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Arizona Regional Multiple Listing Service (ARMLS) just released their monthly Rent Check Report.  I like this little report because I’m working with several Buy-and-Hold Investors right now and this report helps them not only gauge the rental market, but see how their competition is starting to stack up.  We typically work in areas were the rent goes for about $0.75 per square foot, landing several rentals in the $1,100 to $1,200 range.  According to the Report, we’re pretty spot on.

We’re also seeing a short Days on Market time frame, typically 21 to 30 days from listing to first rent check.  The heat map that they have included in the report shows me where there is the most competition for rental listings and those areas I try to discourage my investors as there will be more competition and chances of price wars pushing the price down.

The report spans the last 10 years, I was first drawn to the dramatic increase of numbers of the years, and like most, I drew to the conclusion that the distressed market and number of Foreclosures/Short Sales have pushed more towards rental/investments.  I do want to put a small footnote on that, ARMLS wasn’t very popular for listing rentals and we’re seeing a change in the last couple of years as more agents are working with more renters, partially to be ready to help those renters buy in the future and partially because they need to maintain a revenue stream to stay afloat.

I expect that this year we will see those number stay high and increase a bit, but after that, as renters start to come out of probation and can start to buy again, we’ll see a switch to more owner occupy homes being the desire.

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