Leslie Prest, Owner, Assoc. Broker, ePro Prest Realty, Payson, AZ

Since we manage many rentals, we find that this comes up all the time. What constitutes "proper notice"? People have gotten the idea of 30 DAYS. They figure that if they give 30 days, they are OK. But in Arizona, that is NOT the law.

If you rent, if you manage rentals, if you are dealing with any clients who rent, please educate them- you may save them money, trouble, or a court appearance.

The law in our state says give notice at least 30 days from the periodic rent date. What's the periodic rent date? The day your rent is due! So, if your rent is due on the 1st of each month, that means you give notice by the 1st to be out at the end of that month. That notice needs to be in writing. And unless your contract states other wise, you must pay that last month.

But you've got a security deposit? That is NOT the same as a last month's rent. Very few of our Owners are willing to let Tenants use the deposit as a last month's rent (and we recommend against it). Why? Because if the deposit is used up and the property is not left clean and undamaged there is not enough money left to pay for cleaning/repairs.

We explain proper notice to our Tenants when we sign a lease with them. And they smile and nod. But sometimes they just don't hear us. People have a tendency to "hear what they want to hear".
We also give our Tenants a copy of the AZ Landlord and Tenant Act. It is available on the internet, and we provide a link from our website on the available rentals page.

If you rent in some other state we highly recommend that you check out the laws in that state.

I LOVE Holiday events!
This one is a handmade crafts show. The Community Presbyterian Church sponsors it every year.
This year it will be held at the Julia Randall Elementary School Gym, 8am to 2pm, Saturday the 14th.
There are all kinds of handmade items, everything from the church ladies with tea towels and aprons to beautiful dried arrangements, jams and jellies, soaps, jewelry, and who knows what.
Come see what's new, come to the bake sale, lunch is usually available, Santa will come.
Get yourself in the Holiday Spirit!

Here is a link to the craft show web site- pretty graphics.

And look for me, I'll be there selling a few candles. I still make some when I have a little time to spare from Real Estate!

We've been in real estate in Payson for near 20 years, and we get a lot of people who call us for information. We don't mind, we feel part of our job is educating people.
We DO get a lot of repeat questions, which we answer over and over again.

I got a rare one the other day, however. A woman called up and asked how much sales tax she should write into a rental agreement with a tenant. It took me by surprise, because VERY few people even know there IS sales tax on rentals in Payson. Since there are many rentals in the area, I'm surprised that the town of Payson doesn't make it more widely known.
Sales tax on rentals is set by the cities or towns. So if you own rentals elsewhere in AZ, contact your town and ask, or contact a good property management company.

For years, Payson said "no sales tax on residential rentals". Then one day it occurred to someone that this could bring in revenue. So the town decided to charge sales tax IF an Owner has 3 or more residential rentals.To determine the tax, one takes the amount of rent (say, $850) and multiplies by .0212 ($850 X .0212 = $18.02) I know this one by heart, as one of our Owners has a number of $850 rentals.
We pass these charges on to the Tenant, so in the example above, the Tenant pays $868.02.

We have a few rentals in Star Valley, which is now its own incorporated town. Star Valley doesn't care HOW many rentals an Owner has. Even 1 residential rental is taxed 2%.

Now what do you do with the money? Prest Realty is set up with the state of Arizona to pay the sales taxes for any of our Owners who needs to do so. So we collect it, and once a month we fill out the appropriate form and send the correct amount to the state (who pass the appropriate amount back the the correct town).

A private Owner would need to contact the state of Arizona, Department of Revenue for instructions.
Or, of course, they could just hire Prest Realty!

Payson (AZ) was predicted to get its first snow last night or today. I LOVE SNOW, AND I CAN'T WAIT!

It rained a little last night at our house, but when we woke up- clear blue sky with not a cloud in sight!

Now it's clouding up again, and the weather report still says chance of snow.

We'll see...

I took this picture last Spring, in our backyard.

This is my update to this article I posted originally about a year and a half ago. The sales market has not improved, in Payson.

In today's real estate market many Owners are finding that they either can't sell, or might have to sell at a very deep discount to find a buyer. Many are, therefore, turning to renting as a possible alternative to a bargain basement sale. (I'm talking here about non-occupied properties. We have many in our area- either they are 2nd homes, investment property that isn't selling, or the Owners have HAD to move for some reason).
These are some of the issues we raise with Owners who come to discuss it with us:

-Can I AFFORD to rent my house for enough time for the market to recover?
-At least in our area (Payson, AZ) we don't see the market turning around for some time
-Possible rent may OR MAY NOT be enough to cover your mortgage payment- rents are coming down somewhat, and there is more competition than ever, especially higher end
-a reputable Property Management company is not going to give any refundable security deposit
from the Tenant to you, so don't count on that money. It will probably go into the company's trust
account until the Tenant moves out.
-Do your homework and find out how long it takes comparable properties to rent, and for how much $.
-Can you make the payment if the house doesn't rent for a few months, or if the Tenant leaves and the property takes awhile to re-rent? This is a BIGGIE. You just can't count on the property renting immediately.
-Can you make any necessary repairs to make the place safe for renters?
-Can you do any fix-ups needed to make it "rentable"?
-Can you do necessary maintenance while the property is rented? What if the water heater goes out? The furnace or AC? What if there is a plumbing or roof leak? Can you repair/replace necessary items? Cosmetic items don't have to be done, but a Landlord must provide the basics.

-How "rentable" is my house?
-How much competition is there in your area for quailified Tenants? (Believe me, NO Tenant at all is much better than the unqualified kind)
-How easy it it to rent properties in my neighborhood? Ask a good Property Manager. (In Payson, that means us).
-Is the rent amount I want/need reasonable? Again- ask a professional.
-Am I willing to allow pets? (people LOVE their pets, no pets makes a place less rentable)
-If you want to leave your house on the sales market Tenants will NOT want to rent it. You
will probably have to give them lower rent or other concessions to get it rented. And the Tenant
CAN and may "blow the sale" with any prospective Buyer. Better to take it OFF the sales market.

-How ready am I to give my house up to Tenants?
-How emotionally attached are you? I guarantee you will have at least normal wear and tear.
-That "accent" wall you love may make the house harder to rent. We don't want you to leave your treasured drapes (OR the furniture you just don't want anymore)
-Are you willing to allow children? Fair Housing violations are VERY expensive.
-Once the property is leased you CANNOT come on the property except with proper notice.
-You MUST comply with any and all national, state, and local laws regarding rentals.

This is not intended to be a comprehensive list of things to consider. It is intended to get you thinking. A good (read "experienced") Property Management Company can give you information particular to your area. If you decide to rent out your house we STRONGLY recommend letting a professional handle it. Mistakes (letting in a Tenant who can't pay, tears up the house, makes a meth lab, fills it with illegals, etc.) can be very expensive.
Renting CAN be a viable option- don't let this scare you off. Just be aware of the possibilities and
TALK TO A PROFESSIONAL!

In the Payson, AZ area, call Prest Realty. We are the rental experts for Payson. Visit our web site for more information.

AR people- what would you add?