Switching HOA management companies

Phoenix Community Currently Under HOA Management
Phoenix Community Currently Under HOA Management

Switching HOA management companies can be a daunting task however it can prove to be very beneficial and create a cost saving.  Here are things to look for when making the change as well as items that will be needed:

  1. Unfortunately most home owners are not that involved with their HOA so often times more than just a mailing is needed to inform them of the change.  When interviewing new management companies make sure they will call homeowners to advise of the change.
  2. Have a 30-45 overlap in services.  This will allow the new company to notify the homeowner’s of the change.  Additionally, the community will continue to have services while the new company is processing the change.
  3. Be sure to receive monthly financials for the last month the old company will be providing services.  Additionally, make sure you receive the final bank statement (often overlooked) so that the board and the new company know how final funds were allocated.
  4. Make arrangements to pick up the final checks from the current management company.
  5. Provide documents such as CC&R’s, By-Laws, financials, owner contact and bank statements to the new management company as soon as possible as it will assist with accounting set up.
  6. Obtain files for each homeowner so that any previous violations or communications transfer to the new company.
  7. Forward any special assessment information including ballots in case any homeowner’s dispute the assessment with the transfer.
  8. Provide an up to date delinquency list to the new manager so they can stay on top of outstanding accounts.
  9. Forward any outstanding work orders.
  10. Provide copies of any executed contracts currently in place.
  11. Provide invoices for reoccurring services such as landscaping .
  12. If applicable forward utility account usernames/passwords and account numbers (such as power, water, trash).
  13. Pass along any keys and/or access codes to any community areas.

Most importantly everyone has to remember to be patient as the total time too switch HOA management companies will take between 60-90 days.  For information about Real Property Management Phoenix Valley’s homeowner association services visit here.

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Phoenix Real Estate Sales

Real Property Management Phoenix Valley Phoenix real estate sales
Real Property Management Phoenix Valley Phoenix real estate sales

Real Property Management Phoenix Valley is a full service real estate brokerage company.  Our services include residential property management, home owner association management and Phoenix real estate sales transactions.  Using a recent Phoenix real estate sale we are going to highlight why the correct purchase price is so important.

A client contacted us in August to list his Phoenix home for sale.  We provided a sales comparable market analysis that indicated the market sales price was between $235K – $245K.  The client decided (outside of our recommendation) to list the property at $275K.  We did explain that absolutely none of the market comparable properties indicated that market price was anywhere near that amount.  Additionally, we did advise that if we couldn’t find comparable properties to support his purchase price than most likely the appraiser wouldn’t be able to either.  The seller’s response was that “he knows that Phoenix real estate prices are skyrocketing”.

From the end of Aug to the end of Sept the client did authorize two price reductions with the last bringing the price to $259,999 on September 23rd.  The client did advise that if he didn’t receive any offers by Oct 1st he was taking the property off the market.  Much to our surprise an offer for $260K came in on 9/30/19.  The buyer wanted 2% seller concessions which the seller agreed to.  Next the buyer completed the inspection and made their formal repair requests.  Their requests were as nit picky as tightening outlets!  Unfortunately, because the buyers were purchasing so above market they were expecting the seller to make an eleven year old house brand new.  Their requests were as unreasonable as the sellers purchase price!  However after a few days of negotiating both sides agreed on repair items and the appraisal was ordered.

When we received the appraisal with a value of $240K we were not surprised.  We sent the seller a copy and he reduced the price to $255K.  As his agent we were obligated to present the offer to the buyer’s agent and they declined.  We would have been surprised if they had proceeded and agreed to pay $15K over market price.

With all of our Phoenix real estate sales we try to educate buyers and sellers to the current market prices so that educated decisions can be made.  We certainly can’t prohibit a seller from listing their home at a sales price they decide but we were very surprised that a buyer represented by an agent put an offer in without having any comparable properties to support the price.

For more tips on purchasing Phoenix real estate listing to our podcast “purchasing phoenix rental property”.  For recent Phoenix real estate sales statics visit the ARMLS statistics.

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Litchfield Park Property Management Success!

Litchfield Park Property Management Success!
Litchfield Park Property Management Success!

Real Property Management Phoenix Valley specializes in property management and real estate sales valley wide.  Recently our Litchfield Park property management success took place in Dreaming Summit a large master planned community.  It consists of 1785 homes and approximately 80 acres of parks, natural wash, and landscaped common areas.  Dreaming summit is east of Litchfield Road, west of Dysart Road, south of Maryland Ave and north of Missouri and is close to Luke Air Force base.  Dreaming Summit residents have a Litchfield Park mailing address, however the community actually lies in the County Island of Maricopa. Property taxes in this area are lower however HOAs fee tend to be higher.  This is because the fire services are paid through the HOA because the services are through Rural Metro.  Additionally, police services are through the Maricopa County Sheriff’s office rather than through a city service.

The Litchfield park property management success story we are referring to is a three bedroom/two and one half bath 1800 sq ft two story home.  We first rented this property  in 2011 for $995.00 and it took twenty eight days.  In 2013 the home rented for $950 in eight days.  Last month the same property rented for $1295 in six days!

Fun Facts about Litchfield Park:

  • The median household Income in Litchfield Park is $97,848 which is the 3rd Highest in State!
  • Litchfield Park Festival of the Arts is expected to have over 100,000 visitors  this year.
  • The population of Litchfield Park is over 6000

For all of your Phoenix Real Estate & Phoenix Property Management Needs Contact:

Real Property Management Phoenix

www.rpmphoenixvalley.com

602-358-8130

info@rpmphoenixvalley.com
Follow us @RPMPhoenixValley
&

Follow @rpmwvphoenix

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Utilities & AZ Landlord-Tenant Act

Utilities & the AZ Landlord-Tenant Act
Utilities & the AZ Landlord-Tenant Act

This week our blog will focus on utilities & the AZ Landlord-Tenant Act.  The Act states that your lease agreement must clearly list what utilities are the responsibility of the tenant.  Additionally, the lease should specify whether the tenant is responsible for putting the utility into their own name.  Often times with multi-family properties the utilities stay in the owner’s name.  When this happens it must be disclosed in the lease if the units are individually sub metered.  Additionally, you can have the tenant pay for their usage as well as any costs associated withe the sub metering.  Be sure to always send the tenant a copy of the invoice.  Also, keep in mind that if your property isn’t sub metered and you decide to sub meter you must give the tenant notice.

If the properties aren’t sub metered then the owner must use one of more of the following billing systems:

  1. Per tenant meaning that each tenant receives their own bill
  2. By square footage taking the entire bill and dividing by total square footage to then get a price per square foot; that number is then multiple be the total size of each unit
  3. Per type of unit so one bedrooms have a set price, two bedrooms higher price etc.  With this option each type must have the same price
  4. Per number of water fixtures; we have never known anyone to use this system because typically all one bedrooms would have the same number of fixtures so option 3 would be much easier

No matter the system that you use you can only charge the tenant for their cost and you can’t add a mark up.

For a full copy of utilities & the Arizona Landlord-Tenant Act click here.

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