2017 Outlook for Phoenix Landlords

As the leading Phoenix property management company, RPM is pleased with the release of the 2017 economic outlook for landlords. Here are some of the things that a Phoenix property owner can look forward to throughout the year.

Rising Rental Rates

Rental rates have increased for an extended period of time now; however, in 2017 these rates will continue to surpass the rate of inflation. Currently a three bedroom single-family rental home rents for an average of $1459 nationwide, but it is predicted this will increase to over $1500 in 2017. Inflation is predicted to exceed 2 percent this year, but will still lag the year over year rental increase of 4.8 percent.

Low Vacancy Rates

Vacancy rates were at 5.2% at the end of Q3 2016, which was slightly lower than the same period of 2015. We expect to see this number remain stable throughout 2017 as rental increases will stabilize demand.

Mortgage Rates on the Rise

The Federal Reserve announced that it will most likely continue to increase rates throughout 2017. We expect that the once 3% mortgage will increase to over 4% in 2017.

Foreclosures Remain Low

Currently, at 2.6% the foreclosure rate is the lowest it has been since August of 2007. This rate is expected to remain low in 2017 which will make it a challenge for investors to find those exceptional deals.

Housing Prices Increase Faster than Inflation

Through September 2016, home prices nationwide saw an increase of 5.39% and are likely to continue to grow in 2017. However, with increasing mortgage rates, homeowners looking to find a new home will find it more expensive which will make them hesitant to make a move. People staying where they are will limit the number of existing homes for sale.

How will these predictions affect your property investment in Phoenix? Overall, the market looks good for the industry in 2017, and landlords can look forward to another prosperous year.

RPMWV Phx has been offering full service Phoenix Real Estate & Phoenix Property Management services for over 20 years so let our experience assist you with your Phoenix rental needs.

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5 Top Tips for Organizing Your Phoenix Rental Properties!

By in large, Phoenix landlords have busy lives and often times struggle to maintain organization with all of the different aspects of their worlds.  However being organized can be a key to being a successful Phoenix landlord so here are RPMWV Phoenix's 5 best tips for Landlord Organization!

1. Create a file for each property you own and be sure to label it clearly with the property address.  Within each folder,store all documents related to the property such as HUD statements, mortgage records, property tax records, insurance documentation, copies of rent payments, expense records, and anything else that pertains to it.

2. Be Meticulous with tax records. Within each property file, have a folder dedicated to tax documents and include every expense receipt, mileage log, cancelled check, and any other instance in which money is involved.  Along with the receipt, keep a log of all activities.

3. Make digital copies Spend some money on a fast and efficient scanner and place it on your desk. Sync it up to your computer and create digital folders for each property (just as you have in your filing cabinet). Each time you get ready to file away a new document, scan it and save it in the accompanying digital folder. For added security, store these folders in the cloud so they’re accessible. 

4. Carry folders in your car. Once you have a folder system setup in your office, it’s pretty easy to stay organized. You just open the folder and drop the document in. The problem is that you aren’t always at your desk. As a landlord, you spend a lot of time in your car driving around from property to property. In the time between getting a document and getting back to the office to file it away, a lot can happen. This is why experienced landlords carry some sort of mobile filing system in their vehicles.  With a mobile filing system, you can give any and all documents temporary storage. 

5. Clear your desk at the end of the day. As a rule of thumb, you should clear your desk at the end of every day. Clutter seems to build on itself and you run the risk of creating piles of documents if you don’t get things filed away each day. If you make it a daily habit, it’ll only take a few minutes. 

6. Make good notes. Nothing is worse than going through a folder, knowing that you have the document you’re looking for, but being unable to locate it. Most of the time, this happens when you forget what a document looks like or what specific file the information is in. One way to avoid these issues is to place sticky notes on thick documents to recap what information is contained within.

RPMWV Phx has been offering full service Phoenix Real Estate & Phoenix Property Management services for over 20 years so let our experience assist you with your Phoenix rental needs.

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Renting vs Buying Phoenix Metro Area

Where you decide to live and whether you decide to buy or rent are large lifestyle decisions. We break down some of the top reasons for each option. 

REASONS TO RENT IN PHOENIX

• Bad Credit. Maybe you need time to rebuild your credit from a bankruptcy, foreclosure or divorce.  These are all large lifestyle changes that can impact your credit and while renting you can work on re-building.

• No Maintenance Expenses. Perhaps right now your time is tight so you would rather have someone else be responsible to fix the leaking faucet.  With renting you call the Landlord for these issues.

• Job Uncertainty. Are you between jobs, or maybe thinking about switching soon. Being a renter allows you the freedom to do so. Especially if you are on a shorter lease agreement, or even a Month to Month.

• Which Neighborhood Is Best? Perhaps you are new to the Phoenix metro area.  If so, it is nice to have some time to find the right place for you and renting allows you to have that time before settling down some roots.

• Big Life Changes. As we all know, you can’t predict your future. We do our best to plan it out, but it doesn’t always turn out that way. Being a renter allows so much more freedom and can be a much-needed relief while you’re dealing with some bigger things in life.

REASONS TO BUY IN PHOENIX

• Decorating Control. As a renter you really have no control over things like paint & carpet color but of course once you own a home all of those decisions are up to you!

• Equity. When you have a mortgage, you increase your degree of ownership in your home with every payment. A good general rule is that if you plan to stay in your home for at least five to seven years, the costs of owning the home are more likely to be offset by accrued equity and increased housing value. If interest rates drop, you have the option to refinance your mortgage at a better rate. When you pay rent, you are actually paying your landlord’s mortgage and adding equity to their bank account.

• Tax Deductions. Being a homeowner you can deduct mortgage interest along with your property taxes. Renters do not get this bonus! Also, if you meet certain requirements the IRS won’t apply “capital gains” tax on your profits when you sell your home. In addition, those who work from home may be eligible to take deductions for their home office and a portion of utilities.

RPMWV Phx offers full service Phoenix Real Estate & Phoenix Property Management services.  For additional information you can contact us at info@rpmwvphx.com or 623-748-7800.

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Phoenix Home Sales Statistics 2017

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Phoenix Rent Check 2017

According to the ARMLS statistical data which measures activity of homes listed through the MLS, the average rental properties leased fell from 2148 in January 2016 to 2079 in January 2017.  The decrease is most likely due to the hot Phoenix property sales market combined with home builders being very caution with how many new homes and areas they are building.  Long over are the days when you hear about home builders buying up large parcels of acreage to be soon developed in the Phoenix Metro area.  Additionally, The decrease in rental inventory caused rental prices to rise from $1379 in January 2016 to $1474 in January 2017 and the median lease price increased from $1250 to $1298. 

Interestingly, the average days on market were exactly the same at 37 days for January 2016 and 2017 and the rent check quotient stayed at 2 to 5 meaning that for every two homes that leased, 5 homes were sold.   So what does all of this mean???  Well, if you have been thinking about turning your property into a rental now may be the time given that rental inventory is even lower than the sales inventory.

RPMWV Phx offers full service Phoenix Real Estate & Phoenix Property Management services.  For additional information you can contact us at info@rpmwvphx.com or 623-748-7800.

Follow @rpmwvphoenix