Category: Property Management Tips

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Property Management Tips

How to Calculate Rental Property Cash Flow: What Is Considered “Good” Cash Flow?

Understanding cash flow is an important aspect of investing in real estate. Learn how to calculate rental property cash flow today.

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Investors have certain things that they follow for each of their assets to make sure they are still providing a benefit. One of the most important when it comes to their rental property is cash flow. 

If you are just starting out, you may be trying to determine just how much cash flow you should have or intend to have with your investment properties. A lot of investors look for those properties that will bring in 1% to 2% of the purchase price every month. This may sound ideal, but the truth is, there are so many factors that come into play here so it is nearly impossible to predict your cash flow without taking them into consideration. 

So, what is the right amount of cash flow you can expect? What is cash flow? How can it be calculated? And, what should you be looking for in an investment? We are going to touch on all of these and more. 

Cash Flow: What is it?

For rental property investors, cash flow can be defined as the amount of money that a property is creating after expenses. It is, in other words, your profit. You will have expenses that need to be paid for running your rental property, but you will also (hopefully) earn an income from it. Having the right balance will create your cash flow. 

There are two types of cash flow: gross cash flow and net cash flow. How are they different? Well, gross cash flow refers to any income generated off the property. This includes rent, application fees, late fees, etc. 

Net cash flow is the money left over after all the bills are paid. Keep in mind that you will want to deduct things such as maintenance, taxes, insurance, marketing, utilities, property management fees, and the like. 

If you deduct expenses from gross cash flow, you get net cash flow. You, of course, want this number to always be positive – this shows you have the right balance between income and expenses. Unfortunately, when major repairs come up or you are dealing with a vacant rental, this could fall into a negative – meaning you have a negative cash flow, spending more than you are bringing in. 

To get a true idea of your cash flow, you have to be honest about what you have coming in and what you have going out. 

What Influences Your Cash Flow?

As with any type of cash flow, there are always going to be factors that impact just how much you make and how great your expenses are. The same holds true for rental property cash flow. Below are a few of the biggest factors that play a role in determining your level of cash flow. 

Property Location

The locations of your property will play a role in your cash flow. In fact, it may play a significant role. See, the market where it is located sets the bar for the rent that you can charge. You can’t maintain a rental property in an area that rents for a comparable unit of $1,000.00 and decide you want to charge $3,000.00. It doesn’t work that way. Sure, in an imaginary world, that would greatly increase your income, but, in reality, you are going to have a vacancy until you lower the rent. 

Further, you will want to consider property taxes, insurance rates, and even HOA fees if they apply. All of this is why location is such a big factor.

Financing

If you take out a mortgage on a rental property, you will have an interest rate and mortgage insurance to worry about it. These can both influence your cash flow. Depending on your credit history, credit score, down payment, and the price you are willing to borrow, you may end up with the ability to have more or less cash flow. For example, low credit scores and a low down payment can lead to bigger mortgage payments every month and higher interest rates. This will decrease your cash flow. 

Rental Property Details

Depending on the size of the rental and whether you want to rent it long-term or short-term will impact your income and, ultimately, your cash flow. 

How to Increase Your Cash Flow

Increasing cash flow is the ultimate goal, isn’t it? You want to bring in more money than you are spending so you can feel successful at what you do. If you find yourself with a lower cash flow than you had imagined, there are a few things you can do that may help. These include: 

Find High-Quality Tenants

Having vacancies will kill your cash flow as you have nothing coming in. But you don’t want to just settle for any tenants, you want good tenants. Otherwise, you may find yourself dealing with missed rent payments, legal fees, major repairs to damage in the unit, and more. 

Add Value to the Property

While the local market is going to ultimately dictate the rent amount, adding value to your property allows you to be able to charge on the higher end of those market rents. This can include updated fixtures, landscaping, new paint or flooring, kitchen appliance upgrades, and more. 

Stay on top of Repairs

Not keeping up with regular routine maintenance can cause you to have to shell out more money for major repairs. Keep up with them as you go and you will save yourself some money. 

Hire a Property Manager

Perhaps one of the best things you can do to positively impact your cash flow is to hire a property management company. These professionals know how to handle all these things that increase your cash flow, such as helping you find the best tenants while reducing your vacancy rate, as well as staying on top of repairs and routine maintenance. They also have vendors and connections within their network that handle these things. That means they have better rates to get the work done which means less expense to you. 

At Real Property Management Evolve in Phoenix, we understand the importance of maintaining a healthy cash flow – and we strive to maintain your property in a way that helps you increase your earnings. 

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Property Management Tips

6 Things to Know About Managing Your Multifamily Real Estate

Managing multifamily real estate is a great way to generate passive income as an investor. Before you begin, here are 6 things to consider.

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Most landlords and investors get their start with single-family homes. Learning to invest your money into rental properties or in those that will allow you to flip can be a great way to earn money investing – as well as building your portfolio.

While these present great opportunities, they are just a small portion of what is available for real estate investors. There comes a time when nearly all investors wonder whether or not multifamily real estate should be the next move.

Before you decide to jump head first into multifamily real estate as your next rental property, there are a few things you should consider.

 

1. Get Your Feet Wet Before You Dive In

You may have the process of managing your single-family home rental properties down to a science. Maybe you have been doing it for years or maybe you just really thought out the process before you went any further. Here’s the thing – it doesn’t matter how well you manage your properties because multifamily property management is entirely different.

Handling multifamily real estate can be a learning process. Buying too big of a property or too many multifamily properties in a short period of time can be overwhelming and stressful. And this could end up costing you big time.

In general, the most successful real estate investors start small.

 

2. Set Rules for Your Multifamily Real Estate 

In any building where you have multiple families living together, you are going to find yourself dealing with some issues. This can result from just about anything. It could be a noisy, disruptive neighbor. A family that has a pet who invades the space of other residents. Parking issues or complaints. And those are just a couple of examples.

Each family is different – and what they expect out of a living space will vary, one from the next. So, to help everyone get along a little better — and help you keep your sanity — you need to have some guidelines and rules in place for the community as a whole.

These rules should be made clear at the lease signing – and should, for best results, be listed within the lease. Making the expectations clear for all who reside at the property can lead to a better experience for everyone. Though, keep in mind, no matter how clear you are about the community guidelines, you may always have a tenant that pushes the limit and there will always be that tenant who wants to let you know about it.

 

3. Get to Know Your Tenants

As any landlord knows, you want to develop a healthy relationship with your tenants. This is true for multifamily properties, too. Not only does this make your tenants more comfortable coming to you with issues or concerns, but it also helps your tenants to have greater respect for each other.

Why does this matter?

Well, when your tenants are happy with where they are living (and you are happy with them), you will notice that your property vacancy and tenant turnover rates decrease greatly.

 

4. Make Your Multifamily Property More Enticing

There are those multifamily properties that are cold, dreary and just another stopping ground for renters until they find a more permanent location to call home. And then there are those properties that allow tenants to feel at home. They are welcoming, offer amenities, and feel cozy. You know, the type of places that just entice people to stay a little longer.

When it comes to managing multifamily real estate, you need to make sure your properties are the type that make tenants want to stay. You can do this by offering conveniences, such as offering more than one parking spot, ceiling fans throughout the residence, a dishwasher and garbage disposal, sectioned off dog parks, upgraded club house amenities, or even just a well-cared for landscape or playground for the kids.

 

5. Make Your Multifamily Real Estate Energy Efficient

It can be expensive to maintain larger properties – especially if you have a large amount of vacancies. Water, lighting, and other utilities can creep up on you if you are footing the bill. By being proactive and including appliances with energy-star, LED light bulbs, low-flow toilets, and the like, you are going to save yourself money down the road. In addition, these things are also able to grab the attention of potential tenants which is always a bonus.

 

6. Hire a Property Manager

While the ROI and such that you receive from investing in multifamily real estate can be great for you financially, the headache and weight of managing these properties can make you want to run in the other direction.

By hiring a property manager, you get the financial benefits that can come with investing in multifamily real estate without the frustrations that come with managing it. In other words, you are leaving the managing in the hands of those who do it professionally while you get to focus on what you do best – investing.

Property managers handle everything necessary for managing multifamily properties, such as:

  • Filling vacancies with high-quality, thoroughly screened tenants
  • Maintenance and repairs, both routine and emergency
  • Inspections, walk throughs
  • Rent collection
  • Property management marketing/advertising
  • Maintaining records and documentation for the property
  • Monthly and annual reporting

If you are a landlord or real estate investor who is considering a multifamily property, know that there is a difference and have a plan. Will you manage the property yourself? Have you assessed various management systems to handle it successfully? Are you willing to deal with the repairs and maintenance on larger properties? Do you have the manpower to get the job done?

There is so much to consider when it comes to managing multifamily properties. Hiring an experienced property manager is the best way to make sure you enter this new phase of investing in the most successful way imaginable.

As a top-ranked property manager in Phoenix area, Real Property Management Evolve has developed streamlined, efficient methods for handling small multifamily real estate with ease. There comes a time in every investor or landlord’s life when it just makes more financial sense to hand over the reins – and this usually always comes with multifamily properties.

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Property Management Tips

10 Things Local Property Management Does a Nationwide Realtor Can’t

When choosing a management company for your rental, you with have the option of choosing a local property management company, or a large nationwide realtor. Which is best for you? Here are 10 things a local manager can do that a large nationwide chain cannot.

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First things first, bigger is not always better. Read that again – bigger is not always better. All too often, we find ourselves getting excited over the latest release or idea of a major corporation and tend to overlook the little guy. Truth is, that little guy is hungry. He is working to make something big. He has the drive to work hard for his success. And his results show it.

There is no hiding the fact that Zillow is trying to enter the field of property management with its new Zillow Rent Manager program. Truth is, Zillow has been successful at listing properties for sale around the country – but there are some things that major players in the game just can’t do as well as the little guy.

In fact, here are 10 things that local property management will do that a nationwide realtor can’t.

1. Local Property Managers Know Their Market Personally

Local property management companies often have extensive knowledge of their home area. They know the trends and the communities which give them the best guidance for setting rental rates and marketing to the right future tenants.

Nationwide realtors may be well-versed in the process from a larger scale, they aren’t going to have an in-depth knowledge of an area like the locals do.

2. Local Managers Bring a Human Connection

Human connection is important. Would you rent your property without ever talking to a tenant? Nationwide realtors will not be there to interview potential tenants.

You can learn a lot about someone just by having a conversation face-to-face. When it comes to screening tenants, sometimes engaging can help you make your decision. Of course, should you choose to rent your property to someone, you want them to feel like they have a good understanding of who they are renting from, as well.

It doesn’t matter how technologically advanced we get in this world; human connection is vital.

3. Local Property Management Thoroughly Screens Applicants

Nationwide realtors, like Zillow, have a lot of fancy software programs that can do some savvy things – including tenant screening. But do you know what a local property manager can do?

Local property management companies have access to major tenant screening platforms. Instead of relying solely upon the computer-based outcome, they also have an expertly trained eye to look for scams and deceit. You will find that these managers are better equipped with experience and technology to find high-quality tenants for your property.

4. Local Property Managers Handle Rent Collection – Especially from Renters Who Don’t Pay

When your renters aren’t paying their rent, will a nationwide realtor make phone calls or knock on the door of your rental property? Not at all. This would be left up to you to handle. As a landlord looking for help, you won’t find it.

Local property managers have a detailed process down for rent collection and dealing with renters who are late or not paying at all. And, as the landlord, you won’t have to worry about it.

5. Local Managers Will Follow Through with the Eviction Process When Necessary

When those renters reach a point when they are facing eviction, local property managers will follow through with the eviction process and see it through all the necessary legal actions without you having to lift a finger.

Eviction services are not something that is generally handled by nationwide realtors.

6. Local Property Management Know the Laws of their State and Community

When you are dealing with rental properties and housing, there are many laws that you have to abide by, such as Federal Fair Housing laws as well as state and local landlord-tenant laws and the like. Because of what could happen if you don’t, you always want to make sure you are following the law 100% of the time.

Local property management is well-versed in federal, state, and local laws. You can rest easy knowing that you won’t find yourself in any legal hot water. And, if you ever have any questions, you always have a go-to source for information.

7. Local Property Managers Offer Landlords Clear, Affordable Rates

Nationwide realtors often have hidden fees or unclear terms. With a local property manager, such as Real Property Management Evolve, the fees are very transparent. You always know what you are to pay and the services you are paying for.

8. Local Managers Handle Showings and Walk-Throughs

Zillow Property Management is not going to show up at your rental property and handle your showings or walk-throughs. It just doesn’t work that way with nationwide realtors. If you don’t mind doing them yourself, then that’s fine. But, if you are looking for a manager to handle your rental property – and everything that comes with it – that means handling showings, walk-throughs, and inspections.

This is where a local property manager comes in.

9. Local Management Companies Handle Repairs and Routine Maintenance

Your rental property is sure to need routine maintenance and even emergency repairs. Getting these things taken care of in a timely manner can help in tenant retention – and lower vacancy rates. Local property managers have trusted relationships with local vendors and service techs in the area to handle any need that arises in an efficient, proper manner.

The best property managers in Phoenix often get significant discounts with maintenance vendors based on the relationships built over time. This simply doesn’t exist as an opportunity with nationwide property management companies.

10. Local Property Managers Don’t Require the Landlord to Do Anything

Nationwide realtors may offer a service for landlords, but they don’t take over the job of a landlord. If you are looking for someone to thoroughly manage your properties so you can focus on other things, then you need a local property manager.

You won’t have to do anything because your property manager will handle everything from marketing the property to tenant screening, leasing, rent collection, and so much more.

Conclusion

It is easy to get swayed by big companies – with the thought that they are so big because they do things better. At Real Property Management Evolve, we know that Zillow is a great platform, but we also know that for detailed service and effective property management, you need a local property management company. Experience the difference. Give our team a call today!

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Property Management Tips

9 Ways to Reduce Your Rental Property Vacancy Rate

As a homeowner or investor, your rental property vacancy rate directly impacts your ROI. These 9 tips can help you reduce property vacancy, thus increasing your return.

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Your rental property vacancy rate is something you need to keep an eye on if you want to have a healthy ROI. After all, vacancies mean no rent collection, which, in turn, means a reduced profit. The more this happens, the harder it can impact your business.  

As a landlord, you know that you either need to find new tenants as soon as possible or keep the ones you have. Let’s take a look at 9 ways to make this happen and reduce your rental property vacancy rate.

1. Understand Your Market

Having a good idea of your market is essential. As renters begin searching for new homes, they are becoming well-versed in the rental rates in the area. You should be, too. Your property should be listed at a comparable rate as others in the area. If it is priced too high, it will turn potential tenants away. If it is priced too low, it will make people wonder what is wrong with the place – so don’t appear desperate.

2. Market Your Property Properly

As you market your property, you want to do so in a way that gets it in front of the right people. Get your property seen – and then spark interest by showing how valuable the property is. Focus on the features, the amenities, the surrounding community, and more.

3. Have a Thorough Tenant Screening Process

Good, high-quality tenants are gems. They pay rent on time, treat the rental property with care, and usually choose to renew their lease. These individuals don’t seem to be very transient. Investing in a thorough tenant screening process means you have a better chance of getting these great tenants.

Not only do quality tenants reduce your risk of missed rental payments, but they also reduce your risk of having to find new tenants after the lease is up.

Your tenant screening process needs to look intricately at important things like:

It’s important to know what to look for in your tenant screening report. Perfect your tenant screening process, and you will find high-quality tenants which, in turn, will reduce your property vacancy rate.

4. Make Repairs Promptly

If you want good tenants, then your tenants need a good landlord. When something breaks or an issue arises, your tenants need to feel like they can count on you to promptly make repairs. They need to feel confident that if the refrigerator stops cooling the day before Thanksgiving, that they can call you, and you will take care of it.

Not many tenants have that confidence in their landlord. When they find it, they want to keep it. 

5. Offer Incentives or Move-In Bonus

Sometimes offering a little can be the difference between a vacancy and no vacancy. For instance, if you have prospective tenants who are torn between your property and one on the next block, offering a move-in bonus or another incentive could be all that is needed to help them make their decision.

If you make them feel like they are getting a deal, they may be more likely to sign the lease.

Just for the record, we are not talking about giving up huge amounts of money here. You can offer 10% off the first month’s rent, a free tv after lease signing, or even a gift card to a local dining favorite. It is all about making them feel good.

6. Suggest an Extended Lease Term

The standard lease is for one year, but it is not unheard of for tenants to sign a two-year lease or one even longer. There are both pros and cons with this type of offer – and all should be weighed and considered, such as:

  • An extended lease avoids the possibility of a higher vacancy rate for a while.
  • You may find that the new tenants with the three-year lease are not the most ideal after all.

Why would this work?

To make this an easier decision, consider offering an extended lease to a tenant you already have. If you have a quality tenant whose lease is almost up and they want to renew, why not offer an extended lease? You know how they are as a tenant, and it would keep you from having to worry about your vacancy rate for a couple of years.

7. Develop a Healthy Rapport With Your Tenants

You don’t need to go and have coffee with your tenants every Saturday but keeping the lines of communication open is a good thing. When you develop a healthy relationship with your tenants, you make it comfortable for them to contact you when there is a need or issue with the property or have a personal struggle that affects their ability to pay rent.

If you make reaching out to you a welcoming experience rather than a dreaded one, you may keep your tenants longer.

8. Begin Marketing Before the Vacancy Happens

You don’t want your property to stay vacant too long. When a tenant gives notice that they won’t be renewing their lease, it is time to start marketing your property. You may have to get creative to show the place, and you will need to allow time in between to get it move-in ready, but this may save you from having to wait another 30 days or more to rent out the unit.

9. Hire a Property Manager

Finally, hiring a property manager is one of the best ways to reduce your rental property vacancy rate. See, property management companies have everything organized and streamlined, so there is minimal downtime between tenants. Perhaps the best part is that you do not have to worry about doing any of it because it will all be handled for you.

At Real Property Management Evolve, our team of professionals work to keep your rental homes filled with high-quality tenants at every step of the way. From top-notch tenant screening to fast repair response times and tried-and-true marketing practices, we take all the steps necessary to ensure that you reduce your rental property vacancy rate and increase your profits.

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Property Management Tips

11 Questions to Ask A Property Manager Before Hiring

These 11 questions to ask a property manager before you hire them will help to ensure that you choose the best possible company for your property’s needs.

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As a rental property homeowner or investor, you want to protect your property. You handle everything necessary to ensure that your rentals are in top shape and that your vacancy rate is low. All this hard work, though, can make you wish for some help.

It could be that you are overwhelmed with the stress that comes with managing rental properties. Maybe it is because you would like to focus solely on investing. Or perhaps it is something else entirely.

Whatever brings you to the place of hiring a company for your rental properties, there are 11 questions to ask a property manager before you sign any agreements.

1. Can I Verify Your License? 

One of the most important questions to ask a property manager is to verify their license. Nearly all states in the U.S., including the state of Arizona, require property managers to have a license through the state in which they do business. Arizona law states that to operate as a property manager, a real estate broker’s license is required.

Before you go any further in asking questions – and surely before signing a contract – be sure to verify the property manager’s license and confirm that it is active and in good standing with the state.

2. How Long Have You Been in the Area? 

If it is a Phoenix property manager you are looking for, then you want to find out how long they have been in the area – both in business and personally. You are looking for someone very familiar with the entire area. Not to mention that those with ties to the community usually have a solid network of support.

3. What Services Do You Offer? 

There is a lot to do when it comes to managing properties. Some property managers offer full service; others may charge an additional fee for certain services. Does the company perform thorough tenant screening? Property management marketing? Get to know what is included in their services and what all they can take off of your plate for you.

4. How Much are Your Property Management Fees? 

Every property manager is going to charge a fee for handling your property. Though keep in mind that this could vary based on the services you want them to do. Most companies will charge you a fee based on the amount of rent that is charged for the properties.

Be sure to discuss any additional fees that may be charged, whether for maintenance, legal issues, tenant screening, and more.

Trust your gut. If a property manager is telling you something that sounds too good, there is likely to be a catch down the road. Most property managers hide fees inside of their management agreements so always make sure to get a copy of the agreement, and read it, before signing. At RPM Evolve we believe in transparency – you won’t find any hidden fees in our contracts!

5. How Do You Collect Rent? 

When seeking a property manager, you need someone who invests in technology to streamline their management processes – and this includes collecting rent. Online payment options are what you are looking for.

6. How are Requests for Service Repairs Addressed? 

Other important questions to ask a property manager before hiring include discussing property maintenance. You want to make sure that your rental property is cared for. When a repair is needed, you need to feel confident that these repairs will be addressed promptly. After all, the longer a minor repair goes untouched, the more major the repair becomes – and the more costly for you.

Discuss how the repairs are addressed, if there are scheduled property inspections, who handles the repair payment, if you have a say in final decisions, and so on. The process should be effective and clear so that everyone is on the same page.

7. Do You Send Reports? Will I have Access to a Portal? 

With technology the way it is today, you should be able to have access to info about your properties anytime, day or night. Ask to look at the reports and to see what information you will have access to within their system.

Keeping track of your properties this way will give you a good idea of how well you are or are not doing with your rentals.

8. What is Your Vacancy Rate? 

The vacancy rate will give you an idea of how many properties are sitting vacant at any given time. You want this rate to be small. Too high of a vacancy rate will tell you that either they don’t have much success marketing the property or finding tenants. Or that they have a high turnover rate – which could signal that their tenant screening process may not be too effective.

Another important question concerning the vacancy rate is to find out whether the property manager collects management fees on vacant units. This is not a typical practice. Not receiving fees from you should push the team to work harder to fill the vacancy. Otherwise, they are receiving money, and you are not – and that isn’t making you a priority.

9. How Many Rental Properties Are You Managing? 

While it may be impressive to hear that a company has a roster of 1,500 properties they manage, it may mean you are just another client. Then again, it could mean they are doing something right. If personal service is what you are looking for, smaller local property management companies may be more beneficial.

10. What Properties Do You Primarily Manage? 

You are looking for a property manager that is familiar with the types of rentals you own. For instance, you don’t want to take your multi-unit apartment building to a management team that is well-versed in handling single-family homes. Sometimes, their portfolio may include multiple types of properties which proves they are successful in both types of management. You want to ensure that your property manager has your best interest in mind, and that includes proven success with your type of property.

11. Do You Have Any References? 

A property manager should have clients or a network of business associates that are willing to vouch for their work. If they don’t, that’s a sure sign to run.

As you begin your quest for a property management firm, look for the best. You want someone who is going to be transparent in their services and costs while providing you with open communication. And you want a company that has perfected its management process so that it is streamlined and efficient. These 11 questions to ask a property manager before hiring will give you bountiful insight into the type of company that they are.

Real Property Management Evolve is the top property management team in the Phoenix area that can give you all of these and more. With a customer-focused management process, your property is our priority.

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Property Management Tips

How to Hire the Best Property Management In Phoenix

To discover, and retain, quality tenants, it is essential that you use the best property management company for your needs – here’s what to look out for.

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Everyone has heard of property managers – some great, positive stories and others that have been horrific nightmares. So, when you are a landlord or a homeowner, you may be very interested in obtaining help from a property manager but aren’t too sure where to start.

  • How do you find the best property management team?
  • How do you know you are getting the best management for your property?
  • How do you know your property manager is being transparent about fees?

There are many duties that a property manager fulfills to make your life much, much easier. And there shouldn’t be any surprises along the way. If you want to hire the best property management in Phoenix, then here’s how to do it.

 

The Duties of a Property Manager

Before you hire a property manager, you want to have a good idea of all the duties property managers do. After all, why would you settle for someone who only offers you a fraction of the benefits? As their name suggests, property managers are there to manage your property. From an empty unit to doing the walk-through at move-out and starting over – and everything in between. While it is not exhaustive, we have put together a list of things the best property management team would handle for you. Check it out:

1. Marketing your property.

Every minute your home sits vacant, you are missing out on income. Property management marketing is one of the most important duties, and the best property management team will get your property noticed and desired. They use various websites, networking, and social media platforms to spread the news about the vacancy and spark interest. Then, they follow through to have showings and eventually completed tenant applications.

2. Tenant screening.

You could rent your property to just anyone, but without proper screening, you could be putting yourself at risk – and your property in the wrong hands. Property managers have the knowledge and skills to expertly screen tenants and save you from falling victim to any scams.

3. Rent collection.

Your property manager will handle all invoicing and rent collection, so you don’t have to. Then, for convenience, the monies will be deposited into your account.

4. Maintenance and repairs.

Whether it is preventative or routine maintenance or a late-night emergency repair, your property manager has a network of trained professionals to get the job done right.

5. Property inspections.

Keeping a property safe means scheduling routine inspections. Not only does this help ensure that the property is in good hands with the tenant, but it also allows for any maintenance issues to be addressed before they become bigger, more costly problems.

6. Financial reporting.

You never have to wonder about your finances when you turn your property over to a property manager. The best company will provide you with 24/7 access to view your earnings and expenses securely online anytime you want.

7. Evictions.

No matter how great tenant screening is, every now and then eviction is necessary. The best property management team is well-informed and able to handle the entire legal eviction process for you.

8. Legal guidance.

Last, but certainly not least, the best property manager will understand the importance of following all federal and local housing laws. They work hard to abide by them so you don’t ever have to feel vulnerable or at risk.

 

Where to Find the Best Property Management in Phoenix?

Now that you know all a property manager can do for you, you have probably decided to hire one. If so, great! But don’t just call the first company you find. Instead, you need to do your research.

1. Get referrals.

Talk to your friends, co-workers, realtors, contractors, investors, neighbors, or even accountants. See if they have any recommendations for a property management company. Though, their experience may not be yours so always do follow up their recommendation with your diligent research.

2. Meet before you hire.

Take time to sit down with your potential property manager and get to know them. Ask questions about their service and their business. Get an understanding of how they handle situations – and the fees that they charge to do so. Look for transparency.

3. Check their licensure.

If you are entrusting a company with your investment, you want to make sure they are licensed and certified to handle each aspect of the business, from showing the property to making repairs and such.

 

Look Out for Hidden Fees

When it comes to paying a property management company to handle your investment properties, you want to have a clear idea of what you will be expected to pay. Their fee structure should be clearly outlined with all necessary details exposed. Again, you shouldn’t encounter any surprises.

When something seems too good to be true, it usually is. So if a property manager charges you a low fee each month, there is a good chance they are doing so with the hopes of making it up elsewhere. These hidden fees could come in the form of leasing fees, advertising fees, vendor surcharges, onboarding fees, vacancy fees, lease renewal fees, and so forth. It may even be written in the fine print that you agree to stay with them for a certain period – or else they can charge you.

Pay attention. All of this should be spelled out in the contract and you should understand it fully before you sign. Read the small print – all of it.

 

What Sets the Best Apart From the Rest

So, what sets the best property management apart from the rest? Well, that’s simple. The best will offer you all the services listed above without hiding any fees. They are honest, transparent, and treat your property with compassion and respect as if it were their own. The best companies won’t go out of their way to keep you guessing about your financial statements, fees paid, or whether maintenance ever really occurred.

At Real Property Management Evolve, you will find the best property management team in Phoenix. We offer state-of-the-art technology, open communication, high industry standards, and a list of satisfied customers that speaks to our experience. If you are looking to hire the best property managers in Phoenix, you’ve come to the right spot.

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Property Management Tips

The Importance of a Strong Landlord Tenant Relationship

Having a strong landlord tenant relationship is an important aspect of maintaining your properties and encouraging long-term tenancy. These tips can help you improve your relationship with your tenants.

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Buying investment properties takes a specific set of skills. Maintaining healthy relationships with those who live in the properties takes an entirely different set of skills. If you have been a landlord for any amount of time, you know exactly what we are referring to.

When you have tenants in your rental property, you are not only responsible for maintaining your investment, but you must also work on building a relationship with each other. Sure, you each signed a lease that has a set of rules and obligations to follow. But, life is not that cut and dry, is it? Things come up – employment changes, plumbing breaks, and so on. You and your tenants should be comfortable enough to work together to handle anything and everything concerning the property.

This relationship is not only important to maintain the health of your investment but to also encourage long-term tenancy.

The Importance of a Landlord Tenant Relationship

Are you wondering why a relationship with your tenant even matters? After all, you have a lease that states everyone’s obligations – so why build a relationship?

For tenants, this relationship means having comfort knowing that if a maintenance issue arises, it will be taken care of. It means feeling at ease where you live – and the likelihood you can stay year after year.

For landlords, having a healthy tenant relationship means a lower vacancy rate and higher profitability, hearing of minor repairs needed before things get out of hand, and having the confidence that your tenants are caring for your property as if it were their own.

It is a lot easier for everyone, in general, to rest better at night when your settled in your landlord tenant relationship.

Why the Landlord Tenant Relationship Struggles

You can find yourself with some of the best tenants and still struggle to communicate with them. Why is that?

As a property owner, you take on a ton of stress – and a lot of responsibility. You are constantly on call, with your phone ringing all hours of the day and night for repairs, whether an emergency or not. You have to handle paperwork, inspections, maintenance, rent collection, and more. Sometimes the stress feels so heavy that it can be hard to be available when a tenant wants to chat. And, even harder to be kind about it.

Though no fault of your own, let’s be real – this is not the way to a healthy relationship.

Tips to Nurture Your Landlord Tenant Relationship

If you are ready to give your landlord tenant relationship a healthy boost, here are a few tips you can try. Keep in mind that you must be consistent.

1. Have an open-door policy

You will want to be approachable to your tenants. They need to know that if something happens or if they have a concern, they can reach out to you and that you will be available for them. If your tenants are too afraid to call you for a small repair, for instance, you could find yourself with a much larger, more expensive repair down the road.

Encourage your tenants to call you and be available when they do.

2. Be responsive

It does not matter how available you are for a text or phone call if you do not follow through on your end. If your tenant reports that a repair is needed, has a concern about a neighbor or the like, then you need to act on it. Your tenants need to know they can count on you – or perhaps they will not reach out next time.

3. Acknowledge their concerns

If your tenants reach out to you to discuss something, be respectful and listen. They are the ones who are residing in your investment property – so they know the place (and surrounding area) up close and personal – maybe even better than you do. If they want to share some knowledge or concerns, let them – and address everything accordingly.

It may or may not even require action on your part. But, allowing your tenant to feel heard can make all the difference in the world.

4. Be kind – and offer treats

Of course, this is not going to be something you do all the time but offering an occasional treat to your tenants can make them feel appreciated. And who does not like that feeling? Give a small token of kindness like a gift card to a local home store or restaurant on a holiday or consider doing an upgrade at the property if they decide to renew their lease.

It doesn’t have to cost much at all – it’s the act that makes the difference by showing compassion and care.

Build the Relationship With a Property Manager

You may have envisioned yourself having a nice portfolio of rental properties, creating a peaceful way to make an income while you enjoy life for a bit.

And then… you become the landlord.

It is a stressful job. And, having to work on nurturing relationships can add even more stress. It is hard to act respectful and kind all the time when you are feeling weighed down and overwhelmed.

Well, here is where the good news comes in. What if we told you that you could focus on what you do best – investing – and allow someone else to handle the rest?

The best way to manage your landlord tenant relationship is by using a property management company. A property manager is like an expert landlord. They can handle all aspects of maintaining properties, including tenant screening, rent collection, maintenance, and evictions. And, yes, they also work to nurture the relationship with tenants.

As a professional in the industry, property managers are ready to handle anything that arises – and they have the means to do so. For instance, having a maintenance staff on call 24/7 and an online software system that makes reporting issues easy. Rent collection is a breeze and – when it is not received on time – there are processes and forms in place to handle that, too.

Choosing RPM Evolve

The relationship between a landlord and a tenant is important on many levels. At RPM Evolve, our property managers can step up and fill this role, nurturing the relationship – increasing your profitability along the way.

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Property Management Tips

Phoenix Property Management Tips

Arizona residential rental properties can offer a great return on investment if they are consistently rented and properly managed.  

Although owning an investment property can be very beneficial, successfully managing your rentals isn’t always fun or easy. Consequently, one has to be both financially and psychologically prepared. Here are a few important property management tips to consider when hiring a property manager in Phoenix Arizona:

Business Decisions vs. Emotional Decisions.
A rental property owner might sometimes have an emotional attachment to their property, and this can be difficult to get rid of. However, it is key to be aware of the fact that the home is a business; it is an investment, and all the stipulated business guidelines apply. Real Property Management helps rental home owners stay in budget, and maximize profits by providing exceptional resources such as discounted contractor services to maintain the quality of your rental property in Phoenix AZ. Our team has over 25 years of experience helping owners become, and stay profitable when managing their rental investment properties.

Providing Tenants With Excellent Service
A tenant living on your rental property in Phoenix AZ is your client and customer. Because of this, they should be approached with optimal service. Be responsive to their needs and aware of their concerns. Show them that you care about and value them as your tenant so as to encourage them to keep renting from you. With over 25 years of experience in property management, our team manages our tenants with professionalism, care, and ethical/moral considerations to always provide the best possible service in the industry. We focus on keeping our tenants happy so that our owners can stay profitable while using RPM as their professional property manager in Phoenix AZ.

Comprehending Legal Risks and Requirements
It is not easy to stay up to date will all legal changes, laws, and regulations, especially when it comes to real estate and landlord/tenant relations. It is of the upmost importance to be acquainted with all laws, but especially laws specific to Arizona. Take no shortcuts when it comes to housing laws, they should be followed to the letter. As professional property managers we stay abreast on all of the changing/new tenant landlord laws in Arizona. Our team ensures you as an owner are compliant with the laws while staying profitable when renting your property.

Hire Real Property Management EVOLVE
Our professional Arizona property managers are local to the Phoenix area and will put their 25 years of successful property management experience to work for you by handling all the following:

  • Marketing
  • Tenant Screening
  • Rent Collection
  • Maintenance
  • Inspections
  • Reporting
  • Evictions
  • Legal Issues

With cutting edge technology, effective communication, and our years of property management experience, RPM EVOLVE sets a standard of service that no other property management company in Phoenix can match.

With RPM EVOLVE in your corner, you can spend your precious time doing the things the matter most to you, and let us handle the day-to-day management tasks for you. We keep you protected from any liability and legal issues that may arise, and help you keep your stress levels at a minimum.

Contact us Online or call for a free quote! (602) 368-5730

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Property Management Tips

Tenants With Pets And Your Rental Property

The number of potential tenants who own pets is on the rise. These renters are looking for a safe, comfy, and accommodative rental space for their little finned, feathered, or furry friends. According to the 2019-2020 APPA National Pet Owners Survey, 67% of American households now have a pet. That evidences the rising demand for pet-friendly rentals.

But here is the thing: For reasons like property damage, some property owners are yet to take advantage of the exponential demand, and that’s quite okay! On the flip side, pet-friendly property managers or landlords can enjoy an increased tenant pool, and potentially, tenants who stay for long periods of time. One of the best ways to ensure a high ROI for your rental property is to keep it rented.

If you’re thinking about allowing pets in your rental property, here are a few tips that might help – let’s get right to it!

Make your terms clear
First things first. The clarity of your terms determines your relationship with your tenants and how they handle the pet’s behavior and health. State your terms on the lease agreement to prepare your tenants beforehand. Indicate the standard provisions like the species, age, gender, breeds, weight, and the number of pets you prefer. Again, define the pet fees and the pet owner’s responsibilities without going beyond your state law recommendations and the Fair Housing Act (FHA).

Add Pet-friendly Features
Once convinced that it’s a good idea to host tenants with pets, add a few pet-friendly features to help your rental really stand out. Try adding a wash station, a pet access door, or a feeding station. Also, don’t forget to choose a scratch-resistant and durable flooring option.

Prioritize on Security and Safety
Whether you own a stand-alone property or an apartment, renters and pet security is a priority. Many tenants with pets will give extra consideration to a rental property that has a perimeter fence to ensure pets don’t escape. You also might fence your pools and other areas in the backyard that might pose a danger to pets.

Consult RPM EVOLVE – The Property Management Experts
We understand that it might be frustrating to deal with tenants with pets and various processes to get your property running smoothly. But why stress out when you can outsource all your management work to experts and concentrate more on building your rental empire. At RPM EVOLVE, the best property management in Phoenix, we’ve got you covered.

Click here for details on the new pricing program, or call us for more information.  602.368.5730

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Property Management Tips

Property Management Tips to Remember

Residential property is an invaluable asset and renting it out is a great way to earn steady income. It also accrues value on the property by bringing in incessant returns on the investment.

Although it can be very beneficial, owning and renting out property isn’t always a walk in the park. Rental property owners and landlords have to be both financially and psychologically prepared. Here are a few tips to take into consideration prior to renting out your investment property.

Business Decisions vs. Emotional Decisions.
A rental property owner might sometimes have an emotional attachment to their property, and this can be difficult to get rid of. However, it is key to be aware of the fact that the home is a business; it is an investment, and all the stipulated business guidelines apply.

Handling Tenants as Important Clients
A tenant living on your property is your client. Because of this, they should be approached with optimal customer service. This means that you should be responsive to their needs and aware of their concerns. Show them that you care about and value them as your tenant so as to encourage them to keep renting from you.

Comprehending Legal Risks and Requirements
Understanding the current local and Arizona State tenant/landlord and real estate laws will help you avoid any potential legal violations or trouble. The laws in place need to be followed to the letter.

Hire The Best Property Management Company in Phoenix – RPM EVOLVE!
At RPM Evolve, we’ve worked without countless homeowners across the Phoenix metro area, and we have the know-how and experience necessary to help you succeed. Not only can we help you manage properties that you may have an emotional attachment to, but we communicate with your residents, handle any maintenance, and so much more. We keep you protected from liability and legal issues that may arise, and help you keep your stress levels at a minimum.

Contact RPM EVOLVE online today for a quote, or call (602) 368-5730

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