With relatively low prices, considering that Phoenix is a renowned urban area that’s also known for its livable, sunny weather and gorgeous desert landscapes, Phoenix is one of the most desirable places to live. Lots of prospective tenants from around the globe choose to give Phoenix properties a try every year, and many landlords want to tap into these new markets. A lot of landlords today think that making your property more tenant-friendly includes permitting the tenant to make their own changes or upgrades to a property. However, some “upgrades” that are poorly executed can quickly turn into expensive-to-fix downgrades. How can you be sure you are making the best choices for your investment’s future while still satisfying your tenants’ desires?
- Contact a Phoenix rental agency or two and ask some questions. Tell them the issues you’re trying to decide upon and see if they have any experience, suggestions or advice.
- Draft your paperwork carefully by thinking ahead. Once you have decided to permit customization, you need to make sure you have made specific adjustments to your lease or rental agreement that states clearly and plainly what is and is not permitted, and what you expect from your tenant upon their vacating your premises in regards to customizations they have made to the property. Specifying what changes are allowed, and to what extent they are allowed, can certainly put the odds in your favor if a bad tenant situation ends up going to the courts. An excellent example of this is painting. As there is no accounting for taste and some darker or brighter colors can be harder to cover or remove, one way to protect your rights is to make sure to spell out that the walls are not to be painted in those shades and that all walls must be repainted in three coats of a paint of a brand and shade of your choosing by the tenant upon lease termination. Don’t be afraid to be specific. It shows the tenant you care about the condition of your property, and may even deter less careful tenants from living in your property, maybe even saving you some future repairs.
- Know your tenant. Not every tenant is the same. If a tenant happens to be a carpenter and is offering to add in some built-in shelves and scaffolding to their place, and they can provide some solid examples of their work, that might raise your property value in the long run and be a fun thing to allow. However if a tenant wants to knock out a wall themselves in your apartment to “open up some space” and they’re a computer analyst, you may want to make sure that doesn’t happen.
- Know the law; schedule a legal consultation if necessary. There can be specific needs for people with disabilities, and certain changes must be made to properties they are going to live in. Make sure to know the law regarding the differently-abled before denying changes such as ramps, carpet removal, installing wheelchair accessible bathtubs, larger entryways or differently sized appliances. You may face legal consequences if you don’t.
Noel began his real estate career as a leasing agent, closing 4 leases his 1st week on the job. Since 2006, he has personally leased over 600 homes, signed up over 1000 new owners for management, and has sold over $500 million in real estate almost exclusively to, and for the benefit of investors. As the original employee, and now Broker for HomeQwik, Noel has not only assisted in the creation and management of the company, but also in the processes that make HomeQwik #1. As an owner of 2 rental properties himself, Noel also has personal experience as an investor, and has a true passion for helping others realize their investment dreams. He continues to work on building his own real estate portfolio, and is shopping for buyers in our market every single day.
Jason Stieglitz is a Realtor and Property Manager at HomeQwik, a firm that specializes in all aspects of Residential Property Management. Jason has been an Arizona resident for almost 40 years, and in real estate since 2009. Formerly in construction, Jason can apply some of that knowledge to maintenance problem solving with your investment property.
Mike Sargent – Founder/Real Estate Investor
Jim Hughes – IT Manager
Janie Scarborough – Business Development Manager for Prescott/Quad City Territory
Gk Pavillar – Manager of HomeQwik Remote Operations