Have Your Tenants Abandoned You?

Do you think your Phoenix tenants have packed up and departed in the middle of the night, leaving you with unpaid bills, damages to your property, and piles of trash? 

Perhaps you have noticed the“clues” they are preparing to leave before the end of the lease. For example, maybe they are behind in rent and unresponsive to requests for payment. 

Unpaid rents, unanswered calls and letters, heaps of trash in the trashcans, and empty parking spots indicate that your tenants may have disappeared. Before you can legally enter the property based on abandonment, you must first confirm that the tenants have abandoned. Perhaps the tenants temporarily left to deal with family problems, and they intend to return. As the landlord, there are serious legal details you must pay attention to and cope with.
 
First, use the tenants’ contact information from the lease to reach out to them. Call, email, and text message them. If there is still no response, call the emergency contact listed on their application - perhaps they can get a message to the tenant or let you know if maybe there is a family emergency.

Next, send a certified letter to your tenants with “forward address requested" - this way you might be able to obtain a forwarding address for them. (Ask your local postmaster for complete instructions.) 

Next property serve and post an abandonment notice.  Once you have complied with all of the legal requirements of the abandonment notice and you are ready to enter the home, be sure to knock loudly, announce who you are, and state that you are inspecting the property. Continue announcing who you are and why you are there as you move from room to room.

Take a camera with you to photograph any damages and document signs that the home has been abandoned. Verify if the power and other utilities are still on. Is there fresh food in the refrigerator or on kitchen shelves? If furnishings and personal items are missing, it’s a sure sign that your tenants have left.

Once you are sure that the property is abandoned, proceed with changing the locks so that you can take back possession of the property. Then move any of the tenants’ possessions to secure storage, and professionally clean the premises at the tenants’ expense. Now begins the long, and often expensive, process of recouping your losses from the tenants and finding new and hopefully better-qualified tenants to lease your property.

For your property to generate the greatest return on investment, it must have responsible tenants who pay their rent according to their lease and treat your property with respect. 

RPMWV Phoenix is the Phoenix leading property management business; we know how to determine quickly if Phoenix rental properties are abandoned and have the experience to evict deadbeat tenants.

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The Do's & Don'ts of Tenant Screening

Tenant Screening of course is the most important aspect to being a Phoenix landlord. Right now the Phoenix rental market is pretty tight meaning that correctly priced Phoenix rental properties that show well will get a lot of interest from potential tenants.  This also means that as a landlord there is really no reason to settle for a less than desirable or higher risk tenant (unless your property looks crappy or is really overpriced in which case you have no choice in tenants).  

Here are 5 must Do's for tenant screening:

1. Do insist on a full two years of residential history from your applicant with full landlord information & insist on two full years of employment information.
2. Do try to select an applicant who has residential payment history through a property management company so if can truly be verified.
3. Do verify private landlord information through the Maricopa county assessor's office if you decide to work with applicants who have been renting through a private individual. You'll be surprised at how often the names don't match up.
4. Do carefully review collections and charge offs on credit and look up the name of the creditor online as you will be surprised at how many of them are actually apartment collections.
5. Do a check on the Maricopa county civil court records to look for previous or current evictions of the applicants.


Here are 5 must Don'ts for tenant screening:

1. Don't ever just take an applicant's word for anything as it most likely is not accurate.
2. Don't ever move forward with an applicant who can't show you in person their's driver's license or passport as there is a good chance there is some kind of fraud involved.
3. Don't ever rent to someone who has been evicted even if it was a while ago - I know you want to believe that it won't happen again but it will.
4. Don't rent to co-signers. If the occupant isn't responsible for the rent they also want be responsible for keeping the property up which means lots of damages for you the Landlord.
5. Don't ever judge an applicant based on what they look or "seem" like instead let their actual information such as credit, previous housing history, employment history, income & criminal background speak for itself.

For more helpful tips check out our tenant screening podcast at our owner learning center  http://www.rpmwestvalleyphoenix.com/property-learning-center.html.

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Tolleson Arizona Rental Market Data 2013-2015

This week, we are going to take a look at the City of Tolleson Arizona Rental market and the numerous listings within this large area.

We will focus on Estrella Park, Tolleson, Arizona as the secondary market layer of this evaluation.  Estrella Park is conveniently located near the I-10 freeway and 107th Avenue. This section of the I-10 freeway closely connects with the Loop 101 freeway making this subdivision a geographically desirable location.

All of our Tolleson Arizona rental market figures are taken from closed rental data from the Arizona MLS from 2013-2015.

We will focus on the rental homes that rented between January and December and break down the resulting rental data by year.The property data we will look at in this objective Tolleson rental market review and Estrella Park rental market price overview focuses on closed, unfurnished rental properties.

We will be referring to the chart below which breaks out the rental numbers for both the Tolleson rental market and more specifically Estrella Park.

In this data as opposed to our review of Glendale Arizona and Arrowhead Ranch Glendale Arizona last week, the number of available Tolleson rental properties declined steadily from 2013-2015 in both Estrella and in Tolleson,  Also, the average days on market last year were less in Tolleson than Glendale the review we did last week.

In looking specifically at the data in Tolleson as compared to just Estrella Park, the average rent in Tolleson overall has increased each year whereas the rent in Estrella Park actually declined slightly in 2014 only to rebound nicely in 2015.  Additionally, the average days on market for Estrella Park where higher than the average for all of Tolleson except for last year.  

If you would like the sub division of your Phoenix rental property compared against the main numbers of that city please contact us at info@rpmwvphx.com or 623-748-7800 and one of our analysts would be happy to work with you.

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Glendale, AZ & Arrowhead Ranch Rental Data 2013-2015

This week, we are going to take a look at the City of Glendale Rental market and the numerous listings within this large area.

We will focus on the subdivision of Arrowhead Ranch in Glendale as the secondary layer to this rental market evaluation.

The Arrowhead Ranch subdivision is located North of Union Hills & South of Deer Valley as well as West of 59th Ave & east of 79th Ave.  

All of our Glendale rental market figures are taken from closed rental data from the Arizona MLS from 2013-2015.

We will focus on the rental homes that rented between January and December and break down the resulting rental data by year.The property data we will look at in this objective Glendale rental market review and Arrowhead Ranch rental market price overview focuses on closed, unfurnished rental properties.

The rental market numbers in Glendale & Arrowhead Ranch are interesting. Attached is our summary chart.

The most interesting thing to observe is how the Glendale rental market has steadily fallen over the years while the Arrowhead Ranch market spiked in 2014 only to fall in 2015. Additionally, the Glendale market is still larger than both the Peoria & Surprise rental market as we reviewed last month.

The average rental home price gain for the above time period in Glendale, AZ was 8.3%. For the houses in Arrowhead Ranch, the three year rental price is greater at 8.8%.

Overall Arrowhead Ranch is a great area in which to own rental property due in part to its' very close proximate to major freeways such as the 101.  Additionally the area features lush landscaping and man made lakes and reviews which is a nice change from the more traditional desert landscaping.

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How Can Rental Property Income Supplement Retirement Income?

While there are many benefits to owning rental property, RPM WV Phoenix answers the big question, “How can Phoenix rental property income supplement retirement income?”

Many retirees have found that owning rental property can be an effective way of supplementing their retirement income.

First, let’s talk about the benefits of owning rental property:

Monthly Income

Rental property income provides a steady and somewhat predictable source of monthly income.

Tax Benefits

Owning rental property allows you to take advantage of various tax benefits, such as the ability to deduct most operating and maintenance expenses, including mortgage interest expense. You can also depreciate the structure (not the land). If you later sell the property, you’ll have to recover that depreciation. However, if you own the property until you die, your heirs can take advantage of a step-up in basis of the property, so that depreciation goes away.

Appreciation

Your property will likely appreciate over time, depending on how long you own it. However, you shouldn’t count on that. The deal should make economic sense on its own – without considering appreciation. Appreciation is just the icing on the cake.

Inflation Protection

A fixed-rate mortgage can serve as an inflation hedge. As rents and maintenance expenses rise over time, your mortgage will not.

Flexibility

Allows you to choose how much time you spend managing your property. You can either do it yourself or, if you feel your time is better spent in other activities, hire a professional property manager.

The following are some important considerations one should make before jumping into investment property ownership:

Planning is Key

First and foremost, plan ahead! The best time to begin investing in real estate is NOT when you’re in or near retirement. If you plan to mortgage your investment property, do so before you retire. Many lenders require applicants to have two years of steady employment in the same or similar occupation in order to qualify for a loan.

Managing the Property

Who’s going to manage your property? Owning rental property may appear easy. After all, how difficult can it be to collect a rent check every month? But owning rental property can be much more time-consuming than it would appear at first blush. There is much to be done – finding and qualifying renters, signing the lease, maintaining the property, responding to problems, periodically inspecting the property, following up on delinquent rent, handling evictions, etc. And there are laws and regulations that property owners must comply with. You can either do it yourself or hire a professional property manager to handle everything for you. If you choose to hire a property manager, deal only with a reputable company with a proven track record.

Tenant Screening

Whether you screen prospective tenants yourself or rely on your property manager do that, be sure the process is thorough. Remember, you’re entrusting your retirement asset to the tenant.

Be Smart

Keeping your rental property leased can sometimes be challenging, particularly if the location or conditions are not ideal. Some experts suggest investors in income-producing property should keep at least six months’ worth of reserves on hand in the event the property remains vacant.

Be Prepared

Remember to set aside money for repairs and maintenance. You have an obligation to maintain your rental property in habitable condition, so you won’t have the luxury of delaying necessary repairs and maintenance until you can save the money.

Owning rental property isn’t for everyone, but it can definitely work for your retirement if you plan and are prepared.

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Benefits of Using RPM West Valley To Manage Your Property (Part 1)

Over the next three weeks, we will highlight four of the benefits you will receive by having RPM West Valley manage your home. For a complete list of all of the benefits you can watch the video below:

Benefit #1 - Twelve Month Tenant Guarantee

Since we are very confident in our tenant screening process and track record, if a tenant we place vacates during the initial 12 month lease than there is no charge (marketing, advertising, screening, leasing commission etc) for us to place a new tenant.

Benefit #2 - Diamond Rated Asset Protection Services

We perform bi-annual inspections with pictures to ensure your property is being kept in great shape. If there are tenant caused issues, we will follow up with tenants and perform another inspection with pictures to make sure that all items are fixed.

Benefit #3 - Collection of Rent

Our automated process ensures that you receive your rent on time. Our structured and resolute approach for late paying tenants takes away the burden having to collect on your own.

Benefit #4 - In House License, Bonded and Insured Maintenance Technicians

Our in house maintenance technicians perform quality work for needed repairs at your property. They also have the experience and knowledge to recognize and report when a needed repair is tenant caused. Over the years, we have saved our owners thousands of dollars by being able to recognize what issues are tenant caused. We also have the strength to push back to the tenant when a needed repair is a result of a negligent tenant action.

The Move in Inspection - Why It is A Key Element In Property Management

The implementation of a move in inspection when the tenant first takes possession of the property is an item that many landlords overlook. However, this is an important part of an effective tenant management system.

We conduct thorough and standard move in inspections at our managed rentals throughout each tenants rent cycle. 

A move in inspection helps us a great deal in the overall management process of the property. 

Here are a few reasons the move in inspection is valuable for you as an owner:

1) It gives you an exact idea of the property condition so you can anticipate repairs.

2) It shows the tenants that they will be held accountable for the properties condition during their tenancy.

3) It starts a formal process to the landlord/tenant relationship. This is important to keep data and events organized and standardized for both parties.

4) The move in document serves as a reliable record in the case of a deposit dispute.

There are many ways to handle the move in property inspection. Here is a video that details the important steps





For more help regarding how to conduct the move in inspection, you can read our Move in Inspection  tips blog post.