It Did What? 8 Secrets About the Best Things to look for in a Rental Property

  

623-748-7800

info@rpmwestvalley.com

www.rpmwestvalley.com

Real Property Management West Valley specializes in property management services and therefore we are constantly being asked where and what are the best properties for rental homes.  The where question is very difficult to answer because it really depends on the price the investor is willing to spend as well as what annual return versus appreciation they are looking for.  The what is a much easier question to answer and as such we have compiled the following list for properties within metro Phoenix:

1. Single story single family homes are the best properties to purchase due to the incredible heat here in the summer - tenants are afraid to take on the electric bills on two story homes.

2. Three and four bedroom single family homes tend to rent very well

3. Try to purchase homes that have larger square footage for bedroom count.  For example, a 1700 sq. ft three bedroom is much preferred to a 1300 sq. ft three bedroom.

4. You won't always get more rent for an additional bedroom AND sometimes it may be more difficult to rent.  For example, a 1700 sq. ft four bedroom means that the bedrooms are going to be really small given that 1700 sq. ft is really more the size of a three bedroom.  Chances are this type of home will sit on the market for a while. 

5.  Condominiums and town homes will have greatly increased market time since they compete against single family homes, other condos and town homes as well as apartments.  Also, the apartment market tends to offer crazy move in specials with no deposit and half off first months' rent.  

6.  The less landscaping the better!  We recommend desert in the front and just rock (that's right no plants or trees) in the back.  

7.  When it comes to pools make sure they have a second fence right around the pool and don't just rely on the main block fence around the entire property.  Also, keep in mind that the increase in rent usually just about equals monthly pool services so it is a wash.  Having a pool however if in the right location can definitely decrease marketing time.

Lastly, if you wouldn't live in the home than chances are good qualified tenants wouldn't live there either.

For more information on our phoenix property management services please contact us today!

City of Phoenix offers educational classes for landlords.......

 The City of Phoenix is the only city that offers a certified Landlord/Tenant Counseling Program in the state. If you are a new landlord than knowing the rules and requirements of tenant management is imperative. Additionally, you may be having some difficulties understanding the Arizona Landlord Tenant Act in its' entirety.  One major responsibility of the counselors at the program is to put on free workshops that educate residents on the Arizona Residential Landlord and Tenant Act. The three-hour class features experts from many departments within the city including a speaker on fair housing issues, lead paint, crime and the city’s top eight code violations. The class is fully educational for landlords and tenants.  The program consists of three counselors who work for the city but educate landlords and tenants across the state on the state laws regarding landlords and tenants. The counselors are not attorneys so they do not offer advise or mediation but they can provide excellent information especially if you are currently deciding if becoming a landlord is for you.  For more information about the clases contact:

Landlord/Tenant Counselors Program
Neighborhood Services Department
200 W. Washington St., 4th floor
Phoenix, AZ 85003
Phone: 602-534-4444
Email: landlord.tenant.nsd@phoenix.gov
Questions or comments

And for a free copy of the Arizona Landlord Tenant Act visit the Arizona Secretary of State at www.azsos.gov.

For more information on Phoenix Property Management Services contact us at info@rpmwestvalley.com or 855 748 7841. 

INTEREST RATES AND YOUR RENTAL

INTEREST RATES AND YOUR RENTAL

Even though interest rates have risen over the summer they are still well below rates in the past causing home purchases to be very attractive.  Additionally, those who are now three years from their foreclosure can now purchase again and in some cases people who did short sales just two years ago can also purchase and unfortunately these individuals have been making up our tenant applicant pool for the last several years. Now landlords are faced more frequently with less qualified applicants which of course greatly increases the chances of damages and or rent not being paid.  Here are a few suggestions for landlords in order to mitigate your risks:

1. Take the maximum amount of security deposit allowed in your area.  In the Phoenix metro area for example it is 1.5 the monthly rent amount.

2. Require the full security deposit to be paid up front prior to move in.

3. Require several references on each application including family members with phone numbers and email address and don't be afraid to call the phone numbers to be sure they are correct.

4. Complete property inspection regularly in an effort to catch any issues sooner rather than later.

5. Price the property at or slightly below market rent in an effort to attract the more qualified tenant.

6. Be sure your property looks the best that it can for all prospective applicants.

Lastly, although no landlords like for their property to be vacant, don't rush into approving an applicants who really don't have the track record of paying housing and bill payments on time.

Phoenix Rental Statistics May 2013

According to RENT CHECK which is the monthly publication from the Arizona Regional Multiple Listing System, the median lease price for metro Phoenix in May 2013 was $1,074.  Additionally, the average lease was $1225 and average days on the market were 51.  Often utilizing a phoenix property management company for your investment property can reduce the number of days on the market for you rental.  For example, take a look at the average days on market for the first half of 2013 for rental properties managed by Real Property Management:

  

Anthem 31

Avondale 16

Buckeye 23

Chandler 31

El Mirage 11

Gilbert 56

Glendale 23

Goodyear 23

Laveen 26

Litchfield Park 26

Mesa 64

Peoria 33

Phoenix 19

Scottsdale 31

Surprise 27

Tolleson 27

As a reminder, the price and how the property shows to prospective tenants does greatly effect the ability and time to place a qualified tenant.

Bed Bugs - They are the Landlords Problem

So your tenant's just moved in and they are calling regarding bed bugs - can you hold them responsible???  Can you assume that THEY brought the bed bugs in??  Not unless you want to risk paying high damages in court!  Not only are landlords responsible for treatment BUT they are responsible to disclose upfront if a property may have a bed bug infestation.  There is a bit of good news however in that as part of the bed bug treatment you can require the tenant to comply with a bed bug check list which includes the following:

1. Remove all clothing from furniture

2. Bag all clothing items

3. Remove bedding from bed

4. Remove all clutter from rooms

5. Throw away mattresses or purchase mattress covers

All clothes need to be sent through the dryer on high heat to kill all stages of bed bugs - prior to doing so, sort by color so you don't have to sort after.  Also, be sure that dryer isn't overloaded with each load.  After the clothes go through the dryer, place them in new bags so that none of the bed bugs or eggs transfer to the dried clothes.

Additionally, if you decide not to use professional property management services, make sure that you are doing regular inspections of the property to ensure it remains clutter free thereby reducing the risk of a re-visit of the annoying bugs.

The best tenant reasons for not paying the rent on time......

I thought I would share these entertaining reasons why a tenant can't pay their rent on time as I figure that if a landlord hasn't received their rent by the 12th of the month they can probably use a good laugh.....I hope you enjoy.

"I can't pay my rent because my BMW is in the shop, and I can't afford to pay for both."

"I can't pay the rent because my daughter ate my husband's paycheck."

"I deposited my paycheck in the bank teller machine and it got caught in the rollers.  It took six days to tear apart the machine."

"I had my choice of paying the rent or buying a car. I bought a car.  I thought you would understand." 

"I am sure I paid -- YOU must have lost it."

"It's your fault.  You deposited my check too late.  My automatic withdrawals went through the bank before the rent check."

 

"I am straight broke."

 

"I can't pay my rent because my income tax return was supposed to come in a week ago, so I spent all of the money from my paycheck, and now my tax return check has been delayed until 2 weeks from now."

Lastly if I had $1 for every time a tenant told me they couldn't pay because they were in the hospital I would be a VERY, VERY rich woman!

Understanding the advertising options for your rental

The Right Property Management Choice

Often times people who contact me regarding management services are very confused about the pricing structures and advertising that is available through management companies for their rentals so I will use this post to explain the different options that are available.  If you want your rental home rented quickly to qualified tenants than your choice should also be the company who offers the most advertising mediums and not the company with the lowest tenant placement fee because after all you do get what you pay for!  If when shopping management companies, your prospective company does not charge any upfront costs for tenant placement but instead takes all fees from the first month rent than mostly likely their only advertising medium will be the Multiple Lisiting Services ("MLS").  MLS can be a great avenue for very high end rentals in which a great number of tenants will higher a Realtor to represent them on the leasing process.  However, if you rental is more along the lines of a "typical" three or four bedroom property than you will be losing out on all of the tenants who search and find rentals on their own.  Even more confusing are then the options to reach the tenants who search on their own such options include free rental sites such as craigs list and paid rental sites.  If the management company you are interviewing does have  an upfront marketing cost, most likely they will utilize paid rental sites as some of your upfront cost will go to those costs.  Keep in mind that normally the paid advertising sites rank higher in Search Engine Optimization meaning there is a nood chance that your rental will be on a higher link during searches.  Additionally, these sites tend to draw more qualified applicants who are more diligent with their searches as opposed to applicants who only search on craigslist (the home of the most rental property scams in the US).  Additionally, these management companies may also post to free sites meaning that your rental will have the greatest exposure. But what if these companies don't utilize any of the first months' rent for tenant placement???  That means they don't offer MLS so now you are missing out on the Realtor market.  But what if they use up the first months' rent and some for tenant placement???  Now you may be paying them upfront for advertising AND paying them a leasing commission once the tenant is placed which really is double dipping.  Your ultimate choice for phoenix property managmement services is a company such as Real Property Management (RPM) West Valley in which you have all the choices - including online paid advertising, free online advertising such as craigs list AND MLS listing in which there is no additional fee or commission paid to RPM West Valley if a tenant is placed through an MLS Realtor.  Although it may seem expensive in the long run if all of the advertising mediums help to place a tenant thirty days faster than without you will be ahead in the long run.  Call today about services.  623-748-7800 x105