Becoming an accidental landlord in Phoenix can be an unexpected turn of events. Whether it's due to inheriting property, needing to relocate for work without selling their home, or other unforeseen circumstances, many accidental landlords find managing rental properties without prior experience difficult.
While renting out your property can generate extra income, it also comes with its own set of responsibilities and challenges.
Here are three beginner landlord tips that will ensure success and help you avoid potential pitfalls.
1. Understand Landlord-Tenant Laws
Phoenix, like the rest of Arizona, has specific landlord-tenant laws that every property owner must understand and adhere to. Familiarizing yourself with these laws will help you avoid legal complications and maintain a positive relationship with your tenants when unexpected rental ownership comes your way.
Security Deposits
Arizona law limits the amount you can charge for a security deposit to 1.5 times the monthly rent. You are also required to return the deposit (minus any deductions) within 14 business days after the tenant vacates the property.
Eviction Process
If tenants fail to pay rent or violate the lease agreement, landlords must follow the proper legal eviction procedures. Arizona law requires landlords to give a five-day notice for unpaid rent before initiating eviction. For other breaches of the lease, a 10-day notice is typically required.
Maintenance Responsibilities
Landlords are responsible for maintaining a habitable living environment. This means ensuring the property meets local building codes and promptly addressing repairs, such as plumbing, heating, and cooling issues.
2. Consider Hiring a Property Management Company
Managing a rental property can be time-consuming, especially for someone who never planned to become a landlord. Between handling maintenance requests, screening tenants, and staying up to date with legal requirements, the responsibilities can quickly add up.
Hiring a property management company may be a wise investment for accidental landlords, especially those with busy schedules or who live out of state.
Handle Tenant Screening
They will ensure that potential tenants are thoroughly screened, including checking their credit, rental history, and employment status. This helps reduce the risk of renting to problematic tenants who might damage your property or fail to pay rent.
Manage Rent Collection
Property managers will handle rent collection, ensuring that you receive payments on time. They can also address late payments or initiate eviction proceedings if necessary.
Take Care of Maintenance and Repairs
Property management companies will take care of regular maintenance and respond to tenant repair requests. This can save you the hassle of dealing with late-night calls or managing contractors.
3. Set a Competitive Rent Price
Charging too much may leave your property vacant for extended periods while charging too little can hurt your profitability. As an accidental landlord, it's essential to research the local rental market in Phoenix to set a competitive rate that attracts tenants while maximizing your rental income.
For Accidental Landlords, Managing Rental Challenges Can Be Difficult
Life is always throwing curveballs at us. Accidental landlords have it harder than most, and that's why hiring a property management company like LHM Realty can be so helpful.
Since 2005, we have been a family-owned company specializing in single-family and multi-family properties throughout the Phoenix Metro area.
Contact us to learn more about our property management services.
