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Phoenix Property Management

What to Expect in the Arizona Housing Market

As an investor or homeowner, it is imperative to know what to expect from the Arizona housing market for the rest of 2021 to best prepare and increase your return on investment.

There has been a lot of changes to life in the last year. The pandemic affected a lot of jobs and incomes. It affected where and how we worked. It also affected our schools, hospitals, and local dining and shopping places. COVID changed us.

And it has greatly changed the Arizona housing market.

The question is – what should expect for the rest of 2021? With eviction bans, increases in home sales, and a slow in new home builds, what does this mean for landlords and investors?

Let’s take a look at the Arizona housing market from a few different angles.

The Impact of Pre-Foreclosures

As we said, many people have lost their jobs or have suffered financially over the last year. This has sent a surge of homes into pre-foreclosure status. This is the time period that begins with the mortgager sends out a default notice. Payments have been missed, a foreclosure appears to be on the horizon, but no legal paperwork has been filed yet – and no writ has been issued.

No homeowner wants to lose their home to foreclosure, but sometimes the best option is to sell.

So, what does this mean for investors? Typically, pre-foreclosure homes are sold below the market value. They want to get out from under the house so they drop the price. Investors who swoop in and buy up these houses often end up with a decent property that has the potential to be turned into something great. A little renovation and may have just scored something incredible.

Though, investing in pre-foreclosures does not come without risk. There could be hefty repair issues within the property that you may or may not know about until after the closing. Plus, with the law allowing sellers the right to rescind, there is always that chance a transaction will be canceled no matter how good it looks.

Regardless, more and more investors seem to be taking the leap and jumping on these cheap properties.

Home Sales are on the Rise

Home sales are on the rise and the competition for them is on fire. Many are saying it is thanks to millennials who took advantage of super-low mortgage rates during the pandemic. And it is existing homes they were after.

Many industries slowed down during the pandemic – including the construction of new homes. This has pushed the influx of buyers to focus on the available inventory: existing homes. With new homeowners and investors seeking the same thing, there has been a lot of fighting to be the one in the buyer’s seat.

All this demand is bringing a slight increase in sale prices, but it is not likely to lead to any serious market crashes down the road. Not to mention that as more construction starts building back up again, the supply with be greater.

Mortgages are Hard to Come By

Unless you’ve got a great credit score and a chunk of money for a down payment (at least 20%), you may not find it easy to get a mortgage. Lenders are dealing with a lot of open mortgages and even more missed payments. And with all the uncertainty that comes with the economy right now, they don’t know when payments are going to start coming in – if at all. As a result, incredibly strict lending standards have been put into place.

The good news is that thanks to these stricter lending guidelines, there are less likely to be any issues with the Arizona housing market in the future like we saw 15 or so years ago.

What do you do if you are an investor? Well, if you are an investor, you may want to consider other types of funding in order to purchase your properties.

The Arizona Housing Market is Doing Better Than You Think

The rental market took a hard hit over the last year with many landlords scrambling to make mortgage payments on their rental properties – especially with many renters unable to afford rent. Thanks to government assistance, those who owed back rent were able to get caught or reduce the money owed, at least.

The current situation has turned many potential investors away from rental properties and it has brought great concern among those who are already there. But what is to come? Will the rental market stay stagnant, or will there be a blossoming in the near future?

Most of those who spend their time analyzing the market feel that rents will recover, especially as life returns to normal thanks to herd immunity. Something to keep an eye on are those properties in more rural areas. With more and more people working from home, convenient commutes are no longer a top priority.

The important thing to remember is that not everyone is going to purchase a home. There will always be renters. Now more than ever, though, you will want to make sure you have a well-established tenant screening reporting process. While it may not do much to counteract unforeseen issues like the global pandemic, we have learned a lot about what could go wrong – and what to look for.

Property managers have been working hard throughout this last year learning ways to keep rental vacancy rates low and rent payments coming in despite everything. If you do end up investing in a new rental property, you may want to let the professionals handle it.

At Real Property Management Evolve, we have a deep understanding of the local Arizona housing market. We recognize that rental rates don’t seem to be improving just yet, but they will.

Final Thought

The pandemic is slowly lifting and everything is starting to show signs of life again. The Arizona housing market has changed quite a bit since this time last year – in ways we never could have imagined. But as our economy begins to really open up and improve, home sales continue to be up, rental rates stagnant – change is sure to come that will even everything back out soon enough.

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Phoenix Property Management

What Landlords Should Know About Arizona Eviction Laws

Evictions can sometimes be the elephant in the room that no one wants to talk about. However, having to go through an eviction is something many home owners face when they decide to venture into the business of rentals. Evicting a tenant can be a tedious process made even more difficult with Arizona eviction laws. Here’s what landlords should know about the process. 

Regardless of tenant screening processes, no one has a crystal ball to determine what situations may arise that put you in the unlucky position of facing an eviction. Perhaps the tenant has faced an unexpected loss of a job and now can’t afford the rent. Maybe they are facing a medical emergency causing unexpected financial burden. And, in the time of COVID, maybe they just don’t want to pay rent and have fallen for the propaganda that you can’t evict them. Regardless of the reason, you as the landlord are facing the difficult decision of what to do and how to proceed.

So, what do you do? Do you just give them extension after extension or allow them to reside for free?  Regardless of the size of your portfolio, you have the expectation when renting your investment property in Phoenix that you will receive the rent. While evictions are not fun there comes a point regardless of the situation behind them that they are necessary.

If you find yourself in this situation, we have put together the following information to help you navigate the process.

 

Arizona Eviction Process

First, a landlord cannot simply evict a tenant because they feel like it. In other words, that disagreement you had last week about politics that you are still upset about doesn’t give you the right to evict your tenant. You have to have a legal cause to do so. Below are the steps of a common Arizona eviction process.

– Step One: Post a Notice

Depending on your cause, you will have to give legal notice. Here are a few examples:

Legal Notice to Pay or Quit.

This notice is used when your tenant hasn’t paid rent and you would like to terminate the lease agreement. The notice gives the tenant 5 days if hand delivered to pay any owed monies or else the eviction process can be started with the court.

Legal Notice to Cure.

This is the notice you would use if your tenant is not maintaining the property in a way that could pose a threat – be it health or safety – to the tenant or others. If the tenant fails to cure then the eviction process can be started.

Ten Day Notice to Comply.

If you discover that the tenant has violated the lease agreement, such as moving in additional tenants, having pets that aren’t allowed, smoking in the unit, causing damage to the property, or providing false information on their application, etc. then this is the form you would use. If the issue isn’t fixed within that time frame, you can start the eviction process with the court. Be aware that it can be very difficult to evict a tenant under this legal notice as the burden of proof would reside with the landlord to prove the tenants violation.

Unconditional Quit Notice.

If your lease has a crime free addendum and the tenant has performed illegal acts on the property (for example; prostitution, homicide, gang activity, illegal drug use/sale, etc.) then you could use this notice to proceed with an immediate eviction through the courts. Unlike the previous notices mentioned this notice does not allow the tenant to cure or correct prior to court.

– Step Two: File Complaint with the Court

Filing the complaint with the court for one of the reasons above will issue a summons that is to be served on the tenant by a certified process server.

At this time, a hearing will also be set for both parties to appear.

– Step Three: Attend Hearing and Get Ruling

This is the step where you go in front of the judge and receive the ruling. Defenses and objections can be made, as well as a request to continue to a later date. If the judge finds that the landlord has the right to evict the tenant, then a judgement will be granted and you will be given a writ of restation that you can file with the constable in order to forcibly remove the tenant from the property should they not leave on their own.

 

The CARES Act, COVID, and Arizona Eviction Laws

The entire eviction process in Arizona used to be pretty fast moving with standard evictions being completed within a few weeks of filing. Then we faced a pandemic and everything changed. The CARES Act was designed to help keep our country from facing a devastating blow to the economy. It offered rental assistance and other relief but did little to help landlords.

The federal moratorium on evictions (by order from the CDC) is in place until March 31, 2021, unless extended. When this time is up, there will likely be a large influx in eviction cases filed with the court – causing even more delays. Be sure to check out the CDC’s website for more information about tenants who may or may not qualify for eviction protection.

As the moratorium lifts, it will be up to you to decide whether you want to:

  • Write off the missed rent and move forward fresh.
  • Allow your tenants to catch up on the missed rent little by little moving forward.
  • Demand payment and file for eviction.

There are many things to consider when you make your decision, such as how your tenants were pre-COVID, the current rental market in your area, and so on.

Navigating these Arizona eviction laws can be tedious, and a property manager can support you with your eviction efforts, while ensuring you are compliant and following the necessary laws and legislation. A good property management company will ensure that if you are evicting a tenant, all CARES Act requirements are met and all Arizona eviction laws are followed.

 

How a Property Manager Can Help

It is one thing being a landlord who collects the rent each month and maybe deals with a repair here and there. But, navigating the waters of all the orders from the government concerning COVID and Arizona eviction laws can be confusing.

As experts in the field of property management, our team at Real Property Management Evolve understands your frustration. That is why we are here to help. After all, managing a property can be tough and stressful on its own sometimes – and then you throw in a worldwide pandemic?

We can help you get things back on track and running smoothly. You take pride in your rental property – and we do, too. That is why we want to see you successfully navigate the eviction process if that is what you are facing. We have been through the process many times and are familiar with each aspect so you don’t have to be.

The RPM Difference

At RPM Evolve, we offer an eviction protection program for landlords that covers the cost of an eviction if you should have to face an eviction (terms and conditions apply). We are also diligent regardless of the situation to get you paid. We don’t wait around hoping the tenant makes a payment.

If rent is not paid on time and the tenant has not setup a payment agreement then we will expeditiously issue the correct legal notice to the tenant so that should the tenant fail to comply we are not losing time if it has to go to the courts.  Additionally, we will navigate COVID-19, the CARES Act, and additional Arizona eviction laws for you.

If you are facing an eviction with a problematic tenant don’t go it alone. Hire a property management company to help you through the process and get your rental property back on track.

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Phoenix Property Management

Welcome Gift Ideas for New Tenants

As a property owner or landlord, it can be a fun and beneficial idea to provide welcome gifts for your new tenants. Leaving a gift inside their apartment or home on the counter for when they move in is a good way to gain their appreciation and trust. The gifts can range from useful items to fun things that your residents will enjoy. Here are some gift ideas you could leave for your new residents:

Gift Ideas

  • Cleaning supplies
  • Non-destructive wall mounts (Command or Scotch Mounting Putty)
  • A selection of room deodorizers
  • Fun Gifts
  • Puzzles
  • A fruit and chocolate basket
  • Gourmet coffee sampler
  • Ice cream left in the freezer with a note on the door
  • A couple of nice towels in the master bedroom or bathroom
  • On move-in day, have a pizza delivered to them with a note saying it’s from the management

There are many appropriate gifts that can be given to new tenants in a rental property. First, it’s a good idea to get to know the tenants. Ask basic questions about all the proposed tenants. Engage the would-be tenant in conversation about their children or their job, etc. Once you have some basic information, you can consider what gift ideas best suit the tenants.

The best ideas are designed to fit the tenants, but if you cannot pinpoint information beyond what is on the application, give a general gift like white cotton towels or cleaning supplies. Most tenants will appreciate your efforts to reach out and your relationship will start out on a good note.

Keep the gift or gifts within a specific price point. A good estimate is about 1/10th of the first week’s rent. If the month’s rent is $1,000, look for a gift of around $25. Try to look for gifts that are gender-neutral, especially if both men and women are moving in.

The best welcoming gifts are disposable or edible. Avoid giving gifts that will not be utilized right away. Food can be eaten, cleaning and other supplies can be put to good use immediately.

Hopefully, these ideas will inspire you to create good, lasting relationships with your tenants. If the tenants know you care, they will take better care of your property and be more generally respectful to you. At Real Property Management Evolve, good manager-tenant relationships are of major importance. We can help you manage your rental properties while keeping you and your residents happy!

Contact us online today for a quote, or Call (602) 368-5730

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Phoenix Property Management

Increasing Revenue From Your Rental Property

Currently, there are more than 40 million rental units in the US, with an average rental property having a return on investment (ROI) of about 9.5%, as reported by the US Department of Housing and Urban Development (HUD). The bad news is that a good number of American landlords are earning way less than the industry’s average income due to losses and expenses, such as mortgage payment, maintenance, unoccupied properties, property taxes, and management costs. The most common reason rental property owners aren’t getting a high ROI is that their rental properties are not consistently rented out.  With this in mind, here are a few tips on how to keep good tenants happy, or to attract new tenants.

1) Enhance the Cosmetic Appearance of Your Property

Over time, your rental property will depreciate, experience wear and tear, and tenants will start to expect lower and lower rental payments. Worst case scenario, tenants may decide to relocate to other homes that look safer and more appealing. To increase your rental revenue and retain your tenants, it’s important to perform regular maintenance on the property, such as repainting the walls, landscaping regularly, and thorough cleanings in-between tenants.

2) Allow pets

According to the 2019 Pet-Friendly Housing Study, American landlords who allow pets in their rental units have a higher occupancy rate.

3) Pay a Utility

When a landlord or property owner covers a utility service, it can be very appealing to a potential tenant. Providing internet, cable, or covering water and sewage is very helpful to prospective residents on a tight budget.

4) Update Appliances

Making sure that your property has new and updated appliances, such as dishwashers, stoves and ovens, refrigerators, and laundry units are extremely beneficial to you and your tenants. Tenants are happier when their appliances work well, and efficient appliances save money on electricity, gas, and water bills. New appliances also allow you to charge a higher rent.

We hope that these tips help you maximize your revenue without overcharging your tenants. If you still need some extra help managing your Phoenix rental properties, whether it be maintenance or increasing your revenue, Real Property Management Evolve is here to help.

Contact us online today for a quote, or Call (602) 368-5730

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Phoenix Property Management

Why Use A Phoenix Property Management Company

 

If you own a property in the Phoenix area, that you currently, or would like to, rent out to tenants, there are many benefits to using a professional property management company.

Find High Quality Tenants

Tenant screening is a complicated process and making the wrong choice can be expensive. Property management specialists have a reliable screening process that takes multiple factors into account when choosing the best tenant. This includes whether a tenant is there for the long term, pays rent on time, and does not have a history of causing property damage.

Minimizing Periods of Vacancy

A property management company will provide you with advice on what to do to make your property attractive to tenants so that you will maximize revenue on it. They will also help set the optimum rental amount and market the property effectively. These things will help you attract more applicants and potential tenants, which, in turn, will minimize vacancy periods.

Collect Rents Efficiently

For a landlord, there isn’t much that is worse than a late rent payment and having to follow up with a tenant about it. One of the most important services that a property management company provides is the collection of rent in a timely fashion, following up with outstanding payments, and imposing late fees. When the situation with a tenant becomes very difficult and hard to handle, they are also there to provide an effective, legal eviction process, which is something that many landlords may find difficult to do themselves.

Lower Maintenance Costs

High quality and quick maintenance work keeps tenants happy and also ensures that your property’s value is increased. Property management companies have a network of experienced contractors that can fix many issues that arise on a property, at a reasonable cost. They will also ensure that the property is regularly inspected for needed maintenance, and can provide a maintenance schedule and detailed documentation of repairs required or undertaken. Without this, a rental property can quickly lose its value in the rental market, and one irresponsible tenant can cause major maintenance headaches.

Peace of Mind

Being able to avoid the stress that comes with renting out a property is probably the main reason why people choose to hire a professional property management company. Knowing that your rental income will be deposited into your account each month on time and that all pressing issues are being taken care of, is probably the greatest benefit of professional property management. For more information about how RPM Evolve can help with your rental property, contact us online, or call us today for a quote! (602) 368-5730

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Phoenix Property Management

Landscaping Tips For Your Phoenix Rental Property

The exterior look of a home is very necessary to attract potential renters, to keep the tenants happy, and to keep the property value up. Most importantly, however, it sets the ambiance of the home and makes it feel welcoming. The ultimate goal of landscaping is to help homeowners achieve all of these. With the right landscaping, you are able to enhance the value of your home or increase the price of your rentals. In addition, you can easily find qualifying potential tenants.

However, when poorly done, landscaping mishaps can be a source of losses and an uncomfortable home environment. This is where professional landscapers are sometimes needed to help you improve the look of your rental property. An attractive front yard is not only good for attracting renters but also increases the value of your property.

So, here are some Do’s and Don’ts of landscaping to help you out:

The Do’s of Landscaping

1. Keep your landscaping simple: Keeping the environment safe is important, so help conserve the environment using eco-friendly landscaping designs. Keeping things simple is often your best bet to have a beautiful yard. If you install too many features or plant too many flowers, sometimes the home can be overwhelmed and it won’t be easy to look at.

2. Plant native or local shrubs: Look for flora and fauna that is native to the Phoenix area to be planted in your yard. Local and native plants will not only save you money but also preserve the biodiversity. The fact that they do not require supplemental watering, pesticides or too much fertilizer is also a major win for your budget.

Don’ts of Landscaping

1. Don’t over-pave your yard: Ideally, the yard is supposed to be green, so it is wise not to pave a lot as this will increase the runoff into the gutter and the ground. In fact, most neighborhoods discourage homeowners from overdoing the paving, but instead plant shrubs.

2. Do not stick to an existing layout: The good thing about plants is that you can replace them, unlike structures that can be extremely expensive to move or redesign. Be flexible to try out new and different designs or colors to help improve the overall look of your yard. However, you can also try to find a design or additions that fit your design and complement your existing exterior décor.

It is a challenge to find the best mix of landscaping options for a yard. As a property owner looking to spruce up your rental home and increase its value, you want to strike a balance between making your yard look attractive and the amount of investment you want to put in (in terms of maintenance).

If you are looking for a property management company in Phoenix, contact Real Property Management Evolve today, and find out how we can help you increase profits, and reduce headaches! Contact us online, or call (602) 368-5730 today!