The Six Most Important Aspects of Legal Notices for Phoenix Rental Properties

All investors at some point will need to serve their tenant with some kind of legal notice however it is imperative to pay close attention and follow the following to ensure proper service.

1. The "WHO" - Be sure to address the notice to all lease holding residents not just one and the notice must clearly contain your contact information unless you use an on-site leasing office.

2. The "WHAT" - Be sure to use the correct notice for example don't issue a 10 day for a health - and - safety issue or a 14 day for a monetary demand.

3. The "WHERE" - The notice must be served in one of two ways; 1. Personally to an individual residing in the property or 2. via certified U.S. mail to the residence.  You may not post the notice to the front door or enter the property to "drop it off".  

4. The "WHEN" - Notices must be served in a timely manner so we recommend within a few days of first noticing the issues.

5. The 'WHY" - In your notice you must make the demand (remove the unauthorized pet), provide a time frame for compliance (10 days ), announce the consequence if the demands aren't met (eviction) and describe the cause of the notice (pets are not permitted).

6. The "HOW" - If serving the resident in person, be sure to use a reliable server or if serving via US Mail take the notice to the post office yourself so that you keep copies of all documentation for your records.

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Is my property rent ready? Do I need to make some updates? Am I making the right updates?

Does your home need carpet, paint or both? These are often the difficult questions you have to ask when looking to get your home into rent ready condition. As a Phoenix Property Manager, we understand it may not be in your budget to go both this year but just doing one may make a large difference in your homes marketability. With the vastly competitive Phoenix rental market even doing one or the other could make a difference in the time it takes to get your home rented. In fact did you know that most of the dollars spent on renovations are never recouped? That is even though spending on renovations grew over 10% in 2012, a report by Harvard's Joint Study on Housing, shows may owners won't see all that money returned. Think about how much of cost of your renovation will be returned in terms of rental value. Not all renters are looking for a newly renovated kitchen. On the other hand, badly stained carpet, flaws in the paint and or a poorly decorated or outdated kitchen is a big turnoff, so replace the carpet and paint only a few walls were the flaws are extremely noticeable in the front entry of the home. You don't have to remodel the entire kitchen or paint every wall and leave the stained carpet. Consider doing minor repairs and fix just badly needed issues. According to 2013 national averages, a minor kitchen remodel returned more than 75% in valve, while a major remodel returned on 59%. These are just a few suggestions to help minimize repair expenses. Follow @rpmwvphoenix

Phoenix Property Rental Market Statistics

ARMLS (Arizona Regional Multiple Listing Service, Inc), publishes monthly rental statistics for the Phoenix metro investment property area based on all leasing activity in which the home was advertised through the MLS.  In March 2014, 3547 homes leased through the MLS marketing system with a median lease price of $1095, average lease price of $1256 and an average days on the market of 41.  For April 2014, 3065 homes leased through the MLS marketing system with a median lease price of $1150, average lease price of $1282 and an average days on market of 35.  What does this all mean???  That the supply of rental properties which was at an all time high after the foreclosure boom has decreased to the point where there is decent applicant competition for investment properties that show well and are priced right.  Additionally, rents especially in highly desirable areas should continue to increase.  This all leads to "it's a great market to buy an investment property"! Not only are rents increasing but any type of interest bearing investment will most likely continue to have no return given how low interest rates are and with all of the international turmoil the stock market can give even experienced investors the heebie-jeebies!  

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Tenant Communication is Key

Summer is nearly upon us, and many landlords experience a tenant turn-over in the summer related to school schedules. As a Phoenix Property Manager we know that the summer is a busy time in the Phoenix rental market with tenants trying to get settled prior to the new school year. When your tenant move-ins in or signs the lease communication is key. Let them know when rent is due, when you will take action as a result of non-payment. This will help you avoid confusion later. Although personal relationships and conversations about these things are important, it is very important to document everything in the lease. Advise the tenant about what types of repairs they will be responsible for to complete or try before calling in maintenance. For example, it should be clear the tenant is responsible for changing all light bulbs, air filters and trying basic repairs like resetting the garbage disposal or trying "Draino" in a slow drain. These simple items should be as clear as the rent policy to avoid any issues. Having clear policies laid out with the tenant is an important key to a good working relationship with your tenant. Follow @rpmwvphoenix