Goodyear Arizona Homes For Rent

June 3, 2010 - PRLog -- My name is David Sims and I am a Realtor specializing in the West Valley of Phoenix, Arizona. These are some things that I have noticed in the current residential real estate market regarding rentals, especially in the neighborhood where I live. I read in a forum recently about a resident in Estrella Mountain Ranch stating that the rental prices for homes listed for lease in Estrella are currently too high. Another member of the forum very keenly remarked that supply and demand, some basic economic principles, are what is causing the rental prices to go up. This is absolutely the case. The supply of homes for lease at this time is low and the demand for them by consumers (those looking to rent rather than buy) is high.

A few things can cause this. Obviously, it is no news to anyone that many homeowners today are upside down on their homes. Their home is worth much less than what they initially paid for it or that they took out of it in equity a few years back. Someone that normally might want to rent a home out to a tenant may now be walking away from the house and foreclosing or short selling the house instead. Renting a house is an investment to a homeowner and many homeowners are not seeing it as a good investment at a time when they are upside down on their mortgage with currently no reversal in sight. Not to mention the fact that they may not be able to get enough money from rent to cover the mortgage. This is a theory that can explain the low amount of supply right now.

This same theory can be used to explain the current high demand for rental homes. Many of the same people that are short selling or walking away from their homes are the same ones that do not want to leave Estrella Mountain Ranch or the community that they were living. They are looking for rentals that they can lease in the same community because their credit will take time to repair and allow them to be able to purchase a home again.

If you are a homeowner and you are in good standing with your mortgage lender, this could be a good time to lease out your home. Lease rates are higher because of what I mentioned above and you may be able to get a long term tenant that is trying to repair their credit while locking in a good monthly lease amount that will cover your mortgage and some. By the time this lease is up, the value of your home may have risen. One thing to notice is that many people applying to rent your home will have bad credit because of foreclosures and missed payments from their previous home. I recommend getting proof of income and also looking to see what their credit may have looked like before the issues that they had with their previous mortgage. Also, look into seeing if they have been making all of their other payments on time. Obviously this is a judgment call, but in this economic environment you are going to come across many folks that have less than stellar credit looking to rent.

Good luck to all home seekers and sellers! Let me know how I can be of assistance. Visit me at http://www.davidsimshomes.com and check out my blog at http://public6.superlativestudio.com/Blogs.aspx?segmentid...

# # #

Realtor David Sims specializes in property of the Phoenix West Valley, Goodyear, Litchfield Park, Estrella Mountain Ranch and surrounding areas.