Kiran's Blog

Foreclosures and impact to you

2007-09-01T00:42:19Z

Authored by Kiran & Kiran
http://www.homesandloansphx.com/
602-550-4842

Your home value suffers: According to the Center for Responsible Lending, foreclosures in your area can hurt your property value. In fact, for every home that goes into foreclosure in your neighborhood, your property value drops by about 1 percent. So, if you have five foreclosed properties in your neighborhood, your home will fall about 5 percent. And it will stay depressed for at least two years, Click here to find the link to (Link #8) see foreclosures are in your area,

Harder to re-finance: The foreclosures are pushing many lenders to the edge and that is causing a ripple effect in the housing economy. The existing lenders are tightening the terms and avoiding medium to high-risk loans all together. How does that affect you directly? If your ARM dates are approaching, then it might be harder to refinance as the lenders tighten the terms - you will be most vulnerable if your credit score is not good or if you do not have enough equity in the home.

As always, you may call me to find out if re-financing will be required now. I can offer a FREE - NO OBLIGATION assessment of your current mortgage and ARM terms and discuss your options.

Do not stay in the ignorance. It pays to consult a professional - not any professional, but a knowledgeable one!

Authored by Kiran & Kiran
http://www.homesandloansphx.com/
602-550-4842

Mortgage Tips - How to stay unh-ARM-ed; Refinancing

2007-08-30T22:19:15Z

Authored by Kiran & Kiran
http://www.homesandloansphx.com/
602-550-4842

Maintain healthy credit: It is much harder to get mortgage today than a month ago. It is more important than ever to maintain a good credit rating if you intend to purchase OR re-finance. With the mortgage meltdown that is gaining momentum, it could be harder to refinance if you do not have spotless credit.

Who is NOT impacted?

One who has good credit score (620+ FICO)
One applying for a loan to value of 90 % or better

This applies to both re-financing and a new transaction.

KNOW your terms: Once you get a loan, it is very critical to keep up with the terms and due dates. With the Adjustable Rate Mortgages maturing, you do not want to be surprised with a new rate that kicks-in after the low teaser rate expires.

Do not be the one of the three homeowners who does not know what kind of mortgage they have. So, even if you are staying put, dig out those closing documents. Find out when exactly your rate will reset. You will find this on the Adjustable Rate Rider which is one of the first few pages in your documents.

You'll want to find out...

how often you're rate will increase
what caps there are
How much that increase can be?

If you can't find these documents, call your lender and ask.

As always, you may call me to find out if re-financing will be required now. I can offer a FREE - NO OBLIGATION assessment of your current mortgage and ARM terms and discuss your options.

Do not stay in the ignorance. It pays to consult a professional.

Authored by Kiran & Kiran
http://www.homesandloansphx.com/
602-550-4842

Cancelling a Real Estate Contract - Will I get my earnest deposit back?

2007-08-21T14:23:16Z

Authored by Kiran & Kiran
http://www.homesandloansphx.com/
602-550-4842

I get asked this question a lot - "How late can I cancel the contract without losing my deposit"?

In general, you can't just terminate a contract. There must be some reason for the termination, and that justification must have some basis under the purchase contract or under a statute.

BACKGROUND: All offers to purchase will need some "earnest money" OR "good faith deposit". The main purpose is to show the seller that the buyer is genuinely interested in the property. Once the contract is accepted, earnest deposit is disbursed based on the terms of the contract. (Typically to title company for re-sale homes OR to the builder for new homes)

For RE-SALE HOMES, the inspection period (standard is 10 days). This time period is also referred in real estate industry as "due diligence". The buyer has the right within this time period to research about the property itself and surroundings. It is a common practice to hire a professional home inspector; research on the internet for schools info, proximity to frequently visiting places, etc., Buyer has the right to change his mind within this time period without losing the deposit, unless noted explicitly in the contract. Past the inspection period, seller would generally have the right to keep the deposit as damages. There are some exceptions to this - example: Financing issues where no lender is approving the loan OR seller did not fix all the items that were agrees during inspection period. Therefore, it is very critical to have a knowledgeable and professional agent representing you to cross-check and ensure your interests are protected.

For NEW HOMES, it is more difficult to say since you need to review the contract and determine the terms of the contract. The buyer needs to get a copy of the PUBLIC report and will have 24 hrs from that point of time to change his mind and get his $ back. There are other terms that builders put into the contract. Example: Refund if there is an employment transfer more than 100 miles from the current residence; Death of a spouse, etc., certainly, if the builder can't get a certificate of occupancy due to construction problems, you should not have to close on the purchase of the home. For some NEW builders, there is a CONDITIONAL PUBLIC REPORT (the PUBLIC REPORT that has not yet been approved by the Arizona Department of Real Estate). With a conditional public report, the buyer has the longest window - since he can wait until he sees the final and approved public report.

The above comments are generic and there may be multiple legal ramifications - you should consult with a real estate attorney, who can look over the documents you signed, and discuss about all options you may have.

The recommendation is not to sign an offer to purchase in a hurry.

Think it through and that saves a lot of hassle and time.

Happy shopping.

Authored by Kiran & Kiran
http://www.homesandloansphx.com/
602-550-4842

Calex Homes: Feedback needed to get the contract signed!

2007-08-14T12:29:11Z

I have a client who is ready to sign for a CALEX home, but wanted to get some feedback / testimonials. Can you please help?

Do you have an experience with CALEX Homes that you can share?

Here is a query from my client "How is the builder? Do you have any clients that can give feedback? I checked on internet and no one talks about C. Not sure if it is a good builder or not. Especially when the house (at the end with options) is running into 500K, we would like to see some good feedback on the builder."

My sole CALEX client is unreachable too :-(

Thanks for your attention & time.

Authored by Kiran & Kiran,
http://www.homesandloansphx.com/
602-550-4842
coolkirans@hotmail.com

Sun Groves (Lindsay and Riggs) - Rent DECREASED ($1150) or Sale ($ 310 K)

2007-08-09T00:12:47Z

BEAUTIFUL HOME with OUTSTANDING VALUE in SUN GROVES (Lindsay and Riggs). Seller is motivated.

Check out more details here

RENT DECREASED QUICK MOVE-IN ($ 1,150) or SELL ($ 310 K)

Looks better than a MODEL - check the pictures
Open floor plan.
Kitchen has Granite counter tops
Under mounted sink
Cherry-wood cabinets (with crown moldings)
Home furnished with R/O system, water softener, refrigerator, washer and drier
Master bath has walk-in shower and tub.
Large tile in all living areas and carpet in bedrooms.

Premium corner lot with a huge 9400 sq ft backyard (landscaped green+concrete);
Desert in front. Home has a security system too.
Quiet Neighborhood walking distance to schools.

Floor Plan

Thanks for your attention.

Authored by Kiran & Kiran
http://www.homesandloansphx.com/
602-550-4842

July 2007 Market Data for Phoenix Metro

2007-08-04T04:54:26Z

What do these number mean?

Summary: An absorption rate of < 4 is considered a seller's market and obviously all the cities in the valley are not in a "seller's market". The higher the absorption value, the buyers are at an advantage

Phoenix Cities	Chandler	Phoenix	Laveen	Queen Creek
Absorption rate	8.45	10.75	11.15	15.31
Avg Listed Price	$411,040.00	$353,014	$365,650.00	$322,040.00
Avg Sold Price Last Month	$346,929.00	$305,615	$319,450.00	$238,567.00
Homes for Sale	2780	12177	535	2036
Homes Sold Last Month	329	1133	48	133
Listed Avg Days on Market	107	106	112	114
Sold Avg Dats on market	112	97	104	117
Phoenix Cities	Maricopa	Gilbert	Mesa	Surprise
Absorption rate	14.73	9.63	8.76	11.90
Avg Listed Price	$259,532.00	$420,806.00	$337,503.00	$300,272.00
Avg Sold Price Last Month	$229,898.00	$358,745.00	$271,902.00	$261,465.00
Homes for Sale	987	2744	4250	2214
Homes Sold Last Month	67	285	485	186
Listed Avg Days on Market	107	106	111	116
Sold Avg Dats on market	96	105	114	121
Phoenix Cities	Gilbert	Mesa	Surprise	Scottsdale
Absorption rate	9.63	8.76	11.90	10.25
Avg Listed Price	$420,806.00	$337,503.00	$300,272.00	$948,841.00
Avg Sold Price Last Month	$358,745.00	$271,902.00	$261,465.00	$723,411.00
Homes for Sale	2744	4250	2214	4940
Homes Sold Last Month	285	485	186	482
Listed Avg Days on Market	106	111	116	138
Sold Avg Dats on market	105	114	121	126
Phoenix Cities	Tempe	Peoria	Glendale	Paradise valley
Absorption rate	4.94	12.30	10.32	12.21
Avg Listed Price	$375,138.00	$395,886.00	332670	$3,510,083.00
Avg Sold Price Last Month	$316,040.00	$316,828.00	263123	$2,166,812.00
Homes for Sale	899	2164	2652	293
Homes Sold Last Month	182	176	257	24
Listed Avg Days on Market	89	117	105	151
Sold Avg Dats on market	70	105	112	126

Read my article on the snapshot analysis of the data in my other article.

Thanks for your attention.

Authored by Kiran & Kiran
http://www.homesandloansphx.com/
602-550-4842

Aug 2007 - City-by-city Phoenix Real Estate Market Analysis - Best and Worst Survivors of the downturn

2007-08-04T04:47:33Z

Authored by Kiran & Kiran
http://www.homesandloansphx.com/
602-550-4842

I have talked about Absorption rate in my previous article. (representation of supply and demand). Now, I have attempted put the concept into use by pulling some data from the Phoenix metropolitan area and compiling it.

The metric is used to compare and see which area is most affected by the real estate slow down in the Phoenix metro.

The raw data is from Arizona Regional MLS.

Thanks for your attention.

Authored by Kiran & Kiran,
http://www.homesandloansphx.com/
602-550-4842
coolkirans@hotmail.com

How is our Real Estate Market – track it with the Absorption rate.

2007-08-03T18:43:12Z

Authored by Kiran & Kiran, Call Realty
http://www.homesandloansphx.com/
602-550-4842

In today's article, I want to cover the meaning of ABSORPTION rate. This is one of the plethora of indicators available to gauge the health of the real estate market - especially the local market.

What is ABSORPTION RATE?
Number of available homes available for sale / Number of homes sold in the previous month.

It is a ...

correlation between supply and demand
representation of the number of months it might take, at that same market pace, to sell the entire inventory of homes
flexible metric that can be used for a zip code OR a particular area code

Absorption rate	Market Condition
1 - 4	Sellers Market
5 - 6	Normal Market
7 +	Buyers Market

Example:

Chandler, AZ has 2393 homes currently on the market, as of Aug 3^rd 2007
In the past month, 290 homes were sold
2393 / 290 = 8.26
This shows that we are clearly in a Buyer's Market
What does this mean for a seller in Chandler? It might take as long as 8 months to sell a home in Chandler with the current conditions. a Buyer's Market

Even though the metric sounds simple, the buyer/sellers need to take other local factors to determine the right price for a home.

With buyer's market upon us, good marketing and pricing right are the keys for selling, and offering the right price is crucial for buying.

Consult a knowledgeable real estate professional who is experienced in taking the holistic approach with the transaction.

Thanks for your attention.
Authored by Kiran & Kiran, Call Realty
http://www.homesandloansphx.com/
coolkirans@hotmail.com

Why buy an OLD Home? (Also read Why buy a NEW home)

2007-07-24T18:34:14Z

Authored by Kirans
http://www.HomesAndLoansPHX.com/
OR http://www.AZDesiAgent.com/
Moving plans in the "Valley of SUN"?
We can make it EASY and FUN!

The intention of this article is simple - to make customers aware of what to expect from an OLD HOME.

(Disclaimer: I am equally enthused by an OLD or a NEW home and I DO NOT intend to sway or recommend a NEW versus OLD home.)

Timing could not be better to buy a dream home.

WHY? It is a Buyer's Market - means there is an ample supply of homes on the market for the number of buyers. Homes take longer to sell and sellers get desperate.

*** Also read my article "Why buy a NEW home?" ***

Advantages of an OLD Home

Negotiating power: In these days of "Buyer's Market", there are a lot of sellers who are ready to get out of the home and sell for less. That means this is the time to get a killer price. A skillful agent with negotiating skill is pivotal, along with his/her ability to look for some clues. I have found that a combination of CDOM (cumulative days on market), key words in the listings like "Seller to look at all offers" or "Motivated Seller" OR explicit request to send an offer are welcome signs that the seller is open offer some clues. A well qualified buyer has better negotiating power. An experienced agent can prepare a reasonable offer and can handle the negotiation with skill and care. You should be careful not to get too greedy and lose a dream home. Negotiate and get what you want.
Move-in ready: Most of the OLD homes come with established landscaping, wall coverings and stable maintenance schedules. Buyer can save lot of time and cost associated with these home accessories. As always, buyer can replace the accessories at a later convenient time, if needed. (It can actually be a lot of fun doing some home renovation projects yourself. I find then to be fulfilling too!)
WYSIWYG (What You See Is What You Get): Buyer can actually see the completed product - touch and feel it and expectations get very clear. The buyer also has the benefit of driving around and get a real feel of driving around the neighborhood, unlike a brand new neighborhood
Warranty coverage: Most sellers offer 1-year warranty. It is important that your agent makes sure this a FULL COVERAGE is added to the contract. Verify the exact coverage and avoid disappointments.

It is critical that a professional home inspection is ordered before proceeding to buy. Remember that as a buyer, it does not cost buyer a penny to engage professional REALTOR's help. Do not go into a contract unrepresented. Protect yourself and have a real estate professional represent you. Feel free to browse my website for some other Buyer's tips

Also read our article on choosing the right location

Also read our article on Why Buy a NEW Home

Authored by Kirans
http://www.HomesAndLoansPHX.com/
OR http://www.AZDesiAgent.com/
Moving plans in the "Valley of SUN"?
We can make it EASY and FUN!

Why buy a NEW Home? (Also read Why buy an OLD home)

2007-07-20T01:00:11Z

Authored by Kiran & Kiran, Call Realty
http://www.homesandloansphx.com/ OR
http://www.AZDesiAgent.com/
602-550-4842 / coolkirans@hotmail.com

The intention of this article is simple - to make customers aware of what to expect from a NEW HOME.

(Disclaimer: I am equally enthused by an OLD or a NEW home and I DO NOT intend to sway or recommend a NEW versus OLD home.)

Timing could not be better to buy a dream home. WHY? It is a Buyer's Market - means there is an ample supply of homes on the market for the number of buyers. Homes take longer to sell and sellers get desperate.

*** Also read my article "Why buy an OLD home?" Coming Soon ***

Advantages of a NEW Home

Incentives: In the days of "Buyer's Market", builders are offering HUGE incentives - especially on spec/inventory homes (but, you need to be ready to move-in fairly quickly)
Warranty coverage: Most builders offer 10 years structural warranty & 1-year bumper-2-bumper warranty (aka wall to wall warranty)
Options: The buyer has the choice to pick among the choice of available lots, have desired upgrades - especially structural modifications. No need to worry about replacing the old carpet or counter-tops
Energy Efficiency: Latest construction techniques help with the energy efficiency of the home. Better windows, more efficient heating and cooling equipment, better control of air infiltration and greater use of insulation
Healthy: Asbestos, lead and other hazardous materials have been eliminated from home building products.
Low Maintenance Costs: Less expensive to maintain than older homes. A new home can be operated for 20-30% less than a home built two decades ago
HOA helps protect value: Most new builders have a Home Owner's Association rules (also referred to as CCnRs - Conditions, Covenants and Restrictions) that help keep up the neighborhood's beauty and value.
Up-to-date style, plumbing, wiring and fixtures
Most of all, it is ALL NEW - and also comes the new smell!

All new builders need your REALTOR on your first visit.
Remember that it does not cost buyer a penny to engage professional help.
Do not go into a contract unrepresented.
Protect yourself and have a real estate professional represent you.

If you are into buying a new HOME in Phoenix metropolitan area, you may call me and I can meet you directly at the builder's office.

Also read Buyer's tips
Also read my blog on choosing the location
Also read my blog on Buy OLD Home (Coming soon)

- Kirans
Authored by Kiran & Kiran, Call Realty
http://www.homesandloansphx.com/ OR http://www.AZDesiAgent.com/
602-550-4842 / coolkirans@hotmail.com

Moving plans in the "Valley of SUN"?
We can make it EASY and FUN!

Buying Tips: Choosing the right location

2007-07-16T14:27:07Z

Authored by Kiran & Kiran, Call Realty
http://www.homesandloansphx.com/ OR http://www.AZDesiAgent.com/
602-550-4842 / coolkirans@hotmail.com

Chances are, you've heard the term "location, location, location" more than a few times. That is the core of the "Smart Real Estate Investing 101". All buyers need to comprehend the meaning and significance of this, even though they are not "investors".

To bring it in perspective - Imagine buying a "dream home" at the WRONG location.

With the "buyer's market" in session, the buyers have multiple options and it can be overwhelming to make up your mind. In this article, I am going to cover some pointers on choosing the right location.

Commute time to work, school and frequently visited places. Have a longer time vision. Most home owners move in 5-7 years, so have a vision based on how long you plan to be in the home. Some scenarios to consider - What if you decide to change the job? Will the location be convenient to commute to the area where you might have opportunities with a new employer in the valley? Check the map and study commute time during peak hours.
Schools / Education - For us, family is #1 and we cannot compromise educational opportunities for our kids. Research and talk to some parents with kids who go to school in that area. On the web, you can find schools' test scores, rankings, available tutoring services in the area. Even if you do not have kids, consider this - resale potential of a home in better school jurisdiction is better too.
Crime Statistics:

Arizona Crime Watch. Search and map crimes reported to Valley law enforcement agencies. You can search by city, ZIP code or street name and by a specific crime type or all crimes. Incidents are listed by ZIP code and block number, not exact address.
The federal government's offers the National Sex Offender Public Registry. Typing in a Zip code produces a list of offenders, with photos and locations.

Long-term development plans - Local governments post locations of services as well as neighborhood master plans. Talk to us and we are abreast of most developments around town. Example: You need to make sure that there is no freeway planned to run near or worse, through your purposed property line.
Approach and accessibility: Making sure that the approach to the home is easy and convenient. Example: It is good to have a freeway closer to the home, within less than 10 minutes, but no so close that it is abutting your home.
If it is new home, all the above items apply PLUS read the Arizona Department of Real Estate Public Report. They are publicly available. The Public Report will provide information like Electricity, telephone, gas, water and sewage disposal service details, Common community and recreation facilities, A description of adjacent land and uses, Assurances for completion of improvements, Local services and facilities, including schools, shopping facilities, public transportation, medical facilities, fire protection, ambulance service, police protection and garbage services, Property owners association details, etc.,

Lastly, I would highly recommend buyers taking time to drive around the area and list out what they like and what they don't. Sleep over the list figure out if they can live with the DON"T LIKE list. If not, just move on and look for the next option.

Conclusion: Get back to basics - choosing a home is just like choosing the right spouse. Getting the selection wrong will be very taxing on your time, wallet and heart. I am available to help you with choosing the right one....A HOME - that is!

Kiran & Kiran, Call Realty
http://www.homesandloansphx.com/ OR
http://www.AZDesiAgent.com/
602-550-4842 / coolkirans@hotmail.com

FOR-SALE SIGN on property - SOME RESTRICTIONS APPLY!

2007-07-13T17:11:23Z

This is a relief to listing agents. The new law means better exposure to listings.

Arizona Gov. Janet Napolitano signed into law a bill requiring HOA (homeowners associations) to allow a property owner to post a FOR SALE sign on the owner's individual property. This is to be effective from late July 2007. Under the bill, the basic sign could be either indoor or outdoor and be up to 18 by 24 inches in size, and a supplemental "rider" sign attached to it could be up to 6 by 24 inches. As this is coming into law, there are some HOAs working on specifications of the signs that the owner might still be obligated to follow. I receommend that the Realtor check with the HOA regulations and the new law details before posting a sign.

This is a welcome change and is definitely better than not allowing any signs.

Dear Agents - Get ready to fit the bill for custom signs to comply with HOA Sign restrictions.

Dear Sellers: Protect yourself. Justhire a knowledgeable professional, who knows the rules and is upto date with the laws and restrictions. You can count us into that roster and stay assured.

- Authored by Kiran & Kiran, Call Realty; http://www.homesandloansphx.com/ OR http ://www,azdesiagent.com/

Unlucky Landlord - Human Remains found after tenant eviction. Can it get worse?

2007-07-13T00:26:15Z

This is a case of being an unlucky landlord - happened some time ago.

I got a call on a FRI evening from a client wanting my help to sell his investment home.

I was excited to hear from him. I have done business with him before - a very smart gentleman, with an adorable personality. He is very intellectual and has been very successful in his profession. In addition to his professional accomplishments, he is very business-savvy and made a fortune in real estate market.

I knew that the home in point is an investment home with a long-term tenant. As I enquired more, I could comprehend that the tenant was not paying the rent regularly and landlord has ran out of being considerate. Landlord had to go to court and get the eviction done. Before the eviction date was due, the tenant took off with all the stuff he wanted to keep and left a whole bunch of garbage and worthless stuff back. The unruly tenant did not even bother to take his pets along.

Per the plan, I went to walk thru the home and planned to take pictures too. What I found was unimaginable. The home had a horrible stink - there were at-least 4 cats roaming and crapping around the round the home. I felt horrible and could not understand how the tenant could leave his pets back? I guessed that the cats have been without food for some time. There were caged rats too. (Landlord suspects that the tenant was breeding dogs, rats and cats for sale). The garage was brim with old stuff, boxes and trash. There were some tiles ripped off; Carpet was stained, counter-top corner were bitten and eaten by the dogs.

The listing presentation turned to "Help Plan to Clean" event. I was welcoming the challenge and shared my experience working with contractors. I worked with the owner to come up with a detailed plan of action. He agreed and rented a huge dumpster from the City, and hired cleaning crew. Owner also agreed to re-doing the flooring and conducting painting inside and out. The home was getting a major makeover costing 1000's of $. The good news is that it will be an awesome home again. My client had built enough equity, so financially, he had no issues

Just when I was happy to note the progress...

I get a call from the City of Phoenix Detective. The Police saw my listing sign and called me. They informed me that the home had human remains and they asked me a slew of questions. The cleaning crew found something suspicious and called the police. It was determined that the human skull was very old and police are going to investigate more and keep me informed. They never called me back, so I assume it is a dismissed case. We finally managed to rent the home to a long-term tenant.

But the question lingering in my mind. How unlucky can a landlord get "Emotionally". Fincially, this client made a fortune in real estate and continues to be a savvy investor still multiplying his $.

Phoenix Chip Plant (ST Micro) Closure - Managing change and Grabbing Opportunities

2007-07-12T01:22:40Z

Phoenix Chip Plant ((ST Micro) Closure - Managing change and Grabbing Opportunities

By Kiran & Kiran (Phoenix Real Estate)

When I read about ST Microelectronics closing down its operations in Phoenix, I was startled. It makes me sad to read that 900 local employees and their families will be effected. This will bring a sea of change in some families who might be forced to relocate against their will.

Change in life is inevitable. The sooner we can adopt to change the better we will be able to position ourselves and make the best out of it. My philosophy in life has been to handle every change as the best possible opportunity in disguise. I leave it to the Almighty and take it as a Pass-down from the God to manage and make the best out of the change.

I want to share my first major change I have experienced. Right after school, I joined a Multi National Semiconductor company as a Software Engineer. Just when I started getting to comprehend the corporate culture and make a mark with my manager, there was a major re-organization and it just threw me out of gear. I got used to a certain routine and settled into the pattern of finding way out of the technical challenges. Change was the last thing I wanted to deal with. Then, I lay hands on this awesome book -Who Moved My Cheese? An Amazing Way to Deal with Change in Your Work and in Your Life (Hardcover) " by Spencer Johnson. It gave me an insight on realizing the dynamics of change and making the best use of change.

OPPORTUNITES GALORE AROUND THE PHOENIX VALLEY

In the context of ST Microelectronics, even though I am sad for the employees there for the change they are forced into, I am also excited to remind them of the other (read as better) opportunities available else where in the valley. There are many employers who would love to leverage the technical skill set of the brainy techies there. To name a few - Intel Corp, Microship Inc, ON semi, Freescale, etc.,

I greatly enjoyed helping employees relocate to Intel and Microchip from other states. I have been impressed with the tech-savvy, Internet-bred informed buyers from these high tech companies. I am therefore excited excited about the potential of me working with some of these dis-positioned 900 employees.

I am sure - something better will be awaiting each and every one of the 900 employees impacted.

If you are an employee of ST Microelectronics in Phoenix reading this article, I would love to hear from you on how you are managing the change?

Let me know if you need help with any real estate services during possible relocation.

Good luck!

Are you ready to be a landlord?

2007-07-10T15:44:43Z

In this market, there are quite a few of my clients who are trapped under more than one mortgage. Some of whom are able to afford it for a short-term, but are scared about the long-term impacts. They are not yet seeing a foreclosure coming, thanks to their savings; a short sale is not an option yet either, as they are very credit score aware. With NO offers to buy coming, they have come to terms with the situation and convinced themselves to attempt to rent it.

I call these forced landlords as "FLANDLORDS"

With the decision made, the apprehensions of being a landlord are coming to the forefront. It is a known fact that there are many professional tenants out there hoping to find a new landlord to live off of.

Here are some tips to help prepare for being a first time landlord

First and foremost, leave the emotional attachment to the property - that will make things a lot more easy.
Realise that finding and screening the tenant is the first and most critical part of the puzzle.
Make sure that the lease contract is enforceable in the court of law
It is important to have a thorough understanding of the Arizona Landlord Tenant Act
Be prepared about what to do when rent is not received on time
Be aware of the MAX security deposit you can collect (1.5 times the rent)
Prepare Move-In and Move-out check lists
All agreement need to be in writing

I have been lucky to learn the tricks of the trade by going throguh the process myself multiple times. I gained experience finding tenants for my personal investment properties and those of my clients all over Arizona. I am able to share my success and increase my client base with sale doing rentals.

Bottom line: Stay informed.

If you are a FLANLORD, it is best to hire a professional who is experienced dealing with rentals.

Thanks for your attention and good luck! Comments welcome.