Transitioning from homeowner to landlord in the Phoenix market is a great way to build equity, but navigating local regulations and desert property management requires upfront preparation. Here are essential steps to start off on the right foot:
Register and Stay Compliant
Arizona law requires residential landlords to register their property with the Maricopa County Assessor. You should also familiarize yourself with the Arizona Residential Landlord and Tenant Act (ARLTA). Note that Arizona eliminated the city-level residential rental tax (Transaction Privilege Tax) on long-term leases, meaning you should not charge tenants a local sales tax on monthly rent.
Prioritize HVAC and Desert Maintenance
In Phoenix, working cooling isn’t just a comfort—it’s a legal requirement for essential health and safety. Have your central air conditioning unit serviced annually before summer heatwaves hit. For exterior upkeep, maintain desert-friendly landscaping (like drip irrigation and gravel) to keep water utility costs manageable while preserving curb appeal.
Follow Security Deposit Caps
Arizona limits security deposits to a maximum of 1.5 times the monthly rent. After a tenancy ends, you have 14 business days to return the deposit along with an itemized accounting of any repairs or unpaid rent. Detailed move-in/move-out checklists with photo documentation are crucial for avoiding disputes.
Implement Consistent Tenant Screening
Finding reliable tenants keeps cash flow steady. Standardize your screening criteria using written guidelines:
Income: Verify combined household gross income equals at least 3x monthly rent.
Credit & Background: Conduct formal background, eviction, and credit checks.
Fair Housing: Apply the exact same criteria to every applicant to follow federal and state anti-discrimination laws.
Pro Tip: Keep an emergency reserve fund covering 3 to 6 months of expenses to handle unexpected AC replacements, HOA dues, or brief vacancy periods.
Contact GoldenWest Management
At GoldenWest Management, our team specializes in offering local property management for the Phoenix AZ area.
Let us save you the time, money and hassle of managing your rental property yourself! Contact us today at (866) 545-5303 or click here to connect with us online.
