The Importance of the Legal Class of your property!

What you don’t know CAN hurt you!  There are many laws and requirements associated with renting a property.  Each state, county, and even city is unique.  And unfortunately, saying “well, I didn’t know” does not exempt you from the sometimes harsh consequences.  For example, if you have a residential rental in Maricopa County, you are required to register it with the Maricopa County Assessor’s office.  Here is their website: http://www.maricopa.gov/assessor/residential_property_form.aspx 
It’s easy and the fee is just $10.  The form can be filled out and payment made online, or you can print the form and mail it in with a check.  If you fail to register your residential rental property with the Maricopa County Assessor’s office, “the city or town may impose a civil penalty in the amount of $150 per day for each day of violation” (http://www.maricopa.gov/assessor/pdf/residentialrentalform2.pdf). In addition to hefty fines, the tenant at your property can legally terminate the lease at any time if your property is not listed as a residential rental property!  In addition to breaking the lease with just 10 day’s notice to you, you would be required to return all pre-paid rent to the tenant.
With so many rules and regulations surrounding property rentals, it’s nice to know that there is a professional Phoenix Property Manager can help you navigate your way through these tricky situations.

 

Should I Manage My Own Property?

Most rental housing investors consider self-managing their properties at some point. For some investors, self-management works, but for many, the hassle and time commitment isn't worth it. If you are considering managing your own property, take some tips from the phoenix property management leader. Here’s what you need to know. 

Make time. Arizona Property management is much more than collecting a rent check each month. And remember, if you only spend time on the properties when they demand your attention, you are likely missing opportunities to save time and money. Allow for time to proactively attend to the property and prevent future problems. Recognize that property management is at least a part-time job, and you are on call 24/7. Schedule accordingly.

Prepare for everything. Property management can be a rough industry, and even with your best efforts to place good tenants, you are in for some surprises. Accidental and intentional damage, drug and crime activity, fire and natural disasters, family crises, tenant excuses, collections, and evictions—the seasoned property manager knows all of these are part of owning rental property and isn't ruffled. Accurate expectations and a professional attitude help, but are just the beginning. Learning how to handle each of these events comes with time.

Study up. Successful property management is a combination of several different disciplines, including marketing, leasing, maintenance, collections, evictions, accounting, inspections, and legal compliance. Professional property management companies have spent several decades and millions of dollars developing best practices in each of these areas. If you choose to manage your own rental property, dedicate time to study and make a plan for each of these aspects of property management.

Get connected. In addition to being your own “jack-of-all-trades,” you will likely find yourself in need of a small army of partners as you work to prepare, clean, maintain, repair, landscape, and buy parts and equipment for the rental unit. It can be difficult to get volume discounts if you don’t manage a large number of properties, so do your best to hunt for deals and participate in loyalty programs that can help you make your dollar go a little further and avoid paying full price.

Reconsider. If you really don’t enjoy the extensive demands on your time and energy that property management requires, you likely are trying to save money by doing it yourself but you should definitely calculate how much each of your hour is worth versus how much property management services are per day.  You may be surprised to learn that many property management services are less than a cup of coffee a day!

5 Reasons to Outsource Arizona Rental Property Maintenance Hassles

As an Arizona rental property owner, have you experienced the following situations?

1. You have just been served a fine meal at the restaurant you have been looking forward to going to for days. This is when your tenant starts to blow up your phone with rapid fire calls. You finally give in and go outside to see what kind of an emergency they are having. They let you know that “direly urgent situation” is a just a toilet running. They inform you that this is entirely unacceptable and it they want it fixed in the next hour.

With a Phoenix Property Manager, this situation simply will never happen to you. The tenant will be able to vent through the maintenance manager. The problem will be reviewed and classified as far as importance and solved without any effort or involvement from you. 

2. You have a tenant that requests work done every time they note the slightest trivial problem. You either fix it simply to shut them up or partake in a two day argument on why you won’t fix it since it is so minor. This wastes your time as well as your pulse.

With a Property Manager, we know exactly what items are the owner's responsibility to fix and what items are simply trivial pursuits of the tenants.  The lease is structured so that minor imperfections of no significant importance need not be addressed and other more vital maintenance items are emphasized.

3. You have good tenants who have a legitimate maintenance issue that requires attention. However, you don’t know what vendor to use and the ones you try off the internet won't return your call. The longer it takes for you to respond to the repair, the more frustrated your tenant becomes.

With a Property Manager we have built long term relationships with various skilled professionals across the key repair categories needed to address tenant maintenance issues. We have been doing this for several years so you will be comfortable knowing that every person that touches a repair job at your Arizona rental property is qualified. We also warranty our work for a reasonable period of time and will be able to discuss items if an owner should ever have a concern.

4. You don’t know what you should fix and what you should left "as is"

Knowing what needs to be fixed and how it should be done could be tricky. Property Managers have made several thousands of rental property repairs in Arizona. We have seen just about everything that could happen to your Arizona rental property. We know how maintenance repairs relate to AZ tenant landlord law. We know how to fix problems efficiently and what is best for the owner.

5.  Unless you are a General Contractor, your knowledge of potential repair problems is limited.

With a Property Manager we watch out for minor repairs needed which if unattended can lead to larger issues. We have specific knowledge about common Arizona maintenance issues such as A/C issues and plumbing problems from hard water.

TO BE PET FRIENDLY OR NOT????

If you’re not allowing pets, you’re turning away a large subset of renters. As a Phoenix Property Manager, we know the thought of allowing pets in your home can be scary but in a recent survey by Apartments.com, it was found that 75% of renters said they owned at least one or more pet. That’s up a staggering 32% since last year. Most of those pet owners are found to have cats and dogs with only 6% having fish or other types of pets. Pet owners understand they are required to put down a pet deposit, the most common deposit is about a $200 / $250 in addition to the security deposit. What’s more interesting is that of the 25% of non-pet owning renters 58% of them still looking for pet-friendly units.

The Trend Is Clear, more renters own pets and even those without pets look for pet friendly units to have the option of owning a pet in the future. In addition to pricing and condition, it is clear that having pet-friendly unit could put your property at a competitive advantage over those that are not pet friendly.

Preparing your Phoenix Rental Property in 15 Easy Ways

Given the number of available rental properties in Phoenix, it is important that the property look its' best for each potential tenant showing.  As a Phoenix property manager, here is a list of items you should keep in mind as you prep.

• Landscaping: Front & back yards should be landscaped and well-maintained while property is vacant. Grass should be mowed and sprinkler timers should be set. The property should be free of weeds. All trees and bushes should be trimmed. Keep in mind that the  property owner is responsible for replacement of landscaping damaged by natural occurrences, like the weather. 
• The property should be completely free of all furniture, junk, debris, etc.
• Patios and porches should be swept and free of garbage.
• Pools: Appropriate city codes must be met for pool security and the owner is responsible to meet that requirement. Regular cleaning and chemical service must be scheduled while the property is vacant. During vacancy, power should be on at the property so the pool equipment is operational. 
• Garbage Receptacles: Should be empty and inside the fence or garage. 
• Interior should be clean and odor free.  While on the market be sure to remove any bugs and/or dust that accumulates in between showings.
• All door & window locks must function properly. Any window screens with holes or not fitting correctly should be removed and discarded. All doors should be present and operational. Window coverings (basic blinds are fine) for windows facing the street and in the bedroom are strongly recommended because if not provided it will be an extra expense to the tenant at move in.
• Carpets should be professionally cleaned. 
• Air filters and furnace filters should be new or clean and free of dust and lint so they operate properly. Air conditioning and heating must be operational. Electrical outlets, lighting, and fans should work properly. All outlet covers and switch covers should be installed.
• Appliances: Must be fully operational and clean on both the outside and inside of the appliance. 
• All plumbing must be in good working order.
• The property must be free of mold issues.
• Walls, ceilings, and baseboards must appear nice and clean. Neutral colors are recommended. Walls should be free of pictures, decorations etc.
• One remote should be provided for properties with an automatic garage door. 
• Smoke alarms should be in working condition.

Phoenix Home Owner Association Management Rules

Having grass in the front yard of a phoenix rental property requires more maintenance than just mowing.  Around the end of September you need to start preparing to over-seed your grass with winter rye which should be completed by mid-October. Then to ensure the full re growth of Spring Bermuda grass, you should accelerate the death of Ryegrass by letting it dry out in early May.  Typically, two weeks without water is sufficient to kill the Reygrass.  After it has turned brown, resume watering to encourage the Bermuda to come out of dormancy.  Unless you have a tenant who has a green thumb, it is recommended that the property owner include front yard landscaping services to avoid HOA violations or fines.  Alternatively, you can look at removing front yard grass and installing rock (only after approval from your HOA) which has a large upfront cost if done correctly but very little ongoing maintenance cost.

What Experts are Saying About September Phoenix Rental Property Statistics

Rent check is ARMLS's monthly publication showcasing the Valley's residential single family leasing market. It only accounts for phoenix rental properties that are advertised for lease through the Multiple Listing System (MLS) and does not include rental homes advertised through all other sources including phoenix property managers.  According to this data, the median lease amount for September 2013, was $1,100.00 while the average lease amount was $1,386.00 and the average days on the market was 41.  Typically, October and the beginning of November are strong leasing months however January can be slow as many tenants don't have the funds after the holidays to for moving expenses and security deposits.