property management may/june
DESCRIPTION
Professional property management in the Valley of the Sun!TRANSCRIPT
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.
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!
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!”
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