Purchasing a home with low interest rate is an advantage to a first-time investor. You can protect yourself from high interest rates by: (1) Keeping a minimum of 3 months reserve fund in your property account. As soon as your reserve fund lessens you have to replenish the balance before taking cash flow; (2) Be prepared to lock in when rates seem ready to rise, if you are in a variable rate. Acquire for the lowest rate and longest term available in a potential sale date; and (3) Pay more than your current rate. Paying 5% from your current rate of 3% won’t hurt your cash flow, although it does reduce your cash flow but will pay off your principal.
If you own a home in Arizona, or want to, then this is important information if you want to rent it out.
Rental management companies take over the hassle of finding tenants, writing up the lease, collecting the rent, and all the other headaches that can come with managing a rental property.
But How Do You Choose A Home Rental Agency In Arizona?
First, you want to do a little research to figure out if they are crooks or not.
The Phoenix Business Journal recently printed an article on why you need to be careful about which home leasing agency you select
Here is one of the stories:
During a routine audit last March of Dawn Anderson, a broker in Maricopa, officials with the Arizona Department of Real Estate detected a $280,000 shortfall in her residential property management firm’s trust account.
Anderson allegedly used the account — intended for holding clients’ security deposits, rent money and maintenance reserves as required under state law — for various business expenses, even vacations at Turtle Bay Resort in Hawaii.
The ADRE has since stripped Anderson of her broker’s license and fined her. She also has been indicted by a state grand jury.
You might want to look here if you wanted a Maricopa Rental Management Company instead!
Make Sure Your Property Manager Is Licensed
Every property manager needs to have a ADRE license. However there are other certifications that you want a property manager to have, like the NARPM. Here is an example of a Peoria area home leasing agency with NARPM certification.
Look For Companies That Service Your Area
Ideally you want a home management company that serves a number of areas…what if you buy another house and they don’t service that area?
What you are looking for is a company like this that offers rental management services throughout Phoenix