Davis · Investment Property
Investment Property in Davis: Rental Rules, Fees and Real Numbers
Run the numbers on rent, financing and repairs before you write the offer, with a broker who also knows lending.
Investment Property in Davis Comes With City Rules
Investment property in Davis sits in a city where most homes are rentals. The 2020 census found 56.5% of occupied Davis homes rented, and a Western City article on the City's program put rentals at about 60% of more than 27,000 dwelling units. With that much rental housing, Davis runs its own rental program, and every buyer of a rental needs to know it.
What you want is a property that pencils with realistic rent, a loan you can carry with reserves and no surprises from City Hall. We put the purchase, the financing and the local rules in front of you before you write the offer.
Why Davis Investors Choose Surroundings
Maggie B. Hopkins is the broker at Surroundings, and she is also a mortgage broker. Investment loans vary more than most buyers expect, and one team handling the property and the loan on one plan saves you from surprises. As a mortgage broker, Maggie shops investment financing across a network of approved lenders. Shop us against anyone. Bringing your own lender is fine too.
- Rent from comparable rentals. We estimate rent from similar homes, not from the highest listing you can find.
- The full cost of ownership. We count payment, taxes, insurance, the City's annual rental fees and a repair reserve.
- Homes in any condition. A dated house can work as a rental with the right repair plan, and we price the work before you offer.
See our regional investment property page for how we approach rentals.
Our Investment Property Process in Davis
- Your goal. Cash flow, long-term appreciation or a 1031 exchange each point to different properties. Exchanges have strict IRS deadlines, so involve your tax advisor early.
- Financing first. We compare down payment, reserves and payment across lenders.
- Buyer agreement. A written agreement states how we are paid, an amount set by agreement with you.
- Underwrite each home. We figure the rent estimate, repair budget, City fees and insurance for every candidate.
- Offer and inspection. We use the inspection to test the repair budget and check the sewer lateral, which the owner maintains.
- Close and register. After closing, register the rental with the City before a new tenant moves in.
We do not give tax or legal advice. Your CPA and attorney should review your plan.
Local Context: Owning a Rental in Davis
Registration. Davis Municipal Code Article 18.11 says no owner may rent a single-family or multifamily unit to a tenant unless it is registered with the City. The Davis City Council adopted the program in March 2017. Owners who live more than 50 miles from Davis must name a local contact or manager with full authority to act, and that person cannot be a tenant.
Fees. For one to four units, the City bills a Rental Resources Fee of $105 a year on the January City Services invoice: $25 for the business license, $30 for the rental program and $50 for inspections. The City says these fees cannot be passed on to tenants.
Inspections and paperwork. Single-family rentals are part of a random inspection program, and the City also runs compliance audits. Before a tenancy starts, owners give tenants the City's rights and responsibilities information. A move-in inspection on the City's checklist is due within five business days of the tenancy starting.
Rents and supply. The Census Bureau's 2020-2024 survey put Davis median gross rent at $2,187 a month. The UC Davis housing guide notes most local rentals run on 12-month leases. Measure J keeps new housing scarce, though the Department of Finance counted 1.5% more housing units on January 1, 2026 than a year earlier.
Prices. Resideline's six-month median was $820,000 on October 3, 2026, at $478 per square foot. Compare cash flow elsewhere on our pages for investment property in Sacramento and investment property in Elk Grove.
What to Check Before You Buy a Davis Rental
A rental that comes with paperwork problems costs money after closing. We ask for these items during escrow:
- Registration status. The City publishes a list of registered rentals. We confirm the property is on it and that the owner contact is current.
- Code violations. The City's compliance audits check for outstanding code violations, and a failed audit leads to an inspection. We ask the seller to disclose any open notices.
- Move-in records. Davis requires a signed move-in inspection on the City's checklist for each tenancy. Those records matter when a security deposit is returned later.
- Leases and timing. With 12-month leases common in Davis, the lease end date decides when you can make changes. We read every lease before you remove contingencies.
The City also links its landlord page to a summary of the state Tenant Protection Act. Your attorney is the right person to explain how it applies to a specific property.
Run the Numbers on Investment Property in Davis
Before you buy investment property in Davis, see the loan terms, the rent estimate and the City costs on one page. Contact us to run the numbers on a Davis rental, or read the Davis neighborhoods guide first.
Frequently Asked Questions
Do I have to register a rental in Davis?
Yes. Davis Municipal Code Article 18.11 requires every single-family and multifamily rental unit to be registered with the City before it is rented to a tenant.
What does the City of Davis charge landlords each year?
For one to four units, the City's page lists a $105 annual Rental Resources Fee: $25 business license, $30 rental program and $50 inspection program. Larger buildings pay a graduated fee on the business license renewal.
Can I own a Davis rental if I live out of the area?
Yes. If you live more than 50 miles from Davis, you must name a local contact or property manager within 50 miles who has full authority to act for you and is not a tenant.
Does Davis inspect rental homes?
Yes. Single-family rentals are part of a random inspection program, and the City can also inspect after a complaint or a failed compliance audit. A passing unit receives a Rental Housing Inspection Certification.
Loans are arranged by Maggie B. Hopkins, NMLS #349517, at Surroundings · DRE #02220140 · NMLS #2528307. All loans are subject to credit approval and underwriting, and this page is not a commitment to lend.
Davis
What investment property looks like in Davis
The university town west of Sacramento: bike paths, the Farmers Market and UC Davis.
Davis is a university city in Yolo County, about 15 miles west of Sacramento on Interstate 80, home to UC Davis.
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