As a first-time landlord in Phoenix, you're certainly excited about the journey that lies ahead. Being a landlord is a great achievement and you could be well on your way to economic prosperity.
However, like most beginner landlords, you're bound to encounter a handful of challenges. Knowing how to handle these challenges is crucial to becoming a successful rental property investor.
In this article, we're sharing a couple of tips touching on various aspects of real estate investing, from rental analysis to property management. Read on to learn what you need to do to find success.
Start With Rental Analysis
Before buying a rental property, it's prudent to conduct a real estate market analysis. This will help you establish among other things, property values and rental prices.
If you somehow didn't do that, as can be the case when you become an accidental landlord, you need to do the analysis before listing the property for rent. The goal is to establish how much similar properties in the Phoenix area are going for, as well as what your target renters are willing to pay. The Arizona housing market is dynamic, so rental demand is always shifting.
Setting the right rental price is key to earning a steady rental income. You don't want prospective renters looking elsewhere because you've overpriced your unit. On the other hand, underpricing might keep it occupied, but you won't maximize your returns.
Understand AZ Landlord-Tenant Laws
Landlords and tenants across the United States have rights, as well as obligations. In Phoenix, those rights and obligations are well-defined in the Arizona Residential Landlord and Tenant Act.
Getting familiar with this act should be one of your priorities as a first-time landlord. Understand how the state treats security deposits, lease agreements, support animals, and property maintenance among other issues. That's how you'll ensure you're conducting your rental business in accordance with the law.
Learn Rental Property Bookkeeping
Many first-time landlords don't realize that they're in fact running a business until they run into financial trouble. You're a business owner now, and one of your key roles is bookkeeping.
Your property generates revenues, but it also has expenses. Keeping tabs on what's coming and going out will help you monitor the property's financial performance. With accurate accounting records, you'll also be in a better position to make the most of landlord deductions during tax time.
Hire a Local Property Manager
First-time landlords are usually eager to take on their new duties. That's commendable, but soon enough most of them learn that being a landlord is a full-time job.
You can take the same approach, too. Hiring a full-service management company makes you a hands-off landlord. Your manager will handle everything on your behalf, leaving you with the light task of waiting for your money.
Be a Successful First-Time Landlord
You've made your first rental property investment and are eager to become a successful landlord. There's a long road ahead, and it starts with doing a rental analysis, understanding the applicable laws, and hiring a property management company.
Real Property Management Phoenix Valley is ready to step in and become your property manager. Our services include marketing, tenant screening, accounting, rent collection, and maintenance.
Get a free rental analysis today.
