Investors are selling their rental properties to cash out their equity in a red-hot seller’s market. Canadian landlords are also benefiting from the local market by getting about an extra 25 percent return, thanks to the currency exchange rate. These factors have helped decrease supply in Maricopa in recent years.
Through July 13, only 12 homes were available to rent on the Multi Listing Service, not including short-term/vacation rentals or homes in Hidden Valley. Today, the least expensive home for rent is $1,695 per month. Only one pool home was available, listed for $2,500 monthly.
In this highly competitive market, landlords often get more than one application and can be more restrictive on their terms, like not allowing pets. Tenants with less-than-perfect credit can increase their chances of getting approved by including with their application a referral from current and previous landlords. They can also offer to pay a higher security deposit — which, by state law, cannot exceed 1.5 times the monthly rent amount.
Buyers should be wary of advertised rentals on Craigslist or other classified advertising websites that seem too good to be true. In most cases, there is no cost for using a Realtor, and they can help make sure the home is not in foreclosure and that a legitimate lease is signed.
As rent prices go up, renters may want to consider buying, because payments will be about the same.
BETTER TO BUY?
Here is an estimated monthly payment breakdown for a $300,000 home at
3.5% interest with FHA financing and the minimum down payment of $10,500:
$1,306 – principal and interest
$200 – mortgage insurance
$125 – property taxes
$75 – HOA fee (can vary)
$60 – homeowners insurance
$1,766 – monthly total to own the home
Several mortgage companies in Maricopa offer buyers free, no-obligation credit evaluations.
Dayv Morgan is a Maricopa Realtor and owner of HomeSmart Premier. He is a 15-year resident of the city.