Effect of school district on rental market

[Lulu Nguyen]

Hi everyone,

I am looking to buy a property in Sacramento/Elk Grove area. I found a couple on the border of Sac/Elk Grove and in the good Elk Grove school district. However, the nearby schools are not that highly rated (5-7) compared to a couple of lesser properties in Elk Grove proper (smaller square footage and fewer bedrooms, worse condition). I am buying to rent out and wonder how this influence the rentability of the properties. Thank you all for your help.

[Ben Howard]

Hello Lulu, my experience with renters as well as people who are purchasing to live in the property is that they generally place a high importance on the rating of assigned schools. The one exception sometimes is older clients, however even then they may have younger family members in school and want to be near them. If you have flexibility on a location there is almost always a home for sale for a similar price with a better assigned school (particularly now with the population aging/retiring and both parents of a child more likely to work). Please keep in mind that just because a particular school is assigned to an address you don’t have a guarantee that there will be room to admit a student. I had an escrow close last year for a Buyer that lives on the same street as a school but the school was full for the particular grade which was needed so they were assigned to a different school. Also, be wary of websites such as Zillow when they state a school for an address. It is much more reliable to look on the district’s website and search by a specific address. If you need help with this or have any other questions just send me a direct message and I would be happy to help.