Community Ownership Changes

by Tom Simplot

Jan 15, 2017

Anyone casually following real estate and business news has likely seen that Arizona continues to be a hot rental market. Nearly every week, business reporters are updating readers and investors on the sales of large apartment properties around the state. Many out-of-state owners have entered the market and paid record prices for desirable properties in our metro market.

 

While some renters may be concerned about the impact on their lease, there are a few key things to know and some items to research. These investments and sales may be announced in your building via an internal communique or notice.

 

Question: Will a sale affect my lease?

Answer: A sale of a property will not affect the terms of your current lease. New owners must honor the terms of existing leases. Be prepared to negotiate at the end of your term, and research your options prior to that time.

 

Question: What changes should I expect under a new owner or management?

Answer: You may see some changes on-site following a sale of a community. Some management companies or investors may plan to make upgrades to communal areas, like the pools, landscaping and community spaces. There may be some staffing changes as the property transitions ownership or management. There may also be a new process for requesting assistance or work orders. Your community resident website portal (if you have one) will likely have this information or you can ask the on-site team. Over time, the new owners may also be making investments and upgrades inside apartment units. This may be planned for the end of a lease. If you are planning to renew, contact your leasing company early to see what their new lease terms are, pricing changes and any unit updates they have planned.