problems quickly, and can correct them before it destroys your cash flow. Be sure to contact us if you are need of property management and want to experience the difference.

P.S. Download our FREE Guide for more information on how to maximize your real estate investments.

Another corridor analyzed for Sacramento property management information is the Folsom corridor. Folsom is a city in Sacramento County, California, Folsom has a rich history beginning with the ‘49ers during California’s great Gold Rush. But it’s also a forward-looking city — the site the West’s first railroad and the world’s first long-distance transmission of electricity.

It is a high-tech town as well, with firms ranging from small to large international corporations i.e. Intel. The good network of area freeways has drawn distribution facilities to the City as well. A steady influx of new residents has kept local contractors busy, and the retail section is about to get a tremendous boost from two malls in the planning stage. As part of the four-county Sacramento Metropolitan Statistical Area, the City is part of a robust regional economy as well.

One bedroom rentals in Folsom have a median rent of $995/mo and Section 8 is paying $813/mo to Sacramento property management companies. The average square footage of Folsom one bedroom rentals is 779 sq. ft and there are 200+ rentals. The average square footage and median rent achieve a $/Sqft of $1.28.

Two bedroom rentals in Folsom have a median rent of $1125/mo and Section 8 is paying $992/mo. The average square footage of Sacramento two bedroom rentals is 1049 sq. ft and there are 400+ rentals. The average square footage and median rent achieve a $/Sqft of $1.07.

Three bedroom rentals in Folsom have a median rent of $1595/mo and Section 8 is paying $1431/mo. The average square footage of Folsom three bedroom rentals is 1484 sq. ft and there are 450+ rentals. The average square footage and median rent achieve a $/Sqft of $1.07.

Four bedroom rentals in Folsom have a median rent of $1895/mo and Section 8 is paying $1641/mo. The average square footage of Folsom four bedroom rentals is 2307 sq. ft and there are 250+ rentals. The average square footage and median rent achieve a $/Sqft of $0.82.

The typical household in Folsom earns $73,000 and the vacancy rate is 4.3%. The key rent monthly amount for affordability is around $1829/mo. Folsom has the highest affordability of the four corridors and also the best price per Sqft. This city looks like an obvious choice for investors/landlords.

At Equity Plus Real Estate Services, we leverage the power of technology, market knowledge and superior service to create a real estate experience unparalleled to anyone. We handle all aspects of managing your real estate investments to ensure to obtain the maximum cash flow and equity from your property.

For more detailed information or Sacramento property management needs contact Equity Plus Real Estate Services at 916-871-8207 or Ryan.Jones@equityplusrealestate.com.

Sacramento Property Management Report shows the majority of leases being completed are short-term renewals ranging from 12 to 18 months. Newly completed office buildings are coming online 75% vacant, and large tenants are contracting, consolidating from multiple locations, or leaving the market altogether. For example, Verizon vacated 22,000 sq. ft. in Roseville and Agilent Technologies downsized from 44,365 sq. ft to ±19,000 sq. ft. at 1101 Creekside.

In an attempt to overcome growing vacancy, landlords are aggressively competing for tenants by offering concessions in the form of free rent (1 month/year of lease term), expensive TI packages, furniture, and moving costs. Sacramento property management companies report landlords have also dropped their asking lease rates to further entice tenants. However, tenants are reluctant to take advantage of these extraordinary deals because of increasing uncertainty in the economy. Tenants have expressed that there are too many unknowns, and they are unwilling to take on the risk of expansion in this volatile environment.

The public sector is the one bright spot in this unstable economy, as the State of California is pursuing numerous requirements of significant size in the Downtown and Suburban markets.

Transaction volume for investment properties is at a near standstill. There is an enormous gap between bid and asking prices, especially for value added properties, and debt to finance purchases is hard to come by. The only transactions taking place are stabilized assets with long-term leases in place. Distressed debt has emerged as an investment vehicle, but relatively few transactions have actually been completed to date.

Property owners in 2009, particularly those who are highly leveraged, may find themselves challenged by vacancy and/or loan calls as banks re-evaluate the mortgaged assets on their books so it is more important than ever to locate a well run Sacramento property management company to preserve profits. The flip side is that opportunities will abound for tenants ready to strike a long-term lease deal at distressed rents, and for investors with cash who can take advantage of declining values.

Another corridor analyzed for Sacramento property management information is the Elk Grove corridor. Elk Grove is a city in Sacramento County, California, located just south of the state capital of Sacramento. State population estimates place the city’s population at 136,318 as of January 1, 2007. The second-largest city in Sacramento County, Elk Grove has earned the dubious title of the fastest growing city in the U.S. due to its rapid growth.

One bedroom rentals in Elk Grove corridor have a median rent of $738/mo and Section 8 is paying $813/mo to Sacramento property management companies. The average square footage of Elk Grove one bedroom homes are 1090 sq. ft and there are around 50 rentals. The average square footage and median rent achieve a $/Sqft of $0.68.

Two bedroom rentals in Elk Grove corridor have a median rent of $895/mo and Section 8 is paying $992/mo to Sacramento property management companies. The average square footage of Elk Grove two bedroom rentals is 1115sq. ft and there is 250+ rentals. The average square footage and median rent achieve a $/Sqft of $0.80.

Three bedroom rentals in Elk Grove corridor have a median rent of $1300/mo and Section 8 is paying $1431/mo. The average square footage of Elk grove three bedroom rentals are 1383 sq. ft and there are 600+ rentals. The average square footage and median rent achieve a $/Sqft of $0.94.

Four bedroom rentals in Elk Grove corridor have a median rent of $1513/mo and Section 8 is paying $1641/mo. The average square footage of Elk Grove corridor four bedroom rentals are 1977 sq. ft and there are 500+ rentals. The average square footage and median rent achieve a $/Sqft of $0.77.

The typical household in Elk Grove earns $60,000 and the vacancy rate is 1.9%. The key rent monthly amount for affordability is around $1516/mo. While this corridor has had the lowest rent amount by square foot, it has had the lowest vacancy rate and highest affordability. These factors should offset any concern about the dollar per square foot.

At Equity Plus Real Estate Services, we leverage the power of technology, market knowledge and superior service to create a real estate experience unparalleled to anyone. We handle all aspects of managing your real estate investments to ensure to obtain the maximum cash flow and equity from your property.

For more detailed information or Sacramento property management needs contact Equity Plus Real Estate Services at 916-871-8207 or Ryan.Jones@equityplusrealestate.com.

Another corridor analyzed for Sacramento property management information is the Roseville/Rocklin corridor. Roseville is a city in Placer County, California, located in the metropolitan area of Sacramento. As of January 1, 2007 the population was 106,266. Interstate Highway 80 runs through Roseville and California Route 65 bisects the northern part of the city. Rocklin is a city in Placer County, California. It is a primarily residential community located north of Sacramento. It shares borders with Roseville, Loomis, and Lincoln. As of 2006, the city’s population was estimated to be 50,920 people.

One bedroom rentals in Roseville/Rocklin corridor have a median rent of $820/mo and Section 8 is paying $813/mo to Sacramento property management companies. The average square footage of Roseville/Rocklin one bedroom homes are 750 sq. ft and there are around 700 rentals. The average square footage and median rent achieve a $/Sqft of $1.05.

Two bedroom rentals in Roseville/Rocklin corridor have a median rent of $1010/mo and Section 8 is paying $992/mo to Sacramento property management companies. The average square footage of Roseville/Rocklin two bedroom rentals is 1001 sq. ft and there is 1100+ rentals. The average square footage and median rent achieve a $/Sqft of $1.02.

Three bedroom rentals in Roseville/Rocklin corridor have a median rent of $1425/mo and Section 8 is paying $1431/mo. The average square footage of Roseville/Rocklin three bedroom rentals are 1500 sq. ft and there are 1300+ rentals. The average square footage and median rent achieve a $/Sqft of $0.95.

Four bedroom rentals in Roseville/Rocklin corridor have a median rent of $1700/mo and Section 8 is paying $1641/mo. The average square footage of Roseville/Rocklin corridor four bedroom rentals are 2115 sq. ft and there are 600+ rentals. The average square footage and median rent achieve a $/Sqft of $0.80.

 The typical household in Roseville/Rocklin earns $57,000 and the vacancy rate is 3.6%. The key rent monthly amount for affordability is around $1434/mo.

Roseville/Rocklin Corridor Rent Snapshot

At Equity Plus Real Estate Services, we leverage the power of technology, market knowledge and superior service to create a real estate experience unparalleled to anyone. We handle all aspects of managing your real estate investments to ensure to obtain the maximum cash flow and equity from your property.

For more detailed information or Sacramento property management needs contact Equity Plus Real Estate Services at 916-871-8207 or Ryan.Jones@equityplusrealestate.com.

Freedom is essential to the American way of life. Today we celebrate those who dared to declare our independence and ensure our right to pursue happiness and the American dream. We wish you a happy and safe Independence Day, and we’re truly honored that you’ve chosen us for all of your Sacramento property management needs. Feel free to call us any time.