Is Rent Control Coming To the Sacramento Area…?

It’s Not Just Rent Control – They Add Costs Onto Owning a Rental

I have an article here that I recently received from the RHA (Regional Housing Association of Sacramento Valley) with a list of ballot measures in several San Francisco Bay Area cities regarding “rent control”.

It’s not just that they want to limit the amount of rent you can charge, they also want to make it more difficult to get rid of bad tenants by instituting “just cause eviction” laws as well.Image result for the rent is too damn high

Just Cause eviction rules eliminates the “termination of tenancy” that we can currently give a Tenant in our area without stating a reason.  Just Cause rules would require a hearing at another government run board or authority that would hear your case and probably take the side of the Tenant unless you had massive amount of documentation to support your position.

Some of these measures would limit causes of action to evict a tenant to 8 or 9 specific reasons.

For many investors, this is why they hire a professional property management to make sure they are “in compliance” because of all the rules changes and regulations that vary from locality to locality.

Take a look at this article from RHA and think it over.   Land use decisions do involve you and when you can’t build housing because of all the NIMBY’ism, this can be the result.

I think you’ll be appalled at what they are proposing.   It is scary in my opinion.

RENT CONTOL ON THE BALLOT IN FIVE BAY AREA CITIES

Let me know what you think.

In the mean time…?

Make it a Great Day…!

Ed Favinger, Broker CRS, GRI, SFR, CDPE     favinger@rwnetwork.com 916-203-1260

 

Want Higher Rents in Your Sacramento Area Duplex…?

 Higher Rents Will Boost the Sales Price When You Sell

I profiled a Duplex for sale located at 2719 & 2721 Bravado, Rancho Cordova in an recent Blog Post dated August 22.

Well here’s the here’s the update…!

After 52 days on the market starting at $259,000 it’s still for sale and they have lowered the price to $240,000.   The current rents for this Duplex for sale are at $850 and $900 for a 2 bedroom 1 bath unit on each side with a 1 car garage.

When I wrote about it originally a month ago our Property Management Company was in the process of helping one of our investors complete some landscaping repair and enhancement to his Tri-Plex directly across the street at 2720-2722-2724 Bravado.

Below is this video of the Tri-Plex landscaping work that was completed.  Before and After.

 

Now…I think you’d have to conclude curb appeal does help you get higher rents and therefore a higher sale price.

Because,  when we completed this work, we gave all the tenants a rent raise notice.   We increased the total monthly rent another $300.  Not one of them wants to move.  Their average is $1000 per month and they are smaller units than the Duplex.

This Duplex owner could have done this work a year or two ago and had higher rents all along.   It probably would have sold for near his asking price or maybe more, but he didn’t.

I think this could be the right deal for the Investor who wants to “add value” to an investment.    You increase not just the value when you do, you then are a contributing part of a neighborhood with “pride of ownership”.  You will get a much higher return in the long run and feel good about owning a nice property.

 

What do you think…?

In the Mean Time….

Make it a Great Day…!

Ed Favinger, Broker CRS, GRI, SFR, CDPE  916-203-1260

 

 

Rents Are Up… Big Time… We Lead the Nation with the Fastest Growth Rate

Not So Good if you’re a Renter, Great if you’re an Investor

If you would take a minute and do a quick Google Search for key words, Sacramento Area Residential Rental Rates, you’ll get a nice long list of articles about the increases in Rental Rates in our Region.

What caused me to write this quick post is I’m adding one more article that you should read that makes my point about Supply and Demand.

Our team specializes in the sale and management of Duplexes, Four-Plexes, Small Apartment complexes along with Single Family rentals  all over the Sacramento Region.  Besides Sacramento and unincorporated areas of Sacramento County, such as Carmichael and Fair Oaks, we manage property in Folsom, Cameron Park, El Dorado Hills, Roseville, Lincoln, Rancho Cordova (the best kept secreat area in my opinion) and West Sacramento.   Go to HavenRents.com and you’ll see what we currently have available for rent.

It doesn’t really matter where you go in this area, rents are up…”big time”.   We’ve had as many as 5 or 6 applications to rent on some of our inventory.

CLICK HERE and check out this article which will reinforce my argument, which is….   “They haven’t built enough housing, especially the kinds of Duplexes, Four-Plexes and Small Apartment Complexes like they did in the past.

If you’re an Investor looking for a rental property, please call me.   I will say you can still find a decent deal out there, but, you will probably pay Top Dollar.   However, guess what…?  You will have the confidence you can raise the rent if you need to.

In the mean time…?

Make it a Great Day…

Ed Favinger Broker, CRS, GRI, SFR, CDPE    916-203-1260  favinger@rwnetwork.com

 

When Weather is Hot Here in Folsom – Don’t Make a Tenant Wait for a Month To Fix the A/C..!

You’ll create an Angry Tenant if you do.

We have experienced a heat wave lately.  As of this date and for the last several days we’ve had temps over 100 degrees.   Here in the Sacramento Valley, air conditioning really is essential in the summer months.

As I sit here writing this blog post, the temperature at 12:41Pm is 110 degrees according to the back yard thermometer that is part of my pool system.

angry tenant

I got an email addressed to our property manager with me in the “cc” line from a really angry tenant to our property management unit because they have been without air conditioning for about 2 – 3 weeks…

Why…?  Because the owner of this property changed their Home Protection Plan or had let it lapse and would not let us order the repair service for 30 days because the plan would consider this a “pre-existing” condition if ordered before the end of that 30 day period.  In that case the claim would be denied and she’d have to pay for the repair herself.

Meanwhile, the poor tenants who are supposed to have air conditioning as part of the deal, are sweltering.

When an Owner/Landlord does this kind of thing, it angers tenants.   The Rental Housing industry has no shortage of stories that hit the news about “greedy” Landlords that don’t maintain their property.   With the increase in renters vs home ownership, I suspect this is going to get worse.

If you are a landlord take care of your property and your tenants… because if you don’t and enough of these tenants start calling their local city, county and state politicians.. you’ll get more of their “regulations” and their hands into your pocket book to protect the tenants you ignored.

Maybe the “golden rule” applies here.  If this Landlord would reverse the roles for a minute, she’d have that fixed don’t you think…?

Comments…?

 

In the mean time…?

Make it a Great Day…!

Ed Favinger, Broker CRS, GRI, SFR, CDPE   favinger@rwnetwork.com  916-203-1260