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Factors to Consider When Determining A Rental Rate

We are always getting asked how much rent a property can earn on the Sacramento rental market. So today, we’re talking about our process for coming up with the best rental amount for your property. 


Putting together some comps is easy to do, but you have to remember that Sacramento is a diverse community. Even within a single zip code, there’s often a lot going on. How your property fits into the equation is determined by having a property manager look at your specific property. By working closely with a
Sacramento property manager, we can get you the best rent.

Evaluating and Pricing a Sacramento Investment Property 


We need to see your home to effectively price it. Google images and maps can help, but we need a true perspective on your rental home and its condition. We want it sparkling clean and beautiful before we list it on the market, and when we look at photos online, they might be from years ago. We need to know how it looks right now. The biggest benefit to you when pricing your home is allowing a
property manager to meet you at your property. 

Accessing Accurate Sacramento Rental Market Data


Third party sites like Zillow and Rent-O-Meter list the last advertised prices for any given rental property. It does not mean a home rented for the price that you see. If a
rental home is marketed at $4,000 per month but it never rents, that rental price contributes to the analytics of what the market is in the area. It’s not accurate, and you’ll need more reliable data when you’re pricing your property. 

Attracting Sacramento Tenants with the Right Rent 


Well-qualified tenants are smart with their money. They won’t overpay for a property. 


You also have to consider what type of tenant will be looking for your rental home. For example, a property that’s 2,500 square feet with four bedrooms, four bathrooms, half an acre of land, and RV access will likely take some time to rent. When the owner wants to earn $3,500, it’s going to be even harder to rent. There is a particular person who will be looking to rent that kind of property, so it might take a couple of months to find a tenant. It’s harder to rent these properties out, so the price point has to be intentional.

Doing the Math on Sacramento Rental Values

Price Property

Before you price your property, listen to your property manager and pay attention to what’s going on in the Sacramento rental market. Sometimes, owners will resist reducing their rental amount in order to get their home rented. No one wants to come down and take less than what they originally asked. But is the vacancy worth it? 


Consider your ROI and do the math. If your property is listed for $2,500 a month and it’s vacant and there have been no calls about it for two weeks, we might talk about bringing it down to $2,300 a month. That sounds like a lot to lose on rent. But, it’s only $2,400 a year, and if you’re leaving your property vacant for even one month while waiting for a tenant who will pay $2,500, you’re losing more.  

Owners who price correctly and even $100 or $200 under market will find long term tenants. We work with tenants who have been in place for more than 30 years, effectively paying off the owner’s mortgage. This type of tenancy saves owners from turnover costs and vacancy loss. 


We do want you to get top dollar for your rental property, but we’ll counsel you around the importance of avoiding a long vacancy. You don’t want to pay that mortgage every month while waiting for a tenant willing to pay your higher price. 


The goal is to reduce vacancy, have the best tenant in your property as long as you can, and increase your ROI. Hopefully, these helpful tips can give you a better experience. 


If you’d like some help, please contact us at Sacramento Delta Property Management. 

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