RPM Select Offices Closed for Christmas
Why Rental Inspections Are Important: A Horror Story
Like many people in the real estate and property management industry, I own investment properties. I have flipped homes and managed my own rentals throughout the greater Sacramento area for over 15 years. A number of years back, I moved to Oregon for work, and decided I could manage my own property from there… 600 miles away… In another state. As it turns out, that was a bad choice.
I thought I had the ideal tenants. They rented one of my properties in South Sacramento for close to 10 years. They always paid rent on time, and never called about repairs. I thought it was the perfect situation. I didn’t have to worry about anything.
A few months ago the truth was revealed, and my nightmare began. After 10 years, the tenants mailed me the keys with a note saying they had already moved out. They didn’t leave any forwarding address or any reason for moving. The note stated they had cleaned up the best they could but had left some belongings behind. This was a gross understatement.
As soon as I was able, I went to the home to access the damage (still believing this would be a quick turnover). Everything in the front yard seemed in order. The trees were pretty overgrown, and the limbs were draped all over the rooftop. I thought to myself, “So, the trees need trimming. Nothing alarming.” Then I entered the home. The smell of cat urine hit me first and was so strong it made me gag. The odor was so powerful you couldn’t even smell the cigarette smoke that had stained the walls, ceiling, carpet, and blinds. It was unreal. There was junk everywhere. It was like an episode of hoarders. The kitchen counters and sink were piled with dirty dishes. The oven still had food rotting away inside. The laundry room wall was wasting away from some sort of water damage. The bathroom vanity was crumbling to pieces while the shower knobs no longer worked and maybe hadn’t worked in months, or even years. There were three mattresses piled on top of each other in one of the bedrooms. The mattresses looked as if rats and chewed their way inside and made a home for themselves. I had never seen anything like this. I didn’t know humans could live like this. Why had I not seen the inside of my own house in 10 years?!?!
I consider myself an experienced veteran in this business. I have worked in and around real estate investment and property management for over 15 years. I grew up around it. My parents owned residential rental properties and vacation rentals. I never thought a situation like this would happen to me. I am now looking at $10,000 to $15,000 in repairs just to get the home in a habitable condition. This all could have been avoided had I hired a professional property management company or at least had someone walk the property for me every 90 days.
Inspections can be a vital tool in making sure your investment is being properly cared for. Quarterly inspections, at the very least, are a perfect opportunity to change out air filters to protect your HVAC system, and make sure all of the smoke and Carbon Monoxide detectors are in proper working order. You might find there are pets living at the property that were never approved. Dogs on the aggressive breed list, such as a pit bull, can be a terrible insurance liability. You might discover something as simple as a small water leak. Had the issue been found in my case, it could have been repaired for a few dollars. Instead, the issue was ignored, and I am left with thousands of dollars in damage.
There are a plethora of issues that can be found during a routine inspection. If these issues are caught early enough, you can save thousands of dollars in damage. Isn’t knowing your rental property is being taken care of and having peace of mind enough reason to inspect the home regularly?
Hopefully, you can learn from my mistake and realize that routine inspections of your real estate investment are of the utmost importance. Real Property Management Select provides this service at an affordable price, and all inspections are performed by professional technicians. RPM offers quarterly, semi-annual, and annual inspections.
If you are trying to manage your property from out of state, or if you are simply busy living your every-day-life, give Real Property Management Select a call and speak to a professional property manager.
Why are Rental Property Inspections Important?
Sacramento Property Management: Water Heater Maintenance and Cleaning Your Air Filter
Water heater maintenance is fairly straightforward, and many property owners in Sacramento know how to do the basics, such as flushing the tank twice per year, checking the anode rod, and other aspects. However, many property owners either do not know about or forget about the air filter, which is often a black mesh ring circling the bottom of your water heater. This air filter helps keep dust and other grime from getting into your heater’s heating system. However, dust will build up on this filter, and this reduces the air flow to your heater, creating a less efficient heater since your heater requires air to ‘breathe’. You should clean the filter each time you flush your tank. Cleaning your filter only takes a few minutes and requires no special tools. Follow these steps:
Turn Off Gas/Pilot Light
You do not want any dust flowing up into your heater while you are cleaning, so shut off the gas flow first.
Remove Filter
The filter is kept in place with a simple catching mechanism. Find the catch mechanism, undo, and remove from your heater’s bottom.
Clean
To clean your filter, you can use compressed air to blow away the excess dust. If you don’t have an air compressor, then lay out your filter on the ground, and then spray with water until the dust is removed.
Dry
If you use water to clean your filter, then hang your filter to dry, or wipe down with a cloth.
Put Filter Back in Place
Once your filter is dry, replace underneath your water filter by stretching around the bottom, and then using the grasp mechanism to secure. Check on all sides to ensure that your filter is sitting properly and without any gaps to allow dust through.
If you’re ever worried about your Sacramento property, these 5 Things to Know about Rental Property Maintenance are greater reminders for every investor and property owner. If you’d prefer not to do this yourself, simply call the Real Property Management Select team at (916) 238-1420. We’ll be happy to assist you.
The Number One Rule in Real Estate
When thinking about purchasing a home to live in or a property for investing, one thing is certain; location is everything. We have all heard the old adage, “Location, location, location!” This still applies when purchasing Sacramento investment property, rather than a home for your family. Location can make or break your ROI and here’s why.
Real Estate Value Cycles
Just like stocks, real estate values fluctuate. The key to maintain a higher value is to have a well-located property. Properties in good Sacramento locations tend to be the last ones to take a hit when the down cycle comes around. They also appreciate faster and for more extended periods of time than properties in less sought after areas.
Adversely, properties in poor locations are last to appreciate and first to depreciate. They have the biggest swings in value, leaving the owner with the risk of selling at a loss.
Rental Income and Location
Rent all depends on a property’s value. If your Sacramento property is in a desired location, rent will rise. When rent rises, appreciation occurs, increasing cash flow.
Ultimately, location is key to maintaining a steady cash flow. Rental income will swing with the property value cycles, which could be detrimental to your cash flow and ROI.
Starting Your Search
Here is a list of things to look into before settling on an area for your Sacramento investment property:
- Schools: potential tenants may have children and the quality of surrounding schools could play a factor in their decision to rent.
- Crime: there are several ways to check crime in the area. Check with the local police or public library to learn crime statistics for neighborhoods in the area.
- Employment: when searching for a rental, tenants want to be near job opportunities. Properties closer to employment centers average a higher rent and are able to maintain it.
- Amenities: check the area for local parks, shopping centers, community pools, gyms, movie theaters, and anything else that may attract potential tenants.
- Local Rent: look into the average rent in the area. Make sure it could at least cover your mortgage, taxes, and other expenses. Take into consideration any possible fluctuation.
Do Your Homework
Purchasing Sacramento rental property can be a fantastic investment. But, doing your homework about the area is key to making sure your investment is profitable and outlasts the fluctuations in real estate value.
Sacramento Ranked 19th Best City to Celebrate Independence Day
The 4th of July is quickly approaching. Everyone is making big plans on how to celebrate our nation’s Independence Day. People who know Sacramento know that it’s a great city to celebrate the 4th of July in. Wallethub.com recently compared America’s 100 largest cities and compiled a list ranking the best cities to celebrate the 4th. Sacramento ranked 19th out of 100!
Wallethub.com used 14 different metrics to decide on their rankings. Metrics such as the duration of fireworks shows, average gas prices, the number of festivals and performances, weather forecasts and more.
Americans love to spend money celebrating July 4th. Wallethub.com estimates “Fourth of July spending to be around $346.50 on average per household, up 5 percent since 2014. On beer alone, we’re projected to spend more than $1 billion. That’s to wash down the 150 million hot dogs, 700 million pounds of chicken and 190 million pounds of beef we eat on this star-spangled occasion.”
My favorite place to watch the festivities and fire works happens to be free. I like to watch on the east side of the tower bridge in Downtown Sacramento.
Here are some other popular spots to watch the fireworks.
Cal Expo
Cal Expo will join the City and County of Sacramento and CBS Radio to produce the largest-scale pyrotechnics display in the area on Saturday, July 4, 2015.
The FREE Independence Day Celebration is a family oriented collection of activities that takes place at the Miller Lite Racetrack Grandstand at Cal Expo. A limited number of $10 reserved seats are available for sale by clicking here.
Doors open at 5:00 p.m. and the fireworks start at 9:30 p.m. While many spectators watch from the surrounding area, the best views are from inside the Grandstands.
Admission Info:
General Admission: FREE
Reserved Seats: $10
Parking: $10/car
Rancho Cordova
July 3-4, 4-11pm Friday, 12-11pm Saturday, Hagan Park, Rancho Cordova; $2 Admission, $10 parking. The largest Independence Day Festival in the area, located along the beautiful American River in Rancho Cordova. Over our two-day festival, we are expecting up to 20,000 people to drop by for plenty of All American food, music, fireworks and fun! 2 days of celebration start with a carnival, concert, BMX show, and a fireworks mini-show on July 3. A 5k and parade kick off the Fourth’s events, which also include carnival rides, booths, live music, Kids Zone! activities, and an impressive fireworks show at 9:45pm. And all this at Hagan Park’s ideal summer location on the river. More info at ranchocordovajuly4th.com.
Raley Field
Mark your calendars for our 3rd Annual Fourth on the Field! Come out and celebrate the birth of our nation while bringing back the feel of a neighborhood block party with local food trucks lining the warning track, interactive games on the field, a kids area with fun games and inflatables for all ages, and live music!
To cap the night, bring your blankets and grab a spot on the field as we present a spectacular show in the sky with fireworks synced to America’s favorite patriotic music. More info at raleyfield.com.
Notable mentions include Old Sacramento, 55th Annual Folsom Pro Rodeo, and 14th Annual Spirit of Freedom 4th of July Parade.
Real Property Management Select is proud to operate in Sacramento. RPM Select also has offices in Fairfield, CA and Concord, CA.