Why should I purchase a rental property in Sunnyvale, CA
Before you purchase a rental property in Sunnyvale, CA, you want to understand more about the area, what type of homes renters are looking for, and what drives the economy for long-term stability. Running the numbers for a realistic view of what you can expect to receive for rent will help you determine if a property fits your strategy. Hiring a property manager in the area helps ensure your investment is well cared for, has a quality tenant, and follows all the laws.
Located in the heart of Silicon Valley, you can expect a large percentage of the population works for companies involved in the tech industry. Families are interested in moving to the area for the highly rated schools, many city parks, frequent art festivals and the urban suburban atmosphere.
The city boasts numerous top spots in lists such as American’s Safest Cities, Best Cities to Raise a Family, and Cities that create the most technology jobs to name a few.
City statistics can help determine if the area fits your investment strategy
1. Rent Friendly Characteristics of Sunnyvale, CA
- Most homes get multiple offers, often with waived contingencies.
- Homes sell for about 2% above list price and go pending in around 14 days.
- Hot Homes can sell for about 7% above list price and go pending in around 8 days.
This is a fast-moving market, so you need to be prepared to move fast once you know this is a good fit for your investment goals.
2. Resident job growth and city growth
- Future job growth over the next 10 years is predicted to be 41.4% (Higher than the US average of 33.5%)
Sunnyvale is looking at significant growth over the next ten years, and recently approved a mixed-use downtown development to add almost 800 apartments and condos.
3. Positive Sunnyvale, CA City trends
- Walk score is 59 out of 100, very bike friendly
- Great schools, most schools are ranked 9 out of 10 in the area
You can expect to find good residents with high qualifications when renting out a home in an area with highly rated schools.
Know what you are looking for in a real estate investment. If you are looking to get appreciation out of the property, Sunnyvale might be an area of interest to you. If you are looking for cash flow, this may not be a fit but that depends on how much you are able to put down as well as other factors. You want to make an informed decision on whether to buy and having the right data and numbers to base that on is critical to your success.
4. Opportunity for Local Networking & Relationship Building
It is always important to research an area and build relationships on the ground to determine if the market is right for you.
It would be in your best interest to connect with a local property management team that supports investors and their needs. They are equipped to provide you with the necessary data to base your decision on.
If the Sunnyvale, CA market doesn't work with your investment strategy, Mynd manages in 19 markets nationwide. At Mynd, we have access to data from external sites combined with our proprietary data of actual rents from 8000 units under management.
How to accurately set rent for my Sunnyvale CA rental property
How do you price your Sunnyvale property exactly right, so you are getting the maximum return while also renting it quickly?
5. Lucrative Rent Prices in Sunnyvale
First you want to know what you are looking for. Are you interested in appreciation or cash flow? Then you need to look at the price of homes vs what they rent for to determine if the area fits your goals.
Home prices in Sunnyvale, CA
- 1.64 million on average
- Up from 9.3% last year
- Renter-occupied Households 31%
- Owner-occupied Households 68%
- Days on market- 22 to 30 days on markets
Home prices are expensive in the area, so you also need to be sure that you have the capital to weather a vacancy that lasts 30 days or more. Because this area has a high owner-occupied percentage, you can expect the value and prices will remain high over time. The strong tech-driven economy in the area helps the outlook for steady future growth.
Rental market in Sunnyvale
- Occupancy rate is 93% based on Mynd management units
- Averages for 3 bed 3 bath SFH is $4,321 - $4,662
- Annual vacancy on average in the area is between 1.81% to 2.72%
Most expensive neighborhoods in Sunnyvale:
- Sunnyvale West $2,877
- Heritage District $2,805
- Ponderosa Park $2,699
Average rents will be different for apartments, single family homes, and other property types and will vary based on size. A good Sunnyvale property manager will help you do the heavy lifting and use data to project the most accurate rent. They know what seasons are best for marketing a rental to maximize the rent relative to demand. Typically, areas with good schools will see residents wanting to finish out a school year, so the end of Spring through the Summer will be the typical moving period for families.
Why should I hire a property management company in Sunnyvale, CA
Why it may or may not be a good idea to hire a property management company in Sunnyvale, CA is based on your specific needs and the unique characteristics of your rental property. Maybe you are an out of town owner that needs someone local that knows the laws and is local to take care of maintenance issues that come up.
What does a property management company do for you?
They will take care of the day today operations related to your property. This includes marketing, tenant screening, leasing, and maintenance. One of the most important tasks a property manager can do is ensuring that you are abiding by local, state, and federal laws.
Not knowing the laws isn’t an excuse. If you aren’t interested in keeping up with ever-changing laws like the recent rent control law in California, hiring a property management company in Sunnyvale makes sense. Mynd’s property managers know the laws and keep up with them. Mynd also has legal counsel on staff.
Some city-specific issues that property managers can help deal with include things like:
- Largest home issues are termites which cause structural problems and damage
- Homelessness issues in the area that sometimes require some action
- Encampments, illegal and unsafe activity to be aware of
You must be careful when it comes to these types of issues. There are often new local rules and regulations regarding these situations, and you must follow the law. A good property management company like Mynd can help you.
Examples of the types of laws that apply to landlords
- Rent stabilization program
- Apartment Rent Ordinance (ARO)
- Tenant Protection Ordinance (TPO)
- Ellis Act Ordinance
- 1482 Rent Control Bill
Mynd is ready to be your strategic business partner
Hiring a quality property management company is going to give you peace of mind that your investment is being cared for, your tenant is safe and secure, and you are following all the laws. Whether you are looking for your next investment property or need pricing for management, Mynd is here to help. We offer a three-tiered pricing model, so you can pick the level of management that fits your situation. Contact us today about property management in Sunnyvale, CA.
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