Some people choose to become landlords by purchasing property with the intention of renting it out. Others find themselves in a position of considering becoming a landlord because they need to move but aren’t ready to sell their home. If you are in the latter group and have never been a landlord before, please take the time to consider whether the benefits outweigh the risks for you.
Finding good tenantsThey key to a successful rental experience is finding tenants who are going to take care of the property while they live there. You will still be responsible for repairs as the homeowner, but some tenants clean and care for their homes quite well, while others may go so far as to deface and destroy the property. To avoid a catastrophe, it is important that you do your research on any and all applicants. Calling past references and checking credit takes time and money but consider it an insurance policy against an unwanted outcome.
TIP: A home that is in great condition is likely to attract tenants who look for quality and are more likely to care for your property as if it were their own.Managing your propertyOnce your home is rented out you will need to manage the property. This involves taking calls from tenants when things break or need repair, handling annual inspections of the property, collecting rents, and dealing with evictions, etc. as needed. If you are moving to another state or have limited time or desire to perform this work, this may pose a challenge for you. In that case, I recommend calling a reputable property manager who can handle these issues and any others that come up. A property manager can also help you screen potential tenants, whether or not you have them manage the property for you. Many owners find that a good property manager is more than worth the amount that they charge.
Knowing the lawIf you are new to the role of landlord, it is important that you read and understand the Arizona Residential Landlord and Tenant Act. It is revised from time to time, so make sure you are looking at the most recent copy by clicking on the link at the end of this paragraph. It spells out the rights and responsibilities of the landlord and the tenant and remedies that each has if the other does not perform under the lease. For the most recent copy, go to
https://housing.az.gov/general-public/landlord-and-tenant-act.My focus as a licensed real estate broker is residential sales. However, many of my clients choose to rent their properties out until they are ready to sell. I am happy to refer you to a quality property manager if you do not already have an established relationship with one. If you’re not sure whether you want to sell or rent your home, I can do a market analysis to give you the current market value of your home. You can simultaneously consult with the property manager to explore rental rates for your home and determine which course of action is best for you.
Send me a message to get started or call/text me at (520) 481-3695.
