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Summer Vacations for Landlords?

Owning an investment property is not only an investment of money, but also time. Those who are getting into an investment property for the first time may be surprised when they realize just how much goes into keeping the property profitable. This is especially true when you are also handling all of the landlord responsibilities as well.

So what about taking a vacation? If you are a landlord, can you find the time to get away to spend some time with friends and family? It may not always feel like it, but there are some things you can do to give yourself a break and take a vacation. Here are a few tips:

Timing is Important

Landlords who are looking to take a vacation should plan their time off at an appropriate time of the year. For example, the holiday season may not be the best time to be away. If an emergency were to come up or if maintenance is required, tenants can get extra aggravated around the holidays. You’ll want to be around in case something comes up.

This is also true for the beginning of the summer, especially if your property has a pool. As your tenants begin to use the pool on a more regular basis, the tendency for an issue increases. Wait for a few weeks into summer to make sure things are running smoothly before you take your vacation.

Be Sure to Give a Heads Up

As you plan your vacation, be sure that letting your tenants know you will be away is on your to-do list. Communication is key when you are trying to establish a good relationship with your tenants. If an emergency were to come up, they would be much more understanding if you let them know in advance that you are out of town. Give them proper contact information and let them know that non-emergency maintenance will be completed upon your return.

Work With a Property Manager

Some property owners are out of town or away from their properties more than others. This could be because they travel for work or own properties in more than one state. If you know you will be away frequently, you might consider hiring a property management company to handle the landlord responsibilities for you. This relieves stress and ensures your property is consistently maintained and occupied. Property managers can handle various tasks such as collecting rent, screening new tenants and providing maintenance as needed.

There’s no reason why you can’t enjoy a vacation now and then as a property owner without having to stress or worry about your property. Call RPM East Valley and let’s talk about how we can help you get the most out of your rental property. 480-719-1243

Why Now is a Good Time To Own a Rental Property in Phoenix

For property owners who are looking to get the most out of their investment, knowing when the rental market is up or down can be helpful. The same can be said for those who own a home and are considering whether they should sell it or keep it as a rental property. If you are needing to make a decision about your property soon, here are just a few reasons why now is a good time to own a rental property in the Phoenix area:

More Demand

According to statistics and reports from the last few months, there are less rental properties on the market right now, which makes them in greater demand. Despite the gradual improvement in the economy and real estate market, Arizona still has a high population of renters who are not ready or able to buy a home yet. These renters include people from other parts of the country who are coming to the Phoenix area for new jobs and also for retirement. Other potential renters may be coming to the end of a lease and looking for something different. As these renters go on the hunt for their next place to live your rental property will be in higher demand.

Higher Rent

Rent amounts have increased by an average of 10% since January of 2015. This increase may allow you to rent out your home at a price above and beyond your mortgage payment. That extra income can be used to pay off debt, build your retirement or go towards other investments. The good news is, as the job market continues to recover, more and more potential tenants will be able to afford higher rent and they just might end up fighting over your property.

Take Advantage of Low Interest Rate

If you were able to purchase your home at a low interest rate, take advantage of it for as long as you can. A low interest rate keeps your mortgage payment down, which is a great combination when you are able to charge higher rent. Having an income property is a long-term asset that can pay off huge once you pay back your mortgage.

Tax Deductions

One of the best advantages to owning an investment property is the fact that it entitles you to some serious tax deductions. These deductions include maintenance expenses for the rental property, such as repairs, utilities and taxes. As a landlord, you are also able to deduct the wages and salaries you pay independent contractors who work on your home, like landscapers, roofers, electricians or carpenters.

Better Management Choices

Because the business of rental homes has become such an important industry in Phoenix, property owners are able to find better property management companies that provide excellent service at an affordable price. Hiring a property management company alleviates stress and keeps things simple when it comes to find new tenants and keep your rental property occupied.

Find out more about the property management services offered at RPM East Valley by giving us a call at 480-719-1243.

Time to Sell or Time to Rent?

So you’ve reached a point when you’re ready to move out of your current home and into something else. Maybe your expanding family demands more space or you’re looking to downsize into something smaller. Either way, the question now is what to do with the home you are moving out of.

Many people would assume that the thing to do is sell their current or previous home. They might be surprised to know that there are actually some big advantages into turning the property into a rental home instead. Just what are these advantages and how do you know if renting your home is the right direction for you?  Here are a few ideas to consider:

Phoenix Rental Market is Hot

One huge advantage of any property owner in Phoenix right now is the excellent rental market. A huge portion of the population in the Phoenix metro area is either currently renting or looking to rent. Not only is there a demand for rental properties, but that demand also allows for a higher average rent. You could be in a position to charge enough rent that covers your mortgage payment and then some.

Take Advantage of Tax Deductions

Most homeowners know that owning a home is a great way to take advantage of deductions when it comes to file taxes. You can deduct interest on the mortgage, depreciation, property taxes, repairs and community association fees. This can be a huge benefit to keeping your home and renting it out instead of selling it.

Invest in the Future

Keeping your home can also help you as you plan for the future, specifically, your retirement. If the rent you receive each month is enough to cover the mortgage payment, then you are essentially building equity each month that the home is occupied. Once you finish paying the mortgage and get to the point of retirement, you can sell your home for a lump sum or continue to rent it out for additional income. At the end of the day you’ll still own a very valuable asset.

Management of Property

One of the reasons people hesitate to hang on to a home is because they are moving far enough away that it won’t allow them to manage the property effectively. This is where RPM East Valley can help. Put our experience and knowledge to work for you. We can manage your property for you, including screening tenants, collecting rent, maintaining the property and many other services as well.

These are just some of the benefits to turning your home into a rental. As prices continue to climb over the next few years, you may find that using your home as a rental property is a great source of income. To find out more about RPM East Valley and the services we provide, contact us at 480-719-1243.