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Understanding Why People Rent

As a rental property owner, it’s important that you know who your potential tenants are and why they are looking to rent. Having a better understanding of why people rent can help you target the right people and convey the best possible message. Below are some of the most common reasons why people choose to rent a home.

Growing Older and Retiring

Many older people and retirees want to live closer to their children and grandchildren. They may own a home in another part of the country, but choose to rent in the city or state where their kids are. Others find that in their older years, they can’t keep up with the maintenance required for owning a home. They would rather rent a home that includes yard maintenance and repairs. Older renters often prefer ground-floor units that are close to shopping centers and restaurants.

Just Getting Started

Newlyweds or other couples just getting started off in life aren’t always ready to buy a house right off the bat. They may still be finishing up school or working to establish themselves at their jobs. Younger people are okay with sacrificing for a few years when they believe it will pay off in the long run. They are often looking for something that is low in rent, even if that means it’s a small space.

Recovering From Loss of Home

With all of the changes in the housing market over the last several years, some people are still recovering from losing a home they owned at one point. They may be in the process of rebuilding their credit or saving for a down payment for a new home. For them, renting a home is their best option for now. Many of the people in this situation have children and prefer to rent for several years until they are established enough to buy a home again.

Desired Neighborhood

There are some people who choose to rent instead of buying a home because they want to live in a specific part of town or in a certain neighborhood where there are no homes for sale. Their desire to live in that neighborhood is high enough that they are fine to rent rather than living somewhere else where they can buy. It could be that they want to stay close to their children’s schools or to their place of employment.

Temporary Home

Another type of renter we often see are those that are in between owning homes. They may have had to sell a home because of a great offer, but aren’t able to move into their new home for several months or even a year down the road. These renters often prefer furnished homes so that they can leave all of their furniture and other possessions in storage rather than having to load and unload them twice in a short amount of time.

When you need help finding the best tenants for your rental home, talk to the experts at RPM East Valley. We offer many different property management services to investment property owners across the Phoenix area.

How to Make Sure Your Property Rents Faster

As a rental property owner, the last thing you want is a long vacancy in between tenants. Any delay can be stressful and can lead to unnecessary expenses that you were not planning on. The sooner new renters are moved in the better.

So what can you do to make sure that your rental property isn’t sitting empty for months on end? Here are a few tips:

1. Make Sure the Price is Right

This is probably the most important consideration when you are trying to attract new tenants. Obviously you want the price of your rental property to be competitive in the neighborhood you are in, but you also want to be sure you are charging enough to cover your expenses. Be sure to find out what other comparable properties in your area are currently renting for. If possible, find out how long these properties were vacant before they were leased as this can give you insight into how the market reacted to their pricing. Even though there may be other properties with high rent prices, it doesn’t mean that they are actually renting them.

2. Is the Flooring in Good Shape?

Nothing turns potential renters off faster than old dingy carpet and dated flooring in the kitchen and bathroom. You may eventually find someone who is willing to put up with flooring that is in bad shape, but it could take months and months before that person comes along. New flooring can be expensive and time consuming, but it is definitely worth it when you are trying to keep your rental occupied with happy tenants.

3. Clean and Sharp

Many property owners begin to believe that they will only attract the best tenants if they have lots of upgrades in their rental property. They might feel inclined to spend money on expensive countertops or fancy window coverings. The truth is, you can make up for the lack of upgrades by keeping your property looking clean and sharp. This means paying attention to details like clean floorboards and appliances. A tenant is much more likely to choose a property that is clean throughout over a sloppy house with a few upgrades.

4. Timing is Everything

If you’re new to the rental property game, you’ll soon discover that some times of the year are better than others for attracting new tenants. For the most part, winter tends to be slower than the summer. If you can keep this in mind as you work with your current tenants, you may have an easier time finding new renters when the time comes. This might include incentivizing current tenants to stay a few extra months until summer is closer. If your property does go vacant during the winter, don’t be discouraged if it takes a few months before the next tenants come along.

If you are struggling to find and keep tenants, RPM East Valley has the experience and knowledge of the Phoenix rental market to help you keep your property leased as much as possible. We offer a number of services including tenant screening, advertising and property management to help you see the best possible success with your rental property. Call us today for more information – 480-719-1243.

Real Property Management Sees Significant Growth in Career Opportunities

Let’s face it, we’ve seen some scary times over the last decade, with the housing crisis and mass job losses. During that same time, the Real Property management franchise system has seen significant growth in career availability and company growth. Due to the housing crisis, the rental market skyrocketed, creating rental property income and jobs. Fox News reports that job growth within franchises will grow at rates outpacing the economy–over 3% in 2016.

Lukas Krause, Chief Operating Officer of the Real Property Management franchise organization spoke with Fox Business Network’s Cheryl Casone about the rental market, the growing jobs market within the franchise system, and what makes Real Property Management service so great.

3 Key Takeaways from Real Property Management on Fox News

1. National Brand

  • We’re the largest property management company in the country with over 25 years of experience and over 270 locations across the US. You can rest assured that your rental property will be taken care of even when you live out of state or out of the country.
  • Whether you are a tenant in search of a home, or a property owner seeking assistance with your rental property, your local Real Property Management office is there.
  • We are the nation’s trusted leader, recognized by leading reputable sources.

2. Rely on the Professionals

  • We take the headaches away that come with owning and managing rental properties.
  • Protect your investment, save time and money.
  • Enhance your quality of life by using a professional property manager.

3. We Do it All

  • Advertising, showings, tenant screening, leasing, rent collection, evicting, repairs, maintenance, inspections, compliance, and much more!
  • On-going communication and financial management using your secure online account lets you stay in control of your property and have peace of mind.

Are You Ready to Get Back to Your Life? Call RPM East Valley Today! (480) 981-7000

 

Raising Rent for Current Tenants

Part of being a successful rental property owner is knowing when it’s time to raise the rent. Ideally, you should make this change in between tenants. When it’s time to bump the rent up, wait until your current tenant leaves and then charge the new tenant a higher rate.

There are situations that come up when it becomes necessary to raise the rent during the occupancy of your current tenant. This is especially true when the tenant plans on continuing to rent from you for an extended period of time. Based on the lease that is in place and circumstances surrounding your agreement with your tenant, you can increase rent, but it’s important to do it in the right way.

Be Able to Provide Good Reasons

As you prepare to let your tenant know that you are raising the rent, be sure that you have firm reasons for the increase. Let your tenant know that the rent for all the properties in the neighborhood has risen and you need to keep up with the trend. Other reasons for increasing rent might include higher cost of living, rising property taxes or to cover extended maintenance. By having some solid reasoning for raising the rent, you are showing your tenant that you are basing your decision on business needs and not on a personal whim.

Good Communication Makes a Difference

When you do let your tenant know that you will be increasing rent, be sure that you do your best to communicate the change clearly and fairly. It’s not a bad idea to give your tenant several months’ notice of the increase so they have ample time to prepare. This way they can change their budget accordingly. You may also want to reassure them that changes in the rent will not be a regular occurrence –  you can back this up with your strong reasoning.

Offer an Incentive

You may find that offering another incentive or benefit to your tenant can soften the blow of the news of the increase in rent. If there were specific changes you were already planning on making or maintenance that needs to be done, offering to do those things as you raise the rent can go a long way with your tenant. You might agree to allow your tenant to make some custom changes in the home, like painting a wall or a room a color or adding ceiling fans to bedrooms.

In the end, most tenants will realize that an increase in rent is often much cheaper than the cost of having to move. Still, you can avoid alienating current tenants or creating an awkward situation by clearly communicating your reasons for raising the rent in advance.

Find out how RPM East Valley can help when it comes to communicating with tenants and adjusting rent payments. Call us at 480-719-1243 to discuss your options today.

How to Deal with the Stuff Your Tenants Leave Behind

So it’s the end of the lease and your tenant has officially moved out of the house. You show up at your rental property to do an inspection and find that the tenant has left some stuff behind. Sometimes it’s odds and ends that the tenant didn’t pack up and sometimes it’s garbage. What do you do now?

This is actually a fairly common scenario that far too many investment property owners see when renting their properties out. It could be that the tenants were in a hurry to move out and had to leave some possessions behind. But often it is just a rude gesture on the part of your previous tenant. Now you’re stuck having to clean up after them, which can be both time consuming and costly.

When your goal is to get your property clean and ready for the next tenant as quickly as possible, having to stop and make arrangements for the stuff left behind can be a nuisance. Here are some ideas on how to handle this situation quickly and efficiently:

Junk Removal Services

Depending on how much trash is left behind and what it is, you might look into hiring a junk removal service. These companies are familiar with the process and are able to quickly remove both trash and other items left by the previous tenants. They typically have their own trucks for hauling junk to a nearby landfill so that you don’t have to deal with it. Most junk removal services are reasonably priced, although the cost should definitely come out of your tenant’s deposit.

Be Proactive

Another strategy you might try to ensure that your tenants don’t leave you with a bunch of junk after they move out is to proactively talk about it with them as the lease draws to a close. Make suggestions to your tenants via text or email about local donation sites and pickup services for anything they are looking to get rid of. Be sure that there is some mention of trash or belongings left behind in the lease agreement and how it might impact the security deposit.

Property Inspections

It’s your right as a property owner to occasionally inspect your property as long as you give your tenant’s a fair notice before you show up. By doing a quick inspection every once in a while, you’ll be able to see for yourself if there is excess clutter inside or outside of the home. If you do see a problem, you’ll have time to address it before the end of the lease.

RPM East Valley is your consultant for all your property management needs. Our services include tenant placement, credit screening, maintenance, property inspection and so much more. Contact us today to find out how we can help you.

The 5 Renovations and Repairs That Are Always Worth It

There’s a balance that must be kept when it comes to owning a rental home – one that investment property owners know all too well. It’s the balance between not putting enough money into your property to get a reasonable return and investment too much to the point that you barely break even. This is especially true for long-term investors when comes time to renovate or repair your property.

While it’s important to keep your rental property looking good and functioning well, you also have to watch the costs involved. Most budgets for maintaining an investment property aren’t big enough for all of the latest and greatest upgrades. But there are some renovations and repairs that should definitely happen on a regular basis. While there’s never any guarantee, here are 5 tried and true updates that are almost always worth the investment:

1. Fresh Coat of Paint

It’s usually a good idea to invest in a fresh coat of paint every 8-10 years for the exterior and as often as every 2-3 years, or every time you have a new tenant, for the interior of the property. New paint not only restores your rental property to the way it was, but it is also attractive to potential tenants. A fresh coat of paint helps to give your home a sense of cleanliness and can even make it appear bigger if you choose the right color. If your budget is small, you can always do the painting yourself.

2. Kitchen and Bathroom Repairs

You may not be able to upgrade kitchen cabinets and appliances often, but you should do everything you can to ensure that everything in the kitchen and bathrooms is working correctly. Leaky or outdated faucets, running toilets or a broken dishwasher can all give a bad impression. Smaller kitchen repairs are relatively inexpensive and are usually quick fixes. Although it may seem small, investing a little extra to ensure that your kitchen and bathrooms well-cared for will go a long way in attractive new tenants.

3. Yards

Both the front and backyards of your rental home are definitely worth a little investment money. Even if your property has a beautiful interior that meets the tenants’ every need, when it comes down to choosing a place to live most people are very picky about curb appeal. The good news is that you may not have to do a complete overhaul of the yard to add curb appeal. Planting winter grass or adding an automatic sprinkler system to make sure grass, plants and trees are getting enough water make a big difference. Proper landscaping will ensure that your property has great curb appeal while making it easier to maintain over the long run.

4. Ceiling Fans and Blinds

People tend to think of ceiling fans and blinds in a home as a perk or upgrade. Faux-wood blinds are cheap and easy to maintain. One set can last for years and years and add value to your rental home. Ceiling fans are a “must-have” in the summers here in Phoenix area. You can help cut down on energy use and prolong the life of your air conditioning unit. Overall, these are 2 easy and affordable upgrades that pay for themselves over and over again.

5. Flooring Updates

Most investment property owners would rather avoid the expense of replacing flooring in the rental property. Flooring is not only expensive, but it can take up valuable time when your property is sitting empty. Still, nothing turns a potential tenant off more than dingy old carpet or stained and broken tile. The good news is, if you are willing to put a little more money into quality flooring in the beginning, it will last longer so you don’t have to replace it as often.

Updating the floors is labor intensive so if you are willing to do some of the work yourself, you can save a lot on the cost of installation. Ultimately it’s important to keep in mind that all these updates are meant to allow you to ask more money for rent and bring in better tenants.

If you’re not sure what renovations or repairs your rental property might be in need of, be sure to call RPM East Valley. We’d gladly discuss your options with you and help point you in the right direction. Ask us about the many property management services and tools we offer and find out if we provide a service you could use to keep your home rented as much as possible.