Property Management Blog

Monday, December 07, 2015

How much money should I budget for maintenance on my rental home?

This is a common question I receive.  I am often asked this question by new clients that have just become landlords, those that are thinking about becoming a landlord, or real estate agents that want to give their clients some good information.  They want a number that they can plug into their calculations so they make sure they are prepared for when the day comes for the next repair bill.    Read More »

Tuesday, July 07, 2015

Tucson houses rent for a median of $1,100 within an average of 52 days so far in 2015

I have just evaluated the Tucson residential rental market from January 2015 through June 2015 using Tucson Association of Realtors Multiple Listing Service (MLS) statistics.  Although not all rentals are captured in the MLS, it is fair to say that the data captured is a representative sample. 
 
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Thursday, May 07, 2015

Want smoother move-outs? – Begin with the end in mind

When a tenant gives notice that she plans to move-out of her rental property, the landlord receiving the notice often shudders.  From dreading the potential vacancy period, to computing the potential turnover costs, the impending tenant move-out typically does not conjure feelings of joy and happiness in landlords.  However, there is one big thing that landlords can do to help smooth out this process from the beginning...  place the right tenant in the first place.    Read More »

Tuesday, April 07, 2015

How to increase the value of your Tucson rental?

The 2015 Cost versus Value report was recently published and can be downloaded at costvsvalue.com.  Although they don’t have Tucson specific data, they do have Phoenix specific data.  Phoenix is part of the “Mountain” region as they define it.    Read More »

Friday, March 06, 2015

Should I allow e-cigarettes in my Tucson rental if I have a no smoking policy?

I remember when I first heard about e-cigarettes, I wondered if they were some sort of virtual reality experience through an avatar that somehow gave people the same sensation they get from actually smoking cigarettes.  But of course that’s not what they are.  E-cigarettes are battery operated electronic devices that deliver nicotine through a vapor that is tobacco-free.  Because the vapor is tobacco-free, it doesn’t contain tobacco’s cancer causing chemicals, also known as tar.  However, the second hand vapor of e-cigarettes contains many other carcinogens including formaldehyde, benzene and nitrosamines.  So the smoker may be simply trading one form of carcinogen for another.  The FDA recently ruled that it will begin regulating e-cigarettes just as it does tobacco products, so we should know more soon.  Read More »

Monday, February 09, 2015

How to keep your 2015 resolutions on track

About a month into the new year is when many people begin to give up on their New Year’s resolutions or have forgotten about them all together.  It’s always interesting to see all the new members at the gym in January.  They bought their gym membership as part of a New Year’s plan and are excited to change the way they look and feel.  But by February, most of those folks have given up and it’s back to the regulars that will be in the gym all year long.  If this sounds familiar, my message is simple, don’t give up!    Read More »

Wednesday, January 07, 2015

Tucson houses rent for a median of $1,100 within an average of 51 days in 2014

It’s hard to believe that yet another year has passed!  But as you are contemplating your resolutions and goals for the upcoming year which may include investing in a rental house or two, I thought it would be beneficial to take a look at the past year’s rental statistics.    Read More »

Monday, December 22, 2014

Arizona Sales Tax Law Change Impacts Tucson Rental Repair Invoices

In 2015, changes will be put in place that impact the transaction privilege tax, commonly called sales tax, paid by contractors here in Arizona.  Effective January 1, 2015, contractors that conduct “maintenance,” “repairs,” “replacements,” and “alterations” (which includes all rental property repairs and maintenance) will begin paying sales taxes when they buy materials, at the point of sale.  This is in contrast to what has been the case up to this point, which is they did not pay sales tax at the point of sale.  Nearly all contractors passed along the sales tax to the consumer by collecting it through their invoices, then after collecting the taxes, they paid them to the government.  The new system should be a win-win for all involved.  It greatly simplifies the processes for the contractors and at the same time is expected to increase tax revenue for the government.  So how does this impact rental repairs you ask?  Going forward into 2015, you should not see a contractor invoice that includes tax as a separate line item they may have in the past.  However, you may notice a slight change in the materials costs.  This is because going forward the tax will be in that materials cost since it will be included at the point of sale.  If you are paying unit prices on items that include materials, you may notice that the unit price increases slightly.  But in 2015 if you receive an invoice that calls out sales tax as a separate line item, you’ll want to touch base with your contractor to make sure they are aware of the new law and that their invoicing practices are aligned with the new law.  Read More »

Sunday, November 09, 2014

Landlord Hires Wrong Contractor, Pays the Price

There are a lot of potential risks and pitfalls in managing rental properties.  Working with contractors is one of those risks.  I find that many landlords don’t understand what the risks are, not to mention how to protect themselves from them.  So I thought it might be beneficial for you to understand the potential risks and the corresponding risk reduction techniques that you can employ.  Read More »

Tuesday, October 07, 2014

How does the minimum rental criteria impact the vacancy period of your rental property?

I am often asked what the typical vacancy period is for single family home rentals here in Tucson.  Using the Multiple Listing Service statistics, average days on market (DOM) historically hovers around 45 days.  By the way, DOM is defined as the number of days between the day the property comes onto the market and the day it is rented.  For the first six months of 2014, the average DOM was 53 days.    Read More »