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Property Management

Our team of local professionals at Mynd Property Management are different than other Sacramento property managers. Servicing the greater Davis, Roseville, West Sacramento and Elk Grove areas, we leverage real-time data to consistently better our services, providing owners with seamless management experience.Customers working with Mynd can rely on us as their trusted partner, providing them with a healthy investment, and their residents with a happy home. Shipping was once Sacramento’s greatest investment, now, it’s residential real estate. It’s time to make your real estate investment work for you.

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Mynd's rental income guarantee

Rental Income Guarantee

We protect your rental income

If we place a resident and they fail to pay rent at any time during their lease, we reimburse you up to $5,000 in lost rent while we resolve the situation.

Mynd's property damage protection guarantee

Property Damage Protection

WE PROTECT YOUR PROPERTY

If a resident we place moves out and leaves behind property damage in excess of their security deposit, we will cover the difference, up to $5,000.

Mynd's eviction protection plan guarantee

Eviction Protection Plan

WE PROTECT YOU

If a Mynd-placed resident fails to pay rent and an eviction is required, Mynd will cover the court costs and legal fees up to $5,000.

SELECT YOUR AREA TO VIEW PRICING

Pricing Plans That Suit Your Needs

CORE SERVICE PLAN

$79
Monthly Management Fee
100%
Rental Leasing Fee
$299
Lease Renewal Fee

AVID INVESTOR PLAN

$119
Monthly Management Fee
50%
Rental Leasing Fee
$149
Lease Renewal Fee
checkmark - feature included
Rental Income Guarantee
checkmark - feature included
Eviction Protection

PEACE OF MYND PLAN

$179
Monthly Management Fee
0%
Rental Leasing Fee
$0
Lease Renewal Fee
checkmark - feature included
Rental Income Guarantee
checkmark - feature included
Eviction Protection
checkmark - feature included
Property Damage Protection

Don't Take Our Word For It

Results You Expect

Your rental property is one of your most valuable assets. You expect concrete, tangible results, and Mynd delivers. We focus on measurable results that you can see.

Mynd offers faster leasing times

Faster Leasing

Quicker than average leasing times.

Mynd responds quickly to resident and owner communications

Quick Response

Less than 4 business hours for owners, less than 8 business hours for residents.

Mynd finds high quality residents

Quality Residents

Higher than average resident quality score (720+)

Mynd offers low delinquency rates

Low Delinquency

No need to worry about rental payments, less than 2% delinquency.

Mynd's high customer satisfaction scores show high resident satisfaction

High Resident Satisfaction

Consistently high customer satisfaction scores (Better than 4/5)

Mynd's NPS score shows higher owner happiness rates

Happy Owners

Net Promoter Score of 58 versus industry average of 7

Meet Your Local Superstars

We start by hiring the best people with deep local expertise.We equip them with the tools, technology and data. You get results.

Meet

Cindy

Portfolio Manager

Sacramento

The largest employer in Sacramento is the state of California itself (the city is the capital, afterall). And while that might mean stable residents who are career bureaucrats, it doesn’t mean your units don’t need regular upkeep from Mynd property managers.We’ll make sure your roof isn’t collecting plant debris so that no damage comes to it, we’ll conduct major repairs to items like HVAC units, and we’ll keep abreast of changes in zoning laws so that your home is always up to code. And, of course, we’ll always be on call 24/7 in the event of an emergency like a burst pipe.

Kate
Leasing
Kathleen
Accounting
Gina
Resident Services
Matt
Maintenance

Sacramento

Sacramento

2012 P St., Ste. 201
Sacramento, California 95811
United States

Mynd Property Management is local
(916) 306-7005

Sacramento

Sacramento locals know about Tule fog – fog so dense that you can’t see a hundred feet ahead of you. We will ensure your Sacramento rental property is taken care of. Explore our resources below to learn about how our Sacramento property managers won’t let xtreme fog get in the way of doing their duties in the event of an emergency!

When a tenant occupies a room for only a partial term (month, week, day, etc.), the amount a landlord charges is known as “prorated rent.” 


Prorated rent is charged only for the number of days the unit is occupied. It’s based on a monthly rate rather than daily since a daily rate tends to be pricier. 


Here’s everything you need to know about prorating rent.

Why prorate? 

If your tenant moves in or out in the middle of the month or sublets to someone else, then it’s practical to use prorated rent. For example, if your tenant moves in on the 15th, which they often do, you can charge them a prorated amount for those days and then set the regular rent due on the first day of their first full month.

Explaining prorated rent to your tenant


Prorating rent isn’t a landlord’s legal responsibility, but it does help establish a good relationship with your tenant. A good relationship is essential. It makes your tenant more likely to re-sign (reducing the likelihood of vacancies), recommend other potential tenants to your properties, be a good tenant, and follow any rules you may have (like your fire prevention tips). 

How do I prorate rent?

There are four methods to calculate prorated rent. 

A Quick Math Lesson

Prorated rent at a rental property

Before moving on to the actual formulas for calculating rent, here’s a quick high school math lesson about performing the proper order of operations for mathematical equations. You’ll need to know this because the formulas for calculating rent tend to require multiple operations.


  1. Parenthesis
  2. Exponents
  3. Multiplication
  4. Division
  5. Addition
  6. Subtraction


The mnemonic device for this is PEMDAS, or “Please Excuse My Dear Aunt Sally.”

Method 1: Number of Days in the Year

This is the most accurate way to prorate rent when dealing with a year-long lease. Here’s the formula. 


((Monthly Rent X # Months in a Year) ÷ Number of Days in a Year) X Number of Days the Tenant is Paying For = Prorated Rent


Here’s the formula with a move-in date of September 15th with a rent of $1,500.


( ( $1,500 x 12 ) ÷ 365 ) X 15 = $739.73


This formula is slightly more confusing than the monthly one, so your tenants may require more explaining. The extra amount of money you'd make isn't worth the effort because a confusing formula may make your tenants feel like something fishy's going on. Best to keep things simple.

Method 2: Number of Days in an Average Month


This formula is based on the number of days per month, given that 365 days per year divided by 12 months is 30.42 average days. Here’s the formula:


((Rent ÷ 30.42) x Number of Days Occupied) 


Here’s the formula for when your rent is $1,200 per month, and the tenant is staying for ten days.


($1,200 ÷ 30.42) x 10 = $394.50


Method 3: Flat 30 Days (Banker’s Month)

This method entails diving the monthly rent by 30, no matter how many days are in the month. In some states, like California, this is the exclusive method used to calculate prorated rent. Here’s the formula.


((Rent ÷ 30) x Number of Days Occupied) 


Here’s the formula for when your rent is $1,200 per month, and the tenant is staying for ten days.


($1,200 ÷ 30) x 10 = $400

Method 4: Monthly Rent

Monthly calculations at rental properties for prorated rent

This is the formula for prorated rent based on the number of days in the month. Here’s the formula:


(Monthly Rent ÷ Number of Days in the Month) X (Number of Days of Rent Being Paid For) = Prorated Rent


Here’s the formula with a move-in date of September 15th with a rent of $1,500.


( $1,500 ÷ 31 ) X 15 = $725.80


In addition to requiring less explanation formula, the monthly formula has the advantage of making your tenant feel like they’re getting their money’s worth since it frames their rent in the short-term rather than the long term.

Considerations for Prorating Rent

These are some things to keep in mind when calculating prorated rent. Which of these influences your calculations will impact how many days you divide your rent by in your calculations.


  • The number of days in the month.
  • Months with 30 days: September, April, June, and November
  • Months with 31 days: January, March, May, July, August, October, and December
  • Month with 28/29 days: February
  • Is it a leap year?
  • What day of the month are you billing your tenant?
  • What’s the number of days in the first month?
  • What’s the number of days in the second month?
  • How much are you charging per day for the first month?
  • How much are you charging per day for the second month?
  • What’s the number of billable days in the first month?
  • What’s the number of days in the second month?
  • What’s the official start/end date of your tenant’s lease?

Tips for Prorating Rent

Your prorating policy should be in writing or your lease agreement


If it’s a leap year, divide your prorated calculation by 366 days if you plan on using the yearly formula.


It’s not your responsibility to prorate rent if your tenant signs a lease for the first of the month but moves in on a later date. Similarly, it’s not your responsibility to prorate rent if your tenant chooses to move out earlier, but their lease runs to the end of the month.


Offer a prorated rent calculator on your website. 


Find out if your state requires you to use the flat 30 method for prorating rent.

Bottom Line on Prorating Rent

Keep your tenants happy when calculating prorated rent

Prorating rent is easy to do and an easy way for a landlord to start or maintain a good relationship with their tenant. It makes tenants feel like they’re getting their money’s worth and like the landlord is on their side. 


Unless you have to use the flat 30 option, the monthly method of prorating rent is a landlord’s best bet because it’s easiest to explain to the tenant. 


And a happy tenant is the best bet for a happy landlord.


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Thinking about purchasing a rental property in Tacoma, WA? Learn how looking at the rental statistics, the demographics, and having a local property manager as a partner can ensure you are looking at real numbers when deciding if the area fits your investment strategy.

Before investing in an area, you will want to look at the demographics, home prices vs rental prices, forecasted economic growth, and other important statistics to see if it fits with your investment strategy to help you reach your goals. Will the area give you the cash flow or appreciation you are looking for?

About Tacoma, WA

Tacoma, WA, one of “America’s Most Livable Cities”, is a port city on the Puget Sound and is known for being one of the most walkable cities in the US. From its beautiful waterfront to its numerous city parks that include the country’s second largest city park (700 acres), the area has seen a 12% population growth since 2010.

Tacoma property management

Tacoma offers more affordable investment opportunities than the Seattle area which can be expensive.  Cash flow opportunities are better in Tacoma because the prices of homes are not as high.  

Home prices in Tacoma

Median home price: $354,019

Home prices have gone up 9% in the past year.

 

Diverse types of renters

Commuters – Many choose to work in Seattle but live in Tacoma because it is more affordable.  

Students - Several universities are in the area including the University of Washington’s Tacoma campus, so there are a lot of student renters.  

Military - McChord Air Force Base is South of Tacoma, so there are military families renting in the area as well.  

Between the port, universities, military presence, and proximity to Seattle, Tacoma is a great area for investors looking for an area whose economy is being fueled by a diverse mix of industries.

 

Economy and industry in the area

Tacoma is the 7th busiest container-handling port and attracts businesses in multiple industries. It is known for its high-tech industry that includes Intel and Expedia which are headquartered there. Agricultural and forest products are also large contributors to the local economy.

  • Unemployment rate: 5.3%
  • Average income: $75,649

Tacoma has seen steady job growth over the last 10 years and expects 39.9% in future growth. With its strong industry presence and growth record, it is a great place to invest in rental property for less than a home in a Seattle would cost.

If you are considering investing in Tacoma, contact us at Mynd. We can help you determine if this market fits your strategy to reach your goals. If it doesn’t, we have offices in 19 markets and can help you find an area that does.

How to accurately set rent for my Tacoma, WA rental property

The rental market is cyclical, so you want to make sure you set rent to match today’s prices. Just because you rented your property for a certain amount 3 years ago doesn’t mean it will rent for that amount today. The price could be higher or lower depending on what the market says is the going rate. To avoid extended vacancy time, you will want to accurately price the property, so you are getting the maximum return while also filling the vacancy quickly.

Tacoma rental statistics

  • Median rent for a single-family home: $1750
  • More single-family homes available since 2007
  • 45% Renter Occupied
  • 55% Owner Occupied

Steve Rozenberg, Head of Investor Education for Mynd, says he sees this as a good, steady mix of renter/owner occupied homes which makes it a great market to have a rental property. You should always be able to find a renter.

Knowing the trends and statistics for the area is key to your success as an investor.  Consider hiring a local Tacoma property manager like Mynd who can help you determine the correct rent rate.  Mynd has access to proprietary information so you are getting current, accurate numbers to base your decision on. If you want to know what you can expect to rent your home for, Mynd offers a FREE rental analysis.

 

Why should I hire a property management company in Tacoma, WA?

What does a Tacoma property management company do?

They take care of the day to day operations required when you own a rental property such as:

Do you have the time to manage the property? How valuable is your time to you? If you are managing it yourself, do you know that you are doing it correctly and following the laws?

Landlords must comply with ever-changing laws and regulations

Landlords must comply with Federal, state, and local laws that apply to rental properties. These laws are constantly changing, and as a landlord you are expected to keep up with them.  If you must evict a tenant, there may be new laws in place that limit how you can do that. If managing property isn’t your full-time job, you are more likely not up to speed on current laws such as:

  • 120 day notice to purchase property if you intend to change the use of the property
  • 60 day notice of no cause termination of a resident
  • 60 day notice of rent increase
  • Several tenant’s rights laws. For example, tenants can complain to the city of Tacoma about code enforcement violations.

There are a lot of laws that have to do with tenant’s rights, and you must be sure you comply. If you aren’t up on the laws, you may find yourself getting in trouble which can cost you $1000s in fines and court costs.

 

Consider hiring a Tacoma property manager

Our Tacoma property managers can help you make smart decisions and ensure your property is following the laws. Mynd has in-house counsel to help ensure your property is complying with the laws.  Contact us today at Mynd about property management in Tacoma or finding your next investment property in one of the19 markets we serve.

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As an investor, you want to know that investing in a rental property in Everett, WA aligns with your strategy and helps you achieve your goals. Identifying the right data and numbers to calculate your return is an important step in making an informed, smart decision.  Having a local partner like a property manager makes this process easier.

What kind of return do you want from your investment property?

Are you looking for monthly cash flow? Is the property you are looking at going to give you what you need to at least cover your expenses?  Are you only interested in appreciation or debt paydown?  Your strategy must be defined before you start looking for a property.  

About Everett, WA

Everette is a coastal city on the shores of Port Gardner Bay and is located 25 miles north of Seattle. It attracts families with its world class schools, over 30 city parks, and numerous outdoor sports, activities, and art experiences.

Everett population and home prices

  • Population: 111,000
  • Average age: 33
  • Median income: $57,999
  • Median home value: $362,000

 

The median income for the area is about average for the US, but the home prices are significantly higher than average. You might be able to make enough cash flow to cover your expenses, but you are more likely looking at making your money in appreciation.

Many of the homes in the area were built between 1970-2000.  Being older properties, they may require some maintenance or updates to attract a quality tenant and meet Property Code.

 

Everett Property Management

 

Industry and the Economy

  • Unemployment rate: 5.8%
  • Cost of living index: 116.2  (US average is 100)

Boeing’s 747, 767, 777, and 787 Dreamliner airplanes are constructed in the world’s largest building located in Everett, and they offer a popular tour of the facility. Everett’s proximity to Seattle is an advantage because it is going to be fed by the strong industry nearby.

Best neighborhoods in Everett

  • Darlington
  • Edgewater
  • Pinehurst
  • Riverside
  • Bayside
  • South Forest Park

When you buy a property in one of the more popular areas, you are probably going to see more appreciation. With an average age of 33, residents are likely families interested in the quality schools in the area.  They are also more likely looking homes with multiple bedrooms for their growing families.

 

Talk to an Everett, WA property manager about the local market and what trends they are seeing. They can answer questions like:

  • Is the city growing?
  • Are rents going up or down?
  • What is the average eviction rate?
  • What are the average days on market?
  • What is the average vacancy?
  • What type of homes are rented quickly? What are most people looking for?
  • Are there certain features people are looking for in a home?

These are the questions you want answered before purchasing a property, so you have the proper expectations. Contact us at Mynd for more information on the Everett area. They can tell you what types of properties are renting quickly, what renters are looking for, and more.

If Everett doesn’t fit your strategy, we can help you find a market that does. Mynd has offices in over 19 markets. Our local property managers can use Mynd’s proprietary data to help find you properties that match your strategy, whether you want to invest locally or diversify across several markets.

 

How to Accurately Set Rent for my Everett, WA Rental Property 

It is important to know what the market is dictating when setting rent for your Everett rental property. The goal is to get the right amount of rent while leasing it quickly, so pricing it right is critical.

Leasing has seasons

You might not be able to get the same amount of rent if you lease your property in the Winter (off season) vs the Spring/Summer months (peak season).

The economy can affect rent

If the industries in the area are in a downturn or upturn, that can influence the rent you can expect to receive.

Everett rental statistics

  • 42,000 housing units
  • 37% Owner Occupied
  • 67% Renter Occupied
  • 44% single family homes 36% Apartments
  • Median rent: 1,990
  • 48% of homes were built between 1970-1999

The rent amount will vary depending on the property type, square footage and number of bedrooms.  When comparing rents, look at properties that are the same as yours. Being that many of the homes are older, you may find you can get a little more money in rent by doing some updates to the property.

Mynd’s Everett Property Management company offers a FREE rental analysis so you can see what your property can expect to rent for.

 

Why Should I Hire a Property Management Company in Everett, WA 

When you own a rental property there are a lot of day to day operations to take care or not to mention all the ever-changing laws you must follow.  Should you continue to do this yourself or does it make sense to hire an Everett property management company?

 

Treat your investment like a business.

If you own multiple rental properties or plan to in the future, the tasks required increasingly take up more of your time.  Keeping up with all the laws you must comply with can become a heavy burden.  Maybe you got into investing because you wanted a safe, secure retirement investment or passive income, but you did not realize the amount of time that was involved in managing it yourself.  You thought you were gaining free time and ended up having a second job.

It is entirely possible that you will not end up where you hoped because you may not be doing something right. Not complying with a law could result in your ending up in court owing $1,000s in fines.  

Getting that great deal when you buy the property is only the first step in the process that leads to your success. Steve Rozenberg, Head of Investor Education for Mynd, thinks it is important to have a team to help you maximize your return.

 

What does an Everett property management company do?

They take care of the day to day operations required when you own a rental property such as:

They know the laws and regulations

You must follow Federal, state, and local Property Code that dictate how a property must be maintained. When it comes to fixing things in the property, who is responsible for them? The tenant or the landlord?  There are things you can’t ask on an application or during the screening process.

Landlords must comply with Federal, state, and local laws that apply to rental properties. These laws are constantly changing, and as a landlord you are expected to keep up with them.  If you have to evict a tenant, there may be new laws in place that limit if or how you can do that.

Maintenance issues

Mold can be a problem in the Everett area due to the amount of rain it gets. You will need to make sure the roof, ventilation, and plumbing is in good shape to prevent mold.  There are laws that protect the tenant to ensure they have a safe home to live in. Property managers know what you have to do to comply with any laws in regards to Property Codes.

If you don’t have the time or desire to keep up with the laws and regulations, it might be a smart decision to hire a knowledgeable property manager.  Mynd has local property managers that know the laws to ensure you are following them as well as in house legal counsel.

A good property manager helps you make smart decisions and ensures your property is following the laws. Contact us today at Mynd about property management in Everett or for help in finding your next investment property in one of the 19 markets we serve.

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Selecting the right property is a necessity when looking to invest in the real estate market. But equally important is selecting the right tenants. Dan Hines, Regional Director with Mynd in the Sacramento area, is here to give us his top three most important things to know or remember when selecting the right resident for one’s property.Steve Rozenberg: Hey everyone, this is Steve with Mynd Property Management and I am here with Dan Hines. He's the Regional Director for Sacramento. Dan, thanks for joining me today. I appreciate it.Dan Hines: Thanks for having me on. Appreciate it.Steve Rozenberg: Yeah. So what I want to talk about today is—this is kind of, to me, the start of the evolution of being a landlord—of either having a great experience, or having a not so great experience, and I say that from my own personal experience when I started, and that's picking a resident. So in Sacramento, and obviously every place geographically is different, right? With different jobs and statuses and income and everything that's going on specifically with the location. If you were to maybe nail it down to let's say three things, three things that you think would be the most important when you are selecting a resident to live in your rental property, what advice would you give the average investor that's looking for that?Dan Hines: Yeah. So it's like the old saying, "A good offense is a great defense." Right? A lot of investors are apprehensive to get into becoming a landlord and it's, "Well what if the resident messes up the property? What if the resident doesn't pay? What if..." Right? All those things that can go wrong. The best way to get in front of that is to just have a very strong, stringent screening practice. And you need to have that stuff figured out before you have an applicant who's ready to move in in a week.Plan your stuff, make sure you know what you're going for. The top three things in my mind: income, that's huge. You need to make sure that the resident has a consistent, steady income and they can afford the place. Rental history. Are they first-time residents? How are they leaving their last place? Are they getting their security deposit back? And then just the overall application due diligence process, right? Do you understand, do they have collections from a utility company? What's their credit score? Those things will normally help you triangulate and figure out the overall quality of this resident.The major one that I just really want to stress, though, is being totally clear on the income situation. Too many times I've seen situations where a landlord wants to be nice. They're trying to help the person get in. They want to be flexible. Yeah, it's a little tight on the income, but they say they can make it work and it's okay.And then a few months down the road there's a surprise. Now the resident can't afford to pay the rent and it's a really tough situation for everybody now. And it came from someone trying to bend the rules and trying to be nice.Steve Rozenberg: Yeah, absolutely. I used to always say, you trust but verify. Right? And the numbers will tell you. Even to your point, what I have learned, when I was always selecting a tenant, we used to always say, if you look at their past, you'll see their future. Meaning, if you look and see what they've done leading up to today, if they've hopped around on jobs and they've been kicked out of other places, and they owe people money, they're not going to change for you. That's a habit pattern that's going to stay. But more importantly, what I think a lot of people don't realize is if you bend the rules, let's say you get that gut feeling where you're thinking, "Oh, this person. I've got a good feeling about them. They're getting a good job, or this is going to happen," and you bend your rules. What happens is, if you did not select one tenant and all of a sudden you selected this tenant and that tenant was qualified, that could all of a sudden slip into discrimination or a fair housing issue because you have a set of rules that now you're bending the rules.And it could be skewed and looked at in any light. And I think that the biggest thing that I've learned, and tell me what you think, is that you're running a business. And that business has policies and procedures for a reason. And it's not there for you to bend them at will. And I know a lot of people, and I, when I first started, I did this also, where I would bend the rules as the vacancy term lengthened.So all of a sudden my house was vacant a lot longer, I would accept something different. And the challenge was, is every time I did that and I did not stick to my rules, it bit me. I mean, I can't name one time in all the properties that I've owned that it actually turned out to be the better. That I actually said, “man, I'm so glad I did that. That worked out great for me.” You know?And I mean, that's just what happens. And I think that a lot of us, you said it great when you're talking about the things that you need to do, and you’ve just got to be able to verify that income and make sure, hey, you know what? I'm not going to say, it's not that you don't need to be nice to them, but I think it's a matter of you being business and you're running a business and the business dictates you need a certain amount, whatever you think it should be, that's the amount you need to have. And that's a go no-go.And if it doesn't, you don't have the option to change it. I always tell landlords, "If you were working for me, would you just change things at-will or would you do what your job description said?" Well, you're working for yourself, so that's why you think it's okay to bend the rules.And that's the challenge we have when we're a landlord and we're really not sure. And I don't know about you, but every disaster I've talked to in the landlording industry, it's normally because they did not stick to the rules. Or maybe they didn't have rules, they didn't have written disclosures of what they would and would not accept. And that's normally what seemed to bite them.Dan Hines: Right. Right. So to the point of running it like a business, you have to set your business up for success. And you do that by planning, by knowing what your lanes are, knowing when you have to make certain tough decisions. And if you start off your tenancy with someone and you haven't set clear expectations and you haven't set them up for success, meaning, are you placing someone in the property that can legitimately afford it? If you're not, you cannot be surprised. You are forfeiting your right to be surprised.In six months when they tell you, "Hey mister landlord, I have a problem. I'm late this month." And I can't tell you how many times we've taken on clients who have residents in place, thousands and thousands of dollars that they're trying to piecemeal rent checks together. And it's, something happened and they got in over their head, and it just creates a really unfortunate, unfortunate situation for everyone involved.Steve Rozenberg: Yeah, it does. And many landlords and investors in this world, they fail in this. But they fail, I think, because they fail to plan. And this, I believe, and I was someone in the initial, when I first got investing way back when, I didn't know anything about this. And this was the root of a lot of heartburn and headache and challenges because I didn't run it like a business and I did not run it to where, these are the policies, these are the procedures, and these are my qualifications. So this is great information. So just to wrap this up, give me the three again. We said income, is that right? Income was the first?Dan Hines: Income.Steve Rozenberg: And the second was ...Dan Hines: Rental history.Steve Rozenberg: Rental history. And third?Dan Hines: The third was just the overall application due diligence process. A credit check.Steve Rozenberg: Right, yeah. Are they doing what they're supposed to be doing? Are they supposed to show up at 5:00 PM to give you the deposit money and they don't show up? To me, these are indicators because it's like they're on their best behavior today. If they're not even doing what they're supposed to do today, how does it look six months, a year, or two years from now? And again, you look at their past, you'll see their future. So that's great.So Dan, if somebody wants to get a hold of you and they want to learn some more about Mynd or know more about the Sacramento area, how do they do that?Dan Hines: Yeah. We're easy to get in touch with through our website, Mynd.co. You can reach out to us through our 833-FOR-MYND phone number. We also have a lot of really cool stuff going on the Facebook page also. Website's the fastest. Looking forward to speaking with you.Steve Rozenberg: Yep, sounds good. And if you want to join, we have a Facebook group. The Mastermynd Real Estate Investment Club, and it's Master M-Y-N-D. But please join, there's a lot of investors on there and we'd love to have you. And this is Steve, and this is Dan, and I want to thank everyone for watching and we'll talk to you guys later. Bye bye.Choosing the right tenant for one’s property can prove to be a challenging process. But knowing what to look out for and how to set the right criteria for potential residents can make this process far easier. Having an understanding of a potential tenant’s income is the first step in choosing the right residents for one’s rental property. This gives the investor or manager the best understanding of whether an individual can afford to or will be able to keep up with rent payments.Likewise, an investor or manager should seek the potential tenant’s rental history. As a person’s past is a good indicator of their future, knowing a renter’s history can give a property owner the best outlook for how that individual will fare as a tenant. Furthermore, a property owner should be diligent during the application process. This means knowing a potential tenant’s credit score, for example. This can also give the owner an understanding of whether a person is right for the property and can afford to live there, overall.

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The government has historically propelled the Sacramento area economy, but the private sector continues to expand. As a result, the regional economy continues to diversify, creating additional demand for rental housing. WeWork, for instance, signed a lease for 47,316 square feet at downtown’s Wells Fargo Center, marking the company’s entrance into Sacramento. In addition, tech startups continue to relocate to Sacramento from their more expensive neighbor to the west, San Francisco. Even tech stalwarts, such as Apple, Intel, Micron Technology and Hewlett Packard Enterprises have operations in the Sacramento area.

aerial view of buildings in Sacramento

Sacramento Economy Continues to Diversify

Government employment constitutes 25% of all jobs in the metro, the highest share of public sector employment in the country, leading Washington, D.C. Professional and business services, as well as the leisure and hospitality sectors, have been among the strongest growth sectors this cycle. The education and health services sector has been also continues to contribute to job growth, ranking among the metro's best-performing sectors. Total employment in this sector is approximately 35% above its pre-recession peak. Sacramento’s relative affordability remains one of the metro’s biggest draws. Household growth in the region surpasses the rate of single-family home and apartment deliveries, and population growth is expected to outpace the national average over the next five years. Furthermore, Bay Area, Los Angeles and San Diego residents continue to express interest in Sacramento rental housing to escape exorbitant housing costs in those markets.

Year-Over-Year Job Growth line graph

Sacramento Rent Growth Soars Above 4%

Rent growth in Sacramento continues to rank near the top of the U.S. among major metros. Elevated demand has far outpaced the limited number of deliveries this cycle, boosted by the healthy economy, rising home prices and exodus of Bay Area and Southern California residents searching for affordable housing alternatives. These dynamics have created tightened rental market conditions, providing property owners with leverage to push rents aggressively in recent years. Rent growth averaged almost 9% from 2015 to 2017 and reached an all-time peak of more than 10% in 2016. Rent in the Davis submarket, where the University of California, Davis is located, commands some of the highest rents in the metro area, according to a new CoStar report. Asking rents in Davis are about 30% higher than the metro average because of strong student housing demand and air-tight vacancies. Elk Grove and Roseville/Rocklin also feature rental rates well above the metro average, at about a 20% premium to Sacramento.

Sacramento Market Rent per Unit & Rent Growth bar and link graph

New additions to the area have had a minimal impact on lowering rents: Average asking rents for properties built since 2010 is approximately two times higher than the national average. Rent growth since 2015 has far outpaced income growth, consuming approximately 25% of the area’s median household income. Long known for its affordability, Sacramento may lose some of its luster if rent growth continues to exceed income gains. However, despite the surge in recent years, Sacramento’s average rent remains a fraction of average rents in the Bay Area. As a result, ex-patriots hailing from the Bay Area, Los Angeles and other expensive metros, should continue to relocate to the region in upcoming years.

Bay Area and SoCal Exodus Pushes Vacancy Rate Down

Sacramento’s lack of new rental housing construction, positive demographic trends and solid economy have placed downward pressure on vacancies. Vacancies have remained under 5% for many years, and that trend has continued in 2019. In fact, rental market vacancy metrowide stands at 4.3%. Since 2013, the average vacancy rate is about 150 basis points below the U.S. average. Consistent with historical trends, Sacramento draws some of the strongest per capita migration in California, particularly from the Bay Area and Southern California, thus boosting demand. A combined 30,000 residents relocated to Sacramento from the San Jose and Los Angeles metros between 2012 and 2016. For more insight on the Sacramento rental housing market, download our latest State of Mynd Sacramento report today.

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Many things can go wrong when owning a rental property, especially when it comes to a disruptive tenant. Our guest today is Dan Hines, Regional Director with Mynd Property Management in Sacramento. Dan is here to discuss how to best deal with a disruptive tenant quickly before things before more complicated than they have to be.Steve Rozenberg: Hey everyone, my name is Steve Rozenberg with Mynd Property Management and I'm joined here today with Dan Hines who is the Regional Director for Sacramento Mynd Property Management. Dan, thanks for joining me today. I appreciate it.Dan Hines: Yeah, definitely. Thanks for having me on, Steve.Steve Rozenberg: So what I'd like to talk about today is the ever-elusive challenge of dealing with a disruptive tenant, right? I mean that is kind of the biggest fear of, does a disruptive tenant turn into an eviction, right? Which is a big fear for people, but I just want to talk about dealing in handling the disruptive tenant because I have seen some very ugly things happen when people do not handle it correctly when they have a disruptive tenant.So obviously we know that you're supposed to be running it like a business. This is a customer service industry, but if you're a landlord you can get emotional, you can get kind of caught up in the heat of battle. The first thing I would just like to say out of the gate is do not text message your tenant, especially in the heat of battle when you are upset at them because I just imagine you standing in front of a judge and the judge reading this text message thread of you guys going at it. And taken out of context, it can seem like you probably may have gone overboard and you're not being professional. So I always say don't do that.Dan Hines: That's just good life advice.Steve Rozenberg: You're absolutely right. In general, don't do that. Yes, very true. Very true. So that's just my two cents. And so Dan, you're in Sacramento, give us your advice, you're the expert. Tell us what, what is your advice on how to deal with that?Dan Hines: Set super clear expectations from the very beginning. Hopefully, that will prevent a lot of pain and a lot of problems. We touched on this on another video, but the best offense is a strong defense, meaning screen people really, really tightly. Prevent the problems from showing up in the first place. But if you find yourself in a situation where maybe you didn't place them, if things started great and then it got really rough along the way. How do you deal with that stuff in the thick of it, right? I totally agree with you. Don't yell, don't scream.Unfortunately a lot of property owners, it's common to see some sort of an emotional connection and attachment to the property, but I always try to work in my clients and remind them that rental property needs to be thought of almost an inventory to your business, right? It's not an emotional thing. So try to separate that. Know what your playbook looks like and stick to it. If someone is breaking a certain set of rules, know what your recourse is. At what point is it acceptable to just ask them, "Hey, please knock this off. Remember your lease says this." At what point do you have to start deploying notices of breach?And something that you need to stay aware of when you're running any sort of business and hiring people. You need to be slow to hire and quick to fire. And basically what that means, and you can play with these words, it means that when there's a problem that you know is not going to work itself out, don't lie to yourself, deal with the problem. All too often I see landlords be very patient and very hopeful and they wait for things to get better. And you know what? Sometimes they do and sometimes that happens, but oftentimes if it gets worse, it's going to cost them a lot more money. It's going to take longer and there's going to be way more pain involved.Steve Rozenberg: And I think, a lot of the things that I've seen and learned and experienced over the years is that number one, it's a business, it's not emotions. And a lot of times, landlords, when they first rent to someone, maybe they're nice to them or they're friendly and then maybe they feel like they were taken advantage of. And now it's an emotional situation. And I've heard some landlords tell me, "well it's my house." And I say, "Well it may be your house, but it's their home." And that home is a business and you are running a business now. When you turn it into a business, there are now laws that both you have to abide by, as well as the tenant. And normally those laws are spelled out in the lease agreement. So go back to the lease agreement and make sure that everyone is abiding by the lease.If they're not, then like you said, then you use your education to decide how you're going to take action or not or how you're going to rectify the situation. But getting emotional, I don't know anyone that's ever gotten emotional and it's worked out for the better. It just doesn't happen because you've got someone living in that property, they have rights and just because you may not agree with how they're living, it may not be illegal. They may not be in breach of the lease. That's not for you to decide, the lease agreement decides it because it's a bilateral contract that you both signed. And again, it is a sensitive subject. And when you have a disruptive tenant, especially if you have a duplex or a shared or an apartment complex, because there's obviously—I always say when we had a duplex—there are three sides to the story. There's one side, the other side, and then the real side. And so everyone's up for interpretation of how they interpreted something.And again, it's not my job to be judge and juror of someone. I can only go off of what the lease says. I'm not there 24/7. And so again, I like what you said. It's like you make decisions based on the information that's in front of you and what's prudent to move forward on and what's not. But to me, the biggest challenge is getting emotional. That's where it gets you. Again, if I can give you advice, number one, do not text them. I remember seeing a landlord, he got into a fist fight with the tenant in the front yard of his property and then the landlord ended up getting a restraining order put on against him because he could not even go back to his own rental property and he was in the wrong.And then I'm thinking to myself, what are you doing? Don't you remember this was an investment property that you were going to have for retirement purposes and that stuff. What are you doing getting into a fist fight? And in the heat of battle, I understand, but that never is going to solve something. You're never going to work it out.Dan Hines: I'll echo what you're saying. If you operate from a place of being professional and respectful and hopefully not, not being Mr. Nice Guy to where someone can take advantage of you but still being kind, you should never end up in a fist fight in any sort of business.Steve Rozenberg: I don't care what, absolutely.Dan Hines: That doesn't happen. And from managing, north of 1200 rental units for a handful of years, I can tell you from firsthand knowledge that when you're working with someone like a disruptive resident, if they can tell that you're being respectful and you're not trying to be abusive in your language and actually dealing with them as a human being—and I understand where we're varying off a little bit of the original subject of your video—you have a much higher rate of success.Steve Rozenberg: Absolutely.Dan Hines: Solving problems and not just trying to pull some sort of a power trip. So don't get emotional, always assume that there's someone watching how you're behaving.Steve Rozenberg: Absolutely.Dan Hines: And if there's no one watching right then, know that the residents probably going to tell their stories.Steve Rozenberg: Absolutely. A human being and be professional. And again that's, I tell people that's the sandbox we're playing in. We're playing in that where we are renting a property to a person. You're being told they're disruptive. You don't know that maybe, again, there's multiple sides to the story and a lot of times it's emotion on the tenant side and emotion on the landlord side. And again, be professional. And like you said, if someone's not watching, they probably will be watching you on YouTube on how you acted because someone will be recording you. So it just doesn't… there's no point in doing that. And so again, like you said, be professional. That's the best thing I can say.Dan Hines: Yeah. That said though, if you're dealing with a real problem, right? Real lease breaches, someone that's going to destroy the property, someone that is, the metaphorical cancer to the property if you have multiple residents.Steve Rozenberg: Sure.Dan Hines: Don't be passive. Don't wait for it to work itself out.Steve Rozenberg: Absolutely.Dan Hines: Know what you're line is, stand firmly by it. It's better to solve those problems quicker than to wait for them to compound.Steve Rozenberg: Take action, but do it legally. Go through the court system. If you have to remove them, don't just pull them out. Yeah. I mean there's absolutely, yeah. I mean it's your business, you're running the business, run it, run it correctly, but don't just take matters into our own hands because you've got emotional and you've got upset and you're going to write the score right there. You do it correctly where you get courts involved, you remove them legally. Again, that's the way to do it. So Dan, I love this information. You've got so much knowledge. And again, so many people could learn from what you have to say. If somebody wants to get ahold of you up in Sacramento and talk to you at Mynd, how do they do that?Dan Hines: Yeah, go to our website. It's Mynd.co. So, M-Y-N-D.C-O. We have a page there specifically for property owners. Lots of information on both the Sacramento market, where I am, plus and other markets. It's easy to contact us through the website. You can also reach out by phone. That information is also listed on the website and then social media as well.Steve Rozenberg: And if you want to find us on social media, we're on Facebook and Instagram. On Facebook, we actually have a Facebook group. It's called the Mastermynd Real Estate Investment club. And you should join it because there's a lot of people just like Dan and I on there talking, conversing, having discussions about real estate and how we can help you. And again, this is just a community that we want to help people get better at what they do and who they are. So this is Dan and Steve. I want to thank everyone. Talk to you later. Buh-bye.Dan Hines: Thank you.Dealing with a disruptive tenant can prove to be one of the most difficult aspects of owning a rental property. But knowing one’s rights when dealing with such issues can save a property owner time and money. Likewise, remaining professional and not letting emotions get the better of you can help ease tensions and settle the problem in your favor. Treating a property as a business or investment is the first step in quickly and painlessly dealing with a disruptive tenant before the situation becomes much worse.

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