Is the Scottsdale, AZ market a good fit for your investment strategy? Learn more about this unique market,why to hire a property manager, and how to determine your rent for this area.
Scottsdale is known for hosting baseball spring training for the San Francisco Giants, Colorado Rockies, and Arizona Diamondbacks. With more than 200 golf courses in the area, it is also a popular destination for golfers.
Often referred to as a suburb of Phoenix, the average prices of a rental home in the area is about $400,000. However, this does vary depending on the area you are looking in. As an investor, you would expect to benefit from appreciation in value but not so much as far as cash flow goes. The higher purchase price in the area is what is going to limit your cash flow, so this will probably only appeal to the investors interested in appreciation of the property.
When shopping for an investment property, you want to use the knowledge of Scottsdale property manager who knows the area, knows the rental market, and knows where to buy based on your goals. At Mynd, we have proprietary data that will help determine if this area is right for you. If it aligns with your goals, your property manager knows what areas rent faster and can help you find a good investment.
One of the most important jobs of a Scottsdale property management company is to make sure your property is protected while also ensuring the tenant is taken care of. At the end of the day, you are in the customer service business, and your property management company can be that helpful,friendly face when dealing you’re your tenant(s). This includes things like
Your Scottsdale property manager knows the local laws and how to handle situations when they arise with your property or tenant. They are well educated when it comes to know the laws and are better equipped to help you make smart, legal decisions about issues.
Just because you have been charging the same amount for years doesn’t mean it will rent for that amount today. Your rent must match the market. This could mean an increase or decrease from what you have charged in the past. Your property manager can provide you with a rental analysis to show you comparison numbers for your market and give you a better understanding of what you can expect to get in today’s market. Mynd offers a free rental analysis of your home. Setting the price right will help it rent faster. An overpriced rental runs the risk of sitting vacant month after month which costs you money in the long run.
When you are managing a home on your own, you need to make sure any contractors are licensed and insured, and are they charging you a fair price. Your property management company has established relationships with quality vendors. Often, they can get a better price on work because of this long-term relationship they have with their vendors.
You can be free of the late-night emergency maintenance calls and other interruption involved with owning rental property because your property manager will be taking care of this for you. If you are a serious investor with multiple properties, these headaches are multiplied. As you grow your portfolio, you will eventually be short on both time and knowledge. Hiring a professional property management company is going to give you your time back. Now you are free to do what you want while they handle any issues that come up. No more 1:00 am emergency calls! They are better equipped with their vendor resources and knowledge of the laws to protect both your property and your tenants.
Not knowing the law doesn’t excuse you when it comes to tenant laws. If you do choose to manage the property yourself, take the time to educate yourself.
After purchasing your Scottsdale, AZ rental property, how do you determine what rent to charge?
If you were hoping for a 30-60 days on market turnaround,keep in mind the 120 days is going to effect your cash flow. You will want to factor that in your planning.
Getting market analysis numbers is important, and your property manager can help get you the numbers you need to make an informed decision on things like purchasing or setting rent.
56% of the homes in Scottsdale are owner occupied. That means 46% of homes are rentals, and that is good news for you as an investor. If your property is in rent ready condition and priced right, it has a great chance of renting.
Scottsdale has been experiencing about 8% a year while Phoenix is about 10%. That is good news for investors looking to purchase investment property for appreciation in value.
Don’t focus on 1 set of numbers but instead look at them all to create a bigger picture. The average house price in Scottsdale is $934,000 (about $326 /sq ft) . The national average is $330 per sq ft. That tells you that Scottsdale prices are on the high side. Expect to have little cash flow, but the advantage is going to be in the appreciation due to the consistent growth in the area.
If you want a free rental analysis of your property, contact us at Mynd. Not only do we offer property management services in Scottsdale, AZ, we have offices in 19 of the most rent able markets in the US, so we can help you increase your portfolio and net worth in multiple markets.
We can help you purchase and manage an investment property outside your current market. When you expand outside of your area, you will have a wider selection to choose from to find the properties that best fit your goals and strategies as an investor. The advantage is you can expect the same level of services across all our offices, and you only have to deal with one company for all your investment needs. Contact Mynd today.
Today, we’re talking about the vaping trend, and how it affects your rental property in Phoenix. Vaping isn’t the only type of smoking that can have a detrimental effect on the value of your home. Cigarette smoke and marijuana is also danger to home values, and you need to know how to handle these things with tenants and their guests.
Can you ban vaping or marijuana smoking in a rental property?Yes, you can. It’s equivalent to a smoking ban. The challenge is in detecting when that ban has been violated at your property.Vaping has become more popular in the last few years, and it’s a growing concern for landlords and property owners. Vaping and cigarette smoke and marijuana usage are all concerns, but vaping is especially complex because you can’t always smell it the same way you can smell cigarettes or marijuana.The law allows you to prohibit any kind of smoking inside your rental home or even anywhere on your property. While it’s almost impossible to prevent it 100 percent of the time because you’re not there watching your tenants, you can control what goes on in your home and at your property by writing this smoking ban into your lease agreements.
Start by including a clause in your lease agreement that states there is no smoking in or at the property, including marijuana. The lease should also indicate what the penalties are if a tenant violates that rule. You’re putting this in place to protect your investment and keep its value high. When you have tenants or guests of the tenants smoking in the property, your value decreases. It takes a lot of work to get that smell out. Penalties should deter tenants from violating this part of the lease.It’s not too common to have tenants violate this part of the lease agreement. Good tenants put down a security deposit when they move in, and they want to get it back when they move out. So, they should refrain from smoking.This risk can also be managed with a strict screening and leasing process. Actionable consequences will help you hold your tenants accountable.
The smell is easy to detect when tenants have smoked cigarettes or marijuana. When this is determined during an inspection, you’ll document the evidence and then treat the property with ozone treatments, repainting, and vent cleaning. Then, you’ll charge the resident’s security deposit for all of those costs.Vaping is more difficult to determine, and you won’t automatically smell it. This is unfortunate because the debris that’s being left behind will still cause damage to the value of your asset. Vaping in a property does have potential hazards. That residue can get into the ceiling and all over the walls. You may not see it or smell it, but that cloud of smoke has to go somewhere. All of that gathering debris will be an expense. There aren’t any detection kits on the market currently, but for now, you’ll have to look for any physical signs that might show up during an inspection. Anything that isn’t part of a property’s normal wear and tear can be deducted.
A lot of these challenges can be avoided if you take these important steps:
Explain your standards to your tenants, set the criteria for how the property will be maintained, and always verify that the tenants are performing the way you expect them to.Trust, but verify.We’re always surprised when an owner tells us he or she has had the same tenant in place for five years and they have been performing well and paying on time, so there’s been no need to visit the property or take a look around. If you never go to the property, you’re taking on a lot of risk.How do you know the home is being cared for and maintained? At Mynd, we get inside every property about four months before a lease ends. That’s how we know if we want to renew the tenant’s lease agreement and keep them for as long as possible or if we want them to move on.Running your Phoenix rental home like a business takes a lot of work and attention. You wouldn’t leave a bank account alone for five years and not look at it. If you don’t inspect your property and pay attention to the lease enforcement, you’re golfing at night. You have no idea where that ball is going or what your property is doing.Properties naturally depreciate. We can help you actively maintain it and maximize its value. Contact us at Mynd Property Management to talk more about how we can help you effectively manage your Phoenix rental property.You can also visit our Facebook group of investors, which is called Master Mynd. It’s a real estate investors’ club, where you can exchange ideas with other owners. Check out our weekly podcast as well, called The Myndful Investor. We invite leaders in real estate and property management to talk about their success and, more importantly, their failures. There’s a lot to learn from this relatable content.
One of the most common fears that property investors have is that the tenants they place will trash their property or stop paying rent. They worry about damage and eviction. High drama and horror stories can be avoided with a solid and consistent screening process.Good tenants will have a positive impact on your experience as an investor. A lot of the landlords we talk to aren’t sure about how to find the right tenant for their Phoenix rental property. Today, we’re sharing the top three things to look for when you’re selecting your next tenant.
Credit needs to be an important factor when you’re screening tenants. Some people get caught up on the score. You might run into landlords and management companies that have a minimum credit score for acceptance and qualification.The score isn’t quite as important as the content of the credit report.Instead of focusing on that one number, take a look at the debt to income ratio. If the tenant has collection activity on their credit report, what kind is it? Student loans aren’t a big deal. Medical debt isn’t either, especially if the prospective tenant is in the process of paying those things off.What you want to be careful about is renting to a tenant who has collections from utility companies or cable companies. If they still owe a lot of money to their last electric provider or internet company, you might have to worry about whether they’ll pay the bills associated with your property. If you find judgments from prior landlords or they owe money to an apartment community, you might not want to approve that application.
Rental history is another important factor in choosing a tenant. You need to look at how long the applicant has rented their previous homes. Do they have a pattern of moving every six months or every year, or do they tend to stay put? The longer you can keep a tenant in place, the more return you’ll earn on your investment.When you’re conducting rental reference checks, find out about security deposit refunds. Ask former landlords if the entire deposit was returned to the tenant or if most of it had to be kept to pay for damage and cleaning. This is important. At Mynd, we have the technology necessary to ensure we are speaking to the real landlord, and not just a friend that the applicant put down as a reference.
You’ll want to be sure your tenant can pay rent every month. So, check to make sure they earn enough to pay you on time consistently. We like to see tenants who earn at least three times the monthly rent. That tells us they’ll have enough funds to cover the rental payment and any other expenses that may pop up. A good tenant is able to manage their money well enough that they can keep up with unexpected expenses. You don’t want a tenant to call you and say they can’t pay rent this month because they needed to replace the transmission in their car. Verifying the income includes making sure they can pay rent and account for emergencies.
When you’re thinking about selecting a tenant, consider what you want in a renter. Do you want someone with no verifiable income and a spotty rental history or do you want someone who can produce a month of pay stubs and provide solid landlord references? The answer should be obvious.We believe that when you look at an applicant’s past, you can see their future. The main goal is to mitigate the chances of a tenant not paying rent. When you’re talking to applicants and screening your tenants, trust what they say and what they put on the application. Then, verify it. Get documentation. Talk to landlords and employers.If you have a tenant with great references and verifiable income but their credit isn’t great, consider whether it’s a big enough risk to approve the tenancy. Not all debt is equal, and the types of debt that is owed can do different things to a credit report. So take you time and dig into the information and the data that you collect.As landlords, we tend to get into an emotional rush. We have a vacant property and we want to get someone in there as soon as possible. It’s easy to convince yourself that the first tenant who applies is the right person. But, if you put the wrong tenant in place, you’re taking on someone else’s problem. Removing a tenant from your property is much harder than never placing them there in the first place.Slow down in order to speed up. Don’t rush the screening process just because your home is vacant. That only makes your situation worse.Written criteria and procedures that you follow consistently are also important. Don’t deviate you’re your process because it puts you at risk for fair housing and discrimination claims. When your process is in writing, you can answer why you selected one person over another.Remember that you’re running a business. Residents have rights, which you need to respect. If you think this may be too much to handle on your own, contact us at Mynd Property Management. We are experts in Phoenix property management, and we’d be happy to help.You can also visit our Facebook group of investors, which is called Master Mynd. It’s a real estate investors’ club, where you can exchange ideas with other owners. Check out our weekly podcast as well, called The Myndful Investor. We invite leaders in real estate and property management to talk about their success and, more importantly, their failures. There’s a lot to learn from this relatable content.
Today, the topic of discussion is one that’s coming up a lot lately. Emotional support animals are growing more common. As a real estate investor, you need to pay attention because it has an impact on how you rent your property and who gets to move in.With emotional support animals, there have been a lot of laws and regulations, and there have also been a lot of people who are taking advantage of this. If someone has a pet and wants to avoid paying pet rent or a pet fee, calling that pet an emotional support animal seems like a good way to save some money. It can also work in a tenant’s favor if they want to move into a no-pet property. The law doesn’t see emotional support animals as pets.There are a few requirements for how you handle these animals, and today we’re talking in general terms about what you can and cannot do. Remember that things change quickly with laws and best practices, so stay in touch with your Phoenix property management company, or keep yourself educated on the law.
Emotional support animals meet a specific need for the people who own them. As a landlord, it is perfectly acceptable for you to ask for documentation that proves an animal is necessary for emotional support. You cannot deny a tenant with an emotional support animal, even if you have a policy of not accepting pets into your properties. So, protect yourself and your investment by asking to see documentation that proves it’s an emotional support animal and not a pet.You cannot aggressively ask a tenant what’s wrong with them or why they need the animal. But, you can ask to see documentation from a medical provider that states what type of animal is being used as an emotional support animal, and what the purpose of the animal is.This isn’t a violation of your prospective tenant’s rights, and it doesn’t violate any HIPPA rules. You’re not digging into the tenant’s medical history or asking them to prove a diagnosis or an illness. Your focus is on the animal, and the documentation you’re collecting will establish the role that the animal plays in your tenant’s life.Beware of the certificates that can easily be printed from a website. You are entitled to get verifiable and authoritative documentation from a medical doctor or healthcare practitioner.
We always say to trust but verify. If a tenant shows up claiming to have an emotional support animal, take the steps you can take to document the animal and the need for it. Make sure you have a policy in place that addresses how you handle emotional support animals. This should be separate from your pet policy since the law does not see these animals as pets.Check out the full fair housing verbiage on emotional support animals if you’re not sure about what you should include in your policy. It’s not uncommon to have applicants and even current tenants who want to bring emotional support animals into your property. If you haven’t run into the situation already, it’s going to happen eventually.Protecting your tenant’s rights is important. You also want to protect the condition of your property and your business model. So, handle these things correctly. There have always been pets and there have always been service animals. Now, there are new classes of accommodations that must be made such as emotional support animals and therapy animals. You have to know the difference between all of these things and if you don’t, get in touch with a Phoenix property management company so you don’t end up violating the law.
When you allow tenants to move in with pets, you might charge a monthly pet rent. However, you cannot charge that pet rent for an emotional support animal. You also cannot charge a specific pet fee or pet deposit. Remember – the law does not see the animal as a pet.You can still collect a security deposit that’s large enough to cover any potential damage that the animal may do while in your property. A higher security deposit isn’t a separate pet deposit; it’s what your tenant must pay before moving in to protect your investment. From a legal standpoint, you don’t have a pet moving in. Don’t charge pet rent and don’t charge a pet fee. Stick to the security deposit and make sure it’s at least the equivalent of one month’s rent.Conduct a background check on the animal by asking for documentation. It’s fair to give the appropriate medical authority a call to verify the information you have is correct and legitimate. Part of your policy and procedure manual must address emotional support animals so there is clear documentation available that describes how you operate in such a situation.As with everything in the Phoenix real estate market, the policy and law on tenants with disabilities is ever evolving. Things change, and it’s important to keep up. Always be compliant and make sure you’re not violating the rights of your residents.This is what we do here. We watch federal, state, and local laws carefully. We draft policies that protect our owners. If you would like some help with Phoenix property management, don’t hesitate to contact us at Mynd Property Management.You can also visit our Facebook group of investors, which is called Master Mynd. It’s a real estate investors’ club, where you can exchange ideas with other owners. Check out our weekly podcast as well, called The Myndful Investor. We invite leaders in real estate and property management to talk about their success and, more importantly, their failures. There’s a lot to learn from this relatable content.
Our topic today is rental property repairs and maintenance. This is often one of the largest expenses for investors, and if you own a rental home in Phoenix or you’re thinking about buying one, you need to be prepared for the routine maintenance costs that will show up.
The most common thing to be repaired in Phoenix is the blinds that cover windows. High heat does damage to these blinds, and we’re constantly replacing them between tenancies and even during tenancies. Vertical blinds are an old school thing that are still found in a lot of properties. They are notorious for falling apart. The plastic pieces break and become detached. So, we look to eliminate those blinds. Instead, we prefer horizontal blinds and window treatments that tend to be sturdy and easy to keep clean. Stay away from cheap plastic. Look for faux wood blinds. They last longer.
Garbage disposals are also a popular repair request. A lot of times, damage to garbage disposals is tenant-caused. It might be an accident; a resident can be doing the dishes and a bottle cap will fall into the drain and lock the disposal. We always check and determine whether the damage is normal wear and tear or a cost that tenants must be responsible for paying.
In Phoenix, we can peak at 110 degrees in the summer, so air conditioning is a big factor. You have to maintain your air conditioning unit as a landlord. We recommend that you have it inspected, cleaned, and serviced annually or biannually. You want to make sure it’s performing the way it should, and you want to decrease the likelihood that your tenants will be left without a/c in the middle of a hot summer.It’s always less expensive and more beneficial to be proactive. Prevent serious issues with your cooling unit instead of reacting to emergencies. You don’t want to be scrambling to take care of this in the middle of summer when it’s over 100 degrees and you need a brand new system. When you’re purchasing a Phoenix investment property, make sure you have an inspector check the cooling unit.In the Phoenix area, our climate demands that the air conditioning unit works for seven or eight months a year and almost 24 hours a day. Your unit works hard. There’s sometime a 30 degree difference in the outside temperature and what you’re trying to achieve inside. Be aware of this, and make sure preventative maintenance is a priority with your heating and cooling unit.
Irrigation line are also important in Phoenix. We live in the middle of a desert, and it’s worth remembering that when you’re buying a property or thinking about your landscaping options. If you want green grass, your property will need a sprinkler system. If you live in an older property, those sprinklers will be notorious for breaking. We recommend you avoid any rental property that has grass.Take the grass out and replace it with desert landscape or gravel. Make sure your property is as low-maintenance as possible. It will help you rent to better tenants and you’ll also have fewer turnover costs. Take away the grass and install some rock. This results in less expense and maintenance.
Roofs are not much of an issue in Phoenix. We like tile roofs on properties, which have a lifespan of about 30 years. You might also have a roof with asphalt shingles. Whatever roof you inherit or choose, make sure you’re maintaining it. You need a roof that can tolerate heat and wind as well as dust storms. Most damage will be covered by insurance, but you want to inspect your roof from time to time and make sure it’s in good shape. You don’t want to see any missing or displaced shingles. Otherwise, you’ll have larger and more expensive problems down the road.
Faucets are more important than you may realize. In Arizona, we have very hard water. There are a lot of minerals, and that causes faucets and showerheads to get calcified. This will cause them to deteriorate quickly, and you’ll find you’re replacing them in our home more than you’d like toMitigate this issue with a water softener. These are common in Arizona, and it will keep water flowing through your plumbing and your faucets. It makes your home maintenance much easier and you’ll find fewer issues.Foundations and shifting soil can be an issue. It’s not usually a major concern, but if there are cracks in the ceiling of a property, it’s usually due to the foundation settling. This is the desert, so things have to be expected to settle a bit over time. Our building code regulations are very specific when it comes to foundations. Builders are required to use moisture and dirt that’s compacted and tested before they can put a pad down and build a house. Newer homes should have especially solid foundations, and this will be part of your inspection before you buy an investment property.Contact us at Mynd Property Management if you’re interested in lowering your rental property expenses in Phoenix. We’d be happy to help you save on rental property repairs.You can also visit our Facebook group of investors, which is called Master Mynd. It’s a real estate investors’ club, where you can exchange ideas with other owners. Check out our weekly podcast as well, called The Myndful Investor. We invite leaders in real estate and property management to talk about their success and, more importantly, their failures. There’s a lot to learn from this relatable content.
Nicknamed the Valley of the Sun, Phoenix is the capital of Arizona and its largest city, with a population of 1.7 million people. Its home to four Fortune 500 companies: Avnet, Freeport-McMoRan, Republic Services, and ON Semiconductor. Phoenix is the fifth largest city in the United States, and it was also named the 12th largest metropolitan area by World Population Review.
The city is built on a mostly flat, desert landscape, aside from the surrounding mountain ranges. For residents, it offers a booming economy, job growth opportunities, a number of higher education insitutitions, and sunshine year-round (perfect for outdoor activities). There are many master planned communities throughout the three areas of Phoenix: North, Central, and South./p>
The largest industries in Phoenix are healthcare, retail, hospitality, and construction. Each year, more than 22 million people visit Phoenix, many flying in and out of Phoenix Sky Harbor International Airport, which is dubbed America’s Friendliest Airport and is one of the nation’s top 10 busiest airports.
NoPho is home to the cooler-weather neighborhoods (popular especially among families) that line the 1-17 corridor from Noterra to New River. Many of the neighborhoods in North Phoenix are rural or suburban, with the Phoenix Sonoran Desert Preserve nearby featuring numerous mountain biking, horseback, and hiking trails.
There is generally a steady demand for homes in the North Phoenix region, with a lot of open space available for development—a new project to build 170 homes on 55 private acres near Anthem was green lit. Anthem and Norterra are known for their shopping complexes (Outlets at Anthem, Shops at Norterra, Happy Valley Towne Center). Rio Vista is a top choice for many real estate investors; it is largely undeveloped land with easy access to amenities in neighboring cities like Anthem (median home value: under $300,000).
Central Phoenix (CenPho) is home to the Downtown area, which offers a mix of art, entertainment, and culture, as well as an abundance of mixed-use commercial buildings. Explore the Phoenix Art Museum, see the Diamondbacks play at Chase field, and choose from a huge selection of cuisines, all easily accessible with the light rail or even walking. Roosevelt Row is one of Downtown’s trendiest (and pricier with median prices at $438,000) neighborhoods, most popular among the younger crowd.
Both Deer Valley to the west and Paradise Valley to the east are popular neighborhoods to live, with top school districts and many amenities. Deer Valley is ranked the #1 neighborhood in Phoenix based on its affordable cost of living ($167,000 median home prices). It also has its own small airport, horse race track, and theme park. Paradise Valley is a small, affluent town northeast of the Sky Harbor airport, near Tempe and Scottsdale. With median home value at over $1.3 million, it features luxury hotels, spas, and golf courses, while families enjoy great schools and lots of outdoor activities including hikes and horseback riding.
South Phoenix comprises Laveen, South Mountain, and Ahwatukee Foothills, among other urban villages. Although separated from Phoenix by South Mountain, Ahwatukee has easy access to other East Valley cities via the I-10. The urban village, with median home values of just under $300,000, feels more rural than other areas since it supports developments that maintain the quiet and spacious atmosphere. Schools are above average and there are many things to do in the area. Northwest of Ahwatukee is the neighborhood of Laveen, where median home value is $178,000.
For more information refer to our Knowledge Center and visit our Phoenix, AZ Property Management page for local landlord tips and information. Our team has vast knowledge and experience in local Phoenix property management and can help you to have a better investment experience. We educate on topics in the Phoenix area ranging from repairs and maintenance, finding rental properties, residents and leasing and much more. We look forward to furthering your rental property education!