Wednesday, October 01 2014
How good is the Phoenix housing market for investors?
SPECIAL FEATURE: Each weekday afternoon, look for "Reagor on Real Estate" — the one bit of Arizona real estate news you need to know today.
Buying homes in metro Phoenix isn't the deal for investors it was a few years ago before home prices rebounded 70 percent.
But the Valley still ranked No. 28 out of the U.S.'s 75 largest metro areas for buying an investment home, according to a new All Property Management survey.
FRIDAY'S NEWS: Uptown Plaza gets update
Grand Rapids, Mich. is the national property management firm's top pick for investment markets. Poughkeepsie, N.Y., is second, and San Francisco ranks third.
The ranking is based on vacancy rates, changes in rents, appreciation, job growth and a few other housing and economic indicators.
Metro Phoenix, which is in the top 40 percent nationally, ranks as the third best investment market in the Southwest, after Dallas and Albuquerque.
All Property Management's market intelligence on the Valley: "Phoenix, while not offering the best home value appreciation among the 75 Metropolitan Statistical Areas, does quite well in the areas of rental variance, job growth and average days on market."
Rental variance, the change in rental prices year over year, increased in Phoenix by 3.45 percent.
According to the report, the Valley also saw job growth over the past year of about 2.11 percent. And the area's overall housing market is seeing activity, as properties are taking only 65 days to sell on average, All Property reported.
The company is a Seattle-based online network of property management services.
Tuesday, April 08 2014
Phoenix Middle-Market Apartments Gain Some Pricing Power
Annual rent growth in Phoenix apartments came in at 2.8% as of mid-2013. That’s a decent figure, still slightly below the national norm but certainly the best performance seen in the metro over the course of the past couple of years.
What may come as a surprise to some is that Phoenix’s rent growth leaders right now are mostly middle-market communities, particularly the metro’s big block of 1980s-generation properties. Effective rents for new leases in Phoenix’s 1980s-vintage stock climbed 3.8% during the past year, compared to growth of 2.7% in the projects from the 1990s and 1.7% in the developments built since 2000.
Occupancy in the middle-market apartment stock across Phoenix hasn’t recovered entirely, as the rate stood at just 92.9% as of 2Q. However, there are pockets where this product niche is already essentially full (occupancy of 95% or better), notably Deer Valley, Chandler, North Glendale, South Scottsdale and Gilbert. It’s in those submarkets where rent growth for 1980s-era properties is tending to show lots of momentum, with pricing up about 8% in Deer Valley, about 7% in Gilbert, and about 5% in South Scottsdale, for example.
Monthly rents for middle-market apartments in Phoenix average between $600 and $700, so most residents of these properties don’t earn enough for home purchase to be a realistic option right away. Thus, as long as Phoenix can continue to generate jobs at a pace similar to the levels seen now – annual growth of some 53,000 positions, or 3.1% expansion – demand for middle-market product should remain strong enough to continue to push rent growth in the sector at levels above the norm for all properties.
Artice Source: Greg Willett
Thursday, October 13 2011
Phoenix Based Opulent Real Estate Group LLC specializing in Professional Investment Management has added Associate Steven J Werner as an Investment and Leasing Consultant. Steven formerly working with Major Valley Firms such a Realty Executives has a rich Phoenix background and additionally brings a vast amount of expertise and talent to the company. Opulent Real Estate Group LLC although formed recently in 2005 has proven to be a formidable force within the Valley's Management market. With offices locatedin the Biltmore Central Corridor they remain conveniently located for both clients and tenants alike. Website renovations and new media have been recently upgraded. You can view further information, services, and contact information at http://www.opulentre.com/ or main office dial at 480.588.8356.
Thursday, July 14 2011
Phoenix among 10 best places to buy rental properties
Phoenix Business Journal
Phoenix's housing market has created a good place to invest in rental property, according to a recent survey ranking the top 100 cities for such properties in the U.S.
HomeVestors of America Inc., which does business under the name We Buy Ugly Homes, and Local Market Monitor ranked Phoenix as the seventh-best market for investing in rental properties.
The study found markets that suffered severe hits in the housing crash have become the best rental markets. Las Vegas is in the top spot, and two Florida markets cracked the top 10: Orlando (No. 4) and Tampa (No. 6). While those markets represent some risk, the rewards are higher.
Phoenix, where vacancy rates are 13 percent, got good marks for keeping rents relatively stable, even with the drop in home prices and the fact that jobs seem to be growing again.
Sunday, May 08 2011
PHOENIX - House rental rates in the Valley are high and in high demand.
"The best way to describe it is, [it's] like the house sales market in 2005 only for rentals," said a local Realtor . She is also a property manager.
"There are homes renting for $3,000 a month and people are standing in line to get in," she said.
Maricopa County has 58 percent FEWER rental homes available today versus 2006.
Depending on the area, the median list price is up 7 to 24.8 percent today compared to 2006 numbers.
The high rental rates are likely to go up even more, MacLean predicts, as another wave of foreclosures is likely.
"It is supply and demand," she said. "If you have a nice home then you can pretty much ask what you want."
Christine Ellis for example put her Arcadia home on the rental market a week ago. She recently bought a larger home to accomodate her family's needs. Ellis has had multiple rental offers.
MacLean said the trend is actually one that could eventually help the market rebound because it is making it less tempting for people to walk away from homes when they know there is an alternative to rent at a price that would cover the mortgage.
Phoenix Property Management Services 480.588.8356.
Thursday, April 21 2011
Why you Should Hire a Phoenix Property Management Company!
Owning a rental home or home(s) is a large responsibility and can be complex and time consuming.
Most investors who go into real estate go into it for buidling long term wealth and financial freedom only to find themselves as a makeshift "property manager" This is not the "dream" they had in mind. Between marketing, maintenance, accounting, evictions, screening, collecting rents, and managing all the calls savvy investors quickly realize they need to add a good management partner to their team. This fully leverages their time and helps them fuel their investment passion and streamline the management duties. Opulent Real Estate Group LLC utlizes only the most progressive and effective marketing techniques to fill your vacancies faster than any of our competitors. This alone makes Opulent Real Estate Group LLC your "go to" for Phoenix Property Management.
Phoenix Property Management can be full of complexities. Feel free to call our office at 480.588.8356 Press Option #1.
Wednesday, April 20 2011
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.
Tuesday, April 19 2011
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.
Monday, April 18 2011
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.
Friday, April 15 2011
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.
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Catherine Reagor, The Republic | azcentral.com