Rental Basics in Phoenix>Question Details

Lacey, Home Buyer in University Heights,...

What are typical vacancy rates for Phoenix AZ?

Asked by Lacey, University Heights, San Diego, CA Sat Aug 14, 2010

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Hi Lacey,

I am an investor with homes throughout the west valley including Surprise, Glendale, Peoria and Phoenix. I have tried to find stats with vacancy rates, but have never found any one good source. For estimated ROI, I use a vacancy rate of 5%. (Loss of just over one month rent every two years.)

I try to minimize vacancy by keeping my good tenants happy. I have had some long term tenants by being responsive to repairs and request and not raising rents if they are still completive with current conditions.

Between tenants, I try to minimize the vacancy by marketing 30 days before tenant move out. The last home I rented recently in Surprise had zero days vacancy between tenants. Normally I have zero to 30 days vacancy. If you can't rent a home within three to four weeks, there is an issue. Either the home needs work or the rent is too high.

On occasion, I have longer vacancies when the tenant leaves a mess, home needs work, or I do some renovations. Typically every three to five years I do some updating to my homes.
0 votes Thank Flag Link Wed Aug 18, 2010
The vacancy rate varies in Phoenix depending on the area. The vacancy could be anywhere from one month to eight or nine months. If you know which area you are considering I would be able to narrow down.
Web Reference: http://www.sellsatdawn.com
0 votes Thank Flag Link Sun Aug 15, 2010
Dear Lacey,

Thanks for asking the question. I wish I had a concrete answer for you. Phoenix is a HUGE area with many neighborhoods. As you can imagine, vacancy rates vary on area, type of home, price and several other factors.

It is impossible to say what typical vacancy rates are. In a recent study we performed for a client, we found rates varied from 1-7 months depending on area. If you gave us an idea of the exact neighborhood and type of property, it would be easier to give you an accurate and viable answer.
0 votes Thank Flag Link Sat Aug 14, 2010
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