Rental Housing Journal Arizon
March 2018 - Vol. 10 Issue 3
2. 6 Types of Fencing for Your Rental Property 3. How to Build Wealth Through Apartment Investing 4. Multifamily Managers and Marijuana: Caught in a Pot Crossfire 5. Millennials' Expectations Driving Maintenance Changes
7. Job Gains Foster Heightened Economic Growth; Increased Completions Ease Rent Gains 8. Dear Maintenance Men 9. Chaise Lounges and Heaters are Leading the Way
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Spring Rental Property Maintenance Outside To-Do’s
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s weather gets milder, it becomes easier to begin projects that would have been difficult or even impossible to complete during the wet and cold of winter plus summer heat is right around the corner. 7 Spring Rental Property Maintenance Outside To-Do’s 1. Water Drainage – Those April showers might come in handy after all. They are the best way to test out the efficiency of a property’s drainage system. After rainfall, it is necessary to check whether any water remains undrained around the property. Noticing whether puddles fail to disappear after 24 hours is one way of gauging this. If water fails to properly drain, moisture can easily increase around the property’s foundations and walls, often causing heightened moisture levels within the property and water damage to walls and floors, which all facilitate mold growth. Our experts encourage turning to a professional who can evaluate the efficiency of a property’s drainage system and suggest any maintenance work to ensure that water is directed away from the property. 2. Roof – While it’s best to hire a professional to climb on the roof and check for cracks that might cause interior leaks, the Do-It-Yourself and Climbing-Free option entails spraying water with a garden hose (if possible) onto the roof and ...continued on page 3
Phoenix’s Strong Tailwind for Multifamily Growth
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ultifamily growth is strong as Phoenix is reinventing itself as a tech hub driven by a diverse economy, welcoming young professionals and investors looking for higher yields in secondary markets, according to a new report from Yardi Matrix. Phoenix rents rose 3.2 percent in 2017, outpacing the 2.5 percent national growth rate. The average rate across the
metro reached $1,020, below the $1,359 national average. These and other highlights are summarized in Yardi Matrix’s new report, “Phoenix’s Strong Tailwind,” a microeconomic analysis of the city’s multifamily market. The total transaction volume in 2017 was nearly $4.5 billion, almost on par with the 2016 cycle peak. Education and health services led
employment gains with 10,100 jobs added in the 12 months ending in October 2017. The technology sector is quickly catching up. Statistics from the Arizona Office of Economic Opportunity Employment show that the professional/scientific/ technical services subcategory jumped 4.8 percent for the same period. Phoenix ranked third among the ...continued on page 2
New Tax Law Holds Favorable Prospects for Commercial Real Estate Potential to Boost Space Demand and Capital Flows by Marcus & Millichap
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ew tax law retains key pro-
visions for real estate investors. The highly anticipated tax reform recently signed into law by President Trump retained numerous key commercial real estate provisions. The1031 tax-deferred exchange, the mortgage interest deduction for investment real estate and asset depreciation had few material changes. This consistency in tax law will enable investors to move forward with most of their existing investment strategies. That said, there are many provisions in the new tax law that will have a more nuanced effect on the sector, and these more subtle adjustments could create significant new opportunities for real estate investors. Finalization of tax rules to reduce uncertainty. Over the last
year, elevated uncertainty generated by the range of potential government policy changes, including tax laws, caused many investors to move to the sidelines. A more cautious outlook pervaded the industry as investors awaited clarity
on taxes, fiscal policy and a change in Federal Reserve leadership. This perspective could begin to ease as the implications of the new tax law firm up and investors better understand how the new rules will affect their investments. The new tax plan offers generous tax cuts to corporations and pass-through entities such as Limited Liability Companies(LLCs), and investors may see the new tax rules as an opportunity
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to reconfigure their portfolios. The new tax structure will apply to 2018 income for tax filings in 2019.
Reduced taxes on pass-through entities may boost capital flows.
Perhaps more important than the modest changes to the core commercial real estate tax rules that investors have been most focused on is the reduction ...continued on page 10
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