Like we’ve discussed before, investment properties are great passive income generators if you have hired an honest, responsible Sacramento property management firm. Before you get started with them, you have to find out what is included in their contract and how to get out of the contract if need be. Here are a few more questions to ask a prospective Sacramento property management company to make sure there are no expensive misunderstandings later:
- What kind of reserve is required? Every Sacramento property management company will ask you for a slush fund that may be used at times of great emergency or if you cannot be reached for some reason. It’s best to know how much needs to be set aside ahead of time.
- Does the Sacramento property management team have experience with Section 8? It’s good to know if your prospective property managers are familiar with subsidized government housing and dealing with that type of tenant, since there may be HUD applicants looking at the property.
- How does the Sacramento property management approach advertising? No one wants to imagine that their tenants will one day move out, but it happens – and you want to prevent as much downtime as possible so you can continue to generate passive income. Therefore, it’s imperative that you find a company that specializes in advertising. Are “For Rent” signs placed on the lawn? Do they use online ads? If so, what websites do they use for listings? Do they add images and detailed descriptions of the properties? Do they advertise in newspapers? What does their “ad fee” cover?
