property management may/june

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Professional property management in the Valley of the Sun!

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Page 1: Property Management May/June
Page 2: Property Management May/June

W ithout a doubt, in the

property manage-

ment business, plan-

ning is everything. Here in The

Valley of the Sun it is especially

to plan for the hot summers.

Two key factors that come up

during the long, hot months

(between May and September)

are air conditioning and land-

scaping.

Indoor air temperature

becomes an issue of habitability

during extreme heat. A.R.S 33-

1364 defines laws regarding the

wrongful failure to supply air

conditioning. Basically, it states

that owners of rental property

are required by law to provide

tenants with air conditioning and

failure to do so can result in le-

gal action.

Preparing for the summer

can be as simple as a system

check by a licensed HVAC con-

tractor prior to cooling season

along with inspection of filters

and vents. It may also be the

perfect time to think about re-

placing an old unit.

Waiting until the middle

of the hot summer to replace an

already failing unit will inevita-

bly cost you more. Prices for

labor and materials are at a pre-

mium in the middle of the sum-

mer. Think of it...an HVAC

technician working in an attic or

on a roof in 115 degree tempera-

tures will surely charge more.

Also, emergency calls are

charged a higher rate. If the re-

pair costs outweigh the replace-

ment (in the long run) then you

should consider budgeting for a

new unit before summer arrives.

A new air conditioner

unit is also a selling point if you

are marketing a vacancy. Ener-

gy efficiency is a primary con-

cern to tenants who usually pay

their own utility bills. During

the summer it is not uncommon

for a single family home of ap-

proximately two thousand

square feet to have an electric

bill of over four hundred dollars

per month! An energy efficient

unit that can knock fifty or sixty

dollars off the utility bill would

make for a happier tenant!

Changing air filters is

essential to the maintenance of

an air conditioner/heater. Man-

ny Ortiz of Pacifica Plumbing

and Air Conditioning

(www.pacificaplumbing.com)

recommends changing the filters

twice a month when tempera-

tures exceed ninety five degrees.

“It is essential that filters are

changed or cleaned a minimum

of once a month to prevent de-

bris from getting onto the coils.

Once the coils are dirty the ex-

pense of cleaning them is con-

siderably more than the cost of

replacing a filter” he says.

Sending out a reminder

notice before the summer is al-

ways a good idea. A profession-

al property management compa-

ny can take measures up to and

including adding addendums to

the lease that require tenants to

replace or report dirty filters or

bear the liability of damages

caused by not doing so.

Many people believe that

desert landscaping = mainte-

nance free landscaping. Alt-

hough low maintenance xeri-

scaping can be achieved, there

are a number of things to take

into consideration in the desert.

Even if you have a com-

pletely “rockscaped” property,

weeds are a huge issue here in

the Valley of the Sun. Preparing

for the fast growing inevitable

onslaught of weeds usually

means spraying a pre-emergent

weed inhibitor. This is the first

defense but does not eliminate

the need for weed abatement

during the summer.

If tenants are responsible

for the upkeep of the exterior of

the rental be sure that the lease

or addendum specifically in-

cludes weeding/weed control.

Many HOAs in Arizona issue

hefty fines when they discover

weeds growing on the property.

You would be well advised to

have measures in place that will

allow you charge tenants if any

fines are levied.

As for grassy areas,

shrubs and trees, checking the

sprinkler and/or drip system be-

fore the summer is always a

good idea. Without proper wa-

ter many plants may not survive

a week in the intense heat.

If you are considering

planting trees, shrubs or grass

make sure to check out the wide

variety of drought tolerant

choices. Surprisingly showy and

colorful, desert plants, when

carefully selected can lend quite

a bit of curb appeal to your in-

vestment property. There are

many great websites that have

lots of information about plants

that require very little water and

flourish in our Arizona heat.

Contact our maintenance

department for more information

at [email protected] or call us at

623-977-6011.

Page 3: Property Management May/June

As anyone living in Arizona knows, lightning shows are just a fact of life. Spectacular displays light up the desert

skies...beautiful, yes...scary, sometimes! Everyone will agree that there is something amazing about Arizona lightning.

It all starts with the monsoon. The word "“monsoon"“ has it‟s roots in the Arabic word, “mausim” which means "“a season".

The word was first used to describe the winds over the Arabian sea. In Arizona the monsoon season begins with the ex-

treme dry heat of May and June, when temperatures rise to 100 degrees and above. When the atmosphere warms up, the

dry jet stream moves northward and winds begin to shift up from the south. This shift in the winds brings in humidity and

moisture from the Sea of Cortez, and the Gulf of Mexico. Once the moist air arrives and mixes with the summer sun it

heats the air thus creating Columbous clouds. This marriage of moisture and heat is what leads to frequent afternoon and

evening thunderstorms with a spectacular display of lightning. Here are some interesting facts about lightning:

Lightning is capable of generating a temperature of twenty seven thousand degrees Fahrenheit. It can travel at twenty thousand miles per second! A bolt of “fossilized lightning” that has been dated to be two hundred million years old was discovered on the Navajo Indian

Reservation in Arizona. Lightning has hit the Empire State Building as often as twelve times in twenty minutes and as frequently as five hundred times

a year. The most powerful lightning strike ever recorded in the United States struck the Cathedral of Learning of the University of

Pittsburgh on July 31, 1947. The bolt discharged approximately three hundred forty five thousand amps. Arizona has more lightning displays than any other state. Approximately 1000 people are struck by lightning every year in the United States.

Lightning is not confined to thunderstorms. It's been seen in volcanic eruptions, extremely intense forest fires, surface nuclear

detonations, heavy snowstorms, and in large hurricanes.

Most forest fires are caused by lightning strikes.

Understanding lightning can take away the fear...remember, knowledge is power!

Page 4: Property Management May/June

A sk The Broker:

From time to time we get ques-

tions from our readers regarding issues

related to property management. We

have decided to turn to our designated

broker, TJ Loegering, Jr. and include

some questions and answers in our

magazine.

Question 1:

Dear TJ,

I own a rental home in Sur-

prise, AZ. Recently my tenant of three

years moved out. I would like to know

how long it takes to find a new tenant

and how quickly it can get rented. I

rely on the rental income to pay the

mortgage.

M. Jorgensen

Answer:

Dear M.

Your question is a good one

and it‟s usually the first question that

new clients with a vacancy ask of me.

My answer is always the same; it de-

pends. There are a number of factors

that impact the length of time a vacant

home will be on the market before a

qualified tenant is found.

It is very important to know

the market. Rental „comps‟ work simi-

larly to the „comps‟ used for purchase

and sales. The comparable local rental

rates are available from a number of

sources. Armed with this information

you have a baseline from which to op-

erate.

Secondly, it‟s vital to check

out the local competition. Walk the

neighborhood and take a tour of the

local homes on the market. With this

information you can compare your

rental home with others of similar

size/condition. That will help you to

adjust your price...sometimes up,

sometimes down. If your rental prop-

erty is in beautiful condition with lots

of extras (i.e.; washer/dryer, new appli-

ances, granite countertops or other

“luxuries” a renter may be willing to

pay a higher price. On the other hand,

if a neighboring home has lots of

„extras‟ and your rental pales in com-

parison you may need to think realisti-

cally and lower the price (if their ask-

ing price is the same, or lower

than yours) .

Effective marketing is

yet another consideration that

impacts down time. Things to

consider such as whether or

not to advertise in local news-

papers, online, post signs or

distribute flyers locally are all

methods that can be used...but

there are others. Move-in spe-

cials and incentives can cer-

tainly help. Consulting with a

leasing agent or professional

management company should

be considered. They should be

familiar with what the current

trends are with regards to in-

centives. Without proper marketing

and/or exposure, your rental home can

sit vacant for months. A plan must be

designed and implemented before the

unit is ready to start showing...and

when I say ready, I mean ready.

Never, never, never allow the

property to be viewed until it is in the

best possible condition. Does that

mean that you have to do a complete

remodel? Certainly not! It does mean

that the rental should be turnkey.

Whatever upgrades/repairs are needed

should be done prior to showing. Pro-

spective tenants do not respond well to

promises like “the painting will be

done after your application is

approved”, or “we‟re offering a move-

in credit if you are willing to do the

cleaning yourself”.

Most importantly remember, I

said there are factors that impact the

length of time a vacant home will sit on

the market before a “qualified” tenant

is found. Focus on the word

“qualified” and do not fall prey to

promises from unscrupulous individu-

als posing as real estate professionals

who make unrealistic claims to find a

tenant within a very short period of

time. The market is flooded with pred-

ators who want to get paid a leasing fee

and will stick you with a tenant who

has not been screened properly. That‟s

a scenario that can turn into a fiasco if

the tenant is unable to pay rent. My

philosophy; a bad tenant can be worse

than no tenant at all!

Hopefully I‟ve given you some

information that is helpful. For more

information or to discuss your prop-

erty please call me, TJ Loegering, Jr. at

623-977-6011. I‟m here to help. Re-

member, whether you do it yourself or

hire a professional; “good management

doesn‟t cost, it pays!”

Page 5: Property Management May/June

Realtors: We can help you take control.

Advertising

Periodic inspections

Late notices

Rental Comps

Bookkeeping/accounting

Financial statements to owner

Tenant screening

Evictions/Legal

Maintenance calls

Tenant communication

Vendor screening

Rental Tax (compliance with the law)

Networking

: You keep your client plus,

Renter becomes potential buyer!

Additional income stream (we pay

commission for each signed

management contract).

Ask about how you can earn

a monthly percentage on 10 or

more units.

As a professional realtor you understand all too well how the

current market is impacting your bottom line. Trying to hold onto

every listing is crucial in today’s economy. As a result you probably

end up managing property in an attempt to maintain the listing and

eventually make your commission when the property sells. Let’s

face it, the management end of the business is time consuming and

is preventing you from generating more business. So, what’s the

solution? How do you keep your listing and get out from under the

day to day management of the property? We’ll tell you how. We

are a full service property management company devoted

exclusively to property management. We don’t even take listings

or do sales. We work with realtors and their clients and take the

burden and liability of property management out of your hands.

And, when the time is right, your client is right there waiting, and so

is your commission. So call us today….you’ll be so glad that you

did!

Real Estate Management Services, Inc.

7440 W. Sunnyside Drive

Peoria, AZ 85345

623.977.6011 ph

623.444.9889 fax

www.remsaz.com