The Advanteges of Accepting Section 8

I make it a point to ask every home owner for whom we manage properties whether or not they want to accept section 8 or not. Just about every time I ask this question I get one of two responses; Absolutely not or What is that. Often times section 8 gets a bad rap because it is a looked at as a government program... and we all know how easy the government is to deal with right! Well I don't think Section 8 should get such a negative connotation so I am going to highlight some of the advantages to accepting section 8 vouchers.

Reasons to accept section 8 housing

  
Check's in the Mail:
The best part of accepting a section 8 tenant, hands down has to be the fact that the section 8 portions of the rent come in like clockwork, and you never need to worry about tracking them down.

Additional Sources for tenants:
Section 8 has their own website where only section 8 housing can be advertised and all of the local offices have bulletin boards that can be used to advertise available section 8 housing. The benefits of advertising at the local office is that you ad will be in front of everyone that is applying for new section 8 vouchers.

 You can ask for the same amount of security deposit:
One of the nice things about section 8 housing is the fact that you can ask for as much in security deposit as is allowable by law. In the state of Arizona the amount that is allowable by law is 1 and 1/2 times the monthly rent amount so if you home is renting for $1000 per month you could ask for a security deposit of up to $1500.

You can still screen and choose the tenant:
One misconception about section 8 housing is the though that section 8 tenants are horrible. Although this may be the case for some, it should not be a major factor because you are still able to screen applicants and reject those who do not qualify as long as it is in accordance with Fair Housing Laws. This means that you should be able to find out who the "bad apple" tenants are and toss them aside.

Housing Counselors May Get Involved:
It truly isn't in the tenants best interest to destroy a house while on section 8 many of them rely on the money the voucher saves them to be able to live a "normal life" and many are not willing to throw that away. However if you do have a problem with a tenant it is possible to talk to their Section 8 Representative and get the issue worked out. Most tenants know they could be kicked off the program if they do not take care of the properties so they are some times better tenants than non section 8 tenants.

Phoenix Area Rental Statistics for July

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Median Lease $: $1,150
Average Lease$: $1,299
Average Days on Market: 40
Number of closed rentals last month: 3,592

 The heat map below shows where the most active rentals are. Areas with red circles have a flood of active rentals available driving down rental prices, where as small yellow circles means rentals are scarce and rental prices are up in general. Market statistics can change daily and the following information is for reference only.

Rental Scam Alert- "Red Flags" that indicate a listing might be a fraud

Rental scams are on the rise recently and websites like craigslist are the prime targets for these scams. There are a number of things to watch out for that might indicate that a listing is not real. Lets take a quick look at a few of those "Red Flags" right now.

Can't personally talk to a property manager or landlord

• One thing with many of these rental scams is the fact that you will not be able to talk to some one personally. If a listing dose not have a phone number and all of the communication takes place through email then it is a good idea to proceed with caution. Also if a phone number is provided but it keeps going to an answering machine and you do not get anyone calling you back this can also be a sign that a listing is a part of a scam... or the landlord/property manager is just plain terrible at their job and most likely not a rental that you want.

 Unable to see the property in person because landlord or property manager is out of state or country

• Scammers never seem to be able to meet at a property and show it. Often times they will give excuses that they are out of town, or "in the military" and out of the country on deployment. Also they will want to conduct all business over the internet rather than in person. It is not uncommon for legitimate landlords or property management companies to have you drive by the property to see if you would be interested in the area before scheduling a showing, but if any of them require any sort of fee before you get to see the inside of the property you should try a different place.

Poor grammar,  poor punctuation, and wording that just doesn't make sense or sounds odd

• Often times these scams originate out of the country. Although everyone goofs every once in a while, in many of these scams the person writing clearly doesn't have a grasp of the English language. Any email that is written by some one that doesn't appear to be a native English speaker should send up red flags. Here is an example of text for a scam email that I received recently, the English was so bad that I had no idea what they were trying to communicate.
• After receiving the keys and you are not okay with the house, your money is refundable, and our keys should not spent upto 5days with you, before posting it back to us, otherwise, we will agree that you are okay with the house.   

Communication comes from multiple people

• Although it is some times common when you are dealing with a property management company to talk to or be handed off to another person you generally wont be contacted by the other person without being informed of who you should be contacted by. If you start talking to some one named Jim Hanson and then all of a sudden you start getting emails from a Sarah Desmond and you have no idea who Sarah is then this should set off some red flags and you should proceed with caution

 The rental price is too good to be true

• In an effort to generate a large amount of interest and to maximize the number of potential victims scammers will list a property way under fair market value, often time rent amounts will be half that of similar properties in the area.  If you happen to see a "too good to be true" rent amount then often times it is, this is not to say that a legitimate rental can't be priced low it just means you need to be extra cautious when looking at lower than average rental amounts.

 Being asked to send money overseas

• This should be the biggest red flag of them all. If at any time you are asked to send money over seas especially be very, very wary. Often time the scamsters will ask you to wire money to an overseas bank account in order to get the keys to the property. Often time they say they need the money for a security deposit before they can release the keys to a property and often times this scammer will tell you that you can send the keys back if you don't like the property and they will return your security deposit to you.  DO NOT buy that line for a minute, once the money leaves this country it is GONE.

 These are just a few of the main Red Flags that should tip you off to the fact that someone is up to no good. If you are looking for a rental it is a good idea to work with a property management company that specializes in finding tenants rentals, many property management companies can help you find a rental even if it is not one of their companies listings and even better yet this service doesn't cost you anything extra. Also don't be afraid to call a potential scamster out by asking them to meet you at the property for a showing. Remember when it's too good to be true often times it is.

iDeal Realty & Management

9051 W Kelton Lane, Suite 10

Peoria, Arizona 85382

(623) 201-3544

www.idealrealtyaz.com  

Number of Home Renters Continue to Increase

The rental sector continues to lead the post-recession housing industry as more than a million households swelled the demand for rentals in the year ending March 2012. Renter-occupied dwellings increased by about 4 percent during the year and industry stakeholders are reacting to demand by raising rents and building or converting properties, according to the Freddie Mac Economic and Housing Outlook report for June 2012.

Single-family rentals are accounting for a larger percentage of the market than they have in the past, as investors seize the opportunity presented by the unique condition of the housing market. This, in turn, is expected to help meet the housing needs of many, including some former homeowners.

Analysts, rental owners and property management companies anticipate a surge of demand in the future, partly from young adults who have postponed household formation during and after the recession. While the pace of new construction has been limited due to financing challenges, that issue is being resolved, at least partially. At the same time, those limitations have likely made single-family rentals more competitive just as the number of homes for sale spiked. That number is now falling, and the report indicates that markets may continue to tighten, yielding further rent growth in at least some areas. Among rentals, top-tier properties have been particularly sought-after as those who lost their homes to foreclosure seek to find equally nice rentals, until they can buy again.

The market conditions are still making this one of the best markets for investors especially here in the Phoenix Metro Area where rentals continue to see a rise in popularity in part due to the dwindling number of home sales available. However this is the start of the Real Estate recovery as the number of available homes have gone down to record low numbers prices have started to rise quickly as people fight for the few homes available on the sales market.

iDeal Realty & Management

9051 W Kelton Lane, Suite 10

Peoria, Arizona 85382 

(623) 201-3544

www.idealrealtyaz.com

Getting Repairs Done to the Home You're Renting

Trying to get repairs done to a rental home is probably one of the most frustrating issue tenants have to experience when renting.

You complain to the landlord or property management company and they assure you that it will be fixed in no time, however no one shows up so you complain again, and they show up but don't fix the problem and this cat and mouse games goes on and on.

As property managers we try to address repair issues within a reasonable amount of time. However there are still situations where we get blind-sided with irate tenants who have issues we have never heard of before. These tenants claim that they have told on of our staff members about the problem "weeks ago" and want to know why we haven't done anything to correct the problem. Or we get a call from a tenant that wants or even expects us to drive right over and fix their problem within a couple of hours.

So whats the best way for a tenant to make sure repair items get taken care of in a timely fashion? Lets discuss the steps to make sure your repair request goes as quickly and as smoothly as possible.

• Communication - This is the key to getting everything started off right, if we don't know about an issue we cannot do anything to correct it. What we recommend is that all repair requests be made in writing, we have even made it simple for the tenant, They can go onto our website and fill out a repair request under the tenant section of our website. Calling us is fine, however make sure that you are calling the main office number and not an agents cell phone number, and always make sure to follow up the phone call with an email. One of the worst things you could do is tell one of our contractors about any problems you might be having, these people are subcontracted by us and odds are if the repair you need is not what they do they don't care because they won't be making any money on it. Communication is the first step to a smooth and successful repair request.

• Promptness - Don't put off alerting us about a repair and then expect us to drop everything and come running over to fix it immediately. Water leaks can cause a lot more damage if they’re not addressed quickly, and you could be billed for the extra costs if it is determined that the condition has existed for weeks or more.  

• Share Details - One of the most frustrating things we experience as a management company is vague descriptions of the problem . This generally leads to longer repair times because we have to all and wait for a response about the problem. One example if you are calling about an appliance not working please give us the brand of the appliance at a minimum but also try and find the model number so that we can pass that information on to the repair person.

• Be Responsible - Just because you're renting a property, doesn't mean your staying at a hotel with you own private concierge service.  Just like leasing a car you are still responsible for basic maintenance such as lights that burn out, batteries for smoke alarms, and filters for the air return. If you send repair requests for these items you will generally get a nice email or phone call from one of our property managers asking you to read what your required preventive maintenance items are including the items I listed above. Also we do not cover items that need repair due to abuse so if you have a broken screen door because your dog or cat clawed it up one afternoon, you will be charged for it, so although it is a home you are renting treat it as though it was a home your rented.  

So, what happens if you do all of the above and a repair still isn’t getting done?  The first inclination of many tenants is to threaten or actually withhold rent. Legally, there are certain steps you must take before you can be justified in withholding rent.  Let’s look at them:

1. The repair must be something that affects your ability to make use of the property as intended and is under the landlord’s control. A burnt out light bulb wouldn’t qualify, neither would a utility outage that was the responsibility of the utility company.
2. You must be able to prove you informed the landlord about the repair issue. This is where getting used to putting things in writing pays off. If you communicate via email, save the emails you exchange with the landlord. If you don’t have email, send a registered letter via U.S. Mail and save the receipt.
3. You must give your landlord an appropriate amount of time to address the repair.  How much time is this?  It really depends on the type of repair and sometimes the weather, season or time of year.  For a non-emergency repair, you probably should wait at least 30 days.
4. You must prove your ability to pay the rent when you withhold it.  Because too many tenants have tried to “play” the system and use a repair as a reason not to pay rent they didn’t have to begin with, most courts/judges will require you to prove you had the money to pay your rent when it was due.  There are really only two ways to do this: 1) have enough money continuously in your bank account to cover all rents you withhold, 2) escrow the rent money with an attorney or other licensed professional.  If you don’t do this you risk having a judge dismissing your case and/or giving your landlord a money judgment against you.

Overall, if you communicate with your landlord, follow up with their office and act civilly, you’ll find most repairs are taken care of to your satisfaction.  Even more get taken care of if you escalate your communications.  Very few repair issues get to the point where you’d have to withhold rent, and often time at that point it is more effective to file a complaint with the Real Estate board or commission, especially if being licensed is a requirement in your state.

Figuring Out What Your Home Will Rent For

Do you want to rent your home out, but not sure how much it will rent for? Determining the amount of rent you can get for your home is often the first step when deciding whether or not renting it out is a viable option, but determining a rental amount is hard to do without access to the Multiple Listing Service (MLS). Since you typically need to be a licensed Realtor to have access to the MLS, this now becomes troublesome for many home owners. Sure you could go onto realtor.com or other websites and see what rents are going for in your neighborhood but to get an apples to apples comparison it is imperative your seek the help of a qualified property management company.  Not only does the property management company have access to the MLS system they spend all their time dealing with rentals so odds are many of them have leased the exact same floor plan as yours. Most reputable property management companies will offer a free rental analysis which should consist of comparable properties that are both active and recently closed from the MLS system as well as other sites used in the Real Estate Industry. Say for example you had a property in Surprise, Arizona which is just one of the markets that I have spent a lot of time renting homes in, I could have to you a rough Rental Analysis in about 15-30 minutes and after viewing the property in person I can generally zero in on the best price for the amenities and demand of the home.

This is only one of the reasons it is important to consider hiring a property management company when you are thinking about renting out your home. In the long run property management companies save you lots of time and money for more examples of why you want to higher a property management read my other blog post "Why hiring a property management company pays for its self".

iDeal Realty & Management

9051 W Kelton Lane, Suite 10

Peoria, Arizona 85382

623-201-3544

www.idealrealtyaz.com

Phoenix Median Sale Price | Year To Year Increase

Good News for Phoenix area home owners, according to the Arizona Regional Multiple Listing Service (ARMLS) Phoenix median housing prices have been on a steady increase since this time last year. See the photo below taken from ARMLS website
Median Sale Price | Arizona Regional Multiple Listing Service (ARMLS)
 

Getting Rid of the Home Phone

In light of the current economic conditions many people around the country are looking for ways to cut back on their spending. One often overlooked item that most people are still shelling out big bucks for is the land line phone. Many people contemplate loosing the land line phone company and going all cellular but many are afraid to take the plunge, well I have some tips and advice for making the jump to cellular. I have not had a cell phone in my house for the last 6 years and could not be happier with the results. The first few months take a bit of adjusting but soon I forgot what a home phone looked like and felt like.

Saving big with cellular:
 Most people have a cellphone that they use when they are out of the house and many cell phone companies offer unlimited plans which most people have, or could have for just a few bucks more per month. If you happen to be paying for unlimited minutes on your cell phone already why would you want to keep paying $30-$40 per month to keep your home phone around especially if you are only using a few times per week.

Missing all those Telemarketing Calls:
One of the hardest adjustments to make when switching to a 100% cell phone life is missing out on the chance to yell at telemarketers that call you at all hours. Although you will not be free from all telemarketing calls on a cell phone I find that I might get 1-2 calling me per month as opposed to the 2-3 per day on my old land line. 

The 411 on 911:
Some of you might be concerned with your safety when it comes to using a cell phone. But like a home phone a cell phone will connect you with a 911 dispatcher, however unlike a home phone your location will not be immediately available to them so you will have to be able to give them your address. This could be a problem if you find your self incapacitated, however many 911 centers are  being updated with new technology to retrieve your location via a cell phone however there is no requirement for the adoption at this time and is voluntary.

Dropping The Call:
One of the biggest problems in some areas is the dreaded dropped call. If you already have a cell phone you should know what kind of reception that you get in your home, but there is a chance that you will not have coverage in every room... or possible at all if you live in a large apartment complex. Although I know of no solutions if this is a problem that you face, I can say however that as technology gets better so does coverage so hopefully soon dropped calls will be an issue of the past.


Digital Devices:
One last thing to be aware of is if any products in your home require a land line phone connections. This usually is only required by DVR's such as TiVo or older home security systems, however many new devices will use high speed internet vs the phone line to communicate with the outside world.

If you have been putting off firing the land line phone company, I hope that I have given you some food for though about cutting the cord. Although its a bit of an adjustment period going 100% cellular is one of the best things I have ever done and haven't looked back one in the last 6 years.

iDeal Realty & Management

9051 W Kelotn Lane, Suite 10

Peoria, Arizona 85382

623-201-3544

www.idealrealtyaz.com

New Chicago Cub's Spring Training Faciltiy Being Built

July 11th 2012 was the official ground-breaking ceremony on the Chicago Cubs’ new Spring Training facility in Mesa, Arizona, touted as Wrigleyville West. Crammed inside a tent under a pale blue sky and unusually humid conditions, many of those officials connected to the culmination of the $99 million facility were at Mesa’s Riverview Park for the groundbreaking on Wednesday. The city said the ballpark is estimated to cost $84 million and $14 million for infrastructure and currently is $1 million under budget. Any costs over the $99 million, the Cubs have agreed to pay.

It’s pretty exciting, the team’s forthcoming 125-acre facility that will seat 15,000 and resemble Wrigley Field, the Cubs’ iconic ballpark in Chicago. The complex will provide 70 percent of its seating in the shade, a large concourse featuring a party deck in left field, state-of-art weight and training rooms as well as the potential for private commercial development. The Spring Training facilities are expected to be completed late next year, and be ready to go for Spring Training in 2014. The ancillary stuff - The "Wrigleyville West piece" with dining, shopping, etc.  might not be completed until some time thereafter.

Nearly two years ago the Cub's almost uprooted the team and moved them to Naples, Fla to play in the Grapefruit League. While it’s easy to forget, given the current Wrigley renovation impasse/hubbub, getting these new Spring facilities was and is a huge deal for the Cubs. Not only will it help them generate more revenue during Spring Training, and not only will it help optimally prepare players for the season, but it will also be a world class training facility year-round for Cubs minor leaguers and rehabbing vets. It should also be a fun place to see some Spring baseball.

iDeal Realty & Management

9051 W Kelton Lane, Suite 10

Peoria, Arizona 85382

(623) 201-3544

www.idealrealtyaz.com

Is Your Real Estate Agent Doing The Best Job Possible?

As a Realtor I spend a lot of time on the MLS (Multiple Listing Service) system looking for homes, rentals and commercial buildings for my clients. One of the things that always bugs me when I am looking at properties is the lack of effort some agents put into their listings. If you have a home, rental or other item marketed through an agent and you keep asking your self I wonder why I haven't gotten an offer yet, make sure you ask for a copy of your MLS listing once it is created because some agents nowadays are getting lazy when marketing your home.

Here is my top 5 list of MLS no no's!

1. No Picture of the House - This is a huge turn off for most Agents as well as perspective buyer it either means the house is terrible or I don't really want to sell

2. Listing with only 1 photo - Now I understand that from time to time there is a reason for having only one photo in MLS however it seems that there are a lot of listings have only one photo, the purpose of putting up photos is to give other agents and buyers and ideal of the condition of the house.

3. Lots of photos but of poor quality - Some agents do a good job of uploading lots of photos, but don't take the time to review what they have taken and end up uploading pictures that are too dark to see anything, or blurry. This is just as bad a not taking any photos since you still don't get a sense of the property.

4. No Description - This is another huge turn off for buyers and it takes only a few minutes for a good agent to write a description of the property.

5. Contradicting information - Some agents will put in contradicting information, for example saying there is a Realtor lockbox when there is actually a mechanical lockbox or saying the house is vacant when in fact there are people living in it. This frustrates agents more than home buyers but since those looking need an agent you don't want to make the agent mad.


If you  take one thing away from this post it is this... Pictures Sell Properties. Making sure your agent takes good pictures and puts as much information as possible into MLS. Ask your agent to show you the MLS listing or even better yet ask your agent to print your MLS listing and 2 comparable properties MLS listings and read them and compare them as if you were going to decide which of the three you would want to go see first as a buyer. If an agent is not willing to do this then I suggest you find another Agent as this is a very basic request to make.

iDeal Realty & Management

9051 W Kelton Lane, Suite 10

Peoria, Arizona, 85382

623-201-3544

www.idealrealtyaz.com

Living In A Lot Less Space Could You Do It?

On Monday New York City Mayor, Michael Bloomberg, announced a competition for architects to submit designs for apartments measuring just 275 to 300 square feet (25.5 to 28 square meters) to address the shortage of homes suitable and affordable for the city's growing population of one- and two-person households. "People from all over the world want to live in New York City, and we must develop a new, scalable housing model that is safe, affordable and innovative to meet their needs," the mayor said in a statement announcing the competition.

Bloomberg said the city plans to waive zoning requirements at a city-owned lot in the Kips Bay neighborhood of Manhattan to allow the construction of a building filled with the "micro-units." They will be about four times the size of a typical prison cell and about one-fortieth the size of the mayor's Upper East Side townhouse.

Officials say there are about 1.8 million one- and two-person households in New York City, but only about a million studio and one-bedroom apartments -- a sign, they say, that the city's housing stock has not kept up with its changing demographics. Young, single New Yorkers in particular can find it hard to find an affordable apartment as demand outstrips supply.

The mayor is calling for proposals over the next two months for a building containing about 80 micro-units, all of which must have kitchens and bathrooms. Ideally, they should also have "substantial access to light and air to create a sense of openness," according to the competition announcement.

The apartments, once built, will be sold or rented on the open market. The city will not be subsidizing the project. If successful, the pilot project could help usher in a loosening of the city's zoning laws regarding minimum housing size.Under New York City's zoning regulations, the average apartment size in a new building must be at least 400 square feet (37 square meters), although there are exceptions to the rule.

Although the new apartments will be cozy in realtor-speak, they are unlikely to break any size records. One couple paid $150,000 for a 175-square-foot (16-square-meter) studio in Manhattan in 2009, according to the New York Post.

iDeal Realty & Management

9051 W. Kelton Lane, Suite 10

Peoria, Arizona, 85382  

623-201-3544

www.idealrealtyaz.com

How Much Rent Can You Afford?

The most important thing to consider when looking for a rental is whether you can AFFORD to live there! No matter how great an apartment or rental home is, if the monthly rent and utility costs are more than you can pay, you cannot live there. But, how much is too much?

Generally, the maximum amount of rent you can afford is deduced from your yearly income. The rule of thumb is usually that you should pay no more than 25-30% of your before-tax income. However, that number can change based on various factors and expenses that you must consider for yourself.

Take a look at this chart from the Census Bureau that demonstrates the how the gross rent as the percentage of income has grown between 1950 and 2000:

Note: Income of Families and Primary Individuals for 1950-1970; household income for 1980-2000
Source: U.S. Census Bureau, Census of Population and Housing, decennial volumes.


There are some very important things to consider when you are figuring out how much rent you can afford. For instance:

CAR PAYMENTS/TRAVELING COSTS

Do you own a car or rely on public transportation? Either way, there are important things to take into account derived by your preferred mode of transportation.

If you own a car there are often car payments to consider. How much a month must be allocated towards making these payments?

Furthermore, if you commute to work or drive frequently, you must also remember to include your gas bills. With the price of gasoline approaching $3.50 these days, gas costs can put a huge dent in your wallet.

Even if you don't have a car, many people must rely on alternate modes of transportation like the bus, subway system, or taxicabs. Unfortunately, all of these things cost money, so it is important to take into account the average amount of money you spend on getting around. Also if public transportation is you main mode of moving about a city you want to be sure that you rent a home that is located close enough to a bus stop.

FOOD

Everyone must eat, but how each person eats can make a huge difference. How frequently you eat out versus preparing your own food really affects how much money you will be able to put towards rent each month. If you are prone to feasting out 7 days a week, make sure you note your additional costs!

ENTERTAINMENT/ SOCIAL CATEGORIES

It's easy to forget to take into consideration how much you spend on entertainment costs and social events each month. Unfortunately, for many people, this is where a great deal of their income is spent.

Do you enjoy going to the movie theaters or renting movies?
How often do you go to bars and nightclubs? Do you order the $3 beers or the $10 Manhattans?

MISCELLANEOUS

Oh how easy it is to forgot to take into account your "other" costs. If you are in the habit of spending $1000 a month on your wardrobe, you obviously will not have that money available to put toward ensuring that the roof over your head remains over your head.

Now, I focused on possible costs that you may have each month to show that you must take more than simply a static percentage of your income into account. But, obviously, if YOU have a very low cost of living and do not spend that much, you have more money to pay rent with.

When deciding how much rent you can afford each month, you simply must take into account all of your other expenses. Furthermore, it matters greatly whether you are trying to save money or are content to living "pay check to pay check."

iDeal Realty & Management

9051 W Kelton Lane, Suite 10

Peoria, Arizona, 85382 

623-201-3544

www.idealrealtyaz.com