Phoenix Property Management.  What makes a good property manager?

Property management industry knowledge - You would expect the property manager to understand the comparable rents in the area and know the direction rents were heading in the near to mid-term time frame.  He/she should be able to counsel the owner on what the rent should be in order to rent quickly and stay rented, while getting the highest rent possible for the property.

Understanding of how to keep a property well maintained - The property should be maintained to the standards set by the owner, for the appropriate cost for the area, and in a fashion that keeps the tenant happy.

You see, I believe in keeping your eye on the core business and not being distracted by the elements that other people are experts at.  A good property manager could outsource the things that do not apply to the core business.   Basic knowledge of things like contract law, accounting, and software should be required, but a lease can be reviewed by a lawyer, books can be maintained by an accountant, and software can be outsourced to a good property management software company.

The qualities that I, as a rental property management software provider, will be measured by must include a strong understanding of technology, since that is my core business.  The qualities that a property manager will be measured by will be a strong understanding of real estate.

So the answer to the question of how we are measured is very much yes and no.   A good property manager does need to have many of the qualities on the list, as all of us do.  But just as important if not more important is a strong understanding of the core business, managing properties.

Phoenix Property Management -Select the Best Tenants REJECT ALL Others!

Phoenix Property Management- Selecting the best tenants and reject all others.
Once you have obtained an application and gathered the necessary information you require, you are now in a position to make a decision.  If you have completed all the proper steps IE: Employment check, credit check, past landlord history etc. these decisions are rarely that difficult.  However in the real world you can't always verify everything and all the information may not be available. Sometimes you are forced to make a decision when you do not have all the information. In these cases, trust your own judgment and make a decision.  Try to err conservatively.  Selecting good tenants in short simply takes experience and sometimes lots of it.  

Phoenix Property Management can be full of complexities.  Feel free to contact our office at 480.588.8356 Press Option 1.

Phoenix Property Management -Why Property Management virtually pays for itself.

There are generally two types of management clientele.  The first being what we call a "forced landlord" this is the property owner who would much rather sell their property versus rent it however due to market conditions they are currently unable too.   Secondly there are investors.  These obviously are folks purchasing property for possible cash flow and future appreciation, tax benefits, and capital gains. 

Now in either scenario utilizing a professional property manager generally will save this client several thousand dollars per year.  Simply put think of this scenario.

A property owner lets call him "Bob".  Bob thinks he will avoid professional management and advertise, lease, and manage the home himself. 

First let's start with advertising.  

Bob says "any idiot can throw an ad on Craigslist".   With this said that is exactly what Bob does.  Now once every week Bob re-posts his ad.   Problem #1 is Craigslist alone does not lease homes; you need several other critical advertising sources in your arsenal to lease as quickly as possible.  Problem #2, re-posting on Craigslist once per week has you at the top of page 1 for all of 20 minutes out of that 7 day period, literally.  Now in our professional opinion you need to post every 48 hours religiously in order to have any luck on craigslist (this takes work most are unable to commit too).   In addition you need to be listed within the rental MLS and posted on over 20+ other strategic rental sites.

Bob spends 60 days on craigslist posting once per week and spends over $3,000 in vacancy mortgage payments he possibly could have avoided.

IE: With professional management this property would be on craigslist however re-posted every 48 hours, in addition to the rental MLS, and over 20+ other very critical rental marketing websites.  Very possibly bob could of saved a minimum of $1500 of that $3,000 in vacancy expense.  That alone pays for management.

Now let's discuss the lease:

Now after 60 frustrating days Bob is so desperate to lease the property, he decides to accept an application despite the fact that the prospective tenant did not provide adequate employment info.  She says she works for her "uncles plumbing business".  Bob decides to download a free lease online and draft his own lease (please don't do this by the way)!  He drafts the lease in the best fashion he is capable of.   By the beginning of the 3rd month the tenant emails Bob and explains she will be unable to pay rent on the first however will be "getting him the money asap"  Well our friend Bob spends the next 45 days attempting to track down last month's rent eventually deciding he must get professional help. 

Now in this example, Bob wasted initially an estimated $1500 on possibly avoidable mortgage expense in addition to loosing an additional $6,00 0 (four more months of vacancy due to the fact that Bob had to evict this tenant, pay his mortgage, re-advertise until leased again)  What a disaster!   I think we would all agree paying a professional property manager would of pay for itself many times over here!

Phoenix Property Management can be full of complexities.  Feel free to contact our office at 480.588.8356 Press Option 1.

Phoenix Property Management - Familial Status

The federal fair housing amendments act of 1988 added two new protected classes to the Title VIII of the civil rights act of 1968, which prohibited housing discrimination based on race, color, religion, national orgin, or sex.  The two new classes are "familial status" (IE: people with children under 18 years of age) and handicap.  The starting point for understanding "familial" status is knowing the federal and state definition of "familial status.

Federal Law:

"Familial" status means one or more individuals who have not yet reached the age of 18 years being domiciled with:

1.      A parent of another person having legal custody of such individuals or individuals; or

2.       The designee of such parent or other person having such custody, with the written permission of such parent or other person.

The protections afforded against discrimination on the basis of familial status shall apply to any person who is pregnant or is in the process of securing legal custody of any individual who has not attained the age of 18 years.

State Law:

A person may not refuse to sell or rent after a bona fide offer had been made or refuse to negotiate for the sale or rental of or otherwise make unavailable or deny a dwelling to any person because of race, color, religion, sex, familial status or national organ.

A person may not discriminate against any person in the terms, conditions, or privileges of sale or rental of a dwelling, or in providing services or facilities in connection with the sale or rental because of race, color, religion, sex, familial status, or national orgin.

This does not prohibit discrimination against a person because the person had been convicted under federal law or the law of any state of the illegal manufacture or distribution of a controlled substance.

A person who knowingly refuses to rent to any other person a place to be used for a dwelling for the reason that the other person has a child or children, or who advertises in connection with the rental a restriction against children, either by the display of  a sign or written or printed notice, or by publication thereof in a newspaper of general circulation, is guilty of a petty offense.
Phoenix Property Management can be full of complexities.  Feel free to contact our office at 480.588.8356 Press Option 1.

Phoenix Property Management - The rental agreement should provide payment of expense incurred to bring legal action.

The act provides that after a special detainer action has been filed, the tenant may reinstate the rental agreement only by paying past due rent; late fees; attorney's fees, and court fees.  Your rental agreement should also include this.

Your rental agreement should include language that entitles you to attorney fees and legal expenses whether or not action is contested.  The reason for this is simple.  The statue does not adequately protect the landlord's interest.    Consider this language in your rental agreement.

"Landlord and Tenant agree that the prevailing party in any litigation, action or controversy arising from this rental agreement shall be entitled to reimbursement of or, if appropriate, an award of reasonable attorneys fees, litigation expenses and court costs incurred prior to trial, during trial, post judgment and/or on appeal, without regard to whether or not the matter is contested".
Phoenix Property Management can be full of complexities.  Feel free to contact our office at 480.588.8356 Press Option 1.

Phoenix Property Management-Give the tenant a move-in inspection form.

MOVE IN's:
With Respect to tenants who first occupy the premises or enter into a new written rental agreement after January 1, 1996, upon move in a landlord shall furnish the tenant with a move in form for specifying any existing damages to the dwelling unit.

Landlords and tenants often forget that there was existing damages to the property.  A property inspection checklist ensures that tenants are financially responsible for damage that they caused and not responsible for pre existing damages.

MOVE OUT's
After January 1, 1996 upon move in the landlord shall furnish the tenant with written notification that the tenant may be present at the move out inspection.  Upon request by the tenant, the landlord shall notify the tenant when the landlord's move out inspection will occur.
This does not mean that you must schedule a time that is convenient for the tenant.  On the other hand, you should not schedule that in intentionally inconvenient either. 

Now, keep in mind you are not required to notify the tenant of a move out inspection if you have evicted this tenant for a material or irreparable breach.   Phoenix Property Management can be full of complexities.  If you should have questions relating to your property please don't hesitate to contact our office at 480.588.8356 Press Option #1.