Property Management Blog

5 Reasons Why You Shouldnt Manage Your Own Sacramento Rental Home

System - Tuesday, May 10, 2016

Managing a Sacramento rental property requires knowledge and processes that ensure you’re able to earn a healthy return on your property investment. Many times, landlords who manage on their own think they are saving money, but they are actually losing valuable rental income and setting themselves up for potential liability. Here are the five main reasons you shouldn’t manage your own rental home.


Incorrect Pricing

Overpricing and underpricing your home is a risk, and you need to price your rental according to the market. When you overprice the property, it will sit on the market and extend your vacancy period. You’ll lose rental income when you don’t have any tenants interested in the home. When you underprice the property, you’re giving up income very month and even if it’s $10 or $50 a month, that’s going to add up. Either way is a loss. A property manager will read comps, understand the market and price your property correctly. These are key factors to making sure that you maximize your return on investment.


Inadequate Tenant Screening

Property managers have access to resources and tools that enable a more thorough tenant screening. We can read credit reports and effectively screen tenants based on financial status and past landlord references. If you have a turnover every six months because you aren’t placing qualified tenants, you’re going to lose money and your ROI is significantly shrunk. Turnover costs and loss of rent will add up.

Solid Contracts


You need a good lease that is enforceable in California and filled out and executed correctly. Property managers can make sure you and your interests are protected through your lease and other contracts.

Proper Accounting


You need to understand your bottom line and how you got there. Property managers can provide you with accurate and transparent

accounting. If you manage on your own, you’ll need to figure out a system to manage your bills and statements. Your tenants also need to know their charges and why they might be responsible for a plumbing repair. Property managers provide portals so everyone is aware of their costs.

Tenant Owner Relationship


Managing the relationship with your tenant can be challenging. With a property manager, you can enjoy your life instead of dealing with the tenant calling you at night because there’s a problem. The tenants will contact your property manager instead.


If you have any questions about the benefits of professional management and the risks of self-management, please contact us at Titan Property Management.