"The real impediment to superior leadership at the local level may be that the very best qualified candidates may eschew public service." The case for effective city management and governance has been made many times by constituents in the form of an all-encompassing, compact “they did a good job” one liner pleasantry. Tasks designated to the office of multiple local agencies range from aspects such as economic development, public finance, regional transportation plans, public housing, organization and partnerships with nonprofits and business alike, education oversight as well as common dealings with the legal system and the rule of law. With so many factors concentrated within governance, I know most find it easy to simply announce that a certain person has performed well enough in either an elected or hired position in government, but the fact of the matter is the overlooked nuances of what a representative may have accomplished while in the position of power. It is unfortunate to behold, but local elections and politicking in one’s direct area are so very often overlooked and this may prove to be the tragedy of our time. It is the case that we see greater turnout in presidential elections, even though those who know better, understand that state judicial appointments, congressional races and proposition or referendum votes have so much more of a tangible impact on our lives.
Monday, December 17, 2012
Why the Suburbs?
Technology and development has allowed for highways, transit among other factors to further integrate the urban and suburban lifestyles. Now the employed can raise a family in a safer, nurtured environment, have larger lots of land and home square footage, all while retaining a job in the central city. This realization comes from very obvious changes in American mentality and over time the conditions that allowed for cities to become central to the lives of residents in a region, differing circumstances allowed for the proliferation of satellite suburbs to spring up around an urban core, retaining an important integration with the economic center, all while enabling a new class of people to live away from where they work.
Individuals and Businesses as Catalysts for Prosperity
Economic detriment to inner city areas is a result of high concentration of lower income recipients, and the reality of inequality is realized when social factors encouraged once job creators and employees alike to relocate from within the city. Unemployment and underemployment are two of the major causes of urban crisis, for example here in Phoenix, affirmed by tangible decreases in living standards, overlooked infrastructure, crime and violence and overcrowding. Incidence of negative associations within inner cities essentially drove out the businesses and employers to higher income areas farther and farther away from the core to the suburban areas, namely Chandler, West Valley cities or Scottsdale. However, through policy, conditions can be improved but knowing this, responsibility still must fall to the individual to engage with the community and be the leader that can work with others to improve the lives of all residents in a center city. Bringing about policy initiatives to help spur employment and thus prosperous conditions in an area are key factors in urban renewal.
Twenty-Four Lane Stretch of I-10 in the Near Future?
An interconnected highway network gives rise to commerce and ease of travel for area residents; this also bodes well for Arizona when travelers frequent the area. In 2004, constituents voted to pass another Prop 400 1/2 cent sales tax to further fund county highways and provide widening and maintenance services. This brought the city sales tax from 2 percent to 2.5 percent, while the total sales tax - including county and state - would rise to 9.6 percent. Utilizing this renewed revenue stream, Phoenix was able to also implement a largely successful Light Rail system through the core of the city, which has plans for further expansion in the near future. At this time, Phoenix is nearly at critical mass when it comes to further construction of freeways within the core. So excessive became our needs that the ‘Broadway Curve’ as it is known in the Valley was under consideration for being widened to 24 lanes (to which many cried foul) where existing lanes would be complimented by outer six lanes only allowing access to adjacent arterial roads in Tempe. A renewed urban mindset however, with efforts in the downtown area thriving, could give rise to an increased interest by Phoenicians to further embrace ideas regarding mass transit. Although not the most swift method, the Light Rail, especially if expanded, has potential to carry thousands per day and move our working class citizens away from the freeways and towards a sustainable and more reliable transportation system.
Phoenix's Automobile Dependence
The capacity for Phoenix to use its land wisely was often lost to an attempt for development on cheap land and existed as a proponent for building looping freeways to connect the sprawled city. I think this was one of the most major challenges facing the city in its relatively short history. When a fire in 1947 destroyed the better part of a once operational street car, the city opted to move forward by focusing building efforts in support of the automobile. The planning it would have taken to implement policy and schematics from which to derive a conducive plan for transit would involve multiple city government departments of planning, or the Maricopa Association of Governments. In 1985, voters in Maricopa county were presented with Proposition 300, or the Maricopa County Transportation Excise Tax, which levied a sales tax on transactions in the nature of retail, contracting, utilities, rental of real estate, bar and restaurant receipts, among other activities. Prioritizing public works, addressing transportation need problems and implementation policy rested with the City Councils, and their adoption and recording of a passed proposition. Planning processes as well as capital improvement plans were undertaken by the municipalities and contracted consulting to help ensure that these transportation networks maintained economic feasibility.
Humble Beginnings
Even from it’s humble beginnings, Phoenix has leapt and bound to becoming a large metropolitan area and major economic player in today’s day in age. In 1881, the city was incorporated into a municipality and from there sped onto becoming one of North America’s most well managed cities and one whose residents take pride in both their occupations as well as communities. The sprawl that is usually associated with the Phoenix Metropolitan area evolved out of the merging of smaller, satellite communities with the likes of others adjacent to Phoenix. The major players in industry here include the five c’s: cotton, cattle, climate, copper and citrus who along with the military presence in the previous three air force bases gave character to the region and steered the direction of growth.
Newtown, Connecticut and Ramifications for Gun Control
The past events this weekend taking place at Sandy Hook Elementary in Newtown, Connecticut has brought to light a pressing issue in American policy. On the morning of December 14th, a gunman entered an elementary school and proceeded to murder, in cold blood, 20 children and seven adults. Proponents of gun control will now use this incident as a springboard to further the attempts at legislation that would inhibit gun ownership for citizens around the country. As of Saturday the 15th, California Senator Diane Feinstein declared she would move to bring about legislation to restrict assault weapons for civilian ownership. It is this kind of public discourse and emotion that is utilized to advance ideologies of those with little respect for the second amendent to our constitution. A liberal bias is now developing and support for stringent gun control measures is backed up by incidences like this, or the Aurora shootings or Columbine or Fort Hood. Notice however that these are all places where federal law bans guns. The problem with gun control is precisely the wording; the control cannot be maintained for criminals acting out of compliance of the law. Had the principal or a lone security officer possessing a firearm been present that day, 27 lives may have been spared.
Sunday, December 16, 2012
Weekend in Dallas
This weekend I took my first vacation of the semester to Dallas. A city I've never visited, Dallas is now the farthest east I've ever traveled in the US, and I have to say the downtown area seems to be at least semi lively for a large American downtown area. My friend and I stayed at the Hyatt Regency off of Reunion Boulevard on the southwest side of the downtown loop. The complex maintained a room count of 1200 and goes to show the venue and most likely the surrounding area has a large capacity for travelers and capabilities to hold conventions. It wasn't particularly difficult to find places to eat, however traveling on foot or utilizing public transit was fairly accessible. Overall a great city to visit, the hotel hosted nearly 800 dancers from around the country in an event called The Pulse On Tour. By the end of the weekend, the friend I traveled with had taken a variety of classes and was offered a scholarship to a Pulse event in either Seattle, Las Vegas or San Francisco, all taking place in the beginning of the 2013 season. An exciting weekend, I would like to see more of what Texas and Dallas have to offer, but I would definitely visit again!
Monday, December 10, 2012
Professional Landlords
Phoenix area property management companies have a lot to offer when it comes to managing a property. The industry itself has grown into a large and profitable business model in part thanks to the housing bubble and what many homeowners have gone through around the country with regards to not affording their mortgages, many of whom actually are underwater. When push comes to shove and property values not nearly where they were prior to the financial meltdown, many folks are opting to utilize services of a property management company to rent a property out at an appropriate price in order to maintain an income. Keep in mind properties can be rented out in a very timely manner, whereas homes can take months to sell.
Placing a tenant can be quite the task as well when transitioning from living in a property to renting it out for income. Property management companies, like Renters Warehouse, are ideal for utilizing services such as tenant placement as well as managing a property. With management, usually paid out of rent in a monthly fee, ensures that your property is handled throughout the course of its tenancy and that the tenant is managed too. All concerns to finance or rent collection are handled at the management level, in addition to maintenance and repairs which is why it is so helpful for owners to embrace a tool to make their lives easier.
No one can predict whether or not a property will be quite the same when a tenant comes upon the end of their lease, so if the case arises where damage is incurred or there does seem to be problematic aspects of the property, management handles all dispositions and maintenance.
Placing a tenant can be quite the task as well when transitioning from living in a property to renting it out for income. Property management companies, like Renters Warehouse, are ideal for utilizing services such as tenant placement as well as managing a property. With management, usually paid out of rent in a monthly fee, ensures that your property is handled throughout the course of its tenancy and that the tenant is managed too. All concerns to finance or rent collection are handled at the management level, in addition to maintenance and repairs which is why it is so helpful for owners to embrace a tool to make their lives easier.
No one can predict whether or not a property will be quite the same when a tenant comes upon the end of their lease, so if the case arises where damage is incurred or there does seem to be problematic aspects of the property, management handles all dispositions and maintenance.
Saturday, December 8, 2012
Occupied Property Showings
So the time has come for you to market your property for rent, but it is in fact still occupied. The current tenants have decided not to renew their lease or sign a new lease and will be moving out of the rental home. The problem many homeowners have is showing a property with the current residents and the condition that the home may be in upon showing it to the first prospective tenants. The best way to go about hinting to the current tenants is to follow up 60-90 days prior to their move out to reiterate to them the coming showings.
In the lease there may be a clause defining a set of time where the owner has access to the home nearing the close of the the lease. The tenant must approve entry of course, however showings while it is occupied saves future cash flow from a potential period of vacancy. Property management companies are especially mindful of this factor and are sure to begin the applicant process while current tenants are in place.
In the lease there may be a clause defining a set of time where the owner has access to the home nearing the close of the the lease. The tenant must approve entry of course, however showings while it is occupied saves future cash flow from a potential period of vacancy. Property management companies are especially mindful of this factor and are sure to begin the applicant process while current tenants are in place.
Lease Addendums
For property owners looking to rent out a property, signing a lease may involve using a standard lease, for example, a state document or a detailed one from a property management company.
Dependent on the tenants requests or your own requests, there are ways to add additional provisions to the lease with the use of lease addendums. These forms state specific provisions you would like to be included as part of the lease. Addendums are used to include provisions such as a landlord request that a tenant pays the final month’s rent at move in, allowing the tenants to install a fence, or allowing the tenant use of a landlords item left at the property.
Lease addendums are documents added to the lease and will be signed by both the landlord and tenant. Adding a lease addendum allows additional provisions to be legally binding that a standard lease may not contain. This oftentimes is simply a letter headed document or attachment, but both parties signatures and date is a requirement for legal documentation.
Dependent on the tenants requests or your own requests, there are ways to add additional provisions to the lease with the use of lease addendums. These forms state specific provisions you would like to be included as part of the lease. Addendums are used to include provisions such as a landlord request that a tenant pays the final month’s rent at move in, allowing the tenants to install a fence, or allowing the tenant use of a landlords item left at the property.
Lease addendums are documents added to the lease and will be signed by both the landlord and tenant. Adding a lease addendum allows additional provisions to be legally binding that a standard lease may not contain. This oftentimes is simply a letter headed document or attachment, but both parties signatures and date is a requirement for legal documentation.
Rental Demand - Supply of Property
Phoenix, as we all know to be a very unique market, has seen continual growth and increases in rental rates and property values, albeit minor increments, over the last few years. Foreclosures still plague the state and by extension the overall comfort with Phoenix as an investment market remains to be skeptical, but special considerations make a strong case for the Valley of the Sun. Considering the overwhelming population of college students attending any one of the ASU campuses (70,000 student enrollment), Grand Canyon University (40,000 student enrollment), any of the Maricopa Community Colleges (260,000 student enrollment), along with many other educational institutions, Phoenix remains an educational stronghold, where an often overlooked market segment makes up a sizable proportion of renters in Maricopa County.
Many young graduates do not have the money or sufficient credit to purchase a home right out of college. With ballooning inflation and subsidization from the federal government practically inundating students in unrealistic debt amounts through their twenties, these young adults will look to put off ownership for potentially many years to come. So these new graduates turn to renting, the only other viable option besides relocating home with their families.
The main thing for rental property owners and property management companies to know is that with each year that passes, a new influx of renters are hitting the market. Regions of the metro area in close proximity to educational institutions will fare better than areas who might not be as close to universities or other strong commercial zones. This means that the rental market will always be a strong industry and for those looking to purchase rental properties as investments, you will have the peace of mind of knowing that renters will never go away, especially young renters who are beginning their careers.
Rental Application Crooks
Property management companies or their agents operating under them are the first line of defense when selecting prospective tenants. Ensuring the placement of a responsible, well to do tenant is an integral part of having a consistent cash flow and proper maintaining of your rental property. A recent poll concluded that one of every ten applicants for rental properties admitted to falsifying one or more portions of a rental applications.
Watch out for the following red flags when reviewing applications -
Social security number not valid: Credit checks allow for a broad spectrum overview of potential tenants from criminal history, to employment to ability to pay bills and manage finances. If on the application there is no number or multiple factors cited in the social security number check, the prescribed solution is usually just to move on to the next qualified applicant.
No bank account: To operate and function in today’s society, it is nearly a requirement to have and utilize a banking or checking account. Most transactions now take place using accounts and digital transfers of funds. If a prospective tenant does not offer up this important detail, keep in mind that there exists the possibility of illegal activities if cash is the desired payment method.
No current address: every screened tenant has to live somewhere. If this information isn’t provided, it may mean that they have liable past experiences with previous landlords or difficulty in paying bills and making payments in a timely manner. This too includes taking caution with inaccurate contact information for previous landlords or HOA’s.
Watch out for the following red flags when reviewing applications -
Social security number not valid: Credit checks allow for a broad spectrum overview of potential tenants from criminal history, to employment to ability to pay bills and manage finances. If on the application there is no number or multiple factors cited in the social security number check, the prescribed solution is usually just to move on to the next qualified applicant.
No bank account: To operate and function in today’s society, it is nearly a requirement to have and utilize a banking or checking account. Most transactions now take place using accounts and digital transfers of funds. If a prospective tenant does not offer up this important detail, keep in mind that there exists the possibility of illegal activities if cash is the desired payment method.
No current address: every screened tenant has to live somewhere. If this information isn’t provided, it may mean that they have liable past experiences with previous landlords or difficulty in paying bills and making payments in a timely manner. This too includes taking caution with inaccurate contact information for previous landlords or HOA’s.
Questions To Ask Previous Landlords
The entire tenant placement process can be a long and difficult one. Properly equipped property managers have the resources and manpower to get your home rented and occupied as soon as possible, and can do so much more swiftly than by yourself or using a realtor.
Below are some examples of questions to be used when seeking a qualified applicant for a rental property. This will allow you to get a better understanding of the tenant and their past habits, whether special considerations need to made before approving or not.
-Did the tenant pay rent and if so, was it made in full as well as in a timely manner? These are two very important questions to inquire about with prior landlords.
-Did the tenant take good care of the property and uphold dwelling unit as clean and safe as the condition of the premises permits? The last thing any property owner or management team would want is a tenant that damages or is negligent with your property. Be sure to inquire whether or not any of the security deposit was forfeited for damages to the rental property that may be a red flag for you in your decision making.
-Was the tenant in anyway uncooperative through the duration of the lease or otherwise disruptive in the rental home? Tenants who continually receive neighbor complaints, homeowner association warnings or have city violations including noise ordinance issues probably need to be evaluated prior to entering into a lease with them.
-Would you rent to this tenant again? The final summation of the tenant history or at least a part of, can be ascertained by the most recent landlord. This question takes into account most of what the previous landlord dealt with while renting to the applicant tenants. If the answer sounds to be less than yes, move on to the next applicant!
Below are some examples of questions to be used when seeking a qualified applicant for a rental property. This will allow you to get a better understanding of the tenant and their past habits, whether special considerations need to made before approving or not.
-Did the tenant pay rent and if so, was it made in full as well as in a timely manner? These are two very important questions to inquire about with prior landlords.
-Did the tenant take good care of the property and uphold dwelling unit as clean and safe as the condition of the premises permits? The last thing any property owner or management team would want is a tenant that damages or is negligent with your property. Be sure to inquire whether or not any of the security deposit was forfeited for damages to the rental property that may be a red flag for you in your decision making.
-Was the tenant in anyway uncooperative through the duration of the lease or otherwise disruptive in the rental home? Tenants who continually receive neighbor complaints, homeowner association warnings or have city violations including noise ordinance issues probably need to be evaluated prior to entering into a lease with them.
-Would you rent to this tenant again? The final summation of the tenant history or at least a part of, can be ascertained by the most recent landlord. This question takes into account most of what the previous landlord dealt with while renting to the applicant tenants. If the answer sounds to be less than yes, move on to the next applicant!
Monday, November 26, 2012
Legality of Landlord Accessing Property
Many landlords who own rental properties are not always fully aware what they legally can and cannot do when it comes to the rights of their tenants. If you own a rental property in Arizona, or greater Phoenix Metropolitan area, you will want to ensure understanding of things landlords can and cannot do. Any professional property management company understands provisions and requirements of the local tenant and landlord acts, so inquire if you’re ever not certain.
Article 3. Tenant Obligations; Access § 33-1343
B. if the tenant notifies the landlord of a service request or a request for maintenance as prescribed in section 33-1341, paragraph 8, the notice from the tenant constitutes permission from the tenant for the landlord to enter the dwelling unit pursuant to subsection D of this section for the sole purpose of acting on the service or maintenance request and the tenant waives receipt of any separate or additional access notice that may be required pursuant to subsection D of this section.
C. the landlord may enter the dwelling unit without consent of the tenant in case of emergency.
D. the landlord shall give the tenant at least two days’ (48 hours notice) of the landlord’s intent to enter and only enter at reasonable times.
Article 4. Remedies; Tenant’s remedies for landlord’s unlawful ouster, exclusion or diminution of services § 33-1367
If the landlord unlawfully removes or excludes the tenant from the premises or willfully diminishes services to the tenant by interrupting or causing the interruption of electric, gas, water or other essential service to the tenant, the tenant may recover possession or terminate the rental agreement and, in either case, recover an amount not more than two months’ periodic rent or twice the actual damages sustained by him, whichever is greater.
Article 3. Tenant Obligations; Access § 33-1343
B. if the tenant notifies the landlord of a service request or a request for maintenance as prescribed in section 33-1341, paragraph 8, the notice from the tenant constitutes permission from the tenant for the landlord to enter the dwelling unit pursuant to subsection D of this section for the sole purpose of acting on the service or maintenance request and the tenant waives receipt of any separate or additional access notice that may be required pursuant to subsection D of this section.
C. the landlord may enter the dwelling unit without consent of the tenant in case of emergency.
D. the landlord shall give the tenant at least two days’ (48 hours notice) of the landlord’s intent to enter and only enter at reasonable times.
Article 4. Remedies; Tenant’s remedies for landlord’s unlawful ouster, exclusion or diminution of services § 33-1367
If the landlord unlawfully removes or excludes the tenant from the premises or willfully diminishes services to the tenant by interrupting or causing the interruption of electric, gas, water or other essential service to the tenant, the tenant may recover possession or terminate the rental agreement and, in either case, recover an amount not more than two months’ periodic rent or twice the actual damages sustained by him, whichever is greater.
Insuring Phoenix Rental Property
Rental properties are significant investments that provide income for many years. Through the ins and outs of life however, man made or spontaneous acts of nature, pose as potential hazards that can damage the property itself or the integrity of the rental income. If opting to use a property management company, they will be much more informed about directing you to the kind of insurance needed for your rental property.
The type of insurance needed for rental property is called landlord insurance which covers most financial losses incurred in case of an accident. The building is covered at the most basic coverage however, some policies allow for an expansion for insured items. These include fire, earthquake, flooding, explosion, storm, lightning, subsidence, malicious damage as well as theft. Keep in mind however that each insurance company and respective tailored policies may differ.
Landlord insurance is typically 15%-20% more than a typical homeowners insurance policy. Insurance is of course associated with risk, which is why this type of insurance is usually more costly. If a property management company is in the picture, often times they will have a prescribed insurer ready to refer that specializes in rental property insurance, sometimes even with discount. Phoenix requires rental properties to be registered with the Maricopa County Assessor, given that only some management companies require renters insurance, it is most certainly a highly recommended insurance.
The type of insurance needed for rental property is called landlord insurance which covers most financial losses incurred in case of an accident. The building is covered at the most basic coverage however, some policies allow for an expansion for insured items. These include fire, earthquake, flooding, explosion, storm, lightning, subsidence, malicious damage as well as theft. Keep in mind however that each insurance company and respective tailored policies may differ.
Landlord insurance is typically 15%-20% more than a typical homeowners insurance policy. Insurance is of course associated with risk, which is why this type of insurance is usually more costly. If a property management company is in the picture, often times they will have a prescribed insurer ready to refer that specializes in rental property insurance, sometimes even with discount. Phoenix requires rental properties to be registered with the Maricopa County Assessor, given that only some management companies require renters insurance, it is most certainly a highly recommended insurance.
City of Phoenix Rental License FAQ's
If you own a home in the city of Phoenix, and have decided to rent it out, you are required to have a rental license for the property. The city of Phoenix Neighborhood Services department requires that residential rental properties occupied or listed for rent be registered at the Maricopa County Assessors Office, even if the tenant is a family member. Among the regulations, rental units must be registered within 10 days of any changes in status or contact information.
How do I change the mailing address for the owner of the license? Or how can I update my other contact information?
A request to change the address must be submitted in writing and mailed to the Maricopa County Assessor at 301 W Jefferson St Phoenix, AZ 85003. The phone number is (602) 506-3406 if you have further questions.
My rental property is vacant or has changed to owner occupied - what should I do?
The owner must notify the department in writing at the County Administrative Building, 301 W Jefferson St Phoenix, AZ 85003 that they wish to close a rental license.
I’m no longer the property manager, what do I do?
The property manager must notify the Maricopa County Assessor at the County Administrative Building, 301 W Jefferson St Phoenix, AZ 85003 that they are no longer involved with the property.
To change a property manager, a new updated application signed by the owner, signed and notarized by the new manager, must be submitted the the department.
Why did I receive this bill? Or, why didn’t I receive my bill?
The Annual Renewal Bill is mailed in November each year. The license expires at the end of every December as part of the fiscal year. The county on the whole does not pro-rate.
The bill is sent to the contact/manager address provided by the owner on their application. If the address or contact information has changed, the owner must notify the Maricopa County Assessor at the County Administrative Building, 301 W Jefferson St Phoenix, AZ 85003. Their contact number is (602) 506-3406.
Do I need a rental license if I have a roommate?
If the property is occupied by an owner with either a roommate or family member, a rental license is not required. However, the number of roommates you have is limited by Housing and Zoning codes.
How do I change the mailing address for the owner of the license? Or how can I update my other contact information?
A request to change the address must be submitted in writing and mailed to the Maricopa County Assessor at 301 W Jefferson St Phoenix, AZ 85003. The phone number is (602) 506-3406 if you have further questions.
My rental property is vacant or has changed to owner occupied - what should I do?
The owner must notify the department in writing at the County Administrative Building, 301 W Jefferson St Phoenix, AZ 85003 that they wish to close a rental license.
I’m no longer the property manager, what do I do?
The property manager must notify the Maricopa County Assessor at the County Administrative Building, 301 W Jefferson St Phoenix, AZ 85003 that they are no longer involved with the property.
To change a property manager, a new updated application signed by the owner, signed and notarized by the new manager, must be submitted the the department.
Why did I receive this bill? Or, why didn’t I receive my bill?
The Annual Renewal Bill is mailed in November each year. The license expires at the end of every December as part of the fiscal year. The county on the whole does not pro-rate.
The bill is sent to the contact/manager address provided by the owner on their application. If the address or contact information has changed, the owner must notify the Maricopa County Assessor at the County Administrative Building, 301 W Jefferson St Phoenix, AZ 85003. Their contact number is (602) 506-3406.
Do I need a rental license if I have a roommate?
If the property is occupied by an owner with either a roommate or family member, a rental license is not required. However, the number of roommates you have is limited by Housing and Zoning codes.
Investment Property
When the general public considers investments, most think of stocks, bonds and precious metals, whereas with property most may not maintain that exact same mentality. With recent downturns in the real estate market, buying a house is a better investment than ever. And here’s why. You might buy a home tomorrow and see the price of homes decrease, however they are on lowest levels they can be; the market has a bottom out point, and we know that has been reached when property values show signs of increase. If an owner opted to turn the home purchase into a rental property, it becomes an even better investment!
The difference when looking at housing as an investment as opposed to an occupied home, is that financing the investment comes from a mortgage and a down payment, usually between 3.5% and 20%. An investment into a stock generally is financed with 100% of available funds. However each year that goes by, equity increases in the property. Evidence from current trends in multiple markets across the country lend credibility to support for investing in property.
Many homeowners today who are not able to sell their homes have turned to renting them out for monthly cash flow. These same people have seen that with the volatility of the market, buying homes and renting them out can be a great investment, while buying many homes proves advantageous for even greater monthly cash flow. With the help of a property management company to manage these rentals, hoe investors have the time to have a full time job and maintain multiple successful rental property investments.
The difference when looking at housing as an investment as opposed to an occupied home, is that financing the investment comes from a mortgage and a down payment, usually between 3.5% and 20%. An investment into a stock generally is financed with 100% of available funds. However each year that goes by, equity increases in the property. Evidence from current trends in multiple markets across the country lend credibility to support for investing in property.
Many homeowners today who are not able to sell their homes have turned to renting them out for monthly cash flow. These same people have seen that with the volatility of the market, buying homes and renting them out can be a great investment, while buying many homes proves advantageous for even greater monthly cash flow. With the help of a property management company to manage these rentals, hoe investors have the time to have a full time job and maintain multiple successful rental property investments.
Homebuying in Phoenix
Questions often asked by prospective homeowners seek to gain a better insight into the market and of these typical inquiries is the renowned “when is the best time of year to purchase or renting a home?” In Phoenix, specifically we have the climate factor that very easily determines much of the business that occurs in the real estate sector where spring, typically January through May, become a common spree for many realtors in the Valley. Many factors are to be considered when deciding to move forward with a listing, as the time of year even affects how long it sits on the market which is important to uphold credibility to the listing agent or management company and their accuracy in determining proper list price or market rent amount.
College students will be looking for homes to settle in at the tail end of the spring, as well as families finishing the school year, which in and of itself, the academic calendar has great implications on the housing market in certain municipalities. The mild weather in the valley during these months make it easier to go through the entire moving process, where as many know that relocating in the the 110 heat in July is the most unfavorable scenario. If you end up leasing for example in one of the spring months, this allows you to market in late winter, where in Phoenix of course tends to be very mild. Hiring a Phoenix area property management company for tenant placement can help you fill a vacant property faster as they have the market power to help find a qualified tenant in a more appropriate amount of time to minimize months of vacancy.
College students will be looking for homes to settle in at the tail end of the spring, as well as families finishing the school year, which in and of itself, the academic calendar has great implications on the housing market in certain municipalities. The mild weather in the valley during these months make it easier to go through the entire moving process, where as many know that relocating in the the 110 heat in July is the most unfavorable scenario. If you end up leasing for example in one of the spring months, this allows you to market in late winter, where in Phoenix of course tends to be very mild. Hiring a Phoenix area property management company for tenant placement can help you fill a vacant property faster as they have the market power to help find a qualified tenant in a more appropriate amount of time to minimize months of vacancy.
AZ Renters Insurance
Renters insurance is often a policy that many overlook or do not even know what it covers, or how to go about initiating it on their rental property. Renters insurance is not required by Arizona state law in order to enter into a lease, however many property owners and management companies may require it as part of the lease agreement. Not only will it protect personal items in the rental property but also will cover accidental liability protection for injuries in your home and even cover temporary housing. Renters insurance is very cheap compared to other types of policies but is one that is perhaps best equipped to cover your personal belongings both expensive as well as sentimental.
Along with personal property it covers living expenses, and injury liability for those who may have been present at your property and accidentally injured. There are four main factors that affect differing prices in renters insurance; deductible, actual cash value/replacement cost, dollar amount of coverage and of course location of the property. Ensure when shopping around for policies to take the time to look for price and coverage that specifically caters to your needs.
Along with personal property it covers living expenses, and injury liability for those who may have been present at your property and accidentally injured. There are four main factors that affect differing prices in renters insurance; deductible, actual cash value/replacement cost, dollar amount of coverage and of course location of the property. Ensure when shopping around for policies to take the time to look for price and coverage that specifically caters to your needs.
Friday, October 5, 2012
The Angry Side of Tenants/Owners
So at this time, Renters Warehouse has over 300 properties under management. Among those approximately 270 are leased up and have tenants currently residing in the properties. Oftentimes it seems that pleasantries are completely overlooked, so when the time comes for any form of communication with either tenants or owners, it is only when there is a problem. Of course as we all know, when problems arise in service industries those submitting a complaint are not pleased with a set of circumstances. The positive phone calls and emails are few and far between, so when my team gets those, it makes the day go by a little better. I've heard shouting matches from opposing viewpoints and maybe one is more right than the other, but in the end contracts and business rule out the personal relations. I strive to be as positive as I can and deliver the customer service I know how to exhibit, even when the atmosphere can oftentimes seem strained. We have a really good management crew and I have to say through it all, we end the weekdays on a positive note.
Monday, September 17, 2012
First Impressions
Considering my lack of recognition of certain areas in the real estate industry, my main concern at this time is finding what I do and don't enjoy. As a senior, were oftentimes hard pressed to find something right out of school which is of course ideal, but I find it hard to believe that most of my peers can say with certainty that they wish to work for corporation x as a __________. For me, landing in a property management company as an intern is just the right dosage of understanding in the overall going ons of management and what it entails. Suffice it to say it is the ugly, hairy sibling of agent sales or purchases.
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