CC&R's and Tenants

As the Arizona weather heats up the landscaping drys out and HOA violations occur! Be prepared, be sure that your tenant is well advised of the HOA restrictions. But let's be honest we all know the tenant is not going to read the 90 page CC&R booklet. As a Phoenix Property Manager we have found that if you advise the tenant of the common sense violations such as weeds, over night parking and visible trash cans on a non-service day that is a long way towards prevention. The next step is to be sure the tenant is advised of any violations or warnings as they occur. The tenant should be immediately notified in writing and advised that a violation has occurred even if it is just a warning. If repeat violations are received a firmly worded letter should accompany the violation so that the tenant knows this is unacceptable. If your lease permits charge the tenants for any fines that may occur. It is a good idea to stay on top of both the HOA dues and any fines that occur to avoid any added late fees.

So again, be proactive advise your tenants of the common HOA violations such as trash cans visible on a non-service day, weeds, over-night parking in the street and stay in communication with both the tenant and HOA when an violations occur. 

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Landlords BEWARE!!!!

For the most part I never look at or read ANY online reviews....for RPM West Valley Phoenix or any other business for that matter because typically the happy customers are the ones that are too busy to be bothered by writing a review AND because a lot of companies (KYKO Roofing to name one) offers to discount customer's invoices after work has been completed if they are willing to write a good review about them either on google or the Better Business Bureau.  But the other day while doing market research for our current clients I came across the following RPM West Valley Phoenix review from our tenant A. Hall:

"RUN! These people are horrible and will nickle and dime you poor! Most unprofessional property management company I've ever had the displeasure of dealing with. They do not value or respect anyone as a renter,or as a human being. I would rather eat broken glass then have to put up with there rude,unprofessional ways any longer. You people should be ashamed of yourselves. Nothing but lies,fines,penalty's ,Hidden charges. Do your self a favor and save the headaches. DON'T TRUST THIS COMPANY!"

So I am writing this blog so that all landlords can beware of this tenant and many like them.  A. Hall wrote this blog while sitting in his rental property of which he hadn't paid rent and was in the middle of being evicted. Apparently A. Hall didn't have the money to pay his rent to the property owner BUT he did have the money to keep his phone and internet going and instead of being out looking for a job he was spending his time writing non-factual reviews about a property manager who did their job by enforcing the lease agreement and swiftly moving for eviction when it became apparent that the tenant wouldn't be paying rent.....but I forgot these types of tenants think they should get to live for free as long as possible with the property owner covering the cost.  Also, I should mention that Aaron was a tenant with us for 18 months prior to be evicted but funny no online reviews from him until the day he is in court to be evicted!

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Summer Property Damage Prevention

In the summer, there are three frequent repairs that we see at the properties we manage in Arizona.  These repairs can be costly but the good news is that they are all avoidable. The first problem we see occurs with the A/C system drain line.

The A/C system's drain line is usually located between the ceiling and the roof.  The evaporator coil within the system's air handler produces condensate.  The moisture produced from the evaporator coil is set up to be drained through a primary drain pan line. A problem occurs when this pan clogs as moisture from the system mixes with the dirt in the air and the system.

When the primary pan clogs, most systems are set up with a secondary pan to handle the overflow.  However, the secondary pan can also get clogged and when this happens there is no place for the condensate to go except out of the pan and into the ceiling.  We have also seen systems set up poorly so that the secondary pan does not work or the pan is not level which leads to frequent clogs.

Once the system starts to overflow, damage to the ceiling area can occur quickly.  This leads to costly drywall repairs especially if the leak isn't noticed early by the tenant.

This problem is avoidable at your Arizona rental units.  Frequent changing of the air filters helps but can you really depend on your tenant to change the filters with the frequency they need to?

The best thing to do is have the drainage system professionally cleaned out.  At the time this is done, you can put in a condensate safety switch into your drainage system.  This device is installed at the secondary pan and is a float.  When the water level gets to a certain point in the pan, it shuts the system off.

The solution is inexpensive and if and when the safety switch shuts the system off, the drains can be cleaned out.

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Busy and on the go! We can help with 24/7 access to your account!

“According to the National Association of Realtors, 89 percent of home shoppers use a mobile device during their search.” With statistics like these, it has become imperative to rethink your marketing strategies to accommodate all mobile consumers. As a, Phoenix Property Manger, we have done just that! Our rentals can be searched using both online searches as well as on any mobile device so that your rental is just a click away! Be sure, when you are searching for a property manager you ask about their system so you are sure you can always be connected as well as your tenant! Our state of the art system allows both owners and tenants’ immediate online access to their account 24 hours a day! Both owners and tenants have access to their detailed information. In this busy technology driven society we know it is imperative to keep your clients’ up to date and allow for easy access! Our Property Management software allows not only offers 24/7 communication it also offers mobile versions so you can stay update to date at all times from anywhere!

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Thinking about Selling Your Phoenix Rental Property??? Think Again!

There seems to be a misnomer about the Phoenix housing market right now.  Yes some houses are selling however monthly sales in June 2014 were down over 12% from the same time period one year ago and down 3% from May 2014.  Additionally, total inventory is up approximately 42% from last year leading to an average days on market of over 80 AND there is currently almost 4 months worth of inventory.  


In contrast the average rental amount increased from May 2014 to June 2014 from $1282 to $1413 and the days on market fell from 35 to 27.  In conclusion, make sure you look at all of the numbers before you decide to list your Phoenix rental property and disturb your tenants.

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Do you have the right Property insurance?

Are you turning your existing home into a residential rental? You have gone down the checklist, completed the repairs needed to get the property rent ready, placed your add and are working on placing a tenant. Chances are you forgot to update your homeowner’s policy which may no longer provide the needed coverage now that your property is a rental. If you fail to update your insurance company that the property is a rental they can sometimes deny coverage if a loss occurs. Updating your policy to Rental insurance provides liability and structural coverage for the home and its occupants. This policy does however, not cover tenants’ personal property in the event damage occurs via fire, water, etc. so tenants should purchase renters insurance to cover their personal belongings.

Be sure your Rental policy covers any vacancy periods. Recently, our clients had a property listed for sale and then opted to list for rent. When an agent visited the home to take updated marketing photos they discovered that the toilet had started to leak unfortunately causing significant damage. Fortunately the owner was able to quickly make the repairs needed to get the property back on the market since his policy did include a vacancy clause. Be sure to find an insurance company that provides the coverage which best meets your needs.

One additional item to consider with picking your policy is replacement cost vs. actual cash value. If you choose “actual cash value” to save money on the policy and you suffer a significant loss due to a flood a policy that dictates the damage would only be repaired based on the “actual cash value” at the time of damage. This means the insurance company could depreciate the value of the damaged items; for example, seven- year-old carpet has a zero dollar value leaving you to pick up the cost of the new flooring. If the total cost to repair your home is $29,000 the insurance company may only pay $15,000 of the “actual cash valve” leaving you the remaining balance of the $14,000 to get the property repaired. When reviewing insurance costs, consider replacement cost coverage—Actual cash value may have save you a few bucks up front, but is it worth it?

As a final reminder, be sure to find an insurance company and policy that provides the coverage which best meets all of your needs.
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The Heat is On - What Should You Expect to Pay for A/C Repairs at Your Phoenix Arizona Rental Property

If you own a property in Arizona, you probably know that it gets hot here and that an A/C repair could be a high maintenance cost and affect your bottom line.  Over the last several years, we have seen tons of common problems with A/C units at the properties we manage.  Below are brief descriptions of 5 common issues and their estimated cost to repair.

1. A/C Run Capacitor has failed - There are three main capacitors on most systems. The motor run capacitor, outside fan motor capacitor and indoor blower motor run capacitor. Capacitor failure is by far the most common A/C repair issue and can be repaired for around $200.00 (final price depends on the part quality).

2. Outdoor Fan/Blower Motor Failure - These two failures are the second most common issues. The blower motor is the motor that blows the air for the indoors.  The outdoor fan motor is commonly referred to as the condenser fan and this fan cools the outdoor coil so the refrigerant in the coil can go from a gas to a liquid.  Each of these repairs can be made for anywhere between $350 - $1500.

3. Leaks - There are unfortunately several places where a leak can occur.  Most frequently the leaks occur in the pipes or coils.  Leak detection is tricky and time consuming.  Sometimes, a stop leak product can be added and the unit can be charged and then work successfully.  This type of repair can cost between $300 - $500. Sometimes, however the indoor coil needs to be replaced which can run anywhere from $1000 - $1500 + depending on how much Freon needs to be removed and then added.

4. Compressor failure - This is a costly repair and can run between $1200 - $2000.  Additionally, with this repair it may be best to replace the outdoor condenser if it is compatible with the indoor unit.

5. Full system replacement - this is usually needed when the system is ravaged from theft or if there is a needed repair that is costly and the unit is old.  Full A/C system replacement includes the outside condenser, indoor handler, all parts, refrigerant and installation and ranges from $4000 and up.

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