First rental Sacramento

[Gitit Hefetz]

Hello All.

I need some advises. So I bought my first single family home in Sacramento. I bought it for myself but planes changed and I will be moving out of state. I know the rental market is hot in Sacramento but I'm not sure how much rent should I ask for it. Any suggestion other then checking in Rentometer? I'm not sure if its very updated.. 
Also- any Idea what can I do to make sure tenants will be paying? I heard this days landlords asking for 5 times rent to make sure they have some buffer in case the tenant lose there job and not paying

Lastly- how hard can it be to screen tenant and mange property when out of state? Will a property management company will have more tools and power then me if tenant doesn't pay?

 Thank you!

[Justin Cecil]

Hi Gitit,

Congrats on purchasing California real estate! Sorry that plans are forcing you to pivot, which for most is the theme of 2020.

The Sacramento area rental market is very strong. Just like the sales market, there is low inventory with lots of tenants to choose from. I would suggest looking at comparable rental units on the market. You want to take in account size(sqftage), number of bedrooms, features (garage, pool, etc). Will you be allowing pets? Not many rentals do and lots of investors agree that pet owners typically stay longer because it is harder to find rentals which allow their pet. As far as resources, use multiple so you get a full picture. Sites like Zillow, Rent Cafe, and Rentometer should give you a good idea of the comps in the area. Lastly, you will have to be honest with yourself about your property and where it fits interns if location and condition with the other comp properties.

When it comes to asking for 5 times rent, I think you mean  making sure tenants have income 5 times above rent amount. I would say it is more common to ask for income to be closer to 3 times rent.  Combine that with a solid credit score and positive rental references and you should have a good tenant.

I’d be happy to help you find a property management company if you like. There are many out there. But if you decide you can do it on your own, there is a website called Cozy.co which has worked for me. It takes apps, runs background, sets up payment, can automatically charge late fees if lat3, etc.

In the event you need to sell the home, I am a local agent and I’d be happy to  help.