The blog post Phoenix Real Estate Booming: The Valley Expected To Be The #1 Housing Market In The US was first published to: http://phoenixpropertymanagementcompany.com Hats off to PhoenixAccording to the latest Realtor.com forecast, the top housing market in this country for 2017 is Metro Phoenix. This distinction is not only welcome news, but it's long overdue. A constant increase in sales and escalating housing prices has put buyers on alert: Act now! Another fact that increases Phoenix's healthy real estate market is that today there are fewer foreclosures than ever before. National real estate website, Realtor.com, has already predicted a rise in Phoenix area home prices of nearly six percent with sales very likely to top seven percent by 2018. In this unique city where the Wild West, Modern America, and Old Mexico blend smoothly together, it's not only the encouraging price increases but the fact that 2017 promises to be one of the top home sales years for the Greater Phoenix Area. This is fantastic news for the Valley thanks to the typically more affordable home prices in the West. Los Angeles, along with Sacramento and Riverside, California also made it into the top five list for rising home prices in the West, all with higher prices and a general lack in many of the amenities Arizona offers. Even good neighbor Tucson, at this point ninth best hosing market, can expect a real bounce in prices this year. Interest Rates are RisingUnfortunately, the great news for the Arizona housing market is not without its downside: Interest rates are rising again, and of course, rising interest rates never help the real estate market. Sales forecasts for this year are predicted by Realtor.com to drop in all areas of Arizona as higher interest rates go into effect. This applies not only to Arizona but to the entire nation. Only a few years back, Phoenix went through a boom and bust making it more important than ever for potential buyers to keep their focus on the facts rather than pay attention to all the hype. In 2006, when Realtor.com told that Phoenix was at the forefront in U.S. home price increases, no one cheered. This notable increase was primarily driven by buyers on a speculation spree that, as we know, turned into a dark morass of bad loans that resulted in the crash. Experts appear to believe that the rising interest rates come from the anticipation of job growth and higher wages. Realtor.com predicts that interest rates may climb to 4.5% by next year. Overall, most investors believe the sudden spike in interest rates over the past month results from the election jitters felt by investors. from http://phoenixpropertymanagementcompany.com/?p=2742
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The post The Elliot Road Technology Corridor Mesa, Arizona Project Overview is courtesy of: http://www.phoenixpropertymanagementcompany.com With the Silicon Desert slowly expanding into Mesa, the America’s most conservative metropolis is starting to attract the attention of technology heavyweights across the country. For instance, Mesa is already home to Apple’s 2 billion dollar global operations command center. Key Factors that Are Attracting Businesses to MesaThe business attraction can be attributed to the persistent efforts that have been put in place by the local government to further encourage economic development in the region. According to the city’s Economic Development Director Bill Jabjiniak, two things will attract technology companies and other companies—infrastructure and the efficiency of land entitlement process. Mesa’s ‘Elliot Road Technology Corridor’ today has more than enough infrastructures in place to lure any serious American company or a multinational. For instance, the city’s massive power system installation, located close to SRP’s Browning receiving station together with the 69Kv, 230kv and 500Kv transmission lines are colossal power infrastructures with a capacity to supply more than enough energy needed for industrial operations. Another factor that is attracting Silicon Valley businesses to Mesa is the ease of access to SRP’s extensive, redundant fiber network. Companies can take advantage of this massive and unused fiber network to connect with the world. Likewise, the decision by the local government to set up the Eliot Road Technology Corridor Planned Area Development Overlay, after the Mesa City Council’s unanimous approval in September 2014, has slashed entitlement time in the corridor by up to nearly 80%. This is something that investors cannot ignore. The overlay extends across areas directly north of Elliot Road from Signal Butte to Hawes Roads. Apple’s Significant Impact on the Elliot Road Technology Corridor ProjectThe corridor already has secured Apple, who decided to continue their presence in Mesa, after their contractor—GT Advanced Technologies, filed for bankruptcy, jeopardizing the future of the former First Solar facility it occupied at Ellsworth and Elliot Roads. Although the bankruptcy petition by GT Advanced Technologies was considered a blow to the city’s economic development plans, it was not a fatal one. [caption id="attachment_2704" align="alignright" width="537"] Apple Inc. will be a major player in the Mesa, Arizona economy.[/caption] For the Mesa local government, staying the course to accomplish the desired economic development goals has not been so easy, especially with so many hiccups along the way. The entry of Apple in 2015, who injected 2 billion dollars into the economy, provided the much-needed bailout to Mesa’s fragile economic development project. According to Christine Zielonka who is the director of Mesa Development Services, one reason the technology heavyweight chose to stay on, following their contractor’s exit was the ease of doing business with the city. The presence of the world’s leading technology gadgets manufacturer has been a major boost for the local government’s efforts to promote the Elliot Road Technology Corridor project as it has shown a spotlight on Mesa and given the city a chance to market its amenities not only to American companies but also to other companies around the globe. Apple’s Presence Alone Is Not Enough for the Project to Pan OutEven though Apple’s presence is promoting the Elliot Road Technology Corridor project the best way it can, much of the project still does not resemble Silicon Valley as the area still consists of so many undeveloped plots of land. The only way Mesa can fully realize the full potential provided by the overlay as well as the existing amenities is if the local authorities come up with several in-development and planned projects that yield results. The presence of Apple alone is not enough for the city to accomplish its economic development goals. What Does the Future Of Mesa and Its People Look Like?Nevertheless, the economic future of Mesa looks bright. Besides the nearly finished 94,000 square foot health facility on Elliot Road Technology Corridor, many other major businesses have shown interest and announced their intention to join the project. For instance, DuPont Fabros’s decision to construct a data center campus on a 56-acre piece of land at Crimson Road just north of Elliot Road in future is good news for the economic development project. Niagara Bottling also announced their intention to construct a 455,000-sqare-foot bottling plant in the area worth 76 million dollars. All these new entries will create additional jobs for the residents of Mesa and boost the economy of the region. from http://phoenixpropertymanagementcompany.com/?p=2702 Boeing To Relocate Jobs To Mesa, Arizona is available on: Red Hawk Property Management LLC Boeing executives have announced plans to relocate hundreds of workers and jobs in their Shared Services Group from Seattle, Washington to Mesa, Arizona within the next two to three years. The division comprises 8,000 workers and provides support services to the other Boeing [caption id="attachment_2699" align="alignright" width="300"] Mesa's Falcon Field Airport is the relocation zone for many of the Boeing empoloyees.[/caption] units. Boeing (NYSE: BA) already manufactures Apache helicopters and has cyber security and drone operations at Mesa’s Falcon Field. In a statement to defend the move, a Boeing official had these to say: Boeing management had these more to say: “We have just started engaging our employees in talks to help them understand the process and obtain their feedback as regards the issue. We know that such changes impact our employees and have thus chosen to speak to them directly this early to grant them the opportunity to consider their most appropriate path as we work through this. We are still at the beginning of the process that is expected to take around two to three years, and as such, we are still unaware of the number of persons who will be directly impacted and in what way(s).” from http://phoenixpropertymanagementcompany.com/?p=2698 The article Should You Self Property Manage Or Put Up With A Property Manager Fee? is available on: http://phoenixpropertymanagementcompany.com/ Most property owners are often faced with the question if it is cheaper to manage their property or whether leaving property managers to do it is a better option. While some consider managing their property so as to escape the extra fee of hiring property managers, it is worth that you know it is not all about the charge but what the fee has to do with the services. Hence to get the answer to the question as stated earlier, you need to consider all the factors that make you hire the property manager, such as the value of your time and get to see if the services provided by your manager are much more worth that the fees charged. According to research, most property owners are on the move to hire property managers. There is an increase in the number of landlords who prefer to have property managers manage their rentals while there is a decrease in the number of those who manage their property. I believe you are now wondering why such a trend and why opt to hire a property manager while you can do it for free. The reason behind this is simple. No one would consider going for an expensive option while you can get a cheaper option, which means that hiring a property manager is cheaper as compared to managing your property. However, how can this be true while you will pay a property manager and you don't need to incur any fee by managing your property? Let's have a discussion and discover why a property manager is worth your consideration. Time is moneyManaging your property when that isn't your full-time job will take much of your time, not to mention that you will probably have to spend much of your valuable time dealing with tenants. This is likely going to make you lose much money especially if you have to leave your business to deal with your rental property residents' issues. This can worsen if your rentals are too far from your residence or business area. However, no matter the situation you are in, you cannot forsake your tenants as this may just make you lose another income source which means that you will probably have to go out of your business for some time. Such situations will make you make losses on your business especially if you need to deal with your tenants frequently. To avoid losing your valuable time you should consider delegating some duties, the most convenient which is leaving property managers to oversee your property. Knowledge of the lawDid you know that there are rules set for a property owner to abide by? Failure to comply with such codes will only lead to costly pitfalls. Being a property owner who has more valuable things to deal with, you probably will not have the time to research on such rules and regulations. Besides, keeping up to date with changes to such codes can be hard, which can cause you to deal with costly legal charges or even the loss of your property. To ensure that your property and every undertaking related to it is compliant with the law, hiring property managers is a good step to take as you can have the assurance that you will not fall in the illegal arms of the law. The reason behind this is that property managers keep track of the rules and regulations supposed to guide property owners, thereby ensuring that your rentals meet the required requirements. Offsetting taxDespite the fact that you ought to pay the fee arising after hiring a property manager, you can still raise your tax benefits. This results when the management fee is counteracted against your tax. Make sure that you weigh the benefits of hiring property managers to the fee charged as well as the value of your time and ensure that you make the right choice. from http://phoenixpropertymanagementcompany.com/?p=2691 The following blog post Do It Yourself Vs. Professional Property Management Companies is courtesy of: http://phoenixpropertymanagementcompany.com Property owners are often faced with several challenges, the major of which is making the decision on whether to take charge of their rental properties or whether to leave their management to a property management company. While each of the options has its pros and cons, professional property management companies have more advantage over owners due to their great experience. Keep reading and discover why property managers are a better option taking charge of your rental property's management. Understanding state and federal regulationsLet's face it. You as a property owner cannot follow up on the legal requirement as compared to professional property managers who deal with rental properties on a daily basis. Even though you will have some idea concerning the local rules, the fact is that you will hardly stay up to date. Failure to follow the required regulations can place you at a danger of violating the law thereby endangering your property finances and yourself. By leaving property managers to take charge of your rentals, you can rest assured to have no issues with the law as a result of your property not staying on par with the necessary current codes. Handling the renting processDid you know that the rental process can be quite cumbersome but you ought to pass through it? Once your rental property is ready for occupation, you need to get potential tenants. This involves establishing a budget to advertise your rentals and getting to the real advertisement of your property which involves placing of rental ads. Once prospective renters show up, you need to deal with all information required from them to enable you to screen for the right tenants. You should get their employment information, personal references, previous address, background information, all of which can take much of your time. Besides, you should always avail yourself when these prospective clients need to issue their documents. If you are in full-time employment, you will end up loosing many potential tenants as you might not be available when they need you. To stay safe, a property manager is better off taking charge of your property. After all, they are familiar with the rental process aspects. Screening and selecting the best tenantsYou do not want to involve your property with renters who will always give you a headache. However, failure to properly screen your tenants will just cause you to have stubborn renters. Without the experience and knowledge to distinguish those who give you true information versus those who lie, you will likely end up giving your rentals to untrustworthy persons. Besides, if you rush to pick tenants due to lack of enough time to screen all of them, you will also fall into the trap of accepting renters who will give you problems. Property managers can guarantee to give you the best tenants. They have the experience and knowledge to determine genuine residents after the interviewing process, therefore, giving you the guarantee of only getting the best renters. Establishing rental ratesThe amount of rent set for your property determines whether you will be successful to get the number of tenants you want for your rentals. Setting a price that is unrealistic only discourages residents from renting your property. After all, they consider apartments where they can save. In as much as you may have a value in mind of the price to set for your property, this amount may be unrealistic as compared to the market value. Property managers can set realistic rental rates for you, as they can access the current rental data to help establish the appropriate rates for your property. Handling rent collectionRent collection is something that you will have to deal with monthly. Despite the screening process as mentioned earlier, you will probably come across some tenants who pay late due to financial constraints or a bad month. Following up on late payments can give you a headache as this will interrupt your daily duties. Management companies will save you from handling all rent collection issues in your property. They will handle all monthly payments and late payers giving you a peace of mind. Tenant communicationDealing with complaints from tenants can be stressful, especially for a rental property owner who stays far from the rentals. You do not want to imagine having to travel all the way from your home or business just to go and get someone to deal with a plumbing or electrical issue in your property. With property managers, you can rest assured never to have to deal with small problems in the rentals, as they will have that catered for. They handle all day to day issues arising from the renters thereby giving you a peace of mind. From this discussion, many benefits arise if you decide to leave property managers to oversee your property. They save much of your time allowing you to spend it on valuable things. Moreover, the amount of fee you pay to these professionals is much less than the value of their services. Hence if you are confused between getting a property management team to oversee the running of your rentals or whether to do it yourself, it is recommendable that you consider hiring a property manager. from http://phoenixpropertymanagementcompany.com/?p=2673 Can Phoenix Live Up To Rising Real Estate Investment Expectations? was originally published on: www.phoenixpropertymanagementcompany.com Phoenix is projected to be ranked as top housing market by realtor.com in the year 2017. Brad Hunter, the chief economist with Colorado-based homeAdvisor Inc, also said that Phoenix should be expected to see better gains in the year 2017 as compared to other competitive real estate markets. The last recession and crash that hit the real estate market in the US saw other markets have a better opportunity of recovering as compared to Phoenix. Regarding prices, Phoenix has a greater chance of improving than the rest of markets such as the Denver and Coastal market. According to Brad Hunter, Phoenix began its recovery later than many other markets, as they had to start from the bottom to ensure that there is a good strategy to help in attaining healthy gains in the year 2017. Realtor.com estimated Phoenix to increase 5.9 percent in price and expects a sales growth of 7.2 percent by the end of 2017. Other people who see the prosperity and healthy development of Phoenix are Andrew Glenn and Bryce Lugo who are agents with my Homegroup Real Estate LLC. Glenn stated that there would be a continuous growth of year over year of up to 5 to 6 percent in Maricopa County Arizona. Therefore we can boldly conclude that a lot of people have faith in the survival and growth of the Phoenix market. The market had its best-selling year in 2016 since 2006, and the sales of the existing as new homes are worth 115,837 as stated by RL Brown Housing Reports. For existing homes, the sales from the year 2015 went up by 99,955 dollars which is estimated to be 7.2 percent increase, while new homes went up to 32 percent from 2016 and closed with an increase of over 15 thousand dollars. According to RL Brown, Phoenix needs to come up with a new pricing structure so they can be able to catch up with the rest of the United States. This is because the median resale of the existing homes in Phoenix market was estimated to be 216000 dollars and had a percentage increase of 0.23% which was quite small in the earlier year. After increasing their prices to 315,157 dollars, the percentage sales rose from 0.23 to 1.38 percent which is good markup. Lugo stated that the high increase of rental prices might also lead to people opting to buy homes instead. If the rental prices shoot to 1600 dollars to 1700 dollars per month, the incentives to rent a house goes down. from http://phoenixpropertymanagementcompany.com/?p=2668 The Metro Phoenix Apartment Market’s Promising Outlook was originally published to: Red Hawk Property Management Website Blog The Phoenix metro rental market continues a two-year ascent, showing no signs of stopping anytime soon. What really could be the reason behind the increasing demand for rental property in Phoenix? [caption id="attachment_2665" align="alignright" width="327"] An aerial of recently developed areas in the Phoenix valley. Photo courtesy of the International Space Station.[/caption] According to Stephanie McCleskey who is the vice president of Research for Axiometricks, outstanding job growth is the most important factor. McCleskey asserts that with over 3% annual Phoenix job growth rate, the huge demand for accommodation is consuming a huge portion of new property supply. According to his organization, Phoenix businesses created 56,800 in 2015. The data provides evidence that real estate companies are in a rush to add another 4612 housing units in 2017, after supplying 7093 units in 2016. Looking at 18 submarkets with over 1000 units, the 2016 data ranked the valley cities with the most growth as follows;
Despite mortgage rates currently being at their historic lows, Phoenix remains one of the most promising property markets across the nation. The cost of rent has gone higher for the 23 of the past 24 months so is the apartment occupancy. Nathan Pierce—principal at Strong Tower Realty in Scottsdale advises tenants to consider low or no down payment programs and acquire homes rather than rent. He believes that renters are spending more than they would on a mortgage payment. “In our market, you could save 25% by buying a house outright instead of renting,” says Nathan. He goes ahead to point out that people are spending more when they sign a lease and they are missing out on tax breaks like interests, property tax as well as mortgage insurance by not choosing property acquisition over rental. from http://phoenixpropertymanagementcompany.com/?p=2664 Arizona Real Estate Will Be An Excellent Investment In Coming Years is republished from: http://www.phoenixpropertymanagementcompany.com If you are looking to purchase a home in the Phoenix, Flagstaff, or Prescott areas in Arizona do it now. In the next couple of years, the prices are expected to increase. A single family home is a significant investment in the Phoenix area. Apartments also have a real potential in this area. Homes are also being split into different rental units. Mortgage, as well as construction loans, have a lower risk to lenders than before. Rentals are great investments in Phoenix as well as Tuscon and Prescott. Investing in Arizona provides many great opportunities. This is like the Florida of the west where people go to retire only without the swamps. There are so many opportunities for investors. In addition to the proximity to the major cities, Prescott has a lot of offer retirees. Flagstaff has a younger population, and Yuma is a location where immigrants tend to start off. Each of these cities have different housing needs. The need of homes will increase as the economy increases in a city. Phoenix sees the development of new jobs at twice the national rate. These jobs are in the healthcare industry, retail, and finances. Prescott also sees job growth and development. They need people to work in healthcare and retail to serve the elderly population. Tuscon sees a decrease in growth. Flagstaff relies on the tourists for most of their industry. Home prices in the state of Arizona rose and then drastically fell. The prices in Phoenix and Prescott went up again when people purchased properties that have been foreclosed. There has been a spike in sales again in the cities of Phoenix, Flagstaff, and Prescott. The sales have been weaker in Yuma and Tucson. Over the next three years, home prices in Phoenix are expected to increase by 25 percent. Now is the time to buy. Pries in Phoenix are very strong but not as strong in the surrounding areas. Almost 40 percent of the population in Flagstaff, Tucson, and Phoenix are renters. The price of home ownership is very high. Investing a single family home is more reasonable in Phoenix. The homes can be split into several rental units. The health care sector, as well as the retail sector, may not pay that well but people will be looking for rental units for years to come. Mortgages are a sound investment in this area. The prices for homes will continue to rise, the equity will continue to grow, and the risk of default will stay around the national average. Construction loans have an average risk. It is expected that over 60,000 new homes will be built in Phoenix over the next three years as well as an additional 60,000 apartments. In Prescott, it is estimated 5,000 homes will be built and in Tucson 5,000 apartments. Flagstaff and Yuma may have less than 1,000 new construction projects, and many of them will be apartments. Due to the growth in population, it may be wise to invest in retail stores and eating establishments in Phoenix. Pinal County does not have enough of either. Flagstaff has more competition and pay will go with the cycle of tourism. There is no growth in retail in Prescott, and the retail market has declined in Tuscon. Office space is a good investment in Phoenix due to the increase in the financial and the health care sectors. from http://phoenixpropertymanagementcompany.com/?p=2660 As The Phoenix Real Estate Market Booms, Rental Prices Skyrocket is republished from: Red Hawk Property Management Website The prices for homes are increasing all over the country. Homes in Phoenix are expected to surpass the national average. In the month of May rent was 2.6 percent higher than it was the past May according to the Census Bureau. Phoenix saw a 4.9 percent increase from the previous May. The growth in 2017 has been happening quicker than in 2016. The calculations for the increase use data from apartments and single family homes. Government data is also used to come up with these figures. The population in Phoenix is quickly growing. The Mayor, Greg Stanton credits the growth due to additional jobs in the health care field. Home sales are also increases where first time home buyers are making the switch from renting to owning a home. The average rental cost of a two bedroom home in Phoenix was $1,020 in the month of May. The national average is $1,150. This report does not include North Phoenix, but other nearby cities had higher rent costs than the rest of Phoenix. The town of Sunrise charged $1,340 in rent for a two-bedroom apartment while Gilbert got $1,350. Two bedroom apartments in Bela Rosa, Talus Ranch, and other areas in Northern Phoenix ranged from $975 to $1,150. Two bedroom homes were listed at prices from $1,495 to $2,250. from http://phoenixpropertymanagementcompany.com/?p=2655 Implementing Energy-Efficient Systems In Homes For Property Managers is republished from: Roger Hickmon If a property manager makes energy saving investments, they can save a large sum of money over time. It is important to save as much money as possible on energy costs when operating property. Real estate and property managers often spend a lot of money to make money so it is important to look for ways to save. The property manager can control the energy used by making some energy-saving investments. Here are some tips to reduce the spending on energy. These tips can offer some significant savings over time. 1. Purchase New AppliancesWhile many property managers look for the least expensive products it can cost them more in the long run. The cost of energy saving appliances may be higher at first but they use 50 percent less energy than regular appliances. Look for appliances that have the Energy Star rating. They have been proven to use less energy. This equals savings in the long run. [caption id="attachment_2651" align="alignright" width="200"] Look for the energy star logo when purchasing appliances.[/caption] 2. Energy ManagementIf the energy output is not watched the price can go up very quickly. Managing the output is important but so is predicting future usage. As the market changes due to things such as weather having the right items and the correct information is needed. There are so many factors which affect property management that are beyond the control of a property manager. Spending on energy should not be included. When watching the output changes can be made as needed to save additional money. 3. Switch to LEDLED'S are 75 percent more energy efficient then other bulbs, they are weather proof , and as an additional bonus they are better for the environment. They last for a much longer period of time then regular bulbs as well. These bulbs may cost a little more but they will save money over time. There are also tax rebates and other incentives. Companies will often add the installation costs into the monthly electric bills. This will provide options on how to pay for the lights over time. 4. Retro CommissionEverything needs an inspection from time to time. The property should be inspected to see that it is operating at its peak performance. This is called retro-commissioning. Anything from the HVAC unit to the electrical systems can be inspected. This will reduce the amount of energy that the building is using. It may lower operating costs by at least 15 percent if not more. This may catch smaller issues before they become an expensive repair in the future. A property manager may have to invest in upgrades but the benefits in the long term can be well worth the cost. If you are in charge of a real estate company or work as a property manager, then you know that saving money it important. Saving more means a higher profit. It takes planning and precision to save money. Smart spending can put you ahead of your competitors. These tips will help you come up with a business plan on how to save money and increase your profit in the long run. from http://phoenixpropertymanagementcompany.com/?p=2649 |
ABOUT USRed Hawk Property Management is a professional property management company located in the Metro Phoenix, Arizona area in Mesa. Our goal was and still is, to provide the latest technology, have cost effective and transparent rates, and be an accurate and professional property management company servicing all of Maricopa and Northern Pinal Counties. Red Hawk Realty started with about 10 properties, and is currently successfully managing approximately 400 properties. Archives
February 2018
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