Managing your rental portfolio may seem like a simple cost-effective solution. However, many tasks should be done regularly to ensure you are maximizing your cash flow & protecting yourself as a property owner. Here are a few items that are essential for long-term protection & maximum cash flow for rental owners:
- Increasing Rent Yearly: In Sacramento and the majority of California, rents have skyrocketed in the past few years. Some owners turn to us when they are looking to facilitate a rent increase to bring their current tenant’s rents up to market rate. Many of these owners have not increased their tenant’s rent in 5+ years. The problem here is that Sacramento & many California cities have a “rent cap” which limits rent increases to 5% + the rate of inflation annually. As of September 2021, Sacramento’s average YOY rental increase at 13%. Not increasing rent annually can cost the owner thousands in the long term – especially in this high-growth market. Hiring a reliable property manager can help communicate the tuff conversation of a rental increase to the tenants and make sure your rental is generating the cash flow that it should.
- Sending Proper Legal Notices: Being up to date with rental laws is essential. Sending proper notices to your tenants can protect you & the tenants should problems arise in the future. For example, there were Declarations of COVID Distress notices that were required to be served to tenants during the COVID distress period of March 1st, 2020 – September 30th, 2021. Not serving these notices can negate any eviction proceedings for unpaid rent during the Sacramento COVID-19 Rental Housing Relief Act time period. Having a manager that takes the appropriate legal action will prevent larger legal issues from emerging which can be costly & time-consuming for a homeowner.
- Proper Accounting: Properly recording financials for your rental is essential. Having a system in place that accurately records property transactions will allow you to have proper documentation should any legal issues arise & save you preparation time during tax season. Eagle Property Management utilizes the industry-leading Appfolio Property Manager accounting system which automates the accounting for the property. You can assure that accurate records are being recorded & you will receive a 1099 form come tax time.
- Inspections: Conducting an annual inspection from a licensed inspector is essential to ensure your rental abides by the RHIP guidelines and does not have any issues that should be brought to your attention. Specifically, if your property is in Sacramento County an inspection should be RHIP compliant and be done annually. Skipping inspections can be costly for rental owners if forgone maintenance is not addressed. Here at Eagle Property Management, a detailed annual RHIP inspection is included in your management services at no additional cost.
There are many additional responsibilities that come along with owning a rental property. Get in contact with one of our representatives today at (916) 713-3737 or send us a message by sending us a contact form below to learn more about how a reliable property manager can save you the time & headache required to manage a rental property.