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According to data from the National Association of Realtors, 4.09 million homes were sold in the US in 2023.
Real estate can be a great investment, but if you're a new property owner, you might be a bit uncertain of what to do. You've just bout a rental property, so what's the best way to go about making an income from it?
In this guide, we'll go over some of the key things that a real estate investor should do after purchasing their first rental property in Chandler. Let's dive in.
Repair and Upgrade the Property
Before renting out your new property, you need to ensure it's ready. If there are any maintenance issues, make sure you take care of them.
You can also make various upgrades or improvements, such as:
Fresh paint
Improved security system
Landscaping work
Implementation of smart technology
All of this will help make your property more desirable. You'll then have an easier time finding tenants and as the property will have a higher value, you'll be able to set a higher rental price.
Determine Rental Pricing and Terms
The rental price you set will be partially determined by the property itself. Look at its condition, size, features, etc. to determine a suitable value. It's a good idea to have a professional valuation done to make sure you get things right here.
Bear in mind that the value will also be dependent on the demand and other properties in the area. Research the Chandler housing market to see what the current landscape is like. You want to make a good income from your new property but don't charge too much as you need to stay competitive.
You also need to decide on lease terms. This includes:
Rent collection schedules
Pet policies
Additional fees
And more!
Market the Property Effectively
Effective real estate investment strategies hinge on being able to attract tenants. You need to make your property appeal to renters more than the competition, and this is especially important in a tough market.
A property manager can be incredibly helpful here. They know how to optimize property listings so that they appeal to renters. A local property manager will also have an in-depth understanding of the property market in your area.
Screen Tenants
Tenant screening is one of the most important steps in protecting your investment and ensuring a positive rental experience. A well-screened tenant is more likely to pay rent on time, take care of your property, and stay for the long term—reducing costly turnover and vacancy.
Start by having each applicant fill out a detailed rental application that includes employment history, income verification, prior rental references, and consent for background checks. The goal is to build a full picture of the applicant’s financial reliability and rental behavior.
Key components of a comprehensive tenant screening process include:
Credit Check: Assess an applicant’s credit score and payment history to evaluate financial responsibility. A strong credit report indicates they’re more likely to keep up with rent payments.
Criminal Background Check: Identify any past criminal convictions that may pose a risk to you, your property, or the neighborhood. Be sure your process complies with Fair Housing laws and only considers offenses relevant to tenancy.
Rental History Verification: Contact previous landlords to confirm the applicant’s rental behavior—such as timely payments, lease compliance, and property upkeep. This insight is often more telling than financials alone.
Income Verification: A general rule of thumb is that tenants should earn at least 2.5 to 3 times the monthly rent. Pay stubs, tax documents, or employment letters can help verify stable income.
Eviction History: Reviewing public records can reveal whether an applicant has been evicted in the past. A history of evictions may be a red flag for future issues.
Implement a Property Management Strategy
Managing a property takes a lot of work. You need to be able to commit a lot of time and have a well-thought-out strategy. Alternatively, you can hire a property management company that can take care of all of the daily operations of your property for you.
Becoming a Successful Real Estate Investor
Being a real estate investor isn't easy. You need to have a clear strategy and be committed to making the most of all real estate growth opportunities that come your way.
It can be hugely beneficial to work with a professional property management company like True10 Property Management. We’re a family-owned company with over 20 years of experience in forging rental property success. Check out our property management page for more information.
Frequently Asked Questions for First-Time Rental Property Owners in Chandler
1. Do I need a business license to rent out my property in Chandler?
Yes, in most cases, landlords in Chandler are required to obtain a Transaction Privilege Tax (TPT) license through the Arizona Department of Revenue. This allows you to legally collect rent and pay applicable rental tax. Be sure to also check with the City of Chandler for any additional local registration requirements.
2. Should I set up a legal entity like an LLC for my rental property?
Forming an LLC can help protect your personal assets from liability related to the rental property. It also provides tax flexibility and may simplify accounting. Many first-time investors choose to do this once they start growing their real estate portfolio. Consult a legal or tax advisor to see if this step is right for you.
3. How can I make my rental property more appealing to long-term tenants?
Focus on features that support comfort, safety, and convenience—like in-unit laundry, covered parking, and energy-efficient appliances. Offering digital rent payments, clear communication, and responsive maintenance services can also increase tenant satisfaction and retention.
4. What’s the best way to handle rental income and expenses?
Open a separate bank account for your rental property to track income and costs more easily. Use property management software or accounting tools to categorize expenses like repairs, mortgage interest, and property taxes—this will help with tax preparation and financial planning.
5. How do I stay compliant with Arizona landlord-tenant laws?
Familiarize yourself with key provisions in the Arizona Residential Landlord and Tenant Act. This includes rules around security deposits, notice periods, eviction procedures, and maintenance responsibilities. A property manager or local attorney can help ensure your lease agreements and policies comply with state and local regulations.
6. When should I consider raising the rent?
It’s standard to review rental pricing annually, especially when renewing leases. Consider market trends, inflation, property upgrades, and tenant demand in Chandler. Always provide appropriate notice (typically 30 days) and ensure any increases comply with your lease terms and state laws.