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Avondale Property Manager Success!

Avondale property manager success!
Avondale property manager success!

Our Avondale Property Managers rented a home in Avondale’s Crystal Garden community in just 1 day!!!  Crystal Gardens is a premium subdivision in Avondale located south of Thomas, north of McDowell, west of Avondale Blvd and east of 107th.  The community offers lake view homes, walking paths, fishing, bird watching, two playgrounds and bike lanes.  The community consists of 905 homes and 27 acres of wetland.  The homes within the community have between three to four bedrooms on average and two to three bathrooms.  The square footage of the homes range from 1283 – 2893 and were built between 1998 – 2003 and as a result this neighborhood is perfect for those seeking single-family investment homes.  Additionally,  Crystal Gardens is a desirable area for Avondale property managers.

Our Avondale Property Managers first listed  the single level single family home which is 1240 square foot home in 2011 where it rented for $820, it then rented again in late 2012 for $845 and was rented until a new tenant was placed in November 2019.  In 2019 the home rented for $1095 and took just one day to rent.  The 2019 rental price represents a 34% increase from 2011.  This is a substantial increase for a two bedroom rental home.

Avondale is located approximately 18 miles west of downtown Phoenix. For more information please visit here.

 

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

Real Property Management Phoenix

www.rpmphoenixvalley.com

602-358-8130

info@rpmphoenixvalley.com
Follow us @RPMPhoenixValley

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Chandler property management

Chandler property management - current home under management
Chandler property management – current home under management

Real Property Management Phoenix Valley offers residential property management services specializing in Chandler property management.  Chandler is part of the “east valley” within metro Phoenix.  According to the Multiple Listing Services (“MLS”) 1337 properties have rented in Chandler year to date.  1099 of those properties were single family, 151 were town homes, 55 were apartment style properties and 32 were classified as other.  Overall the single family homes took about 20 days to rent for a median rent amount of $1825.  The town homes on average took 25 days to rent for a median rent price of $1476.  Lastly the apartment style properties took 26 days to rent with a median rent amount of $1298. 

The Real Property Management Phoenix Valley’s Chandler property management team currently has a four bedroom, two bath single family home for rent in the 85224 zip code.  The 85224 zip code encompasses the area south of the 202, east of the 101, west of Alma School and south of western canal.  Year to date 174 properties have rented within this zip code.  119 properties have been single family with average days on market of 14 and a median rent of $1812.  35 have been town homes with an average days on market of 37 and a median rent of $1400.  Finally 16 have been apartment style properties that took 17 days to rent at a median price of $995.  

As Chandler property management specialists we can report that rental applicants in this area prefer single story homes.  Also, they look for alternatives to flooring such as wood or tile as it is easier to keep clean.  Some of the properties in this area were built in the 1980’s so upgrades may be needed.

 

 

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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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Arizona Landlord Tenant Act

The Arizona Residential Landlord Tenant Act (“ARLTA“) is the law governing most private, residential, rental agreements. In other words, the Arizona Landlord Tenant Act provides tenants and landlords with rights, obligations and remedies in the rental relationship.  There are six sections in the act.  In this post we will discuss the section on terms and conditions that must be included in a lease agreement.  According to the Act, rent must be payable at the time and place agreed upon by the parties.  Additionally, rent is to be paid at the dwelling unless otherwise specified in the lease.  If the rental agreement doesn’t  have a fixed term than the term is week to week for roommates and month to month for all other cases.  In our lease agreement we always break out the rent AND tax amount.  This way if the rental tax increases the landlord can pass the cost onto the tenant with thirty days notice.

Within the lease the landlord may request a contact person who can enter the unit should the tenant die.  Should that occur be sure to always collect a copy of the death’s certificate.  If the landlord is unable to contact that person within ten days than the landlord may dispose of the tenant’s belongings after death.  If the landlord makes contact with the authorized person they have the authority to enter.  They then have either twenty days or the last day that rent is paid for to remove all belongings.  After that period the landlord can remove any items and has no further liability to the tenant’s estate or heirs.

Real Property Management Phoenix Valley has three podcasts on our recommendations of items to include in a lease agreement.  To listen please visit us here.

 

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Best Property Management Companies

Best Property Management Companies 2019
Best Property Management Companies 2019

Real Property Management Phoenix Valley is excited to announce its’ placement on the “best property management companies” list for 2019.  The list was released by Expertise and can be found here.    Expertise uses proprietary research and a selection process to identify the best property management companies in the Phoenix area.  They use the following criteria in their selection process:

  1. Reputation: a history of satisfied customers giving excellent recommendations about the services they have received from Real Property Management Phoenix Valley
  2. Credibility: including the fact that Real Property Management Phoenix Valley has had their location for over thirteen years.  Additionally, key staff members such as the Designated Broker has been in the Phoenix real estate market for almost twenty years
  3. Experience: Real Property Management Phoenix Valley are truly masters of their craft of Phoenix real estate & Phoenix property management.  This experience comes from managing other peoples properties as well as the fact that the staff own their own rental properties so they truly understand the experience from the property owner’s point of view
  4. Engagement: Real Property Management Phoenix Valley has a customer response protocol which far exceeds others in the area.
  5. Professionalism: Real Property Management Phoenix Valley provides qualify work from leasing properties in fourteen days or less to detailed inspections.

To read reviews on Real Property Management Phoenix Valley please visit our website here.

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RPM Phoenix Valley Experiences

Should you rent to a halfway house? RPM Phoenix Valley Experiences
Should you rent to a halfway house? RPM Phoenix Valley Experiences

RPM Phoenix Valley Experiences are very vast since we are property managers specializing in the Phoenix market for over 15 years.  Furthermore unlike other property manager’s in Phoenix we give property owners our honest opinion even if that means we lose business.  About six months ago a property owner with an 8 plex in downtown Phoenix contacted us about our services.  At that time the 8 plex was being completely renovated due to a fire.  The owner had originally rented the property on his own to a single tenant who was using all 8 units.  After two months of discussion the property owner decided to rent the complex to another single tenant.  Since it was a single tenant the owner decided to manage himself.

This past Friday we received a call from the owner needed our help to get rid of the tenant.  The tenant is a half way house.  The occupants just got out of jail.  Turns out the tenant is the same one who lived there when the fire started!  Additionally, the tenant had no insurance so the owner and his insurance paid for all renovations.  The tenant is in a five year lease.  The owner thinks he can force the tenant to move out since they didn’t have insurance.  The owner wants half of the occupants move out so he can rent those units and then once those are full make the rest of the half way house move out.  This way the building will never all be vacant.

Before taking on the project we made a visit to the provide to assess.  We found that the property smelled horrifically of smoke (ironic since there was a fire).  Also the home owner can’t force the tenant to vacate so he will need to pursue a legal eviction.  Market rent for the area is about $200 less than the owner had predicted.  The units are going to need repairs when the occupants move out.

RPM Phoenix Valley’s recommendation;  proceed with the legal eviction; rehab the units and then sell the complex.  From RPM Phoenix Valley experience sometimes it is best to cut your losses and move on!

For information on our property management service click here.

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HOAs In Phoenix

Phoenix Condo Community Currently Under Homeowner Association Management
Phoenix Condo Community Currently Under Homeowner Association Management

The Phoenix metro area has many planned community developments.  Most of the developments have Homeowner Associations more commonly referred to as HOA’s in Phoenix.  The HOA’s were created to keep uniformity within the neighborhood and are comprised of a board which consists of home owner’s who volunteer and are then elected.  Unfortunately however HOA’s can be costly and in this post we will look at 6 typical costs.

The first cost is the regular assessment which is collected usually annually or monthly.  The regular assessment typically pays for “routine” services such as management fees, landscaping maintenance if needed, pest control services etc.  Assessments can range from $30 to several hundred dollars depending on the type of community and what is needed.  Typically condominium and town home communities have higher regular assessments because their routine expenses  include insurance, roof maintenance & regular pest control to name a few.

The second cost is a transfer fee.  This fee is paid by the new buyer of a property in an HOA community.  The transfer fee covers the expense of transitioning activities and paperwork from the seller to the buyer.  This is a one time fee and is between $100 – $400 depending on the HOA.

The third cost is a disclosure fee which in Arizona must be paid by the seller.  This fee covers the cost of  the seller providing the buyer with the HOA’s governing documents, so that the buyer has full disclosure.  The document package typically includes the communities CC&R’s, Bylaws and current financials and is the most important part of the transfer process.

The fourth possible cost is a capital improvement fee.  HOAs in Phoenix usually have a capital improvement fee of one quarter of one percent of the sales price.  Repairs or improvements to the common area comes from this fee.

The fifth possible cost is prepaid dues.  These are monthly or quarterly dues that are collected up front at closing for future months of dues.  Usually 1-2 months are collected.

Finally the sixth possible cost is a special assessment.  Special assessments are for unforeseen expenses such as a new roof for a condo community.  Typically special assessments are due in the year they are levied unless the HOA offers payment plans.

There is a long standing debate regarding the positives and negatives of homeowner associations.  Those in favor think that they help to maintain the community in good condition by enforcing uniform standards.  Others find them to be intrusive and unnecessary.  One thing is for sure; if you are purchasing in a community with an HOA be sure to carefully review the CC&R’s to be sure there isn’t a rule that you can’t live by.  Also, double check the financials to make sure the HOA is financially healthy.

For information on our HOA management services (full and financial only) please visit us here.

If you are new to an HOA community the following website offers helpful newsletters.

 

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