Investor Info
Income Information
This condo was rented in 2009 for $785 per month on a 12 month lease.
Expenses Information
- Homeowners’ Association (”HOA”) fee is $158 per month
- Property taxes for year 2009 are $636 per year (tax year 2009), or $53 per month
- Property taxes for year 2010 have not been finalized yet
- Owner responsible for HVAC, water heater, interior of unit
- HOA cares for exterior, roof, landscaping, pool, parking
.
The Fine Print (i.e. Being a Landlord Isn’t Only About Raking in Cash)
Homeowners Association (HOA) dues are paid monthly and they typically cover streets maintenance within the community, roof maintenance, all landscaping, pool maintenance and blanket insurance on the buildings. The HOA’s insurance on the building is what’s known as “bare walls” insurance: it covers repair/replacement of the building up to the subfloor and the bare, taped drywall.
Typically condo owners purchase individual insurance policies – often called Contents Insurance or Renters Insurance – that provide coverage that picks up where the HOA’s bare walls policy leaves off. Condo owners are responsible for repair/replacement of, among other things: cabinets, countertops, sinks, tubs, toilets, faucets, light fixtures, flooring, etc. Typical costs for these Contents or Renter’s policies vary by provider but they’re usually in the range of a couple hundred dollars per year. Contact your insurer for a quote. Finally, tenants often buy insurance to cover replacement of their personal possessions.
Rental Income – Landlords should not count on 12 months of rental income every year, all the time. It takes time to find a new tenant every time the last one moves out. Budget for fresh paint, new carpet and general cleanup every time a tenant moves out. Real estate investors should always do their own investigations to determine how much they can reasonably expect to ask for rent, and how long the average landlord spends looking for a new tenant. In metro Phoenix, the Realtor’s MLS database contains rental listings that can help you get that information. Many landlords use Craigslist and other online venues to advertise their properties and these might be good resources for prospective investors.
Surprise! Landlords and Tenants Don’t Always Get Along – Read the Arizona Residential Landlord Tenant Act to find out what rights and responsibilities landlords have. For fun, read about some “I can’t pay the rent” excuses that other landlords have heard.
Realtors Chris Butterworth and Heather Barr have made every effort to provide accurate information on this website, but are unable to guarantee all information. Buyers should do their own investigations in any real estate transaction.
Please contact your Realtor for additional information about this property, or about becoming a landlord. If you don’t already have a Realtor to whom you’ve committed your loyalty, please consider contacting Chris & Heather, The Phoenix Agents at Thompson’s Realty. See our Contact page for information about the seller’s Realtor.
