Switching Phoenix Property Management Companies

Switching Phoenix property management companies can seem like an overwhelming task.  Additionally, home owners may be concerned that things like security deposits could get lost in the shuffle.  Real property management phoenix valley has created the following check list to assist with a successful change.  The first part of the check list is for before you terminate your current property management contract.  The first thing is to read the terms and termination clause in your current agreement.  This section will let you know how much notice you need to give your current property management company.  Additionally it will let you know if there are any fees association with cancellation.  We recommend starting the cancellation process when you are within 45 days from your current contract ending.  Prior to submitting your cancellation notice make sure you have all executed lease agreements, renewals and addendum.  Next check your records for paid invoices.  Make sure you have copies for new ACs, water heaters and appliances.  Lastly make sure you have your TPT license number and online logins if applicable.  (TPT stands for Transaction Privileged Tax License).  Be sure to terminate your agreement in writing.

The second part of switching Phoenix property management companies are items needed after notice has been given.  These items include all tenant contact information and keys to your property.  Also, ask how they will handle the transferring of the tenant’s security deposit.  Will they send you a check or the new property management company?  Request a copy of the tenant signed move in inspection.  Lastly ask for a copy of the tenant’s ledger.  The tenant ledger will show how much of a deposit the tenant actually paid and whether they have any prepayments of rent on file.  Any prepayments should be sent back to the tenant.

 

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5 Top Tips for Organizing Your Phoenix Rental Properties!




By in large, Phoenix landlords have busy lives and often times struggle to maintain organization with all of the different aspects of their worlds.  However being organized can be a key to being a successful Phoenix landlord so here are RPMWV Phoenix’s 5 best tips for Landlord Organization!

1. Create a file for each property you own and be sure to label it clearly with the property address.  Within each folder,store all documents related to the property such as HUD statements, mortgage records, property tax records, insurance documentation, copies of rent payments, expense records, and anything else that pertains to it.

2. Be Meticulous with tax records. Within each property file, have a folder dedicated to tax documents and include every expense receipt, mileage log, cancelled check, and any other instance in which money is involved.  Along with the receipt, keep a log of all activities.

3. Make digital copies Spend some money on a fast and efficient scanner and place it on your desk. Sync it up to your computer and create digital folders for each property (just as you have in your filing cabinet). Each time you get ready to file away a new document, scan it and save it in the accompanying digital folder. For added security, store these folders in the cloud so they’re accessible. 


4. Carry folders in your car. Once you have a folder system setup in your office, it’s pretty easy to stay organized. You just open the folder and drop the document in. The problem is that you aren’t always at your desk. As a landlord, you spend a lot of time in your car driving around from property to property. In the time between getting a document and getting back to the office to file it away, a lot can happen. This is why experienced landlords carry some sort of mobile filing system in their vehicles.  With a mobile filing system, you can give any and all documents temporary storage. 
5. Clear your desk at the end of the day. As a rule of thumb, you should clear your desk at the end of every day. Clutter seems to build on itself and you run the risk of creating piles of documents if you don’t get things filed away each day. If you make it a daily habit, it’ll only take a few minutes. 
6. Make good notes. Nothing is worse than going through a folder, knowing that you have the document you’re looking for, but being unable to locate it. Most of the time, this happens when you forget what a document looks like or what specific file the information is in. One way to avoid these issues is to place sticky notes on thick documents to recap what information is contained within.
RPMWV Phx has been offering full service Phoenix Real Estate & Phoenix Property Management services for over 20 years so let our experience assist you with your Phoenix rental needs.

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Top 3 Aspects of Rent Collections, Phoenix Rental Property



When you own rental property, your goal comes down to the amount of rent you collect. It would be nice if you were always paid the rent on time and the check cleared without problems. However, that rarely occurs 100% of the time. Even with careful tenant screening, your tenants can run into unexpected financial situations and your payments are no longer coming in on time or regularly. Your rent collection process should help your cash flow be as regular as possible.
1. Set the Rent Expectations Early
Real Property Management WV Phoenix has been successful in encouraging successful rent collecting when the process starts with the careful screening of your potential tenants.  When you have a vacancy, it is a temptation to rent your home as quickly as possible and not be as careful as you should be with your tenant choices. We are patient and make sure your potential tenant has a high enough credit score and is able to prove an income sufficient enough to be able to pay the rent regularly as well as has sound rental references. An applicant should earn at least three times the amount of the rent for your unit. Then at the lease signing, we let your tenants know Real Property Management WV Phx expectations and policies with regard to rent collection. Good communication from the start makes us strict, but fair, and policies are understood from the beginning of their residency.
2. Technology Payment Process
A rent collecting process that is technologically based is a secure and convenient way for your tenants to pay their rent. Real Property Management WV Phx has an online collection option which lessens any rent collection delays. When the rent is collected, this automated system also works for the property owner giving a direct deposit from the collected rent to the owner. Keeping the rent collection process professional and not personal, with understood expectations, gives us the tools for a more successful renting experience.
3. Automated Collections Process
An aspect of rental property management in Phoenix, AZ that is never pleasant is the business of collections when a tenant doesn’t pay the rent. Even the best screened tenants can have a difficult time in their personal lives that affects their abilities to pay rent on time. With an automatic collection process, the moment rent is not collected; automated notices can be sent to the tenant. These notices can be scheduled easily and speak to your tenants with respect. As soon as the law permits, an eviction process can be started with a non-paying tenant so your days without rent can be as few as possible.
Clear rent policies along with a secure technology platform through Real Property Management WV Phx will help your Phoenixrental property rent collecting run smoothly.
RPMWV Phx offers full service Phoenix Real Estate & Phoenix Property Management services.  For additional information you can contact us at info@rpmwvphx.com or 602-281-2884

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Phoenix Property Management Does come with an Instruction Manual

 

Throughout our 25 years of Phoenix property management, we have witnessed far too many hardworking families fail at the real estate investing game. We have watched as they consider investing as part of their retirement plans, find the perfect homes at the perfect times and perfect prices, make the offers, and never even stop to consider the fact that real estate investing is a JOB. And it’s not an easy one. They do not factor in the time they will spend at their properties, preparing them for tenants, showing,  leasing, responding to maintenance calls at all hours of the day (or night), dealing with tenants who don’t care for their properties, inspecting the land and homes to be proactive about maintenance, and possibly even dealing with evictions. When you factor all of those aspects into the purchase, it may seem like a daunting task to be an investor, and may cause you to question why people even do it in the first place.


Enter the Instruction Manual
With the right team and council behind you, Phoenix property management does not need to be an overwhelming burden. As the leading property management company in Phoenix we know what it takes to be successful. We have witnessed, far too many times, when people bite off more than they can chew in this industry, but we have also been present for success stories. In fact, we wrote the book on successful property management…literally.
If you are considering taking the leap into the world of rental property investment, don’t.  At least not right away, Instead, make sure that you are properly educated and have thought everything through – that’s the best way to be successful.

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Rent Cycle for Real Property Management West Valley Phoenix

Real Property Management WV Phoenix is the Phoenixproperty management company that knows the leasing cycle from rent-ready to lease renewal. An important first step in that cycle is having your property rent-ready. Understanding what it means to have your property ready to show and move in can significantly reduce the number of vacancy days your property has. Real Property Management WV Phoenix takes the steps to prepare a rental property before it is ever shown to prospective tenants or even advertised will have greater rental success.
When a unit is vacant, we immediately suggest that you have the property re-keyed. This is often a legal requirement in many places because it keeps your future tenants safe from theft and burglaries. You have no idea who could have the key that your old tenants had. The safety of your tenants should always be a priority and should be taken care of long before someone moves into your rental. Changing the locks is a important safety precaution for you and your prospective tenants, even when the property is empty. Install a lock box that holds the key for the convenience of future showings with leasing agents.
Now is also a great time to take care of any repairs and/or remodels you have to do to the property. This includes any outdoor or indoor work, and anything that might have been destroyed by the previous tenants. However, make sure that all cleanup is done before showing a home. Keep the utilities on so that prospective tenants can really see what the property looks like in any weather and at any time of day. Always remember safety and take care of any broken windows, mold, broken locks, and exposed wires.
Before you set that rent rate, Real Property Management WV Phoenix can complete a rent market analysis to determine the best rental rate for your specific location and unit. When your home is professionally cleaned and all appliances checked and in working order, you are getting closer to being rent-ready.
Finally, take a good look at your property from the curb. Does it have that curbside appeal that will give the positive first impression you want. Just a little initial effort will make a big difference towards your leasing your property quickly and ensuring your investment is giving you a return.

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Multi-family vs. Single-family Phoenix Rental Property Investment



WHAT YOU NEED TO KNOW ABOUT MULTI-FAMILY VS. SINGLE-FAMILY RENTAL PROPERTIES BUT WERE AFRAID TO ASK
For a new real estate investor, the question of whether to buy a Multi-Family Residence (MFR) or a Single Family Residence (SFR) can be a tough question. Like most things in life, there are pros and cons to each. You simply have to decide what is best for you in either case after knowing a few facts. Investing in real estate, either an MRF or an SFR, is a good investment. As long as you have a long-term plan in mind, you can make it successful.
Why Invest in a Multi-Family Residence? 4 Reasons to Consider….
At first glance, investing in a multi-family residence seems to bring the most cash flow. After all, more units to rent means more money, right? Well, that depends on your long-term goals. Here are 4 reasons consider investing in an MFR.
Property Cost
While it’s true that the overall cost of an MFR will outstrip an SFR every time, the per unit cost will be far less. Additionally, your cost to maintain that unit and even property manage that unit will be far less on a per unit basis. Let’s say you owned 2 SFRs and 1 MFR with 2 units. The MFR enjoys economies of scale for things like repairs and maintenance. If you need to replace the plumbing in the MFR, you can do one big job on both units, whereas with the SFRs, you’ll have two completely different plumbing jobs and that will mean higher cost. In addition, your state may require an onsite employee if the MFR is over a certain number of units.
Financing
The main difference you may not know about property financing is that even with best credit, banks will limit the number of mortgages you can hold—usually to 10. But, if you finance 10 MFRs with 5 units each, that’s 50 units you can call your own. And you can enjoy the cash flow of all those tenants.
Vacancy Expenses
This is a no-brainer. If your SFR remains empty, that means the cost for that unit is going to come right out of your pocket. On the flip side, if you have an MFR that’s only partially rented, you can offset some, if not all of the cost with the rent of the other units that are leased.
 Cash Flow
This has been mentioned before, but it’s worth bringing up separately; typically with MFRs, you’ll generate a positive cash flow quicker, especially with new units. That said, as MFRs age, and they typically don’t age as well, more of that initial cash flow will be eaten up by maintenance and upkeep costs, so be sure to keep that in mind as you consider where to invest your resources.
Why Invest in a Single-Family Residence…5 Things to Consider
So with all of the above reasons, why would someone consider investing in an SFR instead of an MFR. Again it depends on your long-term goal. If you’re looking to invest in a property and see a greater return on your investment in the long-run, SFRs might be the best option.  Here are 5 reasons to consider a SFR.
Location
Typically, an SFR is located in a nicer locale than an MFR. Consider a quiet neighborhood and its typical location compared to where apartments are located. Good property locations can make a unit easier to rent.  After all, location, location, location still matters in real estate.

Tenant Quality
Most property management companies will tell you that tenants in SFRs are usually more conscientious about their property than tenants in an MFR. That’s usually because they’re looking for a home rather than just a place to live. Tenants that choose a SFR can have more long term residential goals.
Tenant Turnover
Phoenix property management team RPMWV Phx says that tenant turnover is the single largest cost for real estate investors. That’s why SFRs are often a better play. Longer renting tenants means you won’t have to constantly advertise, show, and re-lease your property.
Appreciation
The Phoenix area is a booming housing market and for Phoenix property management, there is ample opportunity to get a good return on your investment. SFRs usually go up in value over time and so the opportunity to make money just by owning a property can be significant.
Exit Strategy
Here is where we talk about long term goals. With an SFR, you should have a goal to sell the house and pocket the investment once the property is paid off or go for a 1031 exchange. If you handle it correctly, you can have a big payday at the end of your investment which can fund a retirement or other investments.

So, which is right for you? That depends on your personal goals and situation. Rental property investing requires time and patience, and with a really good partner like RPMWV Phx you can be successful.


RPMWV Phx offers tenant & full service property management throughout the Phoenix metro area.  Call today for information on local specials. 623-748-7800

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Help With Predicting your Rental Properties Fortune in Surprise, Arizona

Last week we reviewed our 2014 Glendale rental property listing statistics. Hopefully this was helpful for you in analyzing your  property rental in Glendale and figuring out whether your rental home was priced right.

Today we will continue with another game show allusion. We will go over our rental numbers from the homes we manage in Surprise. This may help you determine your Surprise rental properties fortune.
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RPM West Valley listed 31 properties for rent in Surprise in 2014.  The property type breakdown was 29 Single Family Homes and 2 Condos/Manufactured Homes. The listing rental price was from $650 to $1695 with an average rental price of $1090 and a median price of $1099.

Focusing specifically  the single family rental homes in Surprise in 2014, the average time on the rental market was 23.3 days and the median days on the market was 12 days. The average rental price was $1,113 and the median listing price was $1099.

There were four Single Family Rental Properties in Surprise that took over 30 days to rent because they were originally offered at prices higher than our recommendation. When they were subsequently brought down to our price recommended (and market rent) the houses rented quickly.  Bringing these properties to average would put the average days on the market of our Surprise Single Family Rental Homes to a bit below 20 days.

In summary, there is a high probability we can rent a property Surprise in less than 30 days if we are able to price a rental home at market value. If you are having difficulties renting your property in Surprise, Arizona chances are you may have the rental property priced too high or may need a bit of help on the marketing side.

We do offer an aggressive marketing strategy for our property owners and have licensed and motivated leasing agents that can sift through the applicant pool quickly and get a qualified tenant in place for you.

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Is Your Rental Property Priced Right In Glendale,AZ

Yesterday’s Super Bowl in Glendale and looking at all of the game stats got me thinking of all the properties we manage and the associated statistics we had for 2014 in that rental market. I reviewed last year’s market statistics from the rental properties we manage in Glendale and have come up with some interesting numbers.

RPM West Valley listed 20 properties for rent in Glendale in 2014.  The property type breakdown was 15 Single Family Homes and 5 Condos/Townhomes. The listing rental price was from $675 to $1875 with an average rental price of $953 and a median price of $847.

Focusing specifically  the single family homes in Glendale in 2014, the average time on the rental market was 26.5 days. The average rental price was $1,076 and the median listing price was $995.

There were three Single Family Properties that took over 30 days to rent because they were originally offered at prices higher than our recommendation. When they were subsequently brought down to our price recommended (and market rent) the houses rented quickly.  Bringing these properties to average would put the average days on the market of our Glendale Single Family Rental Homes to below 23 days.

In summary, there is a high probability we can rent a property Glendale in less than 30 days if we are able to price a rental home at market value. If you are having difficulties renting your property in Glendale,AZ chances are you may have the property priced too high or may need a bit of help on the marketing side.

We do offer an aggressive marketing strategy for our property owners and have licensed and motivated leasing agents that can sift through the applicant pool quickly and get a qualified tenant in place for you.

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Rent Collection Advice: Part 2

Last week, we went over some important aspects of rent collection.Today, we will go over three common situations we see regarding late paying tenants. We will also give you some strategies that you can take when faced with these situations.


Situation #1 – The tenant constantly pays late and won’t change their behavior.

We mainly see this happen when we acquire a property and the owner’s existing lease has low late penalties.

We have actually had tenants tell us that a $50 late fee is no big deal and they continue to pay late every month until they are required to sign a new lease.

The simple solution to avoid this problem is to set stiff late fees in the lease. We suggest 5% of the rent after it is deemed late and $20 per day each day after that. This step will eliminate most chronic late rent payers. Those that still miss the on time window because they are disorganized or can’t remember will pay you a hefty late fee.

Situation #2 – A continually late paying tenant has not paid the current month’s rent. This is the situation that is usually the worst for the owner. 

The solution here is as follows: make sure you communicate with these tenants immediately. If they don’t answer at home or on the cell, call their work, references and stay on it. You can also call from a blocked number or your friends number so they will not dodge you.

The goal is to assess the situation and determine whether they have the funds or not. Interestingly, we have found that if the tenants do have the funds they will engage with us in with angry demeanor and give us a date when they will be in to pay.

If you determine that the tenants do not have the funds and have no chance of getting them, the goal is to get them out of the house as quickly as possible. We find that when the tenants fully understand the negative implications that an eviction will have on them, they will be cooperative about just turning the keys in and moving their stuff out.

As a landlord, if you can avoid going to eviction, you will save yourself a good deal of money, lessen your aggravation, and get your property back into the rental market sooner.

We have actually found that if the above situation is handled correctly, some tenants can be very agreeable. We have had tenants move out fast and when they got back on their feet, paid back the rent the landlord lost while the property was vacant.

Situation #3 – A routinely prompt paying tenant suddenly does not pay the rent.

Again, the key here is to talk with these tenants immediately. We have found that this situation is not as bad as situation #2. This situation usually happens because of a sudden job loss or other unusual financial issue.

In the past, we have had success with tenants in these situations by explaining ways they can get the money until they can find work again. We make suggestions to the tenants like taking a cash loan with their car as collateral or getting city assistance or asking for help from their family.   

In summary, when a tenant pays late, the main thing is to reach out quickly. When you make contact, get to the root of the problem and come up with a resolution that minimizes negative consequences for both parties.








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Develop a Consistent System to Make Your Landlord Life Easier

At RPM West Valley, we manage hundreds of rental properties. We have a great staff and advanced software systems that help us do this. However, perhaps what has helped the most is that we have implemented consistent systems and procedures regarding most management aspects we tackle.
We have a defined and detailed process for items like leasing, tenant behavior and maintenance. Because we have done this, most management ambiguity is answered we are set up to function quickly and efficiently. As an owner, having a consistent system and process is something you can do whether you have 1 or 100 properties.
Developing a repeatable process will take some time to start off with. However, once you have the process in place, you will find that the whole management process will be quicker, easier and less variable.
Let’s outline some of the items in the cycle of the rental process to get you started with your system. We have included some links to some of our material and recommendations that should help.

1. Tenant Qualification- Being consistent and correct on this will give you a good start on having a successful tenant experience. http://bit.ly/ZD31Kd 

2. Move In – Making sure this is done correctly will save you a possible headache down the line. http://bit.ly/1rYqfBd
3. Maintenance- Have a consistent policy at all properties regarding as is items, items you will fix, items that the tenant will be held responsible for and emergency items. Make sure your vendors are skilled, responsive and comfortable with tenants. Institute a process with your vendors regarding tenant communication, response time and payment.

4. Move Out – Along the move-in a consistent process here will save you when it comes to security deposit disputes. http://bit.ly/1r267Pf
5. Turnover – Being consistent with this at all of your properties will not only save you time but also allow you to forecast expenses with more accuracy.  http://bit.ly/1Dthojv
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