If you want to know if the Santa Rosa, CA is right for you to invest in, you want to look at some key statistics about the area to make sure it matches your investment strategy. If you are looking for cash flow, you need to run real numbers and determine if that is possible. Learn why having a property manager that has access to real, proprietary data is key to your success.
The first thing you want to look at is the characteristics of the area. What does the data tell you about future job growth in the area? Are businesses moving into the area? Is the population growing or shrinking? Observe the real estate trends recently and over the last 10 years.
About Santa Rosa, CA
- Located 55 miles north of San Francisco, Santa Rosa is surrounded by vineyards, orchards, and farms in Sonoma County. It is known as the urban heart of Wine Country.
- Population: 177,000 people
- Average age: 36
- Population has a mix of college students, young families, and retirees
The average age is 36 which tells you there are a lot of young families most likely looking for a home, and you could have renters that stay for a long time.
Economy in Santa Rosa
- 4.9% unemployment
- 1.6% job growth in the last year
- Median income: $84,000
- 34.9% job growth predicted over the next 10 years
- Wine, high-tech manufacturing, retail.
- Great schools
- Many institutions of higher learning including University of San Francisco – Santa Rosa Campus, Sonoma University, and Empire College to name a few.
From these statistics you can expect a large pool of renters that are attracted to the area because of the good schools and high-paying jobs.
A Santa Rosa Property Management company can be an asset in your investing pursuit, and at Mynd we have access to proprietary data to help you determine if the Santa Rosa market is right for you. If it isn’t, we have offices in over 19 cities and can help you find an area that best fits your investment strategy.
How to Accurately Set Rent for my Santa Rosa, CA Rental Property
Rent rates are determined by the market rather than what you think it is worth.
No one wants to be stuck with a vacant property for months. If you want to fill your rental property with a quality resident quickly, you need to offer it at a competitive rent. The rent amounts can change from year to year, and it isn’t always an upward change. You want to analyze the trends in the area based on statistics related to the current market as there are many factors that can effect rent rates.
Home prices vs rent prices
It is important to know what the sales prices for the homes in the area are versus what you can expect to collect in rent. Are you going to be looking at receiving some monthly cash flow or appreciation only?
When comparing rents, look only at properties that are equivalent to your property’s type and size. The rental rates can greatly vary depending on whether it is an apartment, duplex, or a single-family home. The number of bedrooms can also make a significant difference in rent price.
What is the year to year growth of the city?
Growing cities tend to see rent rates increase due to demand, so look at the data for the projected growth of the city. If steady growth is forecast, you can expect your home’s value to grow along with it.
- Median sales price $437,000
- 52 Median days on market
- 1.3% increase in price year over year
According to Zillow, Santa Rosa saw a rapid increase in home prices from 2012 to2018 with prices going from $304,000 to $620,000 at the peak. Prices since 2019 have steadily risen at a slower rate and are expected to continue increasing year after year.
Average rent in Santa Rosa
- $2,500 average rent
- 50% of homes are single-family
- 2-3 bedrooms are the most popular
- 52% Owner occupied
- 48% renter occupied
Renters make up about half the population which is likely due to home prices in the area being among the highest in the nation. Because home prices are high, you can expect to get appreciation from your investment more than cash flow.
Pick a popular neighborhood
Owning a rental property in a desirable neighborhood with access to highly rated schools can be a large plus in attracting potential tenants.
Get more rent in the prime rental season
Summertime is when people are more likely looking for rental homes. Why does that matter? You can typically expect to get more rent if you lease during the peak season when demand is higher vs the offseason.
It is important to set your rent based on real, current data.
Mynd has Santa Rosa property managers that have access to current data and can help you determine the right rent to charge. At Mynd we offer a FREE rental analysis for your property if you want to learn what you can expect to receive in today’s market.
Why Should I Hire a Property Management Company in Santa Rosa, CA
Does it make sense to hire a Santa Rosa property manager or should you manage it yourself?
What happens when you have a property management company helping you? They can take the day to day operations off your hands. Most importantly, they know the laws and regulations that apply to your rental property and will make sure you comply.
Complying with Laws and Regulations
There are local, state, and federal laws and regulations that apply to your rental property and its operations such as:
- Knowing what you can and can’t ask on an application
- Having proper, legal documentation in the leasing process
- Following the lease agreement and not violating the contract
- Knowing what is considered an emergency maintenance situation
- Knowing who is responsible for different types of maintenance and repairs
- Complying with local, state, and federal laws, rules, and regulations
Don’t run the risk of finding yourself in court over a violation that can cost you thousands of dollars. It is your responsibility as a landlord to know the laws and comply with them. The City of Santa Rosa has implemented a Rent Stabilization and other tenant protection programs, and you must comply with them. Like other California cities, there is currently rent control in effect.
Handling emergencies and maintenance
When you have a property manager, you will not get those 2am emergency phone calls yourself. A property manager also knows how to deal with common maintenance issues as well as those specific to the Santa Rosa area.
Forest fires – How will you handle emergencies that pop up due to a fire in the area?
Large homeless population - There are things you need to be aware about when you have a vacant property near a large homeless property. Know what you can and can’t do to protect your property.
Hiring a property manager in Santa Rosa
Mynd property management manages 1000s of properties across 19 U.S. markets including the Santa Rosa area. We know the laws that apply to rental properties in the area, and have in-house legal counsel to ensure your property complies with them.
Mynd can help you make smart decisions. From purchasing a property that works with your strategy to managing it, we are here to be your operating system for your rental property. Contact us today about property management in Santa Rosa.