Far West Realty - Rentals and Propery Management in Prescott
 

Issues with buying properties and becoming a landlord

Have you ever dreamed of buying a property in the Prescott area and becoming a landlord?  Far West Realty in Prescott has a list of issues  for property management that you may want to take a look at before diving in to get your feet wet in the market.Issues with Buying Properties and Becoming a Landlord

Here are some issues to consider and remember:

1. Start-Up Capital:  Everyone knows that you need money to buy a property, however, not everyone remembers that a property may need some sprucing up or maintenance before it’s move in ready, and will certainly need it along the way thereafter.  Another problem could be getting a home up to code.  Being code-compliant is not an area to try to cut costs.


Depending on your unit and local requirements, here are just a few things that might need to be brought up to code:Handrails installed along the front and back entrance

  • Front and back doors replaced with secured, reinforced steel doorways
  • Peep hole installed in front door
  • Deadbolt entry installed on front and back doors
  • Standard dividing wall replaced with a fire wall
  • Completed code inspection

2. Making Repairs: One thing you can’t escape when you are a landlord is repairs.  You must remember that these pop up and you must have the money to cover the untimely costs.  You may even have to make the occasional emergency repair, which will cost you more than a regular repair. 


As an example, here are some possible costs for an emergency water heater replacement:

  • Emergency repair:  labor alone can run from $70 to $80 per hour or more.
  • Cost to purchase a new 50 gallon water heater: $600 to $800.
  • Cost of delivery and installation: $150 to $200.
  • Cost of removal and haul-away of the old water heater can be as much as $200 including dump fees.
  • Total Potential Cost: $1,280


3. Collecting Rent:  Tenants are like snowflakes, no two are alike.  Some will always pay on time, a lesser number will sometimes pay on time, and then occasionally, a few will rarely pay on time.  One very important thing to consider when you become a landlord is if you are comfortable collecting rent and possibly having to confront your tenants.  You must also have to decide when to start the eviction process if they don’t pay.

4. Dealing with Problem Tenants:  Every landlord has hopes of having the perfect tenant. Then you finally realize that you have leased your home to a problem tenant and you must make some hard decisions.

5.As a land lord you will have to deal with tenants paying rent late, damaging your investment and possibly tenants who simply won’t pay at all. You’ll need to know the Arizona Residential Landlord  Tenant Act, very well, in order to be effective in remedying such problems.

6.Managing your Finances: Many landlords have no problems finding tenants for their rentals.  Sometimes, however, you might have a property that will sit for months at a time waiting for the right people to move in.  An experienced manager can greatly reduce your vacancy rate, and save you a lot of money in the process.

7. Keep your Investment Safe and Liability Low: Make sure that your home is in great condition to avoid accident that you could be sued for.  You’ll want to make sure that you have landlord casualty and liability insurance and that your property is always maintained properly. 

8. Paying Taxes:  None of us can overlook this one thing…Taxes.   If renting property is your business, you’ll have to report the income you earn when you file your taxes every year.  One tax commonly overlooked is property tax. If you own the home you live in plus even one rental house, your property tax bill could be considerably more than what you were paying before you purchased the rental. By understanding the effect taxes will have on your bottom line, or hiring a good tax accountant, you’ll be prepared to handle them.

If you have anymore concerns about becoming a landlord in the Prescott area call Far West Realty in Prescott 928-772-9400.

 

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"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
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"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
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"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
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"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
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"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
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"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
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"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
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"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
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"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
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"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
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"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
 
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"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
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"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
 
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"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
 
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"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
 
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"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.