If you intend to move into Arizona, you will have the option of renting a home or buying a new home in Arizona. While buying a home is the dream of the majority of Americans, there are those who settle for home rentals in Arizona. Different rental properties in Arizona will go at different pricing. If you have settled on renting a home, you may want to know how many rental properties in Arizona go for. In this post, we feature important factors that determine the rental prices in Arizona. Ideally, the objective is to help you understand what property appraisers take into consideration when setting rental prices.
1. Competing Rent Prices within the same Neighborhood
Property owners will want to know how much similar property within the neighborhood, go for. In that regard, the property owner may check various apartment listing websites or even refer to the classifieds section of the newspaper to determine what similar homes or apartments in the area seem to go for. Therefore, to discover rental apartments that fall within your budgeted monthly rent amount, you may also refer to the apartment listing websites or the classified ads in different newspapers. If you are a property owner, you may also approach other property owners and ask them how much they are charging as the rental prices.
When comparing properties to determine the best rental price, you will want to consider various variables including:
- The neighborhood: Lookout for properties within the same neighborhood
- The Number of Bedrooms and Bathrooms: ideally, you want to look at a property with the same number of bedrooms and bathrooms
- Single Family House vs. Multifamily homes: the rentals classified as single-family homes will command higher rental prices compared to the multifamily homes
- New Construction vs. Old Construction: ideally, newly constructed rentals will attract a higher demand compared to the older construction buildings
Therefore, appraisers will look at the above factors in order to set the rentals capping rate within a particular neighborhood.
How attractive is the property is to the prospective renters? Livability is a factor that will rate the property based on how attractive it is to the tenants looking for the best home rentals in Arizona. For instance, does the property offer a view of the nearby golf course? Generally, tenants want to rent a property that offers exciting views compared to the other properties within the same neighborhood.
3. The Historical Unit Prices
If a rental property was recently sold to a new owner, the new owner will look at the historical rental prices to determine how much to ask for. This is so long as there are no renovations to the property. If there are any renovations done to the property, the rent price will most likely go high. Thus, if you are looking to rent a home in Arizona and you notice that the advert indicates it is a newly renovated property, be ready to pay a higher rental amount.
Did you know that the particular time of the year you intend to rent a property will have an impact on the rental prices? Ideally, if you are searching for rental property at the start of the summer season, the average rental price will be higher compared to searching for a rental unit at the start of winter. This is considering that a majority of people will move house at the start of summer, while there are fewer persons moving house at the start of winter.
5. Amenities and Utilities
How much tents pay per monthly rent cycle is also determined by the amenities and the utilities available in that home. Ideally, the property owner will determine the value of the utilities and the amenities available in his or her rental property. To that end, if you are looking to rent a home fitted with laundry machines, has parking space for three cars and a private swimming pool, be ready to pay more rental price.
6. The Local Wage Level
The local wage level determines the practical maximum amount that an average tenant can afford to pay the property owner on a monthly basis. Ideally, one needs to be able to pay rent and have enough money to pay for the other bills. It is based on this argument that property within the urban areas, where the wage level is higher compared to semi-urban areas, pays a higher rental amount.
7. The Balance of Supply and Demand
Where the demand for home rentals Arizona exceeds the current supply, the prices get pushed up. For instance, if three people are after renting one house, it is easy to see the property owner increasing the rent amount overnight. On the contrary, where the supply for rental homes exceeds the demand, tenants have higher bargaining power.
Now you know the different factors that property owners consider while setting the average rental prices.