Although the collapse in the real estate market in Arizona has hurt many homeowners, it has also created an opportunity for many new investors to enter the market as owners of rental properties such as homes and apartments. The fallout in the value of Phoenix area real estate allowed some people to obtain excellent rental properties at very attractive prices.
Owning rental property has been the road to riches for many people in America, and even in the current tough economic climate, there have been some who have created the foundation of future wealth and success by investing in rental property. Unfortunately, some of these owners of Phoenix rental properties have discovered that actually taking care of the tenants requires much more time than they have available. It can be very time consuming to keep all rental units filled with good tenants. Collecting rents can be an exercise in frustration since it can mean coming back to the tenants time and time again. Inevitably, plumbing and electrical repairs will have to be done. Having to evict tenants can be a big headache as well.
It can be especially difficult to look after rental properties effectively if the owner already has a full time job or lives in a different location. Property owners may find that much of their time is taken up responding to tenant complaints and finding workers to repair broken fixtures.
There are Phoenix property management services that can take over these duties from a property owner who does not have the time to carry them out. Unfortunately, it is not always easy to find a reputable company that will do the work efficiently and effectively at a good price. Finding a good management service that will not charge too high of a fee can be a challenge for many property owners. Some owners find that management companies will charge between 10-20% of the rent amount as their fee for managing the building. In some cases, this will wipe out any profit the landlord is making and it can put the landlord into a negative cash situation.
One of the ways a good Phoenix property management service can help a landlord is by knowing what rents are being charged for similar units in the city. If the rent for the unit is too high, tenants will not move in, while if the rents are too low, the landlord will lose money. A professional service will take over the task of advertising vacancies and carefully screening potential tenants. The staff will ensure that all rents are paid on time and the company will take care of any repairs in a timely fashion. If an emergency repair is required in the middle of the night, the management service will be able to take care of it without ever bothering the property owner. Now that is owner peace of mind.