Sacramento, California's capital, is a sunshine-lover's paradise, boasting 269 sunny days yearly. Its cost of living is also lower than other major California cities. Despite that, it has a high quality of living and a thriving job market.
And recently, Forbes said Sacramento is the best place to live in California.
All that indicates how being a landlord in the City of Trees can be profitable. But that's only if you conduct a comprehensive rental analysis before listing your properties.
We've shared tips and tricks to help you conduct a proper rental analysis, so read on.
Get Data From the U.S. Census Bureau
The U.S. Census Bureau produces accurate data about the nation's people and economy. These include housing-related statistics, such as renter rates and rental fees.
The agency also gives rent-related snapshots for many cities, including Sacramento, CA. For example, its latest data states that the median gross rent in the City of Trees is about $1,650. It also notes that 35.8% of occupied rental units here charge between $1,500 and $1,999 monthly.
Use all that data to avoid overcharging for rent and having few to no tenant applicants. It can also help you prevent undercharging and having little to no profits.
Check Out Online Rental Listings
Real estate and rental websites can help you track rent prices in your area. When conducting a search query on these sites, use the zip code of your rental property. This can give you a more accurate picture of how much other landlords charge in the area.
You should also apply filters, such as the number of bedrooms and bathrooms and if you allow dogs and cats. If your investment property has amenities (e.g., HVAC, appliances, or garage), use these in the filters, too.
Partner With a Property Management Company
A reliable and highly experienced property management company provides custom rental analysis services. They'll assess current market data and your property's value, location, condition, and amenities. They'll then use these factors to provide a suggested rent range.
Best of all, trustworthy property management firms offer free, no-obligation rental analysis. So, use this to your advantage to get as much data as possible before renting your property.
And if you decide to hire a property manager, you can have them handle many or all of your leasing needs. These include real estate marketing, tenant screening, and rent collection. You can even have them conduct property inspections and repairs on your behalf!
A dependable property management company also offers eviction protection plans. This can be especially helpful in Sacramento, where eviction rates are now 13% higher than in 2019.
Get Your Free Rental Analysis Today
While you can certainly do your research, nothing beats rental analysis done by the pros.
At PMI American River, we provide free, custom, and accurate rental evaluation. We are part of a larger franchise with over 20 years of experience and manage over $5 billion of assets.
However, we are locally owned and operated. So, rest assured we can always look after your Sacramento properties.
If you're ready to learn how much you can earn from your rental properties, speak with us today! We'll happily discuss how you can maximize your investments.