What to Look for in a Property Management Company

What to Look for in a Property Management Company was originally published to: http://phoenixpropertymanagementcompany.com

Single-family homes continue to be a significant investment and the areas surrounding the Phoenix area are especially attractive investment opportunities. Flipping a house is one way to earn income, but moving toward renting is a whole different path, and when you take that route you need to consider how you'll manage the property or properties seriously. Finding the right property management company can be a daunting task, but with these tips, it should make things easier for you to get a handle on.

1. Make sure the company knows the local market

There's nothing more frustrating than working with a company that has no clue about your market or location. They don't cater their decisions toward what the local market and economy look like and do a poor job in using other people's data in making their decisions. Property management is no different, and it requires knowing the local market to secure the best deals and best contracting opportunities. It also requires that the company know enough about the local market to be able to promote it, not from the 50,000-foot level but the street level and it takes a local to know the best things about the locale.

2. Planning with the property manager

The property management company should have a manager who will set up a meeting and go over all the details with you. This can't be something done remotely; it needs to be on site and in person. The game plan needs to be discussed and agreed to by all parties. Budgets, goals and long-term vision need to be explained and detailed, and a plan needs to be put in place to achieve these. Going into this without a plan is like wandering through the desert with a blindfold.

3. Make sure your property manager provides excellent customer service

Customer perception is a huge part of any business, so why shouldn't it be with your property management company? When you select a property management company, you're counting on someone being there to answer the phone or respond to issues quickly and be able to take care of things 24x7. With all the available communication channels today, there's entirely no reason why a property management company would not be able to handle 24x7 communication.

4. A property management company is responsible for accounting

Would you trust an accountant who kept loose scraps of paper and notes scattered about his office? How could you possibly trust a property management company who doesn't show up with reliable accounting and bookkeeping processes and procedures firmly in place? Demand that you see how they manage their expenses and accounting. A walk-through of their process is not asking too much.

5. A property management company should be praised by its tenants

In World War II, the allied POW camps went out of their way to the outside world to appear as if the prisoners were content and well taken care of, going as far as pushing out certain prisoners to provide a grand image. You need to make sure your property management company is honestly taking care of its tenants. You should inquire with tenants and look through the turnover rates. Happy tenants are tenants that will continue to provide you income.

Red Hawk Property Management Gilbert AZ
2451 E Baseline Rd #410, Gilbert, AZ 85234, USA
+1 480-396-9766
http://phoenixpropertymanagementcompany.com/

source http://phoenixpropertymanagementcompany.com/?p=3134

Five Benefits Of Using A Good Property Management Company

The article Five Benefits Of Using A Good Property Management Company was first seen on: Red Hawk Property Management Website Blog

If you are a landlord that would like to avoid dealing with monthly rental income and expense management or would like to eliminate weekend maintenance calls, read on. The right choice for you may be hiring a property management company to handle your real estate investment. Of course, they are going to take a cut of the revenue from your rental, but they are also going to free up your time and much help to streamline your business.

It is essential that you interview several companies and that you take your time making the best decision. The truth is that not every property manager will be the best fit for you, so taking the time to find the right choice is time well invested. The truth is that when you find the correct choice, your days of managing your rentals will indeed be over.

Take A Look Here At Five Benefits That Will Be Provided By The Best Property Management Company For You:

1) Screening Out Problem Tenants

The fact of the matter is that experienced property managers see hundreds of applications, so they are well versed in spotting any potential red flags. Your chances of landing that reliable tenant is vastly improved by their experience and care in these matters.

2) For Tenant Concerns, They Act As The Point Of Contact

When there is any breakdown of your property, it is not always an easy task to rush over and evaluate the situation. This is even truer when the property is not near where you are. A property manager can and will address whatever the problem might be and when necessary, get a service provider to take care of the problem. Still another significant advantage the property manager offers is handling the ever complaining tenant who seems to have some problem that requires attention continually.

3) Decreasing the turnover of tenants

Renters are always kept feeling happy and satisfied by competent property managers. They take care of any problems or issues when they come up and are readily available to address all concerns. When the tenant is happy, they are far less likely to seek another dwelling and are also more accepting of rent increases which are reasonable.

4) Making Certain Rent Is Paid On Time

The property management company is motivated to keep the rents coming in when due since they deduct their fees from the money coming in. The property management company will be there to enforce the terms of the agreement if for any reason the payment isn't received when it is due. If there is a consistent problem with the rent being collected when due, the property manager has the money to handle the situation properly.

5) Lessening Your Rental Headaches

You are going to have fewer complications and issues to have to deal with when you have a property manager handling the daily management of your property. This allows you to enjoy a better quality of life and far less stress.

The bottom line is that there are so many definite advantages to securing the services of a competent Phoenix property manager and it is well worth whatever the cost may be!

Red Hawk Property Management
2451 E Baseline Rd Ste 410, Gilbert, AZ 85234, USA
+1 480-396-9766

source http://phoenixpropertymanagementcompany.com/?p=3130

Suggestions For Locating The Best Property Manager

Suggestions For Locating The Best Property Manager is republished from: http://phoenixpropertymanagementcompany.com/
It is a huge decision, hiring someone to manage your investment and so it is essential you do the necessary research before committing to one. Just some of the vital qualities to look for are honesty, organization, and experience. Take a look now at six suggestions that will be of great help in finding your property's best fit.

From Different Sources, Get Referrals

Word of mouth is tip number one to find a property manager. You can get some great options by talking to other property owners in your area and also by talking to local real estate agents in the community.
Getting a list of property management companies and property managers that they are currently using or have previously used can be of great help. It is also important to ask about any problems or issues they may have had, as well as just what they have been happy with.
Keep in mind that a referral can be biased. This makes it vital that you seek out various sources of referrals. If you continue to hear multiple times the same thing regarding a property manager, chances are far more likely that it is indeed true.

Conduct An Online Search For A Property Manager

Doing your research online is so important. There are websites like AllPropertyManagement and T-Rex Global that permit you to plug in the location of your property, and it's size, and they will then generate a listing of property management companies that will be in that area.
You will also want to go over a company's reviews on sites such as https://www.yelp.com/about and even Facebook, before making any arrangements to interview a property manager.
Still another principal source is the Better Business Bureau where you can see if a company has complaints filed against them and also just what kind of a rating it has.
Very often, conducting this research will allow you to come across some of those companies you may have also received referrals, and this will give you, even more, information about them.

Look At Their Current Work

Take a look at some of the current rental ads being run by the property manager. Are they compelling, professional and free of any statements that are discriminatory? Do they place ads in a variety of different places or just on free sources such as community bulletin boards and perhaps Craigslist?
Look at the actual properties that are managed by them. Are they well-cared for and clean?
Speaking to the tenants that are currently managed by them can be an excellent source of revealing information. The tenant's opinions are so important because property management is about keeping both you and your tenants happy and satisfied.
Do the tenants feel as if any complaints they might have are being adequately addressed? Just how long does it take for a maintenance issue or a repair to be completed? Is the building overall noisy? Is the tenant considering signing a new lease? If not, just why? All of these inquiries will give a clear indication if the tenants are pleased with the performance of the management team.
You should also ask to see an example of the monthly report furnished to you by the management company.

Several Property Managers Should Be Interviewed

Interviewing several different property managers is tip number four. It is just so important that you take the time to do this so that you can come up with the one that you are the most comfortable and at ease within trusting the management of your property.
You will quickly be able to separate the bad from the good when you interview several different potential managers. You will also quickly see those with a solid plan and real knowledge of just what they are doing. That property manager who is consistently placing tenants and within a short period seeking to evict them is apparently one that is just not good at screening them.
You also want to find the candidate who is not dismissive of your questions, but instead is receptive to them. The truth is that if during the interview, they are not putting their best foot forward, things are only going to go downhill if permitted to manage your property.
You should ask questions about their experience and education, fees charged, services provided and whether or not they have a good understanding of the tenant-landlord law.

Check Out Their Certification And License

The majority of states require a property management license or a real estate broker's license be held by a property manager/management company to show vacant premises. To see if their brokerage license is active, you should check with the Real Estate Commission of the state in question.
Also, you will want to know if the manager or company is certified with a trade organization like the National Apartment Association(NAA), the Institute of Real Estate Management(IREM), the Community Associations Institute(CAI) and the National Association of Residential Property Managers(NARPM). Certification is offered by these companies after a robust training program has been completed. Their going through this process will indicate to you that they are indeed committed to correctly handling their job.
Of course, your instincts should also be trusted, making it so necessary that you are comfortable with the choice that you ultimately make.

Look Over Their Management Agreement

The responsibilities of both the property manager and the property owner should be defined in the management agreement.
You will want to pay close attention to the sections on provided services, responsibilities of the owner, extra fees charged, hold harmless clause, compliance with fair housing laws and any reason for cancellation.
The post was written by:
Red Hawk Property Management Mesa AZ
2451 E Baseline Rd Ste 410, Gilbert, AZ 85234, USA
+1 480-396-9766


source http://phoenixpropertymanagementcompany.com/?p=3132

Arizona Cities Seeing The Greatest Real Estate Growth In 2017

The article Arizona Cities Seeing The Greatest Real Estate Growth In 2017 is available on: Red Hawk Property Management
With the addition of approximately 217,000 new residents, the state of Arizona is one of the country’s fastest growing states. The new growth has resulted from an enormous economic turnaround, specifically the opening of the Apple plant in the Phoenix suburb of Mesa. There are an estimated 10,000 places available for new residents and homeowners, making the silicon Desert the place to be.
Are homes available? What you want to look for when analyzing areas for relocation and availability of homes, check ownership rates. A high ownership rate leads to a higher overall score, whereas a lower one shows high competition and more options for renters over buyers.
Can you afford to live there? To determine whether a place is affordable you want to use monthly homeowner costs and median home values. The higher score in our report go to high median homes with low coasts of living.
Is the area growing? To answer this, population growth will tell you if an area is attracting new residents. A thriving local economy will usually bring in more home buyers.
Using the above measures, the best places to live in Arizona are provided below. Each of these towns are ideal if you are looking for a place to buy a home. Evaluate what you are looking for regarding incomes, median house values and area growth you can determine which town is a better suit your needs.

1. Maricopa

With a population jump of 19.6%, this area located in the Gila River Valley is a top spot for relocation. More that 805 of homes are owned versus rented, and the median cost for a house is $132,000. Hosting the popular Harrah’s Ak-Chin hotel and casino, the town features a great historical collection of the Ak-Chin people. The casino is the largest employer in the area. The community additionally offers the Ak-Chin-Him-Dak Eco Museum which showcases stone tools, arts and crafts and jewelry.

2. San Tan Valley

This suburb in the Greater Phoenix Area had the highest population spike has not yet been incorporated as its own town, but did get its own postal code in 2009. With a median home value of $126,300 and an ownership rate of 74%, this area is quickly becoming a popular place. There is potential for growth here and the low cost of living makes it ideal for first time home owners.

3. New River

The residents here earn a monthly income close to $7,185 with 28% of that going towards home ownership costs. Situated to the north of Phoenix, the average home value is $312,200 and it has the highest ownership rates (90.7%). Overall the town has seen 11.23% in population growth. The attraction to this area comes largely from the low numbers of rentals, showing this is a preferred place for those looking to settle and purchase a home.

4. Sahuarita

A more technologically advanced area located south of Tucson; Sahuarita has median incomes around $5,700 and a relatively low cost of living. The majority of homes in the area are owned rather than rented. Most employment stems from the huge organizations located there such as Raytheon which is an international defense and aerospace company and the University of Arizona Science and Technology Park.

5. Queen Creek

Thanks to local festivals such as the Roots n’ Boots Rodeo and the American Heritage Festival, this area saw a boost in population numbers of 12.1%. One of the highest household incomes of the places on the list, averages for the area is close to $7,343 a month. Most homes are owned and cost of living is higher than other places on this list, but is still relatively low. Residents can enjoy an amazing Parks and Recreation department, with programs and activities for all ages and coming soon will be a new 14 screen movie theater.

6. Buckeye

Buckeye is located in the Maricopa Valley and supports slightly higher number of renters than the previous location; however it is still primarily homeowners. This suburb of Phoenix has not had as large of population increases either, but has a very decent median household income and low cost of living. The town is famous for its old times western theme and annual Buckeye Days festival and the Helzapoppin’ Rodeo.

7. Marana

A relatively young city, when compared to most of Arizona towns, the population soared by 2012 to reach a little over 34,000, which is a big jump from its previous 1977 count of 1,500. Although the city is not very big, it has its own airport and a decent monthly income close to $6,000. There is definitely room for growth here and the cost of living is low, which makes a potentially ideal spot to settle and buy a home.

8. Anthem

A relatively small town of 23,000 residents, this community is still a very busy one and offers a lot to its members. The cost of living here is slightly higher than others on the list, but monthly median incomes are also a little higher. You can enjoy the veterans’ memorial, Liberty Bell Park and the Splash Pad as well as the beautiful 64-acre community park hosted by the Community Council Parks and Facilities.

9. Green Valley

30 miles south of Tucson, there has not been a lot of growth here in regards to population and the median monthly income is significantly lower than the other places listed. Most of the residents are employed in the local copper mines or the Smithsonian Institution’s Whipple Observatory (located in the nearby town of Amado). The lower growth rates, incomes and home values ($182,000 on average) are most likely due to this largely being a retirement community.

10. Goodyear

The original land for this town was bought by Paul Lichfield (Goodyear Tire and Rubber Company). Affordable to live there with decent incomes and steady growth rates, the town has an excellent economic standing for potential homeowners. Jobs are provided mostly by Macy’s and Amazon fulfillment centers as well as the popular food production companies of Snyder’s of Hanover, Del Monte and Poore Brothers. This town is great for baseball fans, as it hosts both the Cincinnati and the Cleveland Indians spring training camps.


source http://phoenixpropertymanagementcompany.com/?p=2784

Simple Tips To Protect Your Rental Property From Liability & Lawsuits

Simple Tips To Protect Your Rental Property From Liability & Lawsuits is republished from: http://phoenixpropertymanagementcompany.com
If you are the owner of a rental property, it is likely that you have considered the liability associated with that. If you have real legal concerns, it is best to speak with a lawyer. There are, however, simple tactics that you can use to help protect you and your assets.
Purchasing rental properties is widely considered one of the best investment choices a person can make. Usually, you can buy them below market value which opens up the potential to make real money. There are real risks associated with being a rental property owner, such as being sued for money or because of injuries occurring at your property. Whether a freak accident occurs or someone gets hurt from landlord neglect, the risk of injury is a real problem facing owners.
As an owner, you need to consider if the returns you make on the property are worth the risks. Even if it is worth it, there are still precautions you can take to protect yourself. If your returns are decent, then you can afford to take additional precautions. If you are more limited in your options, it is best to consult with professionals to get the best advice on what coverage and precautions you should take.

Use a property manager

Managing your properties or someone else's increases your liability. There have been cases where an evicted tenant hurt themselves while moving out and turned around to sue the property manager. The tenant claimed that the landlord had broken his TV and left the glass in a window well. When he fell in the window well while moving, he claimed the injury was the fault of the landlord. Tenants can make a lawsuit out of almost anything, so it is best to be prepared.
Even after lengthy court cases and a verdict in favor of you, there is still a valuable lesson to learn. It is critical for landlords to have insurance; with liability insurance to cover issues like this the legal fees would have been covered. Talk to your insurance agent about getting liability coverage. To be a property manager in most states you need to be a licensed real estate agent first, and they require E and O insurance, so this is a good place to start.
As a property manager, you need to be aware of local and state ordinances. Take the time to research which forms and documents. A good example is that some states require you to sign lead based paint forms and to put up a flyer on all properties. You need to be careful because states can fine a great deal of money to get you to pay attention to the laws. You have to consider if you really want to risk losing money on something you had the time to research and take care of.

Create corporations or LLC's

Creating one or several organizations is a great tactic to protect your properties. Each property will need a checking account for all money associated with that location. Setting up a corporation is a simple process, taking no more than thirty minutes and there are several of online companies that will help you get started with the process. You have the option to have a lawyer set this up for you too, but they can cost around $750. This really is too high, considering you can do it yourself. Setting up an LLC can be fun, you can be as creative as you want when it comes to naming them.
You need to check with the bank that finances the property before transferring it to an LLC. The reason being that some bans have due on sale clauses, which means they can call your full loan if you sell the property. Even though the same individual owns the property and the LLC, it can still trigger the clause to be activated. Once a property is transferred to an LLC, it also becomes harder to refinance.

Homeowners insurance

Think of all the things that can cause damage to the property; frozen pipes, backed up sewers, trees falling and even natural disasters or severe weather. Working with agents to get the proper coverage for your properties is a necessity. Discuss all the possible coverage and find out what is not covered; some companies do not include floods and sewer problems. Each property will require different coverage so for each location evaluate the risks against the insurance costs to determine what will work financially and protect you.

Free and clear is not always best

Having a property free and clear with no loans open puts you at greater risk for lawsuits. People will be more inclined to sue when they are assured of a payoff, and if you owe nothing, you will have to pay more for any suits. Opening a line of credit against the property shows up in public records which can help you. Even if you do not owe anything, the full amount of the loan is what is visible, and it could protect you.
Hiring rental property services to take care of your properties and having proper and adequate insurance coverage is the best protection you can give yourself. Always use a reliable and knowledgeable insurance agent who has experience with rental policies. They can inform you of all the potential policies and explain them to you, allowing you to pick what is best for each of your properties.
It is also a good idea to hire an accountant to make sure all taxes are filed and handled correctly and a lawyer to take care of any possible legal protection you may need. It may be expensive to work with these professionals, but if you are new to the rental property owner game, it is a wise choice to get them involved. Understanding the risks and getting prepared early, will make and future problems much easier to deal with. You could stand to lose a lot with one lawsuit, so look into thoroughly protecting yourself, you will thank yourself later.


source http://phoenixpropertymanagementcompany.com/?p=2777

The Arizona Real Estate Market Prime for Rental Investors

The article The Arizona Real Estate Market Prime for Rental Investors is available on: Red Hawk Property Management Website Blog
With the Arizona Real Estate market experiencing a strong recovery, it is only to be expected that investors will be drawn into putting money into rental properties. Certainly, real estate investors within the state recognize the potential as the market continues to strengthen, but investors from other neighboring states are also finding the growth in Arizona irresistible.
If you are new to the idea of real estate investing it may not be clear to you all of the advantages of doing so. It takes time to learn the pros and cons, become familiar with the pitfalls and how to avoid them, and then once you begin investing it can take several years to build up a valuable portfolio.

Buying Rental Property: Overview

With diversification being the 'buzzword' in investing many people are taking the time to learn how to successfully invest in real estate. It is likely that you have already purchased Arizona Real Estate at some point in your life i.e. your home. Doing so gives you some idea of what it takes to go through the purchasing process. Buying investment properties is very similar but with some additional knowledge required.
You will go through the same research and assessment of your financial position to determine the value of the property you can afford and your ability to pay back a mortgage, and then armed with those numbers you go ‘shopping’ for funding. Where rental properties are a little different than residential homes is that the goal is to gain the largest return on your investment as possible.
Due to the goal of realizing the best return possible you are likely to find yourself looking at properties that you would never consider buying to live in yourself. Cash flow is crucial, and therefore you will be looking to buy properties that the rental income provides sufficient money to cover the mortgage repayments as well as all other expenses associated with the property.
Maintaining high occupancy with reliable paying tenants is critical, and at the same time keeping expenses to a minimum is also of utmost importance. The act of advertising a property for rent, vetting prospective tenants, and other issues that come with the management of real estate is what makes many real estate investors turn to a professional, knowledgeable and well-respected property management company. The value they bring to an investor makes their cost worthwhile.


source http://phoenixpropertymanagementcompany.com/?p=2772

Common Mistakes New Landlords Make & How To Avoid Them

The article Common Mistakes New Landlords Make & How To Avoid Them was originally seen on: Red Hawk Property Management Blog
New landlords of rental properties need to be aware of the size of the commitment they're taking on, in particular when it comes to financial and legal matters. Inexperience is nothing to be ashamed of, but it should be used not as an excuse but as an opportunity to seek out knowledge and experience from seasoned experts in the property management field and get their advice, so they are better prepared if they have to deal with safety issues or a troublesome tenant.

Here are six common mistakes for new rental property owners to avoid.

1. Failing to Screen Tenants Properly

Many inexperienced landlords will think they're saving money and hassle by not undertaking a full tenant screening process. They may be easily convinced by pleasant people with everything appearing right about their application. But it's vital to protect your investment with due diligence, doing a credit report, enquiring about the tenant with past landlords, and assuring yourself there's no history of late payment or aggravation or prior evictions.
Any landlord will want to avoid the eviction process if they possibly can. It's costly, time-consuming and unpleasant. A little extra time spent researching a tenant can save a lot of stress, and any honest tenant won't mind you doing it.

2. Lack of Legal Knowledge

Any departure from local and federal housing regulations from the moment you begin accepting applications from renters can put you at risk of litigation as a landlord. You must have an understanding of local habitability laws and the Fair Housing Act on a federal level, and ensure your property is compliant and legally safe and habitable.
It may seem a daunting amount of legal material to learn, but expert help is readily available, and this should be a priority.

3. Not Following Through On Late Payment Fees

Don't let any tenant get away with exploiting you by not paying rent responsibly and on time. An exceptional hardship as a one-off may be permissible if it's verifiable, but if you allow repeated late payments out of a desire to appear kind, you will be losing out on any return on your investment.
Hold tenants to late fees and ensure they adhere to the terms set out in their lease agreement.

4. Not Having Regular Inspections

Inexperienced landlords of rental properties may be tempted to save themselves the nuisance of arranging a regular property inspection. It's easy to believe the tenant will raise any maintenance issues promptly - but what if they haven't noticed them, or caused the problem themselves, or are trying to conceal something else?
Beginning each tenancy properly by making safety and inventory checklists, and checking all areas are well maintained, can save you costly and unexpected repair bills in future. You can enlist professional help from property managers to make sure the inspections are full and thorough. Seasonal inspections can protect against any faults or negligence escalating into critical problems in hot or freezing weather.

5. Not Having Full Insurance Cover

The worst possible situation for a landlord is to be liable without a sufficient insurance cover. Be sure to include specific landlord's coverage in your homeowner's insurance to cover situations such as somebody suing because they sustained injuries while on your property.
You should also insist on tenants having renter's insurance to cover damage on and off the property, as well as their own possessions. If your tenant accidentally causes water damage to the apartment below, you won't be faced with damages that the tenant is unable to cover. Experienced landlords often require this protection to be in place as a term of the tenancy agreement.

6. Not Using A Property Manager

It's a significant investment to hire property management for landlords to represent you in matters dealing directly with the tenant, but it's one that can save time and stress particularly as an alternative to managing a property for the first time.
If you are not prepared to go into detail with all the required knowledge of landlord and tenancy laws, or you find minor day-to-day rental issues are occupying more time than they should, then it's well worth considering investing in the services of a property manager. There is a trade-off between the management fees and the amount of time and stress property management will save you. If you have multiple rental properties to manage, getting professional help with the day-to-day running can pay off more.
These six common mistakes are part of the array of knowledge you should arm yourself with before investing in a rental property, and are a good starting point towards avoiding legal tangles and enjoying the returns that your investment brings you.


source http://phoenixpropertymanagementcompany.com/?p=2766