Arizona

Fri
23
May
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The Apartment Construction Boom in Metro Phoenix

Whether you are developing new apartments or own smaller and older apartment communities, it is vital to know what is being built and proposed to be built in your area. Knowing your competition can be extremely beneficial when deciding what adjustments you need to make. Having a new, upscale apartment community nearby could be either a strong benefit or a significant concern. This article is specific to metro Phoenix but may apply to many markets across the US. It discusses why there is now a “boom” in apartment construction, reasons for an expected population explosion, the number of projects/units being constructed, the location of new projects and the variety of the new types of apartment communities. After going thru the data—the bottom line for all apartment owners should be to realize that you are in a very dynamic market. If your assets are in metro Phoenix, we are happy to assist with whatever decision might be needed.

Fri
23
May
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Arizona: What the Property Management Agreement “May” Include

There a several items a Property Management Agreement must contain to comply with the Arizona Landlord Tenant Act. I will cover those at the end of this article as I feel the items you “may’ include in the agreement are more interesting and in need of discussion. For your reference you can consult ARS 32-2173. The applicable clauses for this article are in italics below.
There are items that “may” be part of a Property Management Agreement as a result of negotiations between a rental property owner and a property manager. I offer my practical input on each with the usual disclaimer that I am not an attorney, you should certainly not take anything I state as absolute and you should always consult your attorney or other professional advisors.
These items include the following:

Wed
21
May
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Leveraged Acquisitions. Oh No, Not Again!

Rent rates aren’t increasing nearly as fast as the price of existing single family homes in Arizona, especially Greater Phoenix. The price an investor has to pay to add an additional property to their portfolio is much closer to a retail price and is rising. It is difficult to predict price and if you try to predict price out into the future, you will be wrong far more often than you will be right. So, while price is “expected” to remain flat for a period of at least a few months, it is difficult to know for sure.
We know is it is much more expensive to acquire a property than it was last year, the year before that and the year before that, and the year before that. The issue? When is history going to repeat itself for the rental property owner? Okay, I’ve kind of talked in circles. Here is what I’m getting at.

Wed
21
May
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Arizona: Storm Damage Rights and Remedies

Storm Damage: Rights and Remedies
As we all found last summer, Arizona is not immune from storm damage. When these unforeseen occurrences happen, what are the rights and remedies of landlords and residents?
The Arizona Residential Landlord and Tenant act addresses this question. A.R.S. Section § 33-1366 states:
A. If the dwelling unit or premises are damaged or destroyed by fire or casualty to an extent that enjoyment of the dwelling unit is substantially impaired, the tenant may do either of the following:
1. Immediately vacate the premises and notify the landlord in writing within fourteen days thereafter his intention to terminate the rental agreement, in which case the rental agreement terminates as the date of vacating.

Wed
21
May
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Understanding the Financial Music

It’s a given that real estate is cyclic – and knowing as much as possible about these cycles can be a significant help in maximizing values or perhaps, avoiding a disaster. In general, the four phases of every cycle are: Recession, Recovery, Expansion and Oversupply. Knowing where you are in the cycle is critical as we all found out in the fall of 2008 when commercial values fell off the table. Looking at the cycles in terms of “financing” provides further insight into the cycles and should help investors appreciate the current opportunities and predict when the music will again stop – and it will. To provide clarity – let’s take a look at the past.

Fri
02
May
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Arizona Rental Housing Journal - May 2014

 

RHJ is the business journal for the Arizona rental housing industry.

Mon
14
Apr
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Arizona Rental Housing Journal April 2014

 

RHJ is the business journal for apartment owners, investors, property managers and landlords in Arizona.

Wed
02
Apr
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ARIZONA: Remedies After The Lease Is Up

When a tenant moves out and fulfills the full term of his or her lease, he or she is not normally obligated to pay any additional rent to the landlord. However, an Arizona Appellate Court ruled that in some instances a landlord may be able to charge extra rent. This article will examine that case.
The Arizona Landlord and Tenant Act, under Section 33-1373, does allow a landlord to charge rent until the lease expires or the apartment is re-rented when the tenant breaches his or her lease.
Additionally, if a tenant who is on a month-to-month agreement does not give a 30-day notice under Section 33-1375, 30 days from the next rental period, the tenant can be charged up to an extra month’s rent.

Sun
30
Mar
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The Metro-Phoenix Apartment Market - 2013 Wrap Up

I am fascinated by the 2013 metro-Phoenix, Multi-Family Sales numbers. Maybe fascinated isn’t really the right word; but the numbers are interesting and very encouraging considering the last four or five years.
During 2013, there were 285 sales of apartments with 10 or more units. 182 of these sales had between 10 and 99 units and 103 sales had 100 or more units. Here’s where it gets interesting: The 182 sales of 10 – 99 units amounted to $243,391,008 and 5,955 units. Pretty impressive. Wait. The 103 sales of properties with 100 or more units totaled $2,336,626,810 and 27,428 units!
The charts below show the details of the 2013 Multi-Family sales with the additional breakdown of when the property was built.
Metro-Phoenix Apartment Sales – 2013 (10 to 99 Units)
Built 1940 to 1979 Total Sales Total/Average
No of Transactions 113
Price/Unit $40,388
Price/SF $53.03
$139,493,022

Thu
06
Mar
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Arizona Rental Housing Journal - March 2014

 

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