Arizona Property Management FAQ
PROPERTY MANAGEMENT Q&A
Q. How can I evaluate the “real” cost of property management?
A. Unquestionably, the largest expenses associated with property management is a result of vacancy rate and quality of tenant performance. Only by comparing the resources and services that address these concerns will one come to an understanding of the cost that may result from choosing one property management company over another. We invite you to consider the following:
The great majority (70%) of perspective tenants now use the web to find a new home. Every management company recognizes this fact, so all have web sites to compete for market share of perspective tenants. It is also important to know that people choose "organic" search results over "paid" placement advertising. Desert Wide Properties absolutely overwhelms all other residential property management companies in ALL of the Phoenix metro cities on ALL of the search engines. Search on the primary key phrases that tenants use to locate homes for rent. (Example: "Phoenix property management", "Gilbert homes for rent" on Yahoo, MSN, All the Web", Google, Alta Vista, or any other search engine.) Try the same key words with any of the fifty metro city names such as Tempe, Chandler, Gilbert, Avondale, etc. We receive over one million hits per month so our top search engine placement gives our owners an overwhelming advantage for having their rental properties “found” by thousands of prospective tenants. That translates into less vacancy cost and a better opportunity to select a qualified tenant.
Also, we have a sizeable leasing staff that allows us to be open for business 7 days a week. We rent about twenty-five percent of our homes while our competitors are taking the weekend off.
Additionally, we have an extensive referral network with other realtors. Our web site has hundreds of inbound links from other real estate companies.
Q. How much do property management services cost?
A. The minimum management fee is $85 per month or eight percent (8%) of the rental amount, whichever is greater. In addition to the monthly management fee, an owner should expect $495 total costs per each new tenancy for advertising, lease-up referral commissions, photo tours, and move-out and move-in home inspections. Use of the Multiple Listing Service (MLS) is optional and costs from $100 to three percent of the gross lease amount for a "success" commission that is charged only after a tenancy is executed.
Q. How long will it take to rent my house?
A. There are multiple factors that have to be taken into consideration to answer this question. Here are some general guidelines, however, keep in mind that amenities, pricing, and location are important factors in predicting success. It is important to know that the time required to rent a property is region specific with some areas renting relatively quick and others continuing to be a challenge. Several management companies are now advertising "no Deposit", "bad credit OK", lease option with no qualifying", "no rent payment for 30 days", etc. We believe that renting to an unqualified tenant is nearly always a big mistake and that you may pay dearly for that mistake in the very near future. We encourage high qualifying standards for tenants with the price set to rent the property within 30 days. Because of the uniqueness of each home, we will work up a rental market analysis for you at no charge.
Q. If I place my home in property management, how much control do I have in making management decisions.
A. As much or as little as you want. Take for example maintenance decisions. Most owners place $350 in a maintenance trust to be used in case of minor repairs. They don’t want to be notified every time a faucet leaks. However, if there is a more expensive repair, they do want to be contacted and involved in evaluating the bids and choosing the vendor. We will work out an understanding with you about the degree to which you want to be involved in tenant selection, maintenance and repair issues, setting rental rates, etc.
The following links detail our management program: