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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Phoenix Rental Market

Phoenix property manager
Phoenix property manager

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.

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Laveen Property Management Success!

Rented Laveen Crossing Home!

RPM specializes in Laveen Property Management.  Our Laveen Property Managers just rented a property in Laveen Crossings in twelve days!  Laveen Crossing is a neighborhood in Laveen which is located within South Phoenix.  48% of the residents in Laveen Crossing are renters making it a desirable area for Laveen property managers.  Laveen crossing is  south of Apollo, east of 51st, north of Baseline and west of 55th Ave. This neighborhood is perfect for those seeking single-family homes. The community’s homes were mostly developed around 2005 and construction was completed around 2007.

We first rented this five bed/two and one half bath, two story Laveen rental home in 2014 for $1295.00 and it took forty four days.  Furthermore, in 2015 we saw the home rent for $1350 in ninety five days.  In 2017 the home rented for $1325 in fifty seven days.  Final last month, 2019  we were able to get $1595 in  twelve days!  The 2019 rental price represents a 23% increase from 2014.

Laveen encompasses around 48 miles of space.  It is close to downtown Phoenix so it is a good area for Laveen property management.

 

Visit Laveen for more information.

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
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