What to Look for in a Property Management Company

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 24×7. With all the available communication channels today, there’s entirely no reason why a property management company would not be able to handle 24×7 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

The Arizona Real Estate Market Prime for Rental Investors

With the Arizona Real Estate market experiencing a robust recovery, it is only to be expected that investors will be drawn into putting money into rental properties. Indeed, 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 apparent 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 invest in real estate successfully. 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 most significant 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 by 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.

Phoenix Property Management Company

Red Hawk Property Management
2451 E Baseline Rd Ste 410, Gilbert, AZ 85234, USA

Why It Makes Good Sense To Hire A Property Management Company

Owning a rental property is one of the strongest investment options available for generating long-term income. There are naturally day-to-day duties and responsibilities connected with maintaining the property, dealing with tenants, and any other issues that arise. These are usually manageable and not too time-consuming when it involves only a single property. But once you get into the upkeep of a portfolio of multiple properties, the responsibilities can become more onerous. Your investment creates more stress and worry than you had bargained for, and the project is no longer enjoyable. Before things ever get that bad, it’s time to engage the services of a professional property management company.

Typically, the property manager takes responsibility for the routine tasks that take up the most time and hassle for a property owner, so you are free to reap the rewards and enjoy your investment. Screening potential tenants, dealing with contracts, collecting rent and dealing with problems with tenants, repairs on site and ongoing maintenance are can all be handled impartially by property management companies. Many property managers are flexible and can offer a partial service for a negotiable fee if you or your contacts are willing or able to do some of these tasks.

Usually, the property manager will interact directly with rental applicants and tenants on behalf of you, the property owner. They can arrange the marketing and advertising of rental properties, hosting of viewings and meeting interested candidates, screening prospective tenants and collecting deposits and rents. Property managers can be the first point of contact for ongoing repair issues or emergency maintenance. They are also responsible for dealing with tenant complaints and can assist you in legal and practical terms if you ever have to deal with an eviction.

It is a significant investment to employ a property management company, and this is a factor which leads so many property owners to attempt to take full responsibility themselves. But for property owners with a full-time job, having the time and availability to look after a portfolio of more than three rental units can become too much of a challenge. The management fees make more sense when compared with the potential income from a larger stable of properties, and the relief of leaving the hard work to a professional manager.

Absentee owners, or owners of a widely distributed portfolio of properties, may find that hiring a property manager in the local area is the only sensible option.

If you’d prefer not to have to attend a plumbing crisis at 3 AM, repair and decorate woodwork or manhandle leaking washing machines, then a good property manager will have the know-how and a network of trusted professional backup to tackle these and all manner of problems daily. If you feel property maintenance and calling on skilled people to organize it is beyond your skill set, then enlisting a property manager is a sensible option.

There’s a long list of issues that may arise with rental property. Using a property manager who’s seen them all before and dealt with them is the best way to prevent problems from becoming nasty, expensive or stress-inducing surprises, and ensuring that your experience of owning and letting a property remains an enjoyable one.

Property Management Phoenix AZ

Red Hawk Property Management

Do It Yourself Vs. Professional Property Management Companies

Property owners are often faced with several challenges, the major of which is making the decision on whether to take charge of their rental properties or whether to leave their management to a property management company. While each of the options has its pros and cons, professional property management companies have more advantage over owners due to their great experience. Keep reading and discover why property managers are a better option taking charge of your rental property’s management.

Understanding state and federal regulations

Let’s face it. You as a property owner cannot follow up on the legal requirement as compared to professional property managers who deal with rental properties on a daily basis. Even though you will have some idea concerning the local rules, the fact is that you will hardly stay up to date. Failure to follow the required regulations can place you in a danger of violating the law thereby endangering your property finances and yourself. By leaving property managers to take charge of your rentals, you can rest assured to have no issues with the law as a result of your property not staying on par with the necessary current codes.

Handling the renting process

Did you know that the rental process can be quite cumbersome but you ought to pass through it? Once your rental property is ready for occupation, you need to get potential tenants. This involves establishing a budget to advertise your 

rentals and getting to the real advertisement of your property which involves placing of rental ads. Once prospective renters show up, you need to deal with all information required from them to enable you to screen for the right tenants. You should get their employment information, personal references, previous address, background information, all of which can take much of your time. Besides, you should always avail yourself when these prospective clients need to issue their documents. If you are in full-time employment, you will end up losing many potential tenants as you might not be available when they need you. To stay safe, a property manager is better off taking charge of your property. After all, they are familiar with the rental process aspects.

Screening and selecting the best tenants

You do not want to involve your property with renters who will always give you a headache. However, failure to properly screen your tenants will just cause you to have stubborn renters. Without the experience and knowledge to distinguish those who give you true information versus those who lie, you will likely end up giving your rentals to untrustworthy persons. Besides, if you rush to pick tenants due to lack of enough time to screen all of them, you will also fall into the trap of accepting renters who will give you problems. Property managers can guarantee to give you the best tenants. They have the experience and knowledge to determine genuine residents after the interviewing process, therefore, giving you the guarantee of only getting the best renters.

Establishing rental rates

The amount of rent set for your property determines whether you will be successful to get the number of tenants you want for your rentals. Setting a price that is unrealistic only discourages residents from renting your property. After all, they consider apartments where they can save. In as much as you may have a value in mind of the price to set for your property, this amount may be unrealistic as compared to the market value. Property managers can set realistic rental rates for you, as they can access the current rental data to help establish the appropriate rates for your property.

Handling rent collection

Rent collection is something that you will have to deal with monthly. Despite the screening process as mentioned earlier, you will probably come across some tenants who pay late due to financial constraints or a bad month. Following up on late payments can give you a headache as this will interrupt your daily duties. Management companies will save you from handling all rent collection issues on your property. They will handle all monthly payments and late payers giving you a peace of mind.

Tenant communication

Dealing with complaints from tenants can be stressful, especially for a rental property owner who stays far from the rentals. You do not want to imagine having to travel all the way from your home or business just to go and get someone to deal with a plumbing or electrical issue on your property. With property managers, you can rest assured never to have to deal with small problems in the rentals, as they will have that catered for. They handle all day to day issues arising from the renters thereby giving you a peace of mind.

From this discussion, many benefits arise if you decide to leave property managers to oversee your property. They save much of your time allowing you to spend it on valuable things. Moreover, the amount of fee you pay to these professionals is much less than the value of their services. Hence if you are confused about getting a property management team to oversee the running of your rentals or whether to do it yourself, it is recommendable that you consider hiring a property manager.

Property Management Phoenix AZ

Red Hawk Property Management

As The Phoenix Real Estate Market Booms, Rental Prices Skyrocket

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 healthcare 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.

Chandler AZ Property Management

Red Hawk Property Management