Articles by Katie Kosier

In this third installment, we’ll be looking at rental fees & deposits.  Renting a home is very similar to selling in that there is a market that influences what you can charge for a home.  As in selling, the market for your rental will be largely impacted by location, & currently available rentals. 

The better the location of your rental the more you can charge.  For instance, a 3 bedroom, 2 bath home near Metro Center is not going to secure the same rent that an equally equipped 3 bedroom, 2 bath home near Arrowhead Town Centre would.  And that same 3 bedroom, 2 bath home near Arrowhead, is not going to secure the same rent that an equally equipped home near Desert Ridge could expect.  So, location has a lot to do with what you will be able to reasonably charge. 

The other factor in determining the monthly rent is the number of other rentals currently available in the same area.  Again, this parallels home sales in regards to supply and demand.  If there are 5 apartment buildings with availability, and 25 rental homes available within a 3 mile radius all with similar features… 3 bedrooms/2 baths, then you might have to wait a little longer to find a tenant than if there were only 2 apartment buildings (near capacity) and only 10 rental homes. 

Of course, there are people who will not want the hassles of renting a home even though it means they might have a 2 car garage, and private backyard, where others might not even consider an apartment because of the common walls & smaller living area.  You will need to research the area where your property is located and determine a fair rent.  Be sure to qualify your prospective tenants before they sign the contract, and be sure you are comfortable with them.  You will be dealing with them again when it’s time for them to move out… whether it’s their choice or not. 

Once you have your monthly rental fee determined, then you’ll need to decide what deposits you will charge.  According to Arizona law, the amount of the deposits cannot be more than 1.5 times the monthly rent.  So, if your monthly rent is $1,000.00, then you may not charge more than $1,500 in deposits no matter how many deposits you create.  The total of deposits must be no more than 1.5 times the monthly rent.  With that being said, you can charge a deposit for almost anything you want.  The most common are:  security deposit, cleaning deposit, & pet deposit, but you might request a deposit for yard maintenance, etc.  The amount of the deposits can vary, but in the end, the grand total of all the deposits can be no more than 1.5 times the monthly rent of the unit (whether it’s a house or an apartment). 

Finally, when determining what to charge a deposit for, it’s wise to remember that whatever you ask the tenant to maintain on his/her own, might have a much larger cost in the end if it’s not kept up than if you had maintained the responsibility of it yourself.  For example, the rental you have includes a pool.  If you have the tenant maintain the pool, you might get off cheaper (if they actually maintain the pool).  However, if the tenant becomes irresponsible or unable to maintain the cost of the pool upkeep, you may have a much larger expense on your hands when the tenants move out or realize that they were supposed to continue treating the pool even during the off-season, than what it would have cost for you to hire a pool service.  

In the next installment, we’ll look at the unfortunate case of a non-paying tenant.  If you have experience with this and would like to share, please do!

My fellow Surprise residents, we are finally getting a movie theater!  Granted, I am a fairly new Surprise resident having moved to the city only 2 years ago.  But having lived in the Glendale/Peoria area for most of my life, I was used to having multiple theaters within a 10-minute drive.  So, when we moved to Surprise, the first thing that we noticed was the long drive to watch a movie.  That really cuts into the entertainment budget when you have to account for an extra hour (round-trip) for babysitting!  But alas, no longer will we need to fight the traffic on Bell Road east of Grand Ave. to get to the Arrowhead-area theaters. 

UltraStar Cinema Theaters (out of Southern California) will be a part of a larger project known as Surprise Pointe which will be located on the southeast corner of Litchfield & Waddell.  Phase 1 - The Shoppes at Surprise Pointe breaks ground in May and will encompass 300 acres.  Not only will it include the 14 screen 2800 seat theater, but also will have other forms of entertainment such as a bowling alley and numerous restaurants and small shops.  Phase 1 should be ready by May 2008. 

You may have noticed the recent signage near Litchfield Rd. and Bell Rd, however this is NOT the Surprise Pointe UltraStar Cinema.  Dickinson theaters out of Kansas City was supposed to have built that theater.  Surprise councilman Joe Johnson, whose district includes the land where the Dickinson theater should have been completed this past November 2006,  believes this signage may have been erected in reaction to the news of UltraStar’s groundbreaking (stay tuned as I update this blog site with any news I get on the Dickinson theater project). 

I browsed the Ultrastar Cinema Theater website and found some unique offers.  I don’t know if any of these offers will be available at the Surprise location, but this is the standard at their Southern California locations.

• Parent Movie Morning - typically a Tuesday morning 10/11 am showing. Specially tailored for moms & dads with young children (kids under 4 are FREE, but everyone 4+ $5.50).  This showing features: dimmed lights, reduced volume, stroller parking, & diaper changing facilities in the auditorium.  These are still first-run movies and are not limited to children’s movies… in fact, the featured movies at the S. California locations as of today are Invisible, Fracture, Perfect Stranger, and Miss Potter. 
• Early-Bird Specials - basically it’s the first matinee of every movie, everyday at a discount (discounted price varies per theater anywhere from $4.50 to $5.50, although this special is not offered at all locations.)
• Discount Tuesdays - most movies (not including special engagements) at a discount all day/night on Tuesdays (long-time west valley residents will remember Valley West Mall’s 50-cent Tuesday flicks!).  Prices are similar to the early-bird special, but also not offered at all locations. 

One of the UltraStar Cinemas also offers a Reward Card - offered only at 1 of their theaters at this time… but works similarly to the AMC Moviewatcher card (earn points by watching movies and earn free popcorn, drinks, and movie admission. 

Check back often as I follow up this article anytime new information is released!

To read an article about the UltraStar Cinema click here.

To read an article about the Dickinson Theater project click here.

As a self-managing landlord you have the responsibility of locating your own tenants, and the more credible they are, the better.  So, how do you go about locating such tenants?   

1. You might want to start with referrals from your closest friends/relatives.  Sometimes they generate the best leads.  However, you also have to consider your ability to manage your property when you personally know the tenants.  If you have any reluctancy, you may find yourself more comfortable limiting your tenants to other sources.
2. Advertise through the internet, newspaper, and/or via a sign at the property.
3. Possibly have an Open House to draw prospective tenants in.

Once you’ve located possible tenants, you need to qualify them or determine their credibility.  Nothing’s worse than placing tenants only to find out a month or 2 down the line that they were never capable of making the payment in the first place.  So now that you have some possible tenants, you need to know how to qualify their ability to pay monthly rent.

1. Get the full name, social security number, and birthdate of the financially responsible tenants. 
2. Previous residential address and payment history 
3. Employment history including phone numbers for supervisors
4. Enlist the services of a credit screening agency such as TransUnion, and make sure you have the prospect sign a disclosure allowing you to check their credit.
5. Request credit references from the tenant’s electricity, water, or phone service providers 
6. Request banking references
7. Request personal references

Helpful Resources:

• As a landlord or potential landlord, you will want to be familiar with the Arizona Residential Landlord and Tenant Act.
• Click here for a Free Arizona Residential Lease Agreement or pay the fee and get one fully formatted in a MSWord file.

Many people have found these books to be handy reference tools for managing their own properties:

• Arizona Landlord’s Deskbook
• Landlording: A Handy Manual for Scrupulous Landlords and LandLadies Who Do It Themselves

Next time, I’ll take a look at rents & deposits.

As the city of Surprise continues to grow, Kohl’s is expanding its presence by building another store to be located on the Southeast corner of Cactus & Reems.  This store is not part of the Prasada project, but will be located kitty-corner from Prasada’s northeast boundary.  Kohl’s will anchor the 140,000 sq. ft. shopping center which will also be home to other small retail shops as well as restaurants, a bank, and a convenience store, none of which have been named at this time. 

Come back & visit often to keep up-to-date on the building occurring in and around our community!

Click here to read the article.

Here’s another great destination to experience with the kids!  The Out of Africa Wildlife Park is a place you will definitely want to put on your list of must-sees.  Even though you will travel north to this park, it can still feel very warm depending on the season of your visit.  Located 90 minutes north of Phoenix in Camp Verde, just south of Sedona, temperatures are approximately 5 degrees shy of Phoenix on the same day.  Although there is very little shade at this zoo, you have the opportunity to hike the “back-road” into the desert landscape, board a jeep for a 45 minute safari into the “Serengeti,” or take an hour-long excursion by trolley/tram for an educational look at the “Wildlife Preserve.”  For those of you curious about the feeding activity of such African predators as lions and tigers (oh my), you won’t want to miss the Predator Feed occurring 3 days per week during which 800 pounds of raw food is thrown to the eagerly awaiting carnivores!

You’ll want to allow at least 2 hours at this park to take in the Safari and the trolley/tram tour, but even though it seems like a short amount of time for the drive, it’s a place that allows you to get closer to these wild animals than any other in the state.  And, not only will you be able to get up close but you’ll have the opportunity to learn about the animals from very knowledgeable guides.

To get there: head north on I17 to the Camp Verde exit.  Turn west and go 3 miles to Verde Valley Justice Center Road.  Turn left & follow the signs!

When you are ready to leave, you’ll want to head into Sedona and take in the beautiful scenery.  Maybe you’ll even have time to check out Chapel of the Holy Cross which is another picturesque sight in Arizona you’ll want to see at least once.  Just north of Sedona is Slide Rock State Park.  This will really cool you off after a hot tour of the zoo.  Pair the Out of Africa trip for the morning with Slide Rock swimming/wading in the afternoon for a cool end to the day or if you prefer shop at the outlet mall or at Tlaquepaque (pronounced Tuh-LOK-uh-POK-ee)! 

You won’t be disappointed!�

According to a national relocation website, Surprise, AZ has been named one of the top 100 cities in America to move to.  Some of the determining factors included: neighborhoods, beauty of the area, schools, economic development, crime rates, employment, and home construction.  This year’s nominations included more than 2000 cities & towns, and although Surprise has been nominated every year since 1998, this is the first year it was chosen.  Surprise is one of only 4 other Arizona cities to make the list:  Kingman, Lake Havasu City, and Sierra Vista.  Surprise was one of the top 10 choices, and those in the top 10 were ranked in alphabetical order. 

So, who nominates these communities?  You… or anyone who takes the questionnaire on the website.  Questionnaires from individuals nominating Surprise included comments such as: good property values, good place to raise young children, and an up-and-coming area outside metro Phoenix. 

As a Surprise resident, I too recommend Surprise as a great place to live!  Even though our city lacks some of the things that you would expect in a flourishing community - movie theaters, warehouse stores, a mall - all of these things are at least in the planning stage at this point.  Watch for my posts for more information on these and other construction projects in and around Surprise!  Even though most valley residents have lost some equity in our homes recently, the infrastructure going on in Surprise right now will be a huge asset when the real estate market takes a turn for the better!

If you’d like to read the full article click here

In a post I wrote a few months back, I commented on the lack of hotels/entertainment the West Valley has in order to support the upcoming Superbowl XLII & Fiesta Bowl attendees.  Now it’s nearly May, and it looks like Glendale finally might have some places for the visitors to lay their head at night.  According to a recent article, Steve Ellman  announced on Monday, April 23rd, that a 9 acre parcel in Westgate has been sold to the developers of the Hampton Inn and Suites.  Although the 9 acre parcel will eventually be home to a total of 2 or 3 hotels, only 1 (a 149 room hotel) will be ready in time for the big game.  Also in planning and construction stages are 3 other hotels near Westgate including a John Q. Hammond Renaissance Hotel (expected to open early fall 2007), a Springhill Suites as well as a Residence Inn (both expected to open sometime between July & September 2007) in the Zanjero developement near Cabelas.  Obviously many visitors will have to find other hotels in the area in which to stay, but hopefully the four mentioned in this post will be up and running smoothly prior to the arrival of our guests.  Who knows… maybe the Cardinals will surprise us this year, and make it to the big game!  Maybe that would help ease the burden on the hotels. 

If you are planning a trip to/around Glendale, AZ for this game or any other reason, here are a few others (already completed) to check out:

• Wigwam Resort
• Springhill Suites Glendale/Peoria
• Holiday Inn Express Litchfield Park/Goodyear
• Homewood Suites by Hilton Phoenix/Avondale
• Hampton Inn & Suites Goodyear

Enjoy your visit and be sure to check out my series of posts on Arizona Sights & Wonders for a list of places to see while you’re here!

As a near-native - I’ve lived here since I was 5 years old - I’ve taken for granted many of the sights and wonders that Arizona has to offer.  I can’t count the number of times I’ve been to the Grand Canyon, and have also visited many, many other fantastic places in the state.  A very good friend of mine whose family moved here from Seattle has lived here for about 6 years, and has not had the time or knowledge to venture out to experience Arizona.  So, this series of blogs will be for her… and the many other non-native Phoenicians out there who would like a “place to start” from the point of view of someone who has been there.

Some of these trips are ones that a mom could tackle on a day during summer vacation.  Others are ones that will require more planning… maybe even an overnight stay.  So, as I write these posts, I’ll be sure to label the trip a day-trip or a weekend trip.  Of course, some of the weekend trips you might want to take more time to enjoy.

Last week, I visited Canyon Lake with my church as part of a get-together.  It has been many years since I was first there!  Even though the weather was chilly, many children swam and splashed around at the lake’s edge while the adults played horseshoes, volleyball, and some tried fishing or hiking.  I was amazed at the beauty of the lake.  It’s called Canyon Lake for good reason: a canyon literally shoots up as a magnificent back-drop to the main part of the lake that is visible to those who choose to stay ashore.  But, for those who decide to venture further back, the canyon walls surround you, and the view is truly one to be experienced first-hand.

There are many things to do at Canyon Lake, and it might be wise to plan your trip according to the activities you plan to experience.  For example, if you want to fish, you better research when and where the lake is stocked so that you don’t go home empty-handed.  If you plan to rent a boat (several types are available to choose from) you might want to reserve one ahead of time so you guarantee that one will be there for you.  There is also the famous Dolly Steamboat which hosts hundreds… maybe thousands… of passengers each month on dinner cruises (which often sell out) and the like.  You will want to research everything that the lake area has to offer before you go, because it’s definitely a day-trip for those who live in the west or northwest valley.  By a day-trip, I mean it will take approximately 1 1/2 hours to get there (depending on traffic and freeway closures) :), and depending on the activities you want to experience, you’ll want enough time to take advantage of those!

To get there: head East on I10 and exit to the 60.  Take the 60 to the Idaho Rd. exit.  Turn north on Idaho Rd. and follow it to Highway 88 (commonly referred to as the Apache Trail).  Head northwest on the Apache Trail until you see Canyon Lake.  Drive very carefully as the road winds through the mountains with some perilous drops.  You will eventually come to a one-lane bridge… I imagine this is a bottle-neck when very many people plan a day at the lake… and you’re there!  You’ll need to get a parking pass which costs approximately $6.  Enjoy your day!

Click here to research activities at Canyon Lake.

Get ready folks!  Those of you who travel the 303 will have some bumpy roads & detours to manipulate in the near future.  The Maricopa County Department of Transportation will be installing traffic lights at the intersection of Waddell & Loop 303.  For those of us who travel this strip very often, this intersection can be deadly, especially for anyone trying to cross the 303.  Unfortunately, I see this as only a band-aid solution.  Something is definitely needed to increase the safety of all drivers, however, I wish short-term solutions would be coupled with something more long-term. 

The current improvement calls not only for traffic lights, but left turn lanes as well in all 4 directions.  These improvements will begin shortly and will call for the following closures:

• Waddell Rd. will be closed from Cotton Lane to Sarival through May 4th… Loop 303 will remain open during this time
• Loop 303 will be closed between Cactus Rd. & Greenway from May 7th - May 25th, but Waddell will be open

For more information on these closures, you can call the MCDOT hotline at 480-350-9288

Click here to see the article

As more and more properties are listed for sale, homeowners are finding it increasingly difficult to sell.  When a home doesn’t seem to be selling, sometimes the owner contemplates renting out the home instead.  Perhaps you have toyed with the idea of renting out your place in case your home doesn’t sell just to make sure you don’t lose the new home you’re having built.  If you have thought about renting out your home, there are many things to consider.  The most important question to answer first is:  Do I want to manage the property myself, or have a property management company do it? 

If you decide to manage your property yourself, you’ll want to have answers regarding the following:  a) how are you going to locate credible tenants, b) what term of lease agreement are you willing to accept (3 month, 6 month, 12 months?), c) will you allow pets, and if so, will there be a pet deposit? (have you considered any other deposits… security, cleaning, etc.), d) what utilities, if any, are going to be included in the rent, e) who will be responsible for the yard (is an HOA involved that will fine you for allowing it to get overgrown), f) are you willing to purchase appliances (washer/dryer/refrigerator) for the tenant if necessary, g) what is the going-rate for rentals in your area (a recent report stated the average apartment now rents for $800/month), h) how will you deal with non-payment or late payments? i) do you know the necessary steps to serve an eviction notice, and j) have you registered your property as a rental property with the county assessor?

Recently, I was asked for information on serving an eviction notice, and it dawned on me that due to the tremendous amount of homes for sale right now, many sellers are considering renting their property instead.  So, over the next couple of weeks, I will be posting several additional articles regarding different aspects of self-managing your property.  As you read up on these articles, you should be able to determine whether or not self-management is for you. 

If you have any personal experience with self-management of rental properties, feel free to comment with any other information/tips you believe should be considered in this series of posts.

It’s true!  It looks like Skybus is trying to break their way into the airline business with a ridiculous fare of $10 one-way.  I just saw it on the news, and had to check it out myself.  Now, Skybus does not fly to many locations… only 9 total:  LA - Burbank, CA; San Francisco - Oakland, CA; Seattle/Vancouver - Bellingham, WA; Boston area - Portsmouth, NH; Richmond, VA; Greensboro, NC; Ft. Lauderdale, FL; Kansas City, MO; and Columbus, OH which is their headquarters.  But they expect to add additional locations soon.  Every one of their flights has a minimum of 10 seats that cost only $10.  So, if you live or have relatives in/around Columbus, OH they might be able to travel to Burbank, CA for less than a tank of gas.  There is a little hitch, right now, all of the airports they send their planes to, only return to Columbus, OH… they do not fly between such as Burbank to Ft. Lauderdale.  If you happen to need to travel to Columbus, OH, you might want to try out Skybus.com to see if you can get one of the $10 seats.  I checked each of the airports they fly to, and found over 600 flights with a $10 fare.  Once the limited number of seats are gone on your desired flight, you will have to pay a higher price, or look for a different flight.  The highest fare I found was $125, and the typical fare were $30-$75.   

The Skybus philosophy is to get people safely and efficiently from where they are to where they want to go.  In order to make this happen, Skybus travels to airports that do not have congestion problems which causes flights to be delayed.  Because of this, Phoenix is not one of the airports they serve, but if you can catch a ride to the LA Burbank airport, you might be able to find a cheap fare.  You must be able to access the internet, because you will choose your flight, pay your fare, and get your boarding pass online.  However, you are also able to get your boarding pass at a special kiosk at the airport.  With Skybus you pay only for what you want… sandwich and a coke, early boarding, blanket or pillow (which you keep), luggage (the first 2 pieces are $5, after that, $50 each piece).  The fleet is brand new with leather seating for everyone (no first or business class available).  Planes seat approximately 156 and have wider aisles to help passengers board & deplane faster!

Click here to read the Skybus flight rules.

After reports were disclosed that the state board of appraisal was ordering Zillow to cease publishing their online home values, state representative Michele Reagan wrote an amendment, specifically senate bill 1291, which states that Zillow’s service is an opinion of value, not an appraisal. Because it is considered an opinion, state lawmakers expect to see ZERO cases brought before judges regarding the stated value of a home by Zillow.  (Click here to read this article).

With the immense availability of information on the internet, I appreciate being able to look up information on my own. In the case of home values, however, I would caution you to use sites such as Zillow as a starting place. Don’t look up the value of your home and expect it to be the “going price.” My home’s Zestimate exceeds $413,000 even though area sales show the value at $310,000. Zillow does not seem able to take into account recent sales in the area (aka. market value).
What concerns me regarding Zillow, are the various industries which use the value of homes to determine the rates you receive… you might ask your insurance agent exactly how they verify or determine the value of your home when you request home-owners insurance. A recent inquiry of insurance on my own home made me aware that Zillow’s opinions, might be regarded by others as a true representation of value. In another case, a homeowner shared with me that when they were approved for a cash-out refinance, the lender required only a “drive-by” appraisal. Who’s to say that their drive-by was not assisted by Zillow? This grossly, over-valued estimate by the lender became a horror story when the homeowners were forced to move and were unable to sell the home to cover the newly mortgaged amount.
So, home-owners beware. You are the one who will be paying the premium for whatever value is placed on your home. Make sure that the value is an accurate representation. You never want to owe more than your home is worth, and you don’t want to pay for more insurance than you need