How much will my home in Phoenix rent for? What should I look for when buying a Phoenix rental home? And, where is the best place in Phoenix to buy a rental home? As a Phoenix property manager these are the three most common questions asked of me by Phoenix rental home investors. Hopefully the following information will assist you in your investment decisions.
When selecting a rental home for purchase in Phoenix, an investor should keep in mind that generally speaking renters are no different than owners in their preferences. Therefore, Phoenix rental home investors should ask themselves these questions when selecting a home. Would I rather live in a single level or two-story home? Would I prefer living in a single family detached home or in a cluster community where the streets, driveways and setbacks are smaller? Would I prefer to live closer or farther from the convenient freeway?
Phoenix rental home investors may also want to consider the following information regarding floor plans and amenities such as swimming pools and finished backyards. These rental home features will help your investment home stand out to tenants searching online.
Bedrooms – Three bedroom homes rent very well in the Phoenix area but four and five bedroom homes rent even better. Why? Displacement! Many families have fled their homes as a result of financial distress and need a larger home with more space and bedrooms.
Swimming Pools – Pools are common in Phoenix and some renters seek homes with pools exclusively. This seems to be the exception and not the rule. Rental homes with swimming pools are more expensive for tenants to operate and for owners to maintain, not to mention the liability. If you are selecting a rental home in Phoenix that you will some day live in and really want a pool, then buy one with an existing pool since it is more affordable than installing one later.
Levels – Single level homes are more energy efficient and easier on the knees.
Lot size – Most tenants in Phoenix prefer a larger space to call home and appreciate larger set backs in-between neighbors. RV gates are also very desirable for tenants who own boats or trailers.
Yards – All rental homes in Phoenix should have front and backyard landscaping even if it’s minimal. Most resale homes have a front yard installed already so this shouldn’t be too big of a concern. Don’t split hairs over desert or grass so long as it is neat and clean and curb appeal can be achieved and maintained.
Location – Where in the Phoenix area should you purchase a rental home? If you plan on living in this home at some point in the future then your considerations may be completely different than a Phoenix home investor that will never occupy. For most Phoenix home investors this is a strategic or budgetary question. By strategic I mean that some Phoenix home investors may feel it’s smarter to own three $75,000 homes in Maricopa or Queen Creek instead of one $225,000 home in Scottsdale. Generally speaking, when it comes to location, buy Phoenix rental homes near amenities such as schools, freeways, shopping, dining, and all other quality of life factors that are not only preferred by owners but also renters. This will ensure that tenants want to live in your Phoenix rental home and as a Phoenix rental home investor you will have low vacancy and positioned well for future appreciation.
For investment information on Phoenix rental properties, call (480-221-5449) or email Royce Munroe.
