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Author: AZPBAdMin

Property Management Fees for Rental Properties – What to Expect in Phoenix

Posted on by AZPBAdMin

When you’re looking for professional property management in Phoenix, you need to know what you can expect to pay for these services. Phoenix is a hot market for investment properties right now. That means a lot of companies are in the valley, offering services for the professional management of single family homes. Each company sets its own fee structure. Sometimes, it’s a percentage of the income collected, and sometimes it’s a flat monthly fee. The most important thing to evaluate when you’re comparing companies based on price is what you can get for the fees paid to a property management company.

Property Management Fees and Extra Charges

Consider whether everything is included in your management fee, or if you’re being charged for services like maintenance coordination. Sometimes, a management company will take a percentage of a vendor’s invoice. So, the management company receives a percentage of your bill and then the vendor gets the rest. You might be charged for lease renewals and inspections.

Tenant Charges

You also need to know what kind of services your tenants are being charged for. They might have to pay to have their rent processed every month, and there might be other charges on top of what they pay for rent. This may feel differently to you because you’re not the one being charged out of pocket, but it still makes a difference to you and your property when your tenant is being charged for services they need to have while living in your property.

Ancillary Services and Fees

The ancillary services that some property management companies charge for can be pretty extensive and detailed. For example, you might have to pay for the 1099s that are issued at the end of the year. The most important thing is knowing the gray areas of your property management agreement. Find out what will be charged for services outside of that scope.

Most property management companies even out at the end of the day. You need an advocate to protect you and your property. We take over properties that have been mismanaged, and we know it has a huge financial impact on you.
If you have any questions about management costs or Phoenix property management in general, please contact us at Phoenix Property Brokerage.

Tenants Not Paying Rent? Phoenix Property Management Advice about What to Do

Posted on by AZPBAdMin

The most important and most difficult thing you’ll do when you have a tenant who isn’t paying rent is to take emotions out of the situation. Assuming you did not purchase this property for charitable causes, you aren’t in the business of providing free housing.

Serve a 5 Day Notice

If your tenant isn’t paying rent on time, you’re probably being avoided. Or, you’re hearing promises that rent will be paid on a certain date later in the future. You need to issue a legal notice. This is important whether you want to evict the tenant or not. This 5 Day Notice gives you the legal grounds to remove the tenants if they don’t manage to get rent paid. If you do not personally serve this notice to your tenants, the court will add an additional five days to allow for service. So, you have 10 days before you can get a court date. Time is of the essence. If done quickly, a complete eviction can take one month.

Habitually Late Tenants

You may have tenants who habitually pay late. Even if you’re used to it, and okay with it, you should still serve the notice every time rent is late. These situations, in my experience, always result in an eviction at some point. So, do yourself a favor and serve the notice. It will put you ahead of the process if you do ultimately have to evict.

Tenant Screening

The best way to avoid these situations is with good tenant screening. Credit checks and rental verifications go a long way. Make sure you aren’t just calling a current landlord. Call the last two landlords.

Remember to stay neutral and keep the situation black and white. It is possible to be compassionate and firm at the same time. Set your boundaries and be consistent. Hire a professional Phoenix property management company if you find you cannot enforce the timely payment of rent.

If you have any questions about rent collection or anything pertaining to property management in Phoenix, please contact us at Arizona Property Brokerage.

Deborah Silacci

Posted on by AZPBAdMin

Deborah Silacci has specialized in real estate for over 40 years. At 22-years-old, she put together her first partnership fixing and flipping houses. At 24, Deborah and a partner purchased over $1,000,000.00 of multi-family units in California using strategic financing where she was in charge of management. Deborah emerged from this with the skills to become one of the most sought after managers and shortly thereafter became known for her expertise in analyzing small investments and teaching others how to manage properties.

Deborah worked with John Hall & Associates for over 20 years, selling real estate as well as managing a diverse residential and multi-dwelling portfolio valued at more than 40 million dollars. In 2011, Deborah opened Arizona Property Brokerage. Today, Arizona Property Brokerage specializes in residential sales as well as single and multi-family property management. Deborah holds active broker’s licenses in the state of Arizona and state of California.

Deborah is the past chairperson for Independent Rental Owner Council (IROC), member of Arizona Multihousing Association (AMA), National Apartment Association (NAA), National Association of Realtors (NAR) and Phoenix Association of Realtors (PAR).

Why Hire A Professional Property Management Company In Phoenix, AZ?

Posted on by AZPBAdMin

There are a lot of great reasons for why you should hire a professional Phoenix property management company to manage your investment property. Potential clients often come to us after self-managing their homes with the same problems. The property is under-managed and in disrepair, so it will cost thousands of dollars to bring it back to market. Tenants are often several months behind in rent because they’ve told the landlord about their family member who died or their car that broke down. Owners feel bad for their tenants, and so those renters end up several months in arrears in a property that needs a lot of work. This is our favorite type of property to manage.

Improving Investment Performance

We have spent years turning properties around. We work together with the tenant and the owner to come up with the best solution possible. Sometimes the tenant stays. We bring the rent current and get the property into good shape. Other times, the tenants need to leave and we start from scratch. We go through the property and tell you what it will take to get it market-ready, and we move quickly. We advertise and market with various channels that reach every possible tenant. Our advanced marketing system allows us to collect feedback from each person who views your home. This helps us tackle potential barriers immediately.

Screening and Leasing

We thoroughly screen each application. Any tenant who is 18 years of age or older must submit a separate application. This allows us to check for criminal history, credit issues, bankruptcies, and evictions. We contact their current and previous landlords and talk to their current employers.

Once a tenant is approved, we use an attorney-reviewed lease agreement to further protect your investment. We also perform in-depth move-in inspections and collect substantial security deposits.

Technology and Vendors

Innovative technology allows your tenants to apply online, make rent payments online, and submit service requests online. You’ll also have access to your property through an owner portal that lets you see statements and accept our direct deposits into your bank account.

Outstanding vendor relationships means better service for tenants. Happier tenants are more likely to take care of the property and pay rent on time. Our vendors offer us discounts, which we pass on to you, and we never upcharge your maintenance invoice. We take care of all HOA issues and physically inspect your property regularly. Our full service accounting department is effective at rent collection.

Do you want a team that’s 100 percent licensed and has served in various organizations in real estate and property management? We have various degrees, including an MBA, and this is our full time job. We know that time is money, and professional management can save you both time and money.

If you have any questions about the value of having a property manager or anything pertaining to property management in Phoenix, please contact us at Arizona Property Brokerage.

The Lease Comes WITH The Deal?

Posted on by AZPBAdMin

Let’s assume you are a seasoned landlord. All your files are organized storing tenants information, where they work, emergency numbers, lease, and addendums, everything you need to secure your position as a landlord. In the best situations things can go wrong, however with a well organized file you minimize risk.

When a rental property is purchased it includes the existing lease. You may think the property is yours to do with what you want beginning the moment the deed is recorded; not totally. Review the lease in place; you are bound to it until the expiration date. In the event you have a good lease, I would suggest you replace the lease and addendums as soon as time permits. This brings me to my living example.

During the initial walk through I noted the tenant had been there for 3 years and I assumed that was the last time the plant shelves were clean. There was a faint odor of cat urine . . . looked much lived in. Over time we grew accustom to each other, the tenant paid the rent and we took care of maintenance issues we were told about. It wasn’t until we were ready to start bringing the rent closer to market when the fur started to fly.

The new lease was sent certified mail in June. Although the tax assessor recognizes the address it seemed the postman couldn’t find it and returned the package. Next we remailed it and followed up trying to set up an appointment to go over it and do an annual walk through. Keep in mind your time line. In the event monthly rent is due on the 1st of the month notice must be given prior to the 1st to change any provisions 30 days or more in advance. Then the monsoon season hit. It has been my experience that if your home is 10 years or older, this is about the time you find out if the secondary pan in the attic was installed correctly. There is a drain which runs from the condenser, in this case in the attic, to the ground outside eliminating the moisture in the air. When that drain gets clogged the water backs up and goes into a secondary pan. If the secondary pan is not installed correctly the water begins to pour through the ceiling; as it did in this home. The tenant was uncooperative with the repairman, not wanting anyone in the house with his daughter and refusing to make other arrangements for her. Eventually the repair was taken care of. This is considered an emergency repair which allows the landlord to access the property without 48 hour notice, however, in real life when you have an uncooperative tenant it isn’t as easy as walking in. The tenant then accused me of raising the rent (which was still substantially under market) because he called in a repair. That too is against the landlord/tenant act. My time line proved without a shadow of a doubt that wasn’t the case. Fortunately, for all of us this tenant is moving within 30 days and the property will be brought back up to standard and leased at market value.

Hindsight is better than 20/20. I now will personally hand a newly aquired tenant my lease and addendums in advance when doing the initial walk though. The tenants will be advised at that time to expect this lease when the existing one expires. This would allow for time to explain the new lease, give the tenant a copy of the landlord tenant act and may help avoid the stressful situation I found myself in.

What’s In Your Real Estate Portfolio?

Posted on by AZPBAdMin

So you are thinking about adding to your real estate investment portfolio and debating what type of property to purchase. Let’s take a look at your options.

SINGLE–FAMILY HOMES

My first recommendation is typically a single-family home. It has been my experience that life is full of surprises and ever-changing, and I like to have investments I can sell quickly if need be. Historically, there are more buyers for single-family homes than for condos, apartment buildings or duplexes. If you need to sell a property fast, it is my opinion that there are more buyers looking for a single-family residence.

One thing to consider is vacancy. No rent means you will not be able to offset expenses. Prepare for this by making your payment a month in advance or having a savings set up for maintenance. Traditionally, the “American Dream” is homeownership. There seems to be more of a demand for a home without a neighbor connected to the property. A private yard for a garden, pet, pond, private pool or spa is an amenity most renters will pay more for.

CONDOS

In the event you are considering a condominium, keep in mind that community association rules can change. For example, one of my investors recently received a notice from the association board expressing its desire to require all units to be owner-occupied. Rules like this will directly affect the value of the unit to a potential investor.

You should also pay attention to the deferred maintenance of the building and the financial statement of the association. The roof, pool, pavement, paint and other structures and amenities have a certain life expectancy, and this could add up to a large assessment in the future. Another consideration is condo conversions. A community previously operated by a management company with set renter screening standards may be different now that the property consists of numerous owner-occupied and rental units. This could affect your property.

APARTMENT COMMUNITIES

So an apartment building looks inviting? There is hope in always having some income to offset the expenses, and those expenses are multiplied when the roof needs to be resurfaced. Typically, when one unit has a problem with a hot water heater, air conditioner, heating or plumbing, it’s just a matter of time before those same problems occur in other unit. And these are not small expenses!

As time goes on and we purchase different types of property, we find what works best for us. I have owned all of the above and look at every investment with as many facts as I can gather. Inspections are important. I always recommend an inspection with an experienced company. Make sure to focus on potential problem areas, such as roofing and plumbing. Although inspection companies typically do not check such items, many will include them if you ask.

Additionally, when considering the purchase of a condo, do not lose sight of the fact that you are part of the association. The association implements assessments to cover big repairs when necessary.

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