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.
Why Should You Purchase a Rental Property in Scottsdale, AZ?
Characteristics of Scottsdale AZ
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.
What types of renters are in the Scottsdale area?
- Snowbirds – people that only live there during the Winter months
- People that work locally in tourism focused businesses.
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.
Hiring a Scottsdale Property Manager
Why should you hire a property management company in Scottsdale, AZ?
There are a lot of laws, rules, and regulations
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
- Getting back in touch with a tenant when they have a problem
- Knowing who is responsible for fixing specific items when something breaks. Just because a tenant says something is broken doesn’t necessarily mean you are liable or responsible.
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.
Pricing your home for the market is key to reduce vacancy
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.
Property managers deal with the contractors, so you don’t have to
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.
A property management company gives you back your time
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.
How Do You Accurately Set Rents in Scottsdale, AZ?
After purchasing your Scottsdale, AZ rental property, how do you determine what rent to charge?
Scottsdale AZ rental statistics
- The average rental property in Scottsdale, AZ is 1440 sq ft.
- Average rent (single family and multi-family) is $1648 per month
- Occupancy rate (for Mynd in Scottsdale AZ) is 97%
- Average days on market for the area is 120 days
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.
Rental occupied vs owner occupied data
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.
Growth in Scottsdale
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.
Take all the numbers and look at the big picture
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.
What will your property rent for?
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.