- Should I buy an investment property?
Adding investment property to your portfolio is always wise decision. As investors we have found investment properties have proven stable growth with limited liability. However, your investment requires good management, which is just as important as finding the right property.
- Who should I use to help find an Investment Property?
East Valley Property Management can help. Call one of our sales agents, with experience in the rental and sales market; they will give you the advantage of receiving service with management knowledge. Due to this fact, they can help you select a home that will make the most of your investment dollars. Call our office for details.
- What makes the best rental house?
The East Valley area has a large number of growing communities that can make your investment dollar grow with them. In most cases people want to rent where jobs, transportation, shopping, and good schools are available. Finding these quality neighborhoods in an area that will show continued growth is what our realtors do best.
- How can a Real Estate investment profit me?
Rent is only one component of figuring the return on your real estate investment. You must also consider:
Appreciation – Real estate usually appreciates over the long term. For example, in 2000 Valley homes appreciated by about 7%. When you consider that most properties are mortgaged, a 7% appreciation can be great. For example, if you put $20,000 down on a $100,000 home which then appreciates by 7%, your return on appreciation alone is 35%.
Tax Savings (State and Federal) – Remember, with an investment property all costs are deductible including fees, maintenance, and insurance. In addition, you may depreciate the cost of the home over 27.5 years. Depending on your tax bracket, these savings can substantially add to your return.
Future Rent Increases – Typically, as the value of your property rises so does the rent. With your mortgage payment remaining fixed, rising rents will increase your return over the life of the investment.
Reduction of Principal – Part of your mortgage payment each month goes to reduce your principal. With a rental property, your tenants are, in essence, paying off your mortgage.
Leverage – Real estate may be the only investment where you can borrow most of its value. In a rising market this leverage will multiply your returns. However, it does not come without a cost in the form of a higher mortgage payment which may temporarily hamper cash flows.
- Why should I use East Valley Property Management?
Today, Real Estate still remains one of the best investment opportunities available. However, if you are holding an investment home management can be a major challenge. East Valley Property Management can provide you with full service management expertise to meet your specific needs. We specialize in professional management of single family homes, town houses, and condominiums in all areas of the East Valley including Scottsdale, Sun Lakes, Awatukee, and Phoenix. We are licensed Arizona Real Estate professionals with over 30 years of experience. While the reasons our clients choose professional management vary, here are some of the key reasons many people use our management services over self-management:
- We handle maintenance and emergency repairs, which can be a heavy burden for a working professional especially when dealing with warranty companies.
- We enforce collection of rents and serve the proper notices upon failure to pay.
- We understand and apply the correct federal, state, and local laws, keeping you and your investment out of trouble.
- We know the local market, have an extensive network of contacts, and have advertising resources available to us at discounted rates. This allows us to market your vacant home to prospective residents to get it filled.
After you add up the increased rent we can often command, the discounts you'll receive on advertising, and the company rate we get on repairs, you'll often make more money than if you managed the property yourself!
- What services do you provide?
Marketing, tenant screening, Lease initiation, rent collection, handle the property registrations, collect and disperse rent tax, manage repairs, send owner statements with accounting information, and deal with the headaches just to name a few. Click Here to see a full list of our services.
- Do I need to leave money in a trust account?
Yes. We ask for $600 in your trust account.
- Who determines the rents?
After looking at comparables, we will advise you about the current market price then, as the owner, you can make the decision about the final price.
- How much will my property rent for?
Often landlords will set rents depending on how much they need to cover their mortgage, how much they want, or on what they heard another home is getting. Using such methods almost always creates problems. Arriving at "just the right rent" (not too high, not too low) can be a complicated and takes many factors into account. This is one of those areas where there is "no substitute for experience". Typically, a higher rent price will take longer to lease and a lower price will rent faster.
- How much security deposit do you collect?
An amount equal to one month of rent.
- How do you advertise rental properties?
East Valley Property Management advertises using the Multiple Listing Service, a “For Rent” sign, our website, and all of the top websites available.
- What features attract prospective tenants?
In general, people want to rent clean quality homes in good neighborhoods. Amenities such as window treatments, ceiling fans, landscaping with some grass, automatic sprinklers, and shrubs, along with tile flooring instead of vinyl are also desirable.
- What appliances should I include in my property?
We have found that appliances are rarely a deciding factor for renting. If a person is going to rent a home, they will likely have their own appliances.
- How long will it take to rent my house?
Vacancy rates can very significantly based on your homes amenities, condition, location, time of year, and pricing. Our expertise can help you choose the best price in which to market you home.
- How do you screen tenants?
East Valley Property Management will screen all applicants through an extensive credit, background, employment and prior landlord verification check. Putting the best-qualified tenant into the property will minimize the chances of having the property returned in poor condition. Through years of experience, we find that a person with good credit will apply the same responsibility to other areas of their life, which means the chances for a tenant to damage your property decreases.
- Can I choose to allow pets or not?
Yes, you can choose whether to accept pets or not, but you cannot deny a service animal. If you allow a pet, we charge a $300 pet deposit and charge $25 of pet rent per pet per month.
- Can I require my tenant to have renters insurance?
No, you cannot require the tenant to have renters insurance but our lease recommends that they do. The owner is not liable for a tenant’s personal belongings.
- Who is responsible for yard work, pest control, air filters, and light bulbs?
The tenant is responsible for all of the these items, unless your property is in an area where the HOA covers any one of them . Some owners elect to continue to have the yard maintained at their own expense.
- Am I allowed to go inside the home after it is rented?
As an owner you can drive by the house as often as you like, however we must give the tenant a 48-hour notice before we can enter the property.
- Will tenants ever contact me?
Not unless you contact them. East Valley Property Management will never give out your information with to anyone without your express and approved consent. Nor do we share your information with any third parties. However, with the use of public records, it is possible to find you. If this happens, you can refer them to us.
- Who pays for the utilities?
The tenant pays for all utilities while they occupy the home. If the home is scheduled to become vacant, then the utilities will need to be turned on in the owners name. In many cases, the owner schedules with the utility companies as a "default" name on the account, that way if the tenant should ever schedule utilities 'off', the owners landscaping and pool will constantly be protected with utilities never lapsing.
- Where does the tenant pay rent and how am I paid?
East Valley Property Management receives the rent from the tenant in our office, pays any bills including the management fee for that particular month, and then disperses the owner a check on or before the 20th of each month. If the date falls on a weekend or holiday, it will be sent prior to that point.
- What is the rental city sales tax on rents?
Each city has a tax that is applied to rents received. The tenant pays the tax in addition to their monthly rent.
- Does the owner get a copy of maintenance bills?
The owner will receive invoices for their property including the lease and maintenance bills. Usually, these items are sent to the owner on with the statement.
- Can you handle maintenance issues?
Maintaining your home and its investment value is our main priority. That is why we have a full list of vendors that are licensed, bonded, and insured and can accomplish any task. Any service needed for your home can be handled with quality work at a reasonable price. In some cases, you may want to utilize a home warranty company. Just provide us with the information and we can take care of a problem through them.
- Can I authorize the repairs before they are done?
Yes. Depending on the cost of the repair and the emergency behind it, East Valley Property Management will contact the owner for all repairs that may exceed $400 in cost. This can vary according to the owner’s desire. If an owner wants to be called on all repairs, we can do that too.
- Who pays for HOA’s dues and maintenance costs on the property?
Monthly HOA dues are paid by the owner. The owner is responsible for all normal “wear & tear” maintenance. Any repair that is caused by the tenant due to neglect is the responsibility of the tenant.
- How do I handle an HOA violation and who pays for it?
If the tenant causes a violation of the Rules of the Association, we request that the owner fax the violation to our office immediately. Once we receive the violation, we contact the tenant and send them a copy of the notice and a letter that explains what needs to be done to repair the violation. Depending on the violation, we will inspect the property to assure the violation is repaired. If a second violation occurs and the owner is fined by the HOA, then the tenant will be billed on their account for the violation. The owner will need to pay the violation to the HOA so a lien is not placed against the home. If the tenant fails to reimburse the owner for the violation, then the fee will be deducted from the tenant’s security deposit at time of move-out.
- How much insurance coverage do I need?
We require that our clients have a minimum of $300,000 in property liability coverage. Anything less is just too risky.
- What is the procedure when a tenant doesn’t pay rent?
All rents are due on the 1st day of the month and late on the 2nd. East Valley Property Management does not allow grace periods and expect all our residents to have their full rent to us on or before the 1st. If rent is not received by the 5th then a 5 day notice is sent as a written demand letter delivered by certified mail to the property notifying the resident to make payment immediately to avoid an eviction proceeding. If rent is not received after the legal notice period of 5 days is up, then our attorneys file a motion in the local Justice Court for a hearing and judgment against the resident for non-payment and removal from the property. If payment is was not received from the resident at the hearing, then an order from the Judge to remove the tenant is issued to the Court’s Constable and within a week the property is returned to us. This entire process can be done within 4 weeks.
- Who pays for the eviction process?
Unfortunately, even the best tenants can experience struggles and cannot pat rent. East Valley Property Management is knowledgeable in the laws regarding the Arizona Landlord Tenant Act, and we follow strict guidelines in evicting a tenant. Most evictions are for non-payment of rent, and can be completed within 30 days. Although the tenant will be held responsible for the legal costs, the owner will be initially billed for filing fees and attorney’s costs. These bills, along with back rent and damages to the property will be reimbursed from the tenants deposit excess. Any excess bills will be sent to a collection company.
- What happens if the tenant damages the home?
Charges for damages are immediately billed to the tenant. If the charges remain unpaid, the delinquent amount is considered “unpaid rent." The tenant will be delivered a 5-day demand notice to pay the charges in full. If the outstanding balance is not paid, eviction proceedings can commence. If would be a very rare situation where a tenant chooses to go into an "eviction" over an unpaid repair charge and risk damage to their credit rating.
- Do I receive a 1099 and a year-end statement?
You will receive a 1099 at the end of the year and a year-end statement can be provided upon request.
- Is the property required to be registered with the county?
Yes, every home that is used as rental property MUST be registered with the County Assessors Office. The registration is free. East Valley Property Management will register your property for you.
- What liability is there with swimming pool?
A swimming pool is in high demand in the summer. We have all the appropriate documents in the tenants lease that the State of Arizona require that we give the tenant regarding pools and swimming. It is always recommended to our owners that they carry at least a $1,000,000 umbrella policy as to cover any possible liability concerning their investment homes. To get pool safety tips you can go to this website - AAP Pool Safety for Children
- What is the Landlord Tenant Act?
The Arizona Landlord Tenant Act is the Arizona law that governs rental homes. To see a copy click here: AZ Landlord Tenant Act
- What happens when my tenant vacates at the end of the lease term? How much time to do repairs?
East Valley Property Management will usually inspect the home within 36 hours after vacating. A FULL inspection report will be written and any maintenance needed will be charged to the tenant’s security deposit. Either the security deposit or the balance of it will be sent to the tenant with in 14-business day along with a break down of charges.
- What happens if the tenant breaks the lease?
If tenant desires to terminate their lease prior to the ending date of their contract or the agreed upon renewal date, the following option can be taken. The tenant will be responsible to pay rent through the end of the lease OR until the property is re-rented. In addition, the tenant will pay for the advertising. The owner will have no costs if this should occur.
- What year was East Valley Property Management established?
East Valley Property Management was established in 1989.
- Do you charge Administrative start-up fees?
- How long is the contract between myself and East Valley Property Management and can I cancel at anytime?
The management agreement is for one year and renews annually. At any point, a 30 days notice can be given to cancel the agreement. East Valley Property Management wants to manage for you until your investment is cashed in. Therefore, we want to give you the best service possible.
- What is the management fee? Is this charged regardless of vacancy?
Our management fee is 8% of the rent and we do not charge this until the property is rented. Management fees are not collected on vacant properties.
- What happens if I want to sell my home?
Being a full services Real Estate company with a staff of Realtors, East Valley Property Management can either sell your property to the tenant or put it on the market to sell. As your agent, we sell your investment and offer savings in doing so.
- Can you manage my property that already has a tenant on a lease?
Yes! We can take over property management of your home at any time. If the current lease is month to month, it would be advisable to change your current lease to a East Valley Property Management lease.
- Who do I contact?
If you are interested in East Valley Property Management managing your home, please call our office at 480-926-9001 to speak to a representative weekdays 9:00 AM to 5:00 PM or email us
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