Voted as one of the best cities to live in, Scottsdale, AZ ranks high on the list of people moving to Arizona. According to Sperling’s Best Places, Scottsdale has seen a population increase of almost eight and a half percent since 2000 and an almost twenty percent increase in home prices in the last year. With so much growth, those renting their homes are taking a hit. The challenges of Scottsdale property management are there, but with the right knowledge and property management skills, landlords can make a killing.
Scottsdale Property Management Challenges: Many Different HOA’s
The HOA scene in Scottsdale is hot and heavy. That’s not to say that other cities don’t have HOAs, but that those in Scottsdale are particularly strict. With the average home prices right around $385,000 and many are soaring way above that number, it’s no wonder that picky HOAs are ubiquitous. People in Scottsdale like to have nice things, and so the HOAs make sure that nothing (absolutely nothing) is out of place.
For the landlord renting his home, this can be particularly frustrating especially if he is traveling, lives out of the area, or like most of us, already has a full plate. Unfortunately, HOAs are not entities that fare well on the back burner. One missed call or letter can mean an endless catalog of fines.
45 – that’s the median age of buyers purchasing homes in Scottsdale. So what does that have to do with transient renters? Well, while those in their prime earning years are buying homes, that’s not always the case when it comes to renters. Renters are typically DINKs (dual income, no kids), young professionals in the early stages of their careers, and millennials who grew up in Scottsdale and desire to continue living in the neighborhood. Regardless of the particular subcategory that potential renters fall into, the commonality between the three groups is a transient lifestyle.
Sixty percent of millennials, ages 22-32, have changed jobs between one and four times in the last five years, according to State Street Global Advisors. That means that renters in this age group are less likely to stay put. Quitting jobs for something more emotionally satisfying for less pay or moving to a new city for new opportunities doesn’t mean you’re renting to bad people, it just makes the task of Scottsdale property management a little more work intensive that you might like.
Short Term Renters
In the same vein as transient renters, short term renters can make Scottsdale property management a hassle. Many of the sports teams see their players buying or renting homes in the Scottsdale area. Likewise, high profile business professionals seek out this area as well. That can be exciting if you’re the landlord, but when players are traded or business execs are called elsewhere, landlords are left in the lurch, sometimes with little notice. That means it’s back to pounding the pavement looking for the next renter.
High Dollar Properties
We’ve already mentioned that Scottsdale real estate sits right around the $400,000 entry level with many homes exceeding that number by double, triple, or more. And while that number may not cause our California neighbors to flinch, the fact is that you’re getting a lot of house for the money. Not to mention the custom craftsmanship, high dollar furnishings, and often larger property lots. The problem is that homeowners in Scottsdale didn’t get to a place where they could afford a beautiful home by being lazy. On the contrary, long hours and hard earned dollars went into purchasing your home, which means you want a renter that will treat it well.
The problem is that the search for high-quality renters can take time. And what if you think you have high-quality renters but they turn out to be your worse nightmare? Who will be watching your house so you know whether or not you have a great renter? How do you end the contract and escort them off the premises in a timely manner? How do you vet renters so you can rest easy knowing a quality person is living in your house?
These are all questions that the Scottsdale property management team at Century 21 Northwest solves. Our highly professional and detailed oriented team works with you not only rent your house to tenants that you approve but also follows up on the maintenance, HOA, and other issues that arise when renting your home.
For more information about our Scottsdale property management team, or to interview us as your potential property management company, call us today.