Maricopa Real Estate News

Maricopa Rental Rates an Investors Guide

The investment strategies used in Arizona have changed dramatically over the past several years.  The days of buying properties with the expectation of huge gains in a short period of time are over.  Today’s investors are back to the basics.  These include “Flip” investors as well as “Hold” investors.  The flip investors are the minority at this time.  There is some activity in Maricopa however this is still rare in this market.  These particular investors are seasoned investors using sweat equity to make a profit.  In this market many are settling for far less expectations.  A little profit is better than no profit.  These investors like most investors are targeting the foreclosure market.  The larger share of the investor market can be categorized as “Hold” investors.  In Maricopa we are seeing traditional investors picking up distress properties and turning them into rentals.  We are also seeing Buyer’s looking to retire here in Arizona taking advantage of current prices to purchase their retirement home now.  These types of buyers often will lease the home for several years until they retire.  For years the average rents simply did not even come close to the mortgage on many properties in Maricopa.  This equation is getting much closer today with the dramatic drop in prices.  Investors should be well aware of the Maricopa rental market as it has a lot nuances.  Below is a sampling of data taken from the MLS Rental Activity in Maricopa between 6/1/2008 to 9/16/2008.  Homes with pools are very much in demand at this time and carry a significant premium.  In fact several foreclosure deals with pools recently have turned into some of the best income producing properties.  The other interesting trend is the amount of interest in larger homes.  This is likely an effect of the foreclosure crisis as more families move from owning to renting.  Entry level homes are still over supplied leading to depressed rental rates.  The rental market is solidifying quickly in Maricopa.  For Landlords, the good news is that far fewer incentives have been needed this year than in past years.  On the downside rental prices remain low.  Knowing what to expect on the rental market is the key to making a successful long term investment in the Maricopa real estate market.