Do I Need a Property Manager to Rent Out My Arizona Home?
If you plan to rent out your Arizona home, do you really need a property manager?
Not every rental owner makes the same choice. Some people manage their own homes. Others hire a company to handle the daily work.
As a real estate investor with several rental properties, I firmly believe in hiring a professional property manager.
I am licensed to handle property management myself. I still pay someone else to manage my rentals.
Here is why.
A Property Manager Creates a Boundary
A rental property is an investment, but landlord and tenant issues can become personal very quickly.
What happens when the tenant is late with rent?
What if a repair is requested at an inconvenient time?
What if the tenant asks for an exception to the lease?
What if the owner disagrees with how the tenant is caring for the home?
A property manager creates a boundary between the owner and the tenant. Instead of calling the owner about every question, the tenant works with the management company.
The manager can explain the lease, collect payments, coordinate repairs and handle difficult conversations.
That separation helps keep the relationship professional.
For me, that boundary alone is worth paying for.
What Does a Property Manager Do?
Services vary by company, but property management may include:
- Advertising the home for rent
- Showing the property
- Screening applicants
- Preparing or managing the lease
- Collecting rent
- Responding to maintenance requests
- Coordinating repairs
- Completing scheduled property checks
- Handling lease violations
- Communicating with the tenant
- Preparing the home for the next renter
- Providing reports to the owner
Before hiring a company, ask exactly which services are included. You should also ask which services cost extra.
Can I Manage My Rental Myself?
Some owners manage their own rental homes successfully.
Before deciding to do that, ask yourself:
- Do I understand the lease?
- Do I know how to screen applicants fairly and consistently?
- Am I prepared to document every payment and repair?
- Can I respond when something breaks?
- Am I comfortable enforcing the lease?
- Can I separate my emotions from business decisions?
- Do I know when to contact an attorney?
- Do I have time to keep up with changing rules and requirements?
- What will happen when I am traveling or unavailable?
Managing one rental may sound simple when the home is occupied and the rent arrives on time.
The real test comes when something goes wrong.
A water heater can fail. An air conditioner can stop working in July. A tenant may miss a payment. A disagreement may come up over damage, maintenance or the security deposit.
Those problems do not always happen during business hours.
Why I Believe Property Management Should Be a Specialty
Property management and residential sales are both parts of real estate, but they are not the same job.
A property manager must focus on tenants, leases, rent, inspections, repairs and landlord-tenant issues.
A residential sales agent must focus on pricing, preparation, marketing, showings, contracts, negotiations and closing deadlines.
Each job requires different systems, skills and demands on a person’s time.
Many property managers already oversee a large number of homes. Residential sales can also require attention at all hours. I do not believe it is in our clients’ best interest for Rover Realty to divide its focus between both jobs.
Our clients hire us to help them buy and sell homes. We owe it to them to stay in that lane.
That is why Rover Realty does not provide property management, tenant placement, rent collection or lease administration. We also do not handle commercial real estate transactions.
We refer those needs to professionals who focus on those parts of the industry.
How We Chose Our Property Management Referral Partner
Our trust in our property management referral partner was built long before we began sending clients to him.
Many years ago, our family owned a landscaping company. We operated that business for about 10 years and completed work for several property management companies.
We often visited rentals while one tenant was moving out and the home was being prepared for the next renter.
Some properties were in terrible shape. At times, it looked as if the inside of the house had been emptied onto the front porch. We saw damage and signs that smaller problems had been allowed to grow.
One property manager’s homes stood out for a different reason. They seemed to have fewer problems during tenant turnover.
I wanted to know why.
As I learned more about his business, I found that he took screening seriously, completed regular property checks and maintained clear communication with both owners and tenants.
His systems appeared to catch problems sooner and set clearer expectations from the beginning.
Based on what we saw in the field, we decided to hire him for our own rental properties.
We have now used his services for more than 15 years. We have also referred many other homeowners to his company.
That referral was not based on an advertisement. It was based on years of watching how he cared for the homes he managed.
Questions to Ask Before Hiring a Property Manager
Not every management company operates the same way.
Before signing an agreement, consider asking:
- How many homes does each manager oversee?
- How are rental applicants screened?
- How often are property checks completed?
- How are maintenance requests handled?
- Who approves repairs?
- Is there a spending limit for repairs?
- Who answers emergency calls?
- How will I receive updates?
- What reports will I receive?
- How are late payments handled?
- What are the management fees?
- Is tenant placement a separate charge?
- What happens if I decide to sell the home?
- How can either party end the management agreement?
Communication matters. A low management fee may not be a bargain if calls go unanswered or property concerns are missed.
Should I Rent Out My Home or Sell It?
Sometimes the bigger question is not whether to hire a property manager. It is whether keeping the home as a rental makes sense at all.
Before deciding, consider:
- The possible monthly rent
- Your mortgage payment
- Property taxes and insurance
- Management fees
- Expected maintenance
- The age of the roof and major systems
- Possible vacancy between tenants
- Your long-term plans
- The home’s current market value
- How much money you may receive from a sale
Owning a rental can help build long-term wealth, but it is not passive income every month. Homes need repairs. Tenants move. Expenses come up.
The decision should be based on real numbers, not only on what the monthly rent might be.
A property manager can help you understand the rental side. A real estate agent can help you understand the current sales market.
What Can Rover Realty Help With?
Rover Realty does not manage rental properties.
We can help if you want to:
- Sell your current rental
- Buy a residential investment property
- Sell after a tenant moves out
- Prepare a former rental for the market
- Review the likely sale price of your home
- Compare selling with keeping the property
- Sell an inherited home that has a tenant
- Understand how the home’s condition may affect a sale
If you decide to keep the home as a rental, we can introduce you to the property management company we have personally used for more than 15 years.
You should still interview the company, review its services and decide whether it is the right fit for you.
Frequently Asked Questions
Do I have to hire a property manager to rent out my home?
Not every owner chooses to hire a manager. However, you will still need to handle tenant screening, the lease, rent collection, repairs, documentation and other landlord duties. Speak with a qualified Arizona professional about any rules that apply to your situation.
Is hiring a property manager worth the cost?
For many owners, it is. A manager can save time, create a boundary with the tenant and handle problems when they arise. The value will depend on the company’s service, communication and fees.
How much does property management cost in Arizona?
Fees vary by company and service. Some companies charge separate fees for tenant placement, lease renewals, inspections or maintenance coordination. Ask for a complete written list before signing an agreement.
Can a property manager find a tenant for me?
Many property management companies offer tenant placement and screening. Some will place the tenant without providing ongoing management. Ask what options are available.
Why does Angela use a property manager for her own rentals?
I value the boundary between owner and tenant. I also want someone who focuses on property management every day. Even though I am licensed to handle it myself, I believe my rentals are better served by a specialist.
Does Rover Realty manage rental homes?
No. Rover Realty does not provide property management, tenant placement, rent collection or lease administration. We specialize in residential real estate sales.
Can Rover Realty help me sell a rental property?
Yes. We can help you prepare, market and sell a residential rental property. The plan will depend on whether the home is vacant, occupied or in need of work.
Can Rover Realty help me decide whether to rent or sell?
We can help you understand the estimated sales value and what may be involved in preparing the property for the market. A property manager can provide information about expected rent and management costs. Looking at both sides can help you make a more informed choice.
Can Rover Realty refer me to a property manager?
Yes. We can introduce you to the company we have trusted with our own rental properties for more than 15 years.
Are You Deciding What to Do With Your Arizona Home?
If you plan to rent out your home, we recommend speaking with a property management company that specializes in tenant placement and ongoing management.
If you are deciding whether to rent or sell, Rover Realty can help you understand the current residential sales market and what your property may be worth.
We do not provide property management. We help people buy and sell residential homes throughout Mesa, Apache Junction and the East Valley—and we refer the rest to trusted specialists.
ROVER REALTY.
Angela Tauscher at Rover Realty expertly guides your Arizona buying, selling, or renting journey, maximizing results through dedicated, constant communication.
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