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As a property manager it’s a good idea to inspect properties regularly.

When should you inspect?

• Move In - done before a new lease begins, ensures all previous work has been completed and property is move in ready. Then again by the tenant once they move in to notate the condition of the property when the moved in.

• Annual - done with a tenant in place to note the condition of the property; one, two or even three times a year is normal.

• Move Out - accesses the overall condition once a tenant moves out

Remember a quick 5 minute inspection can prevent major expenses down the road.

This is a great time to see potentially unreported issues and point them out and advise the tenant these are things that need to be reported so they can be addresses, check for unauthorized occupants, unauthorized pets and just overall maintenance and upkeep.

In Arizona it’s important to have the right landscaping due the extreme climate and frequent droughts. Here are some common low maintenance Arizona plants to think about next time you are landscaping.

Trees:

• Palo Verde

• Mesquite

• Arizona Ash

• Willow Acacia

Shrubs:

• Arizona Rosewood

• Brittlebush

• Black Dalea

• Flame Honeysuckle

• Langman’s Sage

Perennials:

• Blackfoot Daisy

• Hummingbird Trumpet

• Mexican Hat

Cacti/Succulents:

• Blue Myrtle Cactus

• Blue Yucca

• Golden Barrel

• Desert Spoon

When it comes to pools, it’s all about safety first! Here are some common safety recommendations.

• Never leave a child unattended in the pool or pool area.

• Because flotation devices and swimming lessons are not substitutes for supervision, a child should always be watched when in or around the pool area.

• CPR/CCR instructions and the 911 emergency number (or local emergency number) should be posted in the pool area.

• A phone should be located in the pool area or easily accessible in case of an emergency.

• All residential pool owners should attend water rescue and CPR/CCR classes. Lifesaving equipment should be easily accessible and stored n the pool area.

• All gate locks and latches should be checked regularly to insure they are working properly.

• A gate should never be left propped open.

• All items that could be used to climb a pool barrier should be removed from around the barrier.

• In an emergency:

  • Shout for help;

  • Pull the child from the water;

  • Call 911 (or local emergency number) for help; and

  • After checking the child's airway and breathing, immediately begin CPR/CCR if necessary.

Arizona currently has the 22nd highest rent in the country out of 56 states and territories. In Maricopa County alone, with an estimated population of 3,817,117, the average 3 bedroom home rents for $1474. In Pima County, with an estimate population of 980,263, the average 3 bedroom home rents for $1242.

There is a high demand for 2018. This is due to two factors that will greatly impact Phoenix real estate: job and population growth. Phoenix real estate will benefit from the city’s growing economy. In 2017, Phoenix real estate investing was given a boost because of the additional 51,000 jobs added during the year. As of October 2017, Phoenix had an unemployment rate of 4.5%, the lowest the city has seen since 2007.

Phoenix has gone through a 140% increase in the number of companies that moved their location to the city, meaning good things for the Phoenix housing market.

Phoenix investment properties will be affordable, compared to the national index for housing affordability. According to the Wells Fargo Housing Opportunity Index, the national index is 58.3% for a median income of $68,000. For the Phoenix real estate market, the index is 65.8%. In comparison to other states, Phoenix investment properties will be pretty affordable for real estate investors and homebuyers.

Single family homes used as rental properties are also a good option for investing in Phoenix real estate. Real estate investors should even consider turning single family rental properties into dual occupancy rental properties to get more rental income.

Are you ready to join Arizona investors and build your wealth with real estate?

https://www.rentdata.org/states/arizona/2018

https://www.mashvisor.com/blog/phoenix-real-estate-2018/

Here are some common things that are a tenant’s responsibility when it comes to maintenance. A good rule of thumb is if anything was caused by misuse or neglect, it is the tenant’s responsibility to take care of.

1. Carpet Stains or floor damage beyond normal wear and tear

i.e. Spills, pet accidents, bleach, nail polish, etc.

2. Plumbing Clogs

Plunging/clearing clogged toilets, drains and garbage disposal

Common causes: hair, trash in disposal, floss, QTips, wet wipes (are not flushable)

3. Replacing light bulbs

To include regular and fluorescent, light fixtures, ceiling fans, refrigerator, pool, etc.

4. Change out AC Filters every 30 days

5. Replacing batteries

Including but not limited to garage remotes, smoke detectors and thermostats

6. Simple fixes

Such as resetting a breaker or GFI or reset buttons

7. Damage to walls/ceilings

i.e. drawings, scuffs, odor, etc.

There have been, and will continue to be, some big changes in the 2018 rental market. It’s important to understand the changes, meet owner and renter expectations and create a strategy.

It’s expected three specific groups will show high demand in rentals in 2018.

• Young Millenials; those who are just old enough to start renting

• Older Millenials; who are saving up for a down payment for a home

• Older Baby Boomers; who are looking to downsize

Rental analysis shows that dramatic rental increases will slow down for higher end properties. However there will be a steady increase for the low to mid-range home. Currently, there are fewer houses for sale among bottom- and middle-tier homes, which are the most affordable to new home buyers. Single-family rentals are also concentrated in the bottom tier, and activity there has increased in the past decade. This is key for landlords and investors looking for what will have the best ROI.

Rent growth, while remaining steady since 2012, is speeding up again. In general, keeping rent increase to 2-3% is favorable. Any higher and they outpace income increases. In fact, the areas where rents are increasing the most are those with good, high-earning jobs coming in.

In Arizona, you’ve either already come across these creepy crawlies, or you will!

Scorpions: Scorpions are one of the most dangerous household pests in Arizona. Their stings are painful and dangerous and they can be difficult to spot because of their translucent bodies. While most scorpions have a sting no worse than a bee, bark scorpions have highly toxic venom that requires immediate medical attention. If you have lots of shade around your yard or citrus trees in the vicinity, you need to be very careful about keeping an eye out for bark scorpions.

Ants: Ants exist nearly everywhere, but sometimes they can be dangerous! Fire ants are one of the most common household pests in Arizona. They come in massive colonies and can deliver several painful bites at a time, so you definitely don’t want them around your home, particularly if you have small children or pets! Carpenter ants can also wreak havoc on your home. This species tunnels through damp wood to build their nests, causing major damage to your home. You tend to find them in bathrooms and kitchens. If you spot them, it’s definitely time to call a professional.

Cockroaches: Pests LOVE summertime in Arizona, and will quickly invade your home if you are not careful. Since sewers and storm drains are typically their breeding ground of choice, when it rains, they look for shelter. They do not need much room to squeeze inside an area only about 1/16th of an inch (about the width of a credit card.) Cockroaches will avoid homes that have been treated for pests; but those that have not, are prime targets. Once they are inside, they will munch down on any and everything.

Termites: Termites cause billions of dollars in damages every year in the United States. They are a nationwide problem, and Arizona is no exception. In fact, Arizona sits on top of one of the most active subterranean termite belts in the US. Massive colonies of these bugs exist underground, and they can cause major damage that isn’t immediately visible.

Spiders: Arizona is home to numerous spider species, most of them large and all of them creepy! Most spiders are harmless and though their bites can be painful, they won’t cause lasting damage. The main spiders to steer clear of are tarantulas, black widows and brown recluse spiders. While tarantulas are rarely ever found in homes, black widows and brown recluse spiders do often enter homes and their bite requires immediate medical attention.

Bees/Wasps: Bees and wasps are a common occurrence in Arizona, particularly during the summer months. They can come in very large colonies or smaller occurrences, and often use homes and or surrounding trees/bushes to build their nests.

The best way to stay ahead of these pests and keep them under control is to have regular pest control service, or at the very least do regular sprays yourself.

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https://be-pest-free.com/8-most-common-pests-in-arizona/

https://be-pest-free.com/8-most-common-pests-in-arizona/

https://www.arizonafoothillsmagazine.com/features/features/9006-top-4-most-common-household-pests-in-phoenix-and-how-to-rid-your-home-of-them.html

“HOLD is a long-term real estate investment strategy to which every real estate investor should aspire.”

Utility Companies:

Electric-

SRP (Salt River Project) - 602-236-8888 (services Mesa, Gilbert, Chandler, Phoenix, Tempe, Apache Junction & Queen Creek)

APS (Arizona Public Service) - 602-371-7171 (services certain areas of Chandler, Gilbert, Phoenix, Scottsdale)

Water/Sewer/Trash -

City of Mesa - 480-644-2221

Town of Gilbert - 480-503-6800

City of Chandler - 480-782-2280

City of Tempe - 480-350-8361

City of Phoenix - 602-262-6251

City of Phoenix - 480-312-5650

Town of Queen Creek - 480-358-3450

Johnson Utilities - 480-987-9870

Gas –

Southwest Gas - 877-860-6020

City of Mesa – 480-644-2221

Internet/TV/Phone Providers (call for service areas):

Century Link - 877-720-3428

Cox Communications – 623-594-1000

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One of the simplest definitions of rental property investing is getting paid for what you own, rather than just paying to own it.

Benefits of investing in Single Family Homes:

• Income: unlike with stocks and bonds yielding about 2%, it’s possible to generate in the low double digits in returns

• Tax benefits: (https://www.tctproperties.com/blog/post/top-5-landlord-tax-deductions)

• Flexibility: unlike multifamily homes which demand upfront costs, with single family homes you can choose how many you want to add to your portfolio and your own costs

Make sure you do it right!

• Choose the right property: know what you are looking for; college town, family living, low maintenance, LOCATION, LOCATION, LOCATION, etc.

• Do the Math: make sure you understand your monthly costs and plan for maintenance costs as well. Even though it’s a rental, there is still maintenance that needs to be done and it’s important to understand and budget accordingly

• Hire a Property Manager: Shop around, find who works for you. Once you research and find companies you may be interested in, interview with them to find the perfect fit!

Are you ready to invest and start building wealth with real estate? TCT can help, call us today!

References:

https://www.forbes.com/sites/financialfinesse/2017/08/09/should-you-invest-in-rental-real-estate/#4839edf25c15

http://www.noradarealestate.com/blog/advantages-of-single-family-rental-properties/