If you’re moving out of your Sacramento house, the first real question is whether you want to be a landlord from a distance or just be done with it. Renting it out can make sense if you’d like to keep the place and the numbers actually work. Selling can make sense if you need the money for the next house or you don’t want the hassle. There’s no single right answer. It depends on your situation.
Being a California landlord comes with duties, and they apply even if you move far away. In general terms, you have to keep the property habitable, handle repairs, respect notice rules before entering, and follow the rules on security deposits, including giving the tenant a proper accounting after they leave. You also have to be careful about discrimination and about how you screen tenants. Sacramento County and the City of Sacramento have their own rules on some of this, and they can change, so check with the county or the city before you rent. Some of these rules are technical, and if something is unclear, talk to a lawyer who knows landlord-tenant law.
A property manager can take a lot of this off your plate. They find tenants, collect rent, handle repairs and keep you posted. That costs money, usually a percentage of the rent plus fees, and you still own the problems. Interview a few, ask what they charge and what they do when a tenant stops paying. A good manager is worth it if you’re out of the area. A bad one is worse than no manager.
Taxes are the part people underestimate. Rental income is taxable, and you generally can’t deduct the full cost of the house in one year. You depreciate the building over time, and when you sell, that depreciation can come back to you as tax. The two-out-of-five-years rule is the big one for a house you’ve lived in. If you owned and lived in it as your main home for at least two of the five years before you sell, you may be able to exclude some of the gain from tax. Renting it out for a while doesn’t automatically kill that, but the details matter, especially if you move back in or the rental period gets long. This is exactly where you need a CPA, not a neighbor’s guess.
One practical path is to rent it for a year or two, see how it goes, and decide later. Just keep good records from day one. If you’re unsure about the tax side, a CPA can run the numbers. If you’re unsure about the landlord side, a lawyer or the county can point you to the rules. And if you’re weighing whether to buy again, a HUD-approved housing counselor can help you think it through.
This is covered in more detail at rent it out or sell when you move.