Sacramento is the capital of California and a thriving city. These are some of the reasons why over 1.5 million people live in the surrounding county.
You may like what is going on in this real estate market and decide to buy an investment property in this area. If you did that, you may be wondering what the next move is. This guide breaks down what you should do.
Hire a Property Manager
If you are overwhelmed at the thought of being in charge of property management on your own, know that you do not have to be. There are property management companies out there that are happy to take over this responsibility for you.
You need to sit down and talk to a property manager. Do not be afraid to shop around if you are not in love with the idea the first time you meet someone.
Just make sure you lay out your expectations very clearly and know what you are willing to spend for their services. Remember, a property manager is not free, so you may have to walk away if their quote is too high.
Budget for Maintenance Expenses
Another thing that you need to be mindful of is unexpected maintenance expenses. Unless you plan on renovating your Sacramento rental property, likely, you will likely not know when you are going to need maintenance for your building until it happens.
That is why you must set some money aside for when these situations come up. If you do that, it will temporarily hurt you, but it will not cripple you financially.
The average homeowner spends nearly $6,000 per year on maintenance expenses and repairs for their home. If you own an entire building of apartments, you may need to put even more money for these types of expenses aside.
On top of this, you may decide to invest some money in routine inspections that could spot problems. However, spending money to fix those minor problems now could save you from spending more money later.
Make sure you put some money on the side for these situations.
Legal Compliance
Finally, make sure your building is legally compliant with Sacramento laws and California laws. This includes building codes, fire safety codes, rent control, and more.
An example could be tenant's rights. California tends to be friendly for tenants on this subject. As a result, it is more important in this state to conduct good tenant screening to make sure that your tenant will not be a problem later.
Be aware of the laws and plan around them if you think a problem will arise because of them.
Succeed With Your Investment Property
These are some of the steps that you need to take once you buy your investment property. You need to make sure that it is legally compliant with local laws and you need to make sure that you have money set aside for building emergencies such as maintenance issues.
Do you need help with your rental property? Speak to our property managers here to learn more.
