Far West Realty - Rentals and Propery Management in Prescott
 

Features of a great rental property investment – where is it?

Rental property investment tips from Far West Property Management in PrescottAre you thinking about investing in a rental property in Prescott? There are many things to consider. Owning the property is only the first step; managing it is something completely different, and more importantly the location of the property needs to be the starting point. Far West Realty’s Property Management Division would like to share with you some features that make a great rental property investment. This week we discuss where to look.

Where to start your search.

From the first decision to invest in a rental property, to buying your first rental property, there are a lot of things to consider. ​ You may want a Realtor to guide you and we can help with that to, since our staff included several highly qualified sales agents. Either way, we suggest that you consider the following points as you proceed:

Do you intend to manage the property yourself?

  • Do you have a sound, working knowledge of the Arizona Residential Landlord-Tenant Act?
  • Do you have an attorney available, who can answer some of the more complex questions you may encounter?
  • Do you have the skills needed to repair and maintain the property yourself?  If not, do you know a reliable and trustworthy tradesman who can?
  • How far will you be willing to drive when needed to manage the property?

These are common things investors must consider before even looking for a rental property.  Answers to the questions above will impact the amount you can spend. The potential rental income, after mortgage, taxes, insurance and management fees, will impact the property you select in order to make it profitable investment.

What else to consider when selecting where to start looking?

Neighborhood: The neighborhood you select may determine the quality of applicant you get and/or what you can charge. This may also influence the frequency of vacancies. Spend some time reviewing local building permits and future development in the area. It may be nice now, but in 5 years? Also, have a look at any vacancies in the area. Does this neighborhood have more than usual? Lastly, we all agree that no one wants to live near a hotspot for criminal activity, this should be on your radar from the beginning.

Property Taxes and HOA Fees: Taxes and HOA fees are not the same everywhere. You will need to plan for these when deciding on what to charge for rent in the community you choose.

Job Market: Locations like Prescott area are perfect when considering an investment rental property. We have seen tremendous growth recently, and the new construction and businesses have brought many new people to the area.

Average Rent: Looking at the average rental in the local area, if the average is not going to be enough to cover the items we mentioned above, you may need to find another property in a different location. Additionally, you should consider where the local market is heading. A downturn can really cause issues with your rental.

Insurance: Another expense we have not covered is insurance against typical and unforeseen events. You should have an idea of what usual insurance or additional coverage against natural disasters is going to cost. A property may be in a flood plain or in an area prone to natural disasters like hail. There may be additional costs.

Getting more information…

​The last thing we suggest when looking for where to purchase an investment rental property is to talk to renters as well as homeowners in the neighborhood. Renters may be more open about the negative aspects of the area because they have no investment in it.  If you are set on a particular neighborhood, try to visit it at different times on different days of the week to see what the neighborhood is going to look like.

As we have outlined above, there are many things to consider when looking for a rental property, we have only discussed the “where”. Be sure to join Far West Realty’s Property Management Division for the next big question, “what to look for in the actual property.” For more information on how we can help you manage your rental property in the Prescott, contact us today at 928-772-9400, we will be happy to help!

 

 

Posted to: Far West Realty’s Property Management Division

 

All Blog Posts

 

Do you own rental properties? Learn the processes for property management in Prescott by Far West AZ

Follow:

Far West Property Management on facebookFar West Property Management on google+Far West Property Management on youtubeFar West Property Management on tumblrFar West Property Management on blogger
Far West Property Management on facebook Far West Property Management on google+ Far West Property Management on youtube Far West Property Management on tumblr Far West Property Management on blogger 
© Far West Property Management | Photo Credits | Privacy Policy | Website Design by iPrescott Business Solutions
Review:
"We have very much enjoyed our apartment as renters with Far West Realty for several years now, and are happily satisfied in our dealings with Dave Hamill and his staff...." read more
- Tammy and Jim
 
Review:
"Working with Far West has been a pleasure. Dave and his office were responsive to questions and needs throughout my three years leasing from them. ..." read more
- Jim Bogner
 
Review:
"Dave Hamill at Far West Realty was my property manager on a single family house for several years. As an out-of-state owner, I relied on Dave for everything: tenant..." read more
- Kent
 
Review:
"I have been using Far West to manage my rental in Prescott Valley for approximately 7 years. I live out of the area know that things are being taken care..." read more
- Korina Elliott
 
Review:
"Dave Hamill and his team at Far West Realty have managed our property in Prescott Valley for the past five years. It has been an all around pleasant and worry..." read more
- Terry & Carol Bourque
 
Review:
"Dave Hamill and his team at Far West Realty have managed our property in Prescott Valley for the past five years. It has been an all around pleasant and worry..." read more
- Terry and Carol Bourque
 
Review:
"Dave, Re: Our Experience with Far West Realty We have had an excellent experience with David Hamill and his staff at Far West Realty. The goals of the owners and..." read more
- Ken & Diana Turner
 
Review:
"We originally contracted with another Property Management house in Prescott, but they proved that they were incapable of doing even the most basic of jobs (like keeping the power turned..." read more
- David Hresko
 
Review:
"I was a commercial property manager/leasing agent for 26 years in Newport Beach and I well know that it takes some very special skills and abilities in order to manager..." read more
- Cathy M. Prescott, AZ
 
Review:
"I\'ve had Far West for my property management for several years. They take care of everything and send me a check! They schedule regular inspections so that I..." read more
- Theresa Williams
 
Review:
"I have been associated with Far West Realty since it opened. Dave has handled my properties and he is excellent. This is the third property management company I have dealt..." read more
- Jane Deleeuw
 
Review:
"Great, dependable, and honest people that meet the needs of their customers..." read more
- Alex Spence
 
Review:
"Prior to using Dave Hamill at FarWest, I went thru so many management companies. I have been with Far West for many years now! When Dave says he..." read more
- Bernadette Lafferty
 
Review:
"My wife and I have used Dave's services since we bought our property in 2011. As absentee owners, we were concerned about managing our rental property and Dave and..." read more
- Larry Blachut
 
Review:
"Best property manager in Prescott area. Dave handled all aspects of the Leasing and managing of our single family home As an out of state owner,..." read more
- Judy Rosenberg
 
Review:
"Far West Realty has been my property manager in Prescott for the last six years. Dave Hamill and his crew have done a good job for me. They..." read more
- Jim F. Austin TX
 
Review:
"David Hamill is very conscientious and professional. If you are considering Far West Realty for property management services, you will be pleased with their expertise, care, and attention.  Your financial..." read more
- Kent K. Newport Beach, CA
 
Far West Property Management 5 out of 5 based on 17 ratings.
Far West Realty in Prescott AZ - Homes for Sale | Buy Land | Property Management
5 out of 5 stars We have very much enjoyed our apartment as renters with Far West Realty for several years now, and are happily satisfied in our dealings with Dave Hamill and his staff. The very few concerns or problems we have had with our unit have always been met with real consideration and responsiveness. Further, Dave and his staff are readily accessible and always courteous. Tammy and Jim
Far West Realty in Prescott AZ - Homes for Sale | Buy Land | Property Management
5 out of 5 stars Working with Far West has been a pleasure. Dave and his office were responsive to questions and needs throughout my three years leasing from them.
Far West Realty in Prescott AZ - Homes for Sale | Buy Land | Property Management
5 out of 5 stars Dave Hamill at Far West Realty was my property manager on a single family house for several years. As an out-of-state owner, I relied on Dave for everything: tenant selection, lease negotiation, recovery when a former tenant didn't pay the last month's rent, cleaning, maintenance, marketing, managing repair work, etc. Dave and his team were always professional, courteous, competent, and just nice people. I wholeheartedly recommend them!
Far West Realty in Prescott AZ - Homes for Sale | Buy Land | Property Management
5 out of 5 stars I have been using Far West to manage my rental in Prescott Valley for approximately 7 years. I live out of the area know that things are being taken care of. I have complete faith in Dave and his team in the oversight of my property. They are thorough and very prompt in any given situation. I love the fact that I know that the house is being taken care of with TLC. You can't put a price on piece of mind and that is exactly how I benefit from using them. I would strongly recommend using Far West for your management needs. You will not be disappointed.