As Phoenix property managers, we are going to provide a realistic overview of the current Phoenix rental market. Although the media has been claiming that the rental rates are rising sky high in the area this is definitely not true to for all segments of the market. For example, we spoke to a landlord last week who has a 2600 sq ft 4 bedroom 3 bath home in the Verrado, Arizona area which he has been renting for a few years. He reached out to us as a potential Phoenix property manager because he is unhappy with his current company. In this situation we like to determine what services the client is missing with their current management company. Through out the discussion we realized that his only unhappiness with his current manager is the fact the home was still on the market.
The most recent tenants had been paying $1695.00 and were only in the property for a year. He had the property now listed for $1895.00. His logic was that he hears on the media how “hot” the Phoenix rental market is and therefore is sure that the 11% increase in price is justified. Unfortunately it is not! The good news is that if you own rental property that is renting between $900 – $1200 a month then there has been an increase between 6-10%. However, the bad news is that if your property rents for over $1500 then the rental amounts are pretty flat.
Here are a few examples of rental increases that we have experienced: Surprise 3 bedroom, 2 bathroom 1681 sq ft home in Bell West Ranch went from $1199 – $1299 which is an 8% increase from 2018-2019. In Laveen a 4 bedroom, 3 bathroom 1835 sq ft home in Country Glen went from $1299 $1399 which is a 7.7% increase from 2018-2019.
In conclusion the media of course is wrong and all rents aren’t skyrocketing in the Phoenix market. Additionally, no matter how good a property manager is they can’t rent a property that is priced outside of the market rent.