AZ Real Estate 08-17-14

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AZ Real Estate

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CATHERINE REAGOR REAL ESTATE

The

Beware of shady managers

UNNECESSARY

improvements

P

Not all presale fixes pay off; see what does

roblems with property managers are on the rise in Arizona, and the state’s real-estate regulator is cautioning residential real-estate investors and renters to check out a landlord’s record before they sign a contract. The Arizona Department of Real Estate has issued five cease-and-desist orders against residential property managers during the past month. Since last summer, more than 30 Arizona real-estate agents and property managers have lost their licenses, been indicted by the state or told to stop handling properties for other owners. Among the accusations: stealing rent money from owners and tenants, failing to keep accurate records for landlords and operating a management business without a license. The business for property managers boomed in Arizona over the past few years as a record number of investors purchased homes and turned them into rentals. But not all are licensed, and even some licensed agents don’t understand all the state laws regulating how rents are collected and where that money is held. Recently, these agents and firms were ordered by the Arizona Department of Real Estate to stop operating as property managers: Ronda Lee Clifton and Millennia411.com of Kingman; Jeremy Silverman of Tucson-based Transaction Realty; Ronald Dwayne Butler and Quality Tucson Properties; Astolfo Licea of Phoenix-based McAlpine Properties and Wise Choice Properties; and Ted and Nancy Diepstraten of Greer’s Lazy Trout Market, Motel and Cabin Rentals. Complaints vary, from simply not having a license to fraudulent money collection. “Investors from out of state and out of the country hired people to take care of their properties, find tenants and

Gremlyn Bradley-Waddell Special for The Republic

When it comes time to put a home on the market, most people take a look around and realize there’s work to be done — maybe some remodeling or updating and some cleaning and clearing away — and want to plunge in immediately. But Sean Painter, a Realtor with Berkshire Hathaway and a 16-year veteran of the real-estate industry, advises against that approach, which can be costly in terms of both time and money. “People do overimprove their homes, and, in most cases, they do those improvements for themselves and they see the value in it,” he said. “But the problem arises when they think someone else is going to see the same value.” In other words, sellers have to remember that “the money you put in doesn’t necessarily translate into what you’re getting out of it,” Painter said.

Imagine, for example, that homes in

See VALUE, Page R3

New cabinets or wall textures aren’t worth it, but a coat of neutral paint could be a good idea. THINKSTOCK

See REAGOR, Page R3

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