Arizona is one of the best states to go for anyone who wants to start getting into the real estate investment game. They are known for having an abundance of homes due to overbuilding during positive economic times, so you have many options available. If you want to know more about multi-family real estate, then have a look at this list of the small but important things to observe when buying a multi-family home in Arizona. 

Look At Your Maintenance Costs

There are so many things that come along with multi-family real estate that can end up costing you money in the long run. When you are looking for a property to invest in, make sure you ask about what the current operating fees are like. Different buildings are set up in different ways, so you need to know what you will be paying for. 

Some buildings are wired so that each unit has a separate energy bill, but others aren’t, which means the energy costs are lumped into one large bill. If you choose to purchase an all-inclusive building, you need to ensure the rental income covers all of the expenses for the unit at the very least. 

Pay Attention to What You Can and Cannot Do

Arizona has no rent controls, which means that the market guides the rent. This is great for anyone who wants to get extra income from a multi-family property as the average rent has risen in the last few years. Arizona has a great reputation for both job growth and economic growth, so rent will likely continue to increase in the coming years. 

Arizona also has a straightforward process for evictions that makes it easy and simple for everyone involved. If you are stuck in a sticky situation where a renter refuses to pay, then you inform them a few days after their missed payment, and they have 30 days to come to an agreement, or the property is automatically turned back over to you. This gives both sides a fair chance to work out an agreement, and it’s much better than losing out on months worth of rent. 

Know About The Cities

Arizona is home to a number of different cities, each with its own unique character. Each city has different cost of living and house price. 

Phoenix is the state capital and the largest city in Arizona, with a population of over 1.5 million people. The multifamily real estate market is becoming hot here in recent days. You have to spend over 500K to get a multifamily home in Phoenix.

Tucson is another major city in Arizona, located south of Phoenix. Tucson has a population of around 520,000 people and is known for its milder climate and Hispanic heritage.

Other notable cities in Arizona include Scottsdale, Glendale, and Mesa. Each of these cities has its own distinct personality, making Arizona a truly diverse and interesting state.

Make Sure You Know What’s Required For Property Management

Arizona has excellent real estate rates, but you might choose to live elsewhere and have your property managed by a local property management company. If you are going this route, you need to vet your property management company before you choose to work with them to ensure they have the kind of experience you are looking for.

One important thing is checking to see if your property management company has a real estate broker license. A broker license is one thing that is required by state law to make sure that the property management company is using trusted employees that won’t leave you high and dry. Arizona law also has specific requirements for your property management contract, so check the updated conditions before signing with a company.

Consider What You Want to Do With The Property.

Arizona has a few laws that have come into place in the last few years regarding short-term rentals, so if you are considering purchasing some homes to use as vacation spots, you should double-check the current regulations. To check for yourself, look up the Arizona Legislature House Bill 2672, which is the current bill that has been amended with the updated regulations on short-term rentals. 

If you are looking at long-term rentals or multi-family rentals, then you need to look at the current Landlord-Tenant laws for Arizona. It will let you know the basics and answer most of your questions about renting your property. If you still have unanswered questions, talk to a local real estate lawyer, and they will be able to help you get your answers. 

Learn As Much As You Can About The Local Rental Laws

We just talked about the Landlord-Tenant laws and how they are essential to understand when it comes to rentals. These guidelines will let you know what you can and can’t do regarding evictions, raising rent, security deposits, and every other aspect of renting to others. 

It also tells you what needs to be on your rental contract in order to make sure it is easy to understand and legally binding. If you are changing anything in the lease agreement, you need to notify your renter 30 days beforehand. These are all important things to know for anyone who wants to rent property in Arizona, so read them thoroughly before you start looking at properties to buy. 

Buying a multi-family home in Arizona is one of the best ideas for anyone who is looking to start in multi-family investment properties. There are so many available, and the laws in the state lean heavily on the landlord’s side. As long as you keep up with the local laws and regulations, you will have no problem getting a great income from your multi-family homes.