The Metro Phoenix Apartment Market’s Promising Outlook

The Metro Phoenix Apartment Market’s Promising Outlook was originally published to: Red Hawk Property Management Website Blog
The Phoenix metro rental market continues a two-year ascent, showing no signs of stopping anytime soon. What really could be the reason behind the increasing demand for rental property in Phoenix?
[caption id="attachment_2665" align="alignright" width="327"] An aerial of recently developed areas in the Phoenix valley. Photo courtesy of the International Space Station.[/caption]
According to Stephanie McCleskey who is the vice president of Research for Axiometricks, outstanding job growth is the most important factor. McCleskey asserts that with over 3% annual Phoenix job growth rate, the huge demand for accommodation is consuming a huge portion of new property supply.
According to his organization, Phoenix businesses created 56,800 in 2015. The data provides evidence that real estate companies are in a rush to add another 4612 housing units in 2017, after supplying 7093 units in 2016. Looking at 18 submarkets with over 1000 units, the 2016 data ranked the valley cities with the most growth as follows;

1. South Glendale—11.0%
2. South Mesa—9.1%
3. Sunny Slope—8.2%
4. East Mesa—7.9%
5. North Glendale/Peoria—7.3%

Despite mortgage rates currently being at their historic lows, Phoenix remains one of the most promising property markets across the nation. The cost of rent has gone higher for the 23 of the past 24 months so is the apartment occupancy.
Nathan Pierce—principal at Strong Tower Realty in Scottsdale advises tenants to consider low or no down payment programs and acquire homes rather than rent. He believes that renters are spending more than they would on a mortgage payment. “In our market, you could save 25% by buying a house outright instead of renting,” says Nathan. He goes ahead to point out that people are spending more when they sign a lease and they are missing out on tax breaks like interests, property tax as well as mortgage insurance by not choosing property acquisition over rental.


source http://phoenixpropertymanagementcompany.com/?p=2664

Arizona Real Estate Will Be An Excellent Investment In Coming Years

Arizona Real Estate Will Be An Excellent Investment In Coming Years is republished from: http://www.phoenixpropertymanagementcompany.com

If you are looking to purchase a home in the Phoenix, Flagstaff, or Prescott areas in Arizona do it now. In the next couple of years, the prices are expected to increase. A single family home is a significant investment in the Phoenix area. Apartments also have a real potential in this area. Homes are also being split into different rental units. Mortgage, as well as construction loans, have a lower risk to lenders than before. Rentals are great investments in Phoenix as well as Tuscon and Prescott.
Investing in Arizona provides many great opportunities. This is like the Florida of the west where people go to retire only without the swamps. There are so many opportunities for investors. In addition to the proximity to the major cities, Prescott has a lot of offer retirees. Flagstaff has a younger population, and Yuma is a location where immigrants tend to start off. Each of these cities have different housing needs.
The need of homes will increase as the economy increases in a city. Phoenix sees the development of new jobs at twice the national rate. These jobs are in the healthcare industry, retail, and finances. Prescott also sees job growth and development. They need people to work in healthcare and retail to serve the elderly population. Tuscon sees a decrease in growth. Flagstaff relies on the tourists for most of their industry.
Home prices in the state of Arizona rose and then drastically fell. The prices in Phoenix and Prescott went up again when people purchased properties that have been foreclosed. There has been a spike in sales again in the cities of Phoenix, Flagstaff, and Prescott. The sales have been weaker in Yuma and Tucson. Over the next three years, home prices in Phoenix are expected to increase by 25 percent. Now is the time to buy. Pries in Phoenix are very strong but not as strong in the surrounding areas.
Almost 40 percent of the population in Flagstaff, Tucson, and Phoenix are renters. The price of home ownership is very high. Investing a single family home is more reasonable in Phoenix. The homes can be split into several rental units. The health care sector, as well as the retail sector, may not pay that well but people will be looking for rental units for years to come.

Mortgages are a sound investment in this area. The prices for homes will continue to rise, the equity will continue to grow, and the risk of default will stay around the national average. Construction loans have an average risk. It is expected that over 60,000 new homes will be built in Phoenix over the next three years as well as an additional 60,000 apartments. In Prescott, it is estimated 5,000 homes will be built and in Tucson 5,000 apartments. Flagstaff and Yuma may have less than 1,000 new construction projects, and many of them will be apartments.
Due to the growth in population, it may be wise to invest in retail stores and eating establishments in Phoenix. Pinal County does not have enough of either. Flagstaff has more competition and pay will go with the cycle of tourism. There is no growth in retail in Prescott, and the retail market has declined in Tuscon. Office space is a good investment in Phoenix due to the increase in the financial and the health care sectors.


source http://phoenixpropertymanagementcompany.com/?p=2660

As The Phoenix Real Estate Market Booms, Rental Prices Skyrocket

As The Phoenix Real Estate Market Booms, Rental Prices Skyrocket is republished from: Red Hawk Property Management Website

The prices for homes are increasing all over the country. Homes in Phoenix are expected to surpass the national average.

In the month of May rent was 2.6 percent higher than it was the past May according to the Census Bureau.

Phoenix saw a 4.9 percent increase from the previous May.

The growth in 2017 has been happening quicker than in 2016. The calculations for the increase use data from apartments and single family homes. Government data is also used to come up with these figures.

The population in Phoenix is quickly growing. The Mayor, Greg Stanton credits the growth due to additional jobs in the health care field. Home sales are also increases where first time home buyers are making the switch from renting to owning a home.

The average rental cost of a two bedroom home in Phoenix was $1,020 in the month of May. The national average is $1,150.

This report does not include North Phoenix, but other nearby cities had higher rent costs than the rest of Phoenix. The town of Sunrise charged $1,340 in rent for a two-bedroom apartment while Gilbert got $1,350.

Two bedroom apartments in Bela Rosa, Talus Ranch, and other areas in Northern Phoenix ranged from $975 to $1,150. Two bedroom homes were listed at prices from $1,495 to $2,250.

source http://phoenixpropertymanagementcompany.com/?p=2655

Implementing Energy-Efficient Systems In Homes For Property Managers

Implementing Energy-Efficient Systems In Homes For Property Managers is republished from: Roger Hickmon

If a property manager makes energy saving investments, they can save a large sum of money over time. It is important to save as much money as possible on energy costs when operating property.

Real estate and property managers often spend a lot of money to make money so it is important to look for ways to save. The property manager can control the energy used by making some energy-saving investments. Here are some tips to reduce the spending on energy. These tips can offer some significant savings over time.

1. Purchase New Appliances

While many property managers look for the least expensive products it can cost them more in the long run. The cost of energy saving appliances may be higher at first but they use 50 percent less energy than regular appliances. Look for appliances that have the Energy Star rating. They have been proven to use less energy. This equals savings in the long run.

[caption id="attachment_2651" align="alignright" width="200"] Look for the energy star logo when purchasing appliances.[/caption]

2. Energy Management

If the energy output is not watched the price can go up very quickly. Managing the output is important but so is predicting future usage. As the market changes due to things such as weather having the right items and the correct information is needed. There are so many factors which affect property management that are beyond the control of a property manager. Spending on energy should not be included. When watching the output changes can be made as needed to save additional money.

3. Switch to LED

LED'S are 75 percent more energy efficient then other bulbs, they are weather proof , and as an additional bonus they are better for the environment. They last for a much longer period of time then regular bulbs as well. These bulbs may cost a little more but they will save money over time. There are also tax rebates and other incentives. Companies will often add the installation costs into the monthly electric bills. This will provide options on how to pay for the lights over time.

4. Retro Commission

Everything needs an inspection from time to time. The property should be inspected to see that it is operating at its peak performance. This is called retro-commissioning. Anything from the HVAC unit to the electrical systems can be inspected. This will reduce the amount of energy that the building is using. It may lower operating costs by at least 15 percent if not more. This may catch smaller issues before they become an expensive repair in the future. A property manager may have to invest in upgrades but the benefits in the long term can be well worth the cost.

If you are in charge of a real estate company or work as a property manager, then you know that saving money it important. Saving more means a higher profit. It takes planning and precision to save money. Smart spending can put you ahead of your competitors. These tips will help you come up with a business plan on how to save money and increase your profit in the long run.

source http://phoenixpropertymanagementcompany.com/?p=2649

Six Situations Where a Property Management Company Can Save You Time and Money

This article by Jason Falcon was originally posted on The National Real Estate Investor and can be viewed at

If you struggle with any of the following situations as a landlord, you could greatly benefit from working with a trusted property manager.

While many individuals are tempted to follow the DIY route by becoming their own landlords, there are several situations where a property management company is better equipped to deliver stronger profit margins.

If you struggle with any of the following situations as a landlord, you could greatly benefit from working with a trusted property manager.

Determining the Optimal Rental Rate

A professional property manager has access to the tools and information you need to set the optimal rental rate for an investment property. To determine this rate, the property manager needs to achieve the ideal balance between maximizing the monthly income levels and maintaining a low vacancy rate.

By conducting intensive research of the local real estate market, including a cross analysis of local rental properties that are already listed on the MLS, a property manager is best equipped to set the optimal rental rates for your investment properties.

Collecting Rent Payments on Time

While collecting monthly rent might seem like an easy task, it is far more time-consuming and challenging than most landlords anticipate. And failing to collect rent on time can lead to insufficient funds in your account, which leads to a whole host of other problems.

Fortunately, professional property management companies have a tried-and-true system for efficiently and effectively collecting monthly rents. From automated payment collection systems to clearly articulated late fees, property management companies will ensure that rent is collected on time each month and that it is deposited safely into your account.

Marketing and Advertising Your Rental Properties

Have you ever tried to sell something on Craigslist? If so, you might have experienced the all too common phenomenon of price slashing. People turn to Craigslist looking for a bargain, meaning they are less likely to pay the full price.

That scenario also happens to DIY landlords. Due to a lack of experience with real estate marketing and price negotiation, landlords are more likely to experience price slashing and take the first offer that walks through the door. Property managers can help you successfully market your rental properties to the right group of tenants. They can also market rental properties on a wide variety of real estate search engines, as well as the local MLS.

Complying With Housing Regulations and Property Laws

Landlords must abide by the countless housing regulations and property laws. A failure to comply with those regulations, including the fair housing regulations, can result in serious lawsuits.

Unless you are well-versed on the local, state and national regulations and housing laws, you should work with a property manager. Not only can they help you avoid costly lawsuits, but they can also ensure that your property is up-to-date with the latest regulations.

Investing in Multiple Locations

As a DIY landlord, you’re limited by the ability to invest in properties located within a tight radius of your home. Unless you want to spend the majority of your day driving around from property to property, you are better off hiring a property manager who specializes in the entire area. An experienced property manager will give you the flexibility to diversify your real estate portfolio without having to invest more of your valuable time.

Maximizing the Profitability of Your Time

The old adage, "time is money," is all too true in the world of real estate investments. A property manager is best equipped to handle the day-to-day aspects of managing your investment property, which means that you are free to spend your time identifying additional investment opportunities. By working with a property manager, you can increase the profitability of your time and enjoy the monetary benefits that ensue.

The bottom line? Property managers are here to help. Whether you’re having a hard time setting the right rental rate, or you’re worried about complying with the local housing regulations and laws, hiring a property manager can save you time, effort, and help you increase your ROI.

Jason Falcon is the owner of LEAP Property Management, a full-service property management company in Denton, TX. LEAP manages over $100 million in real estate.