Owning rental property in Phoenix while living out of state isn’t just possible; it’s a proven investment model for landlords who value efficiency and long-term returns. With Arizona’s landlord-friendly laws, strong rental demand, and modern tools, you can successfully manage from afar.
But success isn’t left to chance. It requires a structured approach: ensuring legal compliance, setting up systems that work without constant oversight, and partnering with a local property manager who acts as your trusted boots on the ground.
Key Takeaways
- Register your rental with the county; out-of-state owners must assign an in-state agent.
- Cooling is required: The A/C must maintain a temperature of 82°F or lower; schedule service before summer.
- No city rental tax on leases 30+ days starting January 1, 2025; short-term rentals remain taxable.
- Give at least 2 days' notice before non-emergency entry.
- The security deposit cap is 1.5 months’ rent; clearly label all non-refundable fees.
- Provide a move-in condition form and return deposit/accounting within 14 business days.
- Follow fair housing rules: source of income is a protected class in Phoenix.
- Bed bug education is required for multi-family units only.
1) Build a Reliable Local Team
Your on‑the‑ground team is your strongest asset. At minimum: a licensed property manager, an HVAC contractor familiar with Phoenix summers, and a responsive handyman. Property managers handle screening, rent, maintenance, code compliance, and move-ins/out, which are crucial when you’re remote.
They’ll also help you stay compliant with Phoenix cooling standards and Arizona’s fit‑and‑habitable requirements (maintaining A/C or evap cooling that meets code).
Start with compliance from day one: Make sure your rental is registered with Maricopa County and appoint a statutory agent in Arizona if you're an out-of-state owner.
If you offer short-term rentals (under 30 days), your property manager must secure the proper TPT license and handle all required filings. As of 2025, long-term rentals (30 days or more) are exempt from city TPT requirements.
2) Use Technology to Stay Connected
Owner portals are now standard, allowing you to view P&L reports, approve bids, and track maintenance in real-time. For Phoenix, add intelligent HVAC monitoring and set service reminders before the heat spikes to stay ahead of the cooling ordinance thresholds.
3) Screen Tenants Thoroughly (and Lawfully)
Run credit checks, verify income/employment, and check landlord history, but avoid using illegal criteria. In Phoenix, it’s unlawful to refuse applicants solely because of the source of their income, such as vouchers. As always, follow federal Fair Housing Act protections as well.
4) Stay Organized and Delegate Wisely
Keep digital copies of leases, move-in forms, inspection photos, receipts, and air conditioning service logs. Arizona requires landlords to disclose who manages the premises and who can receive notices, provide this information in writing at or before move-in, and inform tenants where to find the Arizona Landlord-Tenant Act online. Your manager can build these into the onboarding packet.
Clearly state any non-refundable fees in writing, and ensure the security deposit remains within the 1.5-month rent limit. After move-out, possession return, and a formal request, provide the deposit accounting within 14 business days to avoid legal penalties.
5) Schedule Inspections the Right Way
Regular walkthroughs catch minor issues before they become expensive, especially with A/C performance and weather stripping. No Arizona statute sets a required frequency, but it does require at least 2 days’ notice and entry at reasonable times (emergencies excepted). Request photo and video documentation from your manager each time.
During Phoenix’s extreme heat, ensure your A/C or evaporative cooler maintains the required temperatures: 82°F or lower for A/C and 86°F or lower for evaporative units, in all habitable rooms.
Schedule maintenance before the peak summer season, inspect door and window seals, replace clogged filters, and maintain records of compliance in your management portal.
Turning Distance into an Advantage: Manage Smarter, Not Harder
Managing a rental property from afar in Phoenix is practical and achievable with the right systems in place. Success comes down to a clear strategy: follow local compliance rules, establish robust systems, and, most importantly, work with a reliable property manager who understands the local landscape.
With these pieces in place, you’re not just maintaining your investment, you’re growing it without daily stress or hands-on involvement.
Let RPM Phoenix Property Management be your on-the-ground partner for seamless, remote rental success. From legal compliance to tenant care and maintenance, we handle everything, so you don’t have to.
Ready to enjoy passive income without the property headaches? Contact us today and let’s take your rental business to the next level!
FAQ
1) Do I need a property manager if I live out of state?
Not legally, but it’s the practical way to stay compliant and responsive. They’ll coordinate maintenance, meet Phoenix’s cooling standards, provide proper notices, and ensure your documentation is up to date.
2) How often should inspections be done?
There’s no mandated frequency. Many owners do biannual inspections. For any non‑emergency entry, Arizona requires at least 2 days’ notice; emergency access is allowed without notice.
3) Can I still be involved in decisions remotely?
Absolutely. Set repair approval thresholds in your management agreement and use the owner portal to approve bids and view reports.
4) What’s the biggest mistake absentee landlords make?
Trying to DIY from a distance. Delegate to pros, especially for HVAC (cooling compliance), legal notices, and tenant relations.
5) What changed in 2025 that I should know about?
- No city TPT on long‑term residential rent (≥ 30 days) statewide; ADOR canceled/rescinded “045 Residential Rental” for that activity. Short‑term stays remain taxable.
- Phoenix reaffirmed temperature standards in its code (82°F A/C / 86°F evap). Keep strong maintenance logs.
6) What documents/disclosures should my manager collect at move‑in?
- Owner/Manager Contact Disclosure (Who Manages and Who Can Receive Legal Notices).
- Move‑in condition form (Arizona requires providing one).
- Non-refundable fees are clearly labeled in writing; the security deposit is within the cap.
- Lead‑based paint pamphlet/disclosure for pre‑1978 homes (federal rule).
- Bed bug education for multi‑family (not single‑family) units.
- Notice that the Arizona Residential Landlord and Tenant Act is available online.
7) What’s the timeline if a tenant misses rent?
For nonpayment, Arizona requires a 5‑day pay‑or‑quit notice before you can file; other curable breaches typically require 10 days; material and irreparable breaches (e.g., specific crimes, severe property damage) allow immediate termination. Your manager will use the correct forms and adhere to the appropriate timelines.
Additional Resources
Arizona Squatter Laws Explained: How Landlords Can Protect Their Property
Arizona’s HB2447 and HB2110: Updates to Housing Development Law You Should Know
