December 2014 Phoenix Rental Statistics

Each month ARMLS (Arizona Regional Multiple Listing Service, Inc.) compiles Phoenix rental market statistics based on Phoenix rental home listings through the MLS (multiple listing services).  Unfortunately it is not even close to a full number for the Phoenix housing market because it doesn't include all leasing activities done through other sources such as online advertising, signage and people leasing to friends/acquaintances.  In December 2014, 2,577 homes leased as compared to 2,911 in December 2013. Also, the median lease price of the Phoenix rental market properties was $1175 as compared to the average lease price of $1316.  The average days on the Phoenix rental market were 36 days.  For the entire year of 2014, February was the biggest month for Phoenix rental properties with over 3600 homes renting through MLS.  

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The Final Chapter of the Rental Cycle

This will be the final post in our tenant rental cycle series. The first post was on October 20, 2014 and gave you an overview of the process. The next 12 (including this one) give details on each significant step along the way. If you can implement the ideas presented in this series, you will be on your way to becoming a successful property manager.

The last thing that needs to be done occurs after the tenant moves out. You will need to compare the tenant move-in inspection with the tenant move-out inspection and determine what to do with the refundable part of the security deposit.

You need to determine what work needs to be done and who is responsible. If your move-in/move-out inspections are good, this step will be easier. 

Keep in mind, the two most common issues that need to be addressed involve the walls and the floors. With the walls, a room at the average rental property should last up to three years with a good coat of semi-gloss pant.  With carpet, a good rule of thumb is that carpet should last 5 years at a rental property.

After you determine what work needs to be done and who is responsible, you need to figure out how much this work will cost. Then, you will need to send out a disposition of deposit to the tenants within 14 business days (in Arizona). 

This disposition document will explain how much the tenant will get back from the deposit and how much you will be applying to work needed to repair damage and get the property rent ready that you determined was tenant responsibility.

Make sure you get receipts from all contractors that do the turnover work at your property. If you have these and good inspections, you will be prepared should the tenant dispute their disposition assessments and decide to challenge you in court.

9 Key Steps For A Successful Tenant Move Out

There will come a time when your tenants will move out and you will have to start the rental cycle all over again. We have a great deal experience in the move out procedure and have defined nine key steps you can use to conduct successful move out.

Step 1 – Make sure there is a 30 day written notice to vacate in the lease.

Step 2-  Send the tenant detailed instructions regarding the move out around the 15th of the month.

Step 3- Contact the utility companies to turn on services the day after the move out.

Step 4- Call tenant an hour before the move out to confirm important details regarding the move out.

Step 5- Make sure you bring a move out inspection form, your camera and for rent signs to the move out.

Step 6- Collect keys and remotes from tenant and advise the tenant to wait outside. This will allow you to focus with no distractions.

Step 7- Complete move out inspection using your detailed form and descriptive photos.

Step 8- Review the facts of move out and advise tenants of disposition process. Have tenants sign the move out form.

Step 9- Compare move out vs. move in to determine deposit disbursement.

Our move out video goes into more detail about each of the steps. This video and all of our videos are great resources to use to when setting up and executing your move outs and property rental plans.

3 Ways To Keep A Good Tenant

Over the last couple of months, we have gone over various components of a typical tenant rental cycle. Perhaps the most important part of the rental cycle is extending a good tenants occupancy for another 12 months.

There are several ways to increase the chances of extending the lease of a good tenant. The main thing to remember is to maintain an attractive price.

 The chances of retaining your current tenant is much greater if the price the current tenants are paying does not increase. Over the years, we have seen minor increases in rent (even as low as $50) chase tenants out.

At renewal time, remember the old adage of a bird in the hand being worth two in the bush. Keep in mind that losing a good tenant will mean lost rent during the vacancy time and turnover costs . Also, you are never guaranteed that the next tenant will be as good as the current one regardless of how many steps you take to qualify them.

If your current tenant is on the fence about whether to stay or go, you can offer an incentive for the first month. Usually, a $200 deduction off the first month's rent for a 12 month renewal will help to persuade the current tenant to stay.

Another option that will benefit both you and the tenant would be to offer a property upgrade such as professional carpet cleaning.  Doing something like this will not only help maintain the property, but will also show the tenant that you value their tenancy and care about the condition of your rental.