Far West Realty - Rentals and Propery Management in Prescott
 

So, You Want to Be a Landlord...

 

Landlord Property Management Prescott AZRental properties in Prescott can be a great investment.  Renting out your home in Prescott after you’ve had to relocate for a new job or other life change, can be a great way to preserve your investment and keep the mortgage paid until you either want to sell, or move back into it.  There are all kinds of reasons that you may want to rent out your home for a while.  Whatever the reason, it’s in your interest to embark on that endeavor, knowledgeably and with your eyes wide open.  Here are a few thoughts From Far West Realty in Prescott that might help make it a successful one for you:

1. Buy it Right.

 By that I mean, buy the right property (I suggest a newer, single family home that has been very well maintained), in the right place (remember, location, location, location!), the right way, (Cash is my recommendation, if at all possible.), and at the right price (Be patient, never pay full market value for a rental property).  This way, you end up owning a property that will be in high demand among the best qualified tenants, because it’s in a desirable neighborhood and it’s in great shape.  And, they’ll be more willing to pay a premium price.  Also, because you paid less than market value, it’s much more likely that there will be room for appreciation in the value of your investment – profit is always a good thing.  If you paid cash, then you won’t be concerned about servicing a mortgage, so it’s also more likely that you’ll always have funding for what little maintenance may be necessary on an already well-maintained newer property, making it easier to preserve the value of your investment.

2. Keep a reserve.

  While it is certainly the goal that you will yield a solid return on your investment each month and each year, don’t spend or move it all elsewhere.  It’s vital to keep sufficient liquid funds for ongoing maintenance and as a hedge against the unexpected.  Stuff happens.  Plan on it. I recommend a minimum of 20% of your annual rent.

3. Price it right.

  I look at setting a rental rate this way, “It’s worth what the market will bear.”   But sometimes, especially if you’re new at it, it’s hard to know what the market will bear.  Suggestion – monitor your competition.  It’s not always possible to know what a given competing property actually rented for, but generally it is possible to get a solid feel for what landlords are asking for their properties.  Also, if you’re diligent, and alert, you can gauge what a property actually leased for by how long it was on the market and whether there were any price reductions along the way.  Also, if you have a contact in the business, a good property manager will have a good feel for the local market.

4. Be Selective.  

Never settle for a tenant who doesn’t meet or exceed your pre-determined qualifying standards.  Of course, determining how they actually measure up to your standards, is often easier said than done.  A little experience goes a long way in that endeavor.  Employing an excellent screening service is worth considering.  And even with that, I think it is vital to speak personally to previous landlords in an effort to determine what kind of tenants your prospects have been. Ask key questions such as: Did they pay on time?  Did the landlord monitor the property regularly and did the tenants take excellent care of the property?  Were they good neighbors?  Did they get their full security deposit back at move-out? Would the landlord rent to them again if given that opportunity?

5. Watch both the property and the tenant closely. 

I believe that regular inspection of the property is absolutely essential.  Failure to do so invites disaster.  Years ago as a constable, tasked with executing court-issued eviction orders for landlords, I saw some real nightmare situations left behind by some of the worst of tenants.  It was heart breaking to see the loss those landlords suffered and what they had to go through to restore their properties.  Now don’t get me wrong, most tenants are really good and responsible people, and would never perpetrate that sort of “crime” upon landlords.  But this is serious business.  It’s your hard-earned investment money on the line here, and you have to do the work necessary to keep it safe.  Thorough screening is not a place to cut corners.

6. Maintain it preventively.

It’s no different than changing the oil in your car.  Do it on time, every time and most modern engines will last for hundreds of thousands of miles.  Fail to do it, and the engine will die an untimely death.  Similarly, paint the house (especially the exterior) before it needs it, and it will look like new for as long as you own it.  Change your HVAC filters early and regularly, and service the system spring and fall, and it will hum right along, in all kinds of weather, for many, many years.

7. If it breaks, fix it. (Right Now) 

That’s one of the major reasons for the afore-mentioned reserve fund.  We buy insurance to protect our finances against the unexpected.  Essentially, that amounts to expecting the unexpected.  There are few certainties in life.  One of the important ones is – “the unexpected will happen.”  So, having kept a reserve fund for the purpose, when something does break or malfunction in whatever way, don’t waste time.  Fix it – if you’re qualified.  If not hire someone who is to do the job for you.  Delay will only add to your own stress, and frequently invite a snowball effect wherein other malfunctions are precipitated, and then, of course, both the stress and the cost go up.  And, there’s an added bonus:  as you and your property develop a reputation for excellent and timely repairs and maintenance, demand for your property among the best of tenants will always be high.

8. If these 7 Items don’t really appeal to you, Hire an Excellent Property Manager.  

Of course, I recommend Far West Realty.  We do property management right.  If you, for whatever reason, don’t feel up to the challenge described above, Give us a Call!  It will cost you nothing to let us show you what we can do for you.  Either way, we wish you the best of success with all your investments! Contact Far West Realty in Prescott at (928) 772-9400.

 

Posted to: Helpful Property Management Articles

 

All Blog Posts

 

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

Far West Property Management on facebook
Far West Property Management on googleplus
Far West Property Management on youtube
Far West Property Management on tumblr
Far West Property Management on blogger
Far West Property Management on yelp
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
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.