News and updates about to Real Property Management Select

The Best and Worst Times to Sell or Buy a House in 2024

/0 Comments/in /by

One of the most common questions in real estate is: When is the best and worst time to sell or buy a house? The answer is complex, influenced by location, market conditions, personal preferences, and goals. However, there are general trends and patterns that can guide you in making an informed decision. Let’s explore the best and worst times to sell or buy a house in 2024, based on historical data, expert opinions, and future projections.

Best Time to Sell: Spring 

Spring is the Peak Season for Sellers

According to Zillow, the best month to sell a house in the US is May, with an average premium of 5.9% over the median sale price. Here’s why spring is advantageous:

– High Demand: Home buyers are eager to find their dream home before summer.

– Favorable Weather: Longer days and better weather enhance curb appeal.

– Family Moves: Families prefer to move during this time to settle before the next school year starts.

 

Location-Specific Considerations

The ideal time to sell can vary based on location and property type:

– Ski Resorts: Winter may be better for selling properties in ski resorts.

– Beach Houses: Summer might attract more buyers for beachfront properties.

 

Worst Time to Sell: Winter 2024

Winter is the Slowest Season for Sellers

Zillow reports that December is the worst month to sell a house in the US, with an average discount of 3.3% below the median sale price. Here’s why winter poses challenges:

– Low Buyer Motivation: Fewer buyers are willing to move during holidays and cold weather.

– Less Curb Appeal: Dull landscapes and shorter days can make homes less attractive.

– Holiday Distractions: Potential buyers are often preoccupied with holiday plans.

 

Exceptions to Consider

Certain properties might still perform well in winter:

– Cozy Cabins: Winter can be a good time to sell a cozy cabin or holiday home.

 

Best Time to Buy: Fall 2024

Fall is the Optimal Season for Buyers

According to Realtor.com, October is the best month to buy a house in the US, with an average discount of 6.1% below the median listing price. Here’s why fall is beneficial:

– Seller Flexibility: Sellers are more willing to negotiate and lower prices after the summer rush.

– Increased Inventory: More options are available with less competition.

– Better Deals: Buyers can take their time to compare and find the best deals.

 

Location and Property Type Factors

The best time to buy can vary based on specific circumstances:

– College Towns: Avoid fall if buying in college towns due to higher demand.

– Tourist Destinations: Prices may still be high in popular tourist areas.

Worst Time to Buy: Spring 2024

Spring is the Toughest Season for Buyers

Realtor.com indicates that April is the worst month to buy a house in the US, with an average premium of 4.1% above the median listing price. Here’s why spring is challenging:

– High Seller Confidence: Sellers are less flexible with pricing.

– Limited Inventory: More competition among buyers leads to bidding wars.

– Market Frenzy: The peak selling season results in higher prices and more pressure.

 

Potential Exceptions

In some markets, spring might still offer good opportunities:

– Rural Areas: Lower supply and demand can make spring a viable time to buy.

– Niche Markets: Specialized markets may not follow general trends.

Understanding the best and worst times to buy or sell a house can help you make more informed decisions in the real estate market. While these general trends provide a helpful starting point, always consider local market conditions, your personal circumstances, and specific property types. At Real Property Management Select, we are here to help you navigate the real estate landscape and make the best choices for your needs.

Stay updated with us for more insights and tips on managing your real estate investments effectively.

Navigating Insurance Challenges in Sacramento

/0 Comments/in /by

California’s rental housing owners are facing unprecedented insurance challenges due to significant shifts in the insurance market. These changes include reduced availability of insurance options and increased premiums. According to the California Apartment Association (CAA), understanding these complexities is crucial for navigating this turbulent environment.

The Challenges

Several notable challenges in the California insurance marketplace include:

Natural Disasters: Extreme weather events cause severe property damage. The frequency and severity of these catastrophes continue to rise, with global insured losses from natural disasters expected to exceed $100 billion.

Inflation: Inflation has significantly impacted commercial and personal property insurance, leading to higher premiums and claims expenses. It has also increased property replacement cost valuations.

Reinsurance Capacity Challenges: As natural disasters become more severe and inflation remains high, property reinsurers face increased claims and reduced profitability. This has led some reinsurers to reduce capacity for catastrophic exposures and increase primary insurers’ premiums.

Multiple Agents: Limited carriers and the need for creative shopping can lead to multiple agents working on the same location(s), potentially blocking each other from carriers. Agent selection is crucial in this market to avoid inadvertent blocking.

Broker of Record Letters: A “broker of record” (BOR) letter designates a specific broker as the official representative of the insured for a particular policy or set of policies. Once signed, this letter can prevent other brokers from negotiating or placing coverage with insurers, limiting the insured’s options.

Strategic Steps for Landlords

Despite these challenges, rental housing owners can take strategic steps to protect their interests:

Maintain Property Conditions: Keep your property in good condition and promptly address building issues. Provide all relevant loss control documentation, safety upgrades, and mitigation strategies to your agent when shopping.

Work with a Knowledgeable Broker: Choose a broker who can navigate this insurance environment successfully and explain the implications of signing a BOR letter.

Analyze Catastrophe Exposure: Implement adequate mitigation and response measures if your property is located in a disaster-prone area.

Insure to Value: Review the replacement cost of your property. Inflation necessitates higher replacement cost valuations. Ignoring this could result in a coinsurance penalty at the time of loss. Consider the deductible amount you are comfortable with.

Start Early: Begin the process early, as most insurance carriers start accepting new business submissions 90 days before the current effective date. Provide your information early to increase your chances of receiving a quality quote.

 

Navigating the current insurance crisis requires rental housing owners to be informed and strategic. By understanding market dynamics and potential pitfalls, you can make more informed decisions and better safeguard your properties. Real Property Management Select is here to keep you updated through these challenging times, ensuring you have the resources and guidance needed to secure the best possible coverage.

 

Disclaimer: Information used for quotation purposes ONLY and does not contemplate coverage bound.

Top 10 Reasons Homeowners in Sacramento Love Our Property Management Service

/0 Comments/in /by

Owning a rental property can be a rewarding investment, but managing it can come with its own set of challenges. At Real Property Management Select, we pride ourselves on offering services that alleviate these challenges and enhance the homeowner experience. Here are the top 10 reasons why homeowners in Sacramento love our property management service:

  1. Comprehensive Tenant Screening

Finding reliable tenants is crucial for a successful rental property. Our thorough screening process includes background checks, credit assessments, and employment verification to ensure you get the best tenants. This helps minimize risks and ensures consistent rental income.

  1. Effective Marketing and Advertising

We leverage our expertise in digital marketing to advertise your property across multiple platforms, including major rental websites, social media, and our website. Our strategies are designed to attract high-quality tenants quickly.

  1. Responsive Maintenance and Repairs

We understand that timely maintenance and repairs are essential for tenant satisfaction and property value. Our network of trusted vendors allows us to address issues promptly, keeping your property in top condition and your tenants happy.

  1. Transparent Financial Reporting

Stay informed about your property’s financial performance with our detailed monthly statements and annual summaries. We provide easy-to-read reports that include income, expenses, and maintenance costs, so you always know where your money is going.

  1. Proactive Property Inspections

Regular inspections are key to maintaining your property’s condition and identifying potential issues before they become costly problems. Our team conducts thorough inspections and provides detailed reports to keep you informed.

  1. Legal Compliance and Risk Management

Navigating the complex landscape of rental laws can be daunting. Our team stays up-to-date with local, state, and federal regulations to ensure your property is compliant. We handle all legal aspects, including lease agreements, eviction procedures, and security deposit management, reducing your risk of legal disputes.

  1. Personalized Customer Service

At Real Property Management Select, we believe in building strong relationships with our clients. Our personalized approach means you’ll have a dedicated property manager who understands your needs and goals, providing you with tailored solutions and peace of mind.

  1. Maximized Rental Income

We use market analysis tools to set the optimal rental price for your property, ensuring competitive rates that maximize your income while keeping vacancy rates low. Our dynamic pricing strategy adjusts to market conditions, helping you get the most out of your investment.

  1. Stress-Free Rent Collection

Collecting rent on time can be a hassle. Our automated systems ensure timely rent collection and disbursement, providing you with consistent cash flow. We also handle late payments and enforce lease terms, so you don’t have to.

  1. 24/7 Emergency Support

Emergencies can happen at any time. Our 24/7 emergency support line ensures that urgent issues are addressed immediately, minimizing potential damage and ensuring tenant safety and satisfaction.

Choosing Real Property Management Select means choosing a partner dedicated to the success and well-being of your rental property. Our comprehensive services and commitment to excellence make us the preferred choice for homeowners in Sacramento.

New Law Limiting Security Deposits in Effect as of July 1, 2024, Sacramento

/0 Comments/in /by

As of today, July 1, a new California law limiting security deposits to one month’s rent for both furnished and unfurnished units is now in effect. According to Mike Nemeth, Marketing and Communications Director for the California Apartment Association (CAA), this legislation, AB 12 by Assemblyman Matt Haney, D-San Francisco, was signed into law by Gov. Gavin Newsom in October 2023.

Previously, landlords could charge up to two months’ rent for an unfurnished unit and three months’ rent for a furnished one, except for tenants who were service members. The new law marks a significant change from these previous regulations.

The legislation includes an exception for certain small landlords. Property owners with no more than two residential rental properties, collectively including no more than four dwelling units offered for rent, may still collect up to two months’ rent as a security deposit. To qualify for this exception, the owner must hold the property as a natural person, a limited liability company (in which all members are natural persons), or as a family trust. This small-landlord exception does not apply when the tenant is a military service member.

“It’s crucial for landlords across California to understand and comply with these updated security deposit regulations,” said Whitney Prout, Executive Vice President of Legal Affairs for the California Apartment Association. “We strongly encourage all CAA members to review our updated security deposits background paper, which reflects the changes brought by AB 12. This resource is designed to help our members navigate this significant change and ensure they’re operating within the bounds of the new law.”

Stay updated with us on the latest regulatory changes and best practices in property management to ensure you’re always compliant.

Bill Won’t Require Small Landlords to Accept Pets in Sacramento

/0 Comments/in /by

A recent legislative effort aimed at eliminating no-pet policies in rental housing will be amended to exempt smaller buildings, following advocacy by the California Apartment Association.

Assembly Bill 2216: Key Provisions and Amendments

Assemblyman Matt Haney’s Assembly Bill 2216 (AB 2216) initially proposed prohibiting landlords from rejecting tenants based on pet ownership. However, following discussions, the bill will now include a carve-out for buildings with 15 or fewer units, ensuring that owners of these smaller buildings won’t be mandated to accept pets.

Summary of Amendments:

  1. Exemption for Small Buildings: Properties with 15 or fewer units will not be required to accept pets.
  2. Pet Acceptance in Larger Buildings: Owners of larger buildings will be required to allow tenants to have at least one common household pet.
  3. Pet-Related Charges:

   -Liability Insurance: Property owners can require pet owners to carry liability insurance and include the landlord as an additional insured.

   – Pet Rent: No pet rent for the first pet; $50 per month for each additional pet.

   – Pet Deposit: A pet security deposit up to 50% of one month’s rent, capped at $1,000.

  1. Restricted Species: The bill focuses on “common household pets,” excluding unusual or exotic animals.
  2. Landlord Rules: Landlords can set specific standards and rules for pets, including leash requirements, cleanup policies, licensing, vaccinations, and spaying/neutering requirements.
  3. Implementation Date: The operative date is delayed to April 1, 2025.
  4. Use of Pet Deposits: Landlords can use pet deposits specifically for professional carpet cleaning.
  5. Impact on Existing Leases: The bill will not affect leases or renewals entered into before January 1, 2025.

Legislative Progress

This morning, AB 2216 won passage on the Assembly floor with a 43-8 vote. The state Senate will soon integrate the amendments.

Detailed Amendments Overview

Detailed Amendments Overview Table

Discover more about the evolving rental market regulations and how they impact your property management strategies. For professional property management services, trust Real Property Management Select. We offer tailored solutions to ensure stress-free management of your investment properties.

Can the Landlord Enter a Unit for an Inspection in Sacramento? Understanding California Law

/0 Comments/in /by

Question: Are Semi-Annual General Inspections of the Unit Allowed with Proper Notice?

In Sacramento, California, the laws surrounding a landlord’s right to enter a rental unit are quite stringent. According to California Civil Code section 1954, the reasons a landlord may enter a rental unit are limited and specific. Notably, these reasons do not include conducting general inspections.

 

Legal Entry Reasons

California Civil Code section 1954 outlines the permissible reasons for a landlord to enter a rental unit, which typically include:

– To make necessary or agreed-upon repairs, decorations, alterations, or improvements

– To supply necessary or agreed services

– To exhibit the unit to prospective or actual purchasers, mortgagees, tenants, workers, or contractors

– When the tenant has abandoned or surrendered the premises

– Pursuant to a court order

 

Specific Inspections Allowed

Certain laws do allow landlords to enter rental units for specific inspections, such as:

– Smoke Detector and Carbon Monoxide Detector Inspections:** As per Health and Safety Code sections 13113.7 and 17926.1, landlords are permitted to enter a unit to inspect and ensure the proper functioning of smoke detectors and carbon monoxide detectors.

 

Tenant’s Rights

It’s important to note that a tenant’s right to exclude the landlord when there isn’t an allowed reason for entry cannot be waived in the lease. This means that even if a lease agreement suggests that a landlord can conduct general inspections, this clause would not be enforceable under California law.

 

Notice Requirements

When a landlord needs to enter a unit for any of the legally permissible reasons, they must provide the tenant with a 24-hour written notice. This notice must specify the reason for entry. For example, landlords in Sacramento can use the “Twenty-Four Hour Notice to Enter Dwelling Unit/Premises” form and check the appropriate reason(s) for entry.

 

Offering Inspections to Tenants

While general inspections are not allowed, landlords can offer tenants an inspection by using Form CA-193, known as the “Resident’s Request for Maintenance Review.” This form allows tenants to request maintenance or a review of specific issues within their unit.

Navigating the legalities of landlord entry into rental units can be complex. Understanding the specific regulations in Sacramento ensures that both landlords and tenants are aware of their rights and obligations. For landlords, adhering to these legal requirements helps maintain a positive and lawful rental relationship.

For stress-free property management and expert advice on landlord-tenant laws, contact us now!

California Rental Market Bucks National Trend with Declines in Major Cities

/0 Comments/in /by

As rental prices across the United States continue to rise, with the national rent index for one and two-bedroom units increasing by 1.2% in May 2024, California’s largest cities are experiencing a different trend. According to a recent report by the rental platform Zumper, several major California cities have seen a decline in rental rates, despite the national upward trajectory.

According to the California Apartment Association, Zumper’s National Rent Report, which analyzes data from over one million active listings across 100 cities, reveals that seven out of eleven major California cities reported negative annual rent rates for one-bedroom units. Notably, most of these declining markets rank among the top 20% in terms of price and population.

The most significant drops in rental prices were observed in Oakland and Sacramento, where rates fell by 8-9% compared to the previous year. Other major cities, including Los Angeles, San Jose, San Francisco, San Diego, and Long Beach, also experienced declines, albeit to a lesser extent.

Interestingly, the report suggests that the primary driver behind the falling rental prices in California is not an increase in housing supply, but rather a decrease in demand. In recent years, the Bay Area and Los Angeles have witnessed substantial population outflows and job losses, which have not yet been fully recovered. Moreover, California recorded the highest unemployment rate among all states in April 2024.

The contrast between California’s rental market and the rest of the country is particularly striking when compared to cities like Syracuse, N.Y., and Columbus, Ohio, which saw the fastest-growing rents nationwide, with annual increases exceeding 20%. These cities’ growth has been attributed to factors such as population growth, expanding employment opportunities, and a higher demand for rental units.

 

 

Real Property Management Select specializes in offering tailored property management solutions to help landlords navigate the changing market dynamics. Whether you’re looking to adjust your rental rates or need advice on handling vacancies, our expert team is here to assist. 

Navigating Security Deposit Handling in Sacramento: Legal Protocols Every Landlord Should Know

/0 Comments/in /by

Security deposits are a crucial aspect of landlord-tenant relationships, serving to protect landlords against potential damages or unpaid rent. However, understanding the legal procedures surrounding security deposits is essential to ensure compliance and prevent disputes. In this blog, we’ll delve into the key considerations landlords need to know when handling security deposits.

  1. Know Your Legal Obligations:

   Landlord-tenant laws vary by jurisdiction, so it’s vital to familiarize yourself with the specific regulations governing security deposit handling in your area. These laws typically outline requirements regarding deposit limits, timelines for refunding deposits, and procedures for documenting damages.

  1. Proper Documentation:

   Before collecting a security deposit, landlords should provide tenants with a clear written agreement outlining the terms and conditions related to the deposit. This agreement should detail the amount of the deposit, the purpose of the deposit, and the conditions under which deductions may be made.

  1. Secure Deposit Storage:

   Landlords are generally required to hold security deposits in separate accounts designated for that purpose. Co-mingling deposit funds with personal or operational funds is typically prohibited by law, as it can complicate accounting and potentially lead to legal consequences.

  1. Handling Deposit Deductions:

   When it comes time to return a tenant’s security deposit, landlords must adhere to strict guidelines regarding deductions. Deductions may only be made for damages beyond normal wear and tear or unpaid rent as specified in the lease agreement. It’s crucial to document any deductions thoroughly and provide tenants with an itemized list of charges.

  1. Timely Refunds:

   Many jurisdictions mandate specific timelines for returning security deposits to tenants after they vacate the rental property. Failure to adhere to these timelines can result in penalties or legal action against the landlord. Be sure to understand your local laws regarding deposit refunds to avoid potential liabilities.

By understanding and adhering to legal procedures for handling security deposits, landlords can protect their interests while maintaining positive relationships with tenants. Remember, compliance with relevant laws and regulations is key to a successful and legally sound rental business.

For more insights on property management best practices and legal compliance, stay tuned to our blog. Your trusted source for expert guidance in Sacramento property management.

Maximizing Tax Benefits: Understanding Deductions for Landlords in Sacramento

/0 Comments/in /by

As a landlord in Sacramento, maximizing tax benefits is essential for optimizing your property investment. One crucial aspect to grasp is understanding potential tax deductions available to landlords. Let’s delve into this topic to help you navigate the intricacies of tax deductions and make the most of your investment.

Tax deductions can significantly impact your bottom line as a landlord. By understanding which deductions you’re eligible for, you can lower your taxable income and ultimately increase your return on investment. Here are some key deductions to consider:

 

  1. Mortgage Interest: Landlords can deduct the interest paid on mortgage loans used to acquire or improve rental properties. This deduction can be substantial, especially in the early years of a mortgage when interest payments are higher.
  2. Property Depreciation: Properties, like other assets, depreciate over time. Landlords can deduct a portion of the property’s value each year as depreciation, providing significant tax savings.
  3. Repairs and Maintenance: Costs associated with repairs and maintenance of rental properties are generally deductible. This includes expenses for fixing plumbing issues, repairing appliances, repainting, and more.
  4. Property Management Fees: If you enlist the services of a property management company, the fees paid for their services are tax-deductible. This deduction can help offset the cost of professional property management.
  5. Utilities and Property Taxes: Landlords can deduct expenses related to utilities, such as water, electricity, and gas, as well as property taxes paid on rental properties.
  6. Home Office Deduction: If you have a dedicated space in your home used exclusively for rental property management activities, you may qualify for a home office deduction.

Understanding these deductions and keeping meticulous records of expenses is vital for maximizing tax benefits as a landlord in Sacramento. By leveraging available deductions, you can reduce your tax liability and improve your property’s profitability.

Remember, tax laws and regulations are complex and subject to change. It’s crucial to consult with a tax professional or accountant who specializes in real estate taxation to ensure compliance and optimize your tax strategy.

Explore more insights on property management and investment strategies to unlock the potential of your Sacramento rental properties!

Mastering Expense Tracking For Efficient Property Management in Sacramento

/0 Comments/in /by

Managing a rental property involves various financial considerations, and keeping track of expenses is crucial for effective property management. In the dynamic real estate landscape of Sacramento, meticulous expense tracking can significantly streamline operations and enhance profitability. Let’s delve into how property owners can master expense tracking for efficient management in Sacramento.

 

  1. Why Expense Tracking Matters

Efficient expense tracking provides property owners with a clear understanding of where their money is going. By categorizing and documenting expenses such as maintenance, repairs, utilities, and property taxes, owners gain insights into their financial health and can make informed decisions to optimize profitability.

 

  1. Streamlining Record-Keeping Processes

Implementing organized systems for expense tracking is essential. Utilize digital tools and software to streamline record-keeping processes. Digital platforms offer features such as expense categorization, receipt scanning, and automatic syncing with bank accounts, making it easier to track and manage expenses in real-time.

 

  1. Maximizing Tax Deductions

Proper expense tracking ensures that property owners can accurately report deductible expenses come tax season. From mortgage interest and property taxes to maintenance and repairs, maximizing tax deductions can significantly reduce taxable income and increase overall profitability.

 

  1. Identifying Cost-saving Opportunities

Analyzing expense data allows property owners to identify areas where costs can be minimized or optimized. By pinpointing recurring expenses or areas of overspending, owners can implement cost-saving measures and improve operational efficiency.

 

  1. Ensuring Compliance and Transparency

Detailed expense tracking ensures compliance with legal and regulatory requirements. Proper documentation of expenses provides transparency for stakeholders and helps mitigate potential disputes or audit issues.

 

  1. Utilizing Technology Solutions

 Embrace technology solutions tailored for expense tracking in property management. Invest in property management software or apps designed to streamline expense tracking processes and provide comprehensive financial insights.

 

  1. Continuous Monitoring and Adjustment

Expense tracking is an ongoing process that requires continuous monitoring and adjustment. Regularly review expense reports, analyze spending patterns, and adapt strategies to optimize financial performance continually.

 

By mastering expense tracking, property owners can navigate the complexities of property management with confidence. In the dynamic real estate market of Sacramento, efficient expense tracking serves as a cornerstone for success, enabling owners to make informed decisions, maximize profitability, and achieve long-term growth.

Ready to elevate your property management game in Sacramento? Partner with Real Property Management Select for expert guidance and stress-free property management solutions. Contact us today to learn more!