Pros and Cons of Investing in Real Estate

Property Maintenance Mistakes That End Up Costing Arizona Landlords More

Property Maintenance Mistakes That End Up Costing Arizona Landlords More

Investing in rental property in Arizona can be a very successful real estate investment. The Phoenix metro area is consistently ranked as one of the top areas in the country for real estate activity, and rental housing demand remains very strong in Maricopa and Pima counties. Even so, many landlords across the state are gradually stripping away returns with a very common pattern: doing repairs instead of performing routine maintenance.

This investment can pay off greatly if it is maintained in a manner which maximizes its cash flow. However, there are many instances where issues that occur that decrease the landlord’s returns on their Arizona rental property investment greatly. The largest group of issues is what we call ‘reactive maintenance’ versus ‘proactive maintenance’. These are issues that could have been solved for very little money had they been addressed prior. The longer one waits to repair these types of issues the greater the chance that the amount of money needed to fix them greatly increases.

These are some of the mistakes Arizona rental property owners make and the secret costs that affect their returns.

Delaying HVAC Repairs in Extreme Heat

In extreme temperatures such as those felt in Phoenix during the summer, it does not take long for an air conditioning system to fail. People often complain about the air conditioning not working while the landlord is saying they did fix it. Under Arizona law, the landlord must provide working air and heat for the tenant as well as working plumbing and functioning electrical systems. If the landlord knows the AC is not working and fails to repair it in a timely manner, the tenant may withhold rent for that period of time. Landlords also risk having the tenants vacate the premises and be able to claim abandonment on the part of the landlord.

Additionally, when an air conditioning system stops working, it can be just a few hours before a unit becomes uninhabitable during very hot weather. Furthermore, under the Arizona Residential Landlord and Tenant Act (A.R.S. title 33, Chapter 10), landlords are responsible for ensuring that their tenants have access to several essential services including heating and cooling. A landlord’s inaction with regard to documented air conditioning problems could subject the landlord to liability, or even to disputes by tenants regarding withheld rent or early termination of the lease.

Annual HVAC inspections are inexpensive when compared to the cost of emergency repair of a malfunctioning air conditioner. In Phoenix in the midst of summer, an average cost for an emergency compressor replacement is $3,000 to $5,000, and that cost can go up depending on secondary damage to electrical systems or air quality within rental property.

By performing maintenance tasks in early spring, prior to high temperatures, and by maintaining air flow around your condenser and making repairs to refrigerant leaks before they cause complete failure of the entire system, owners can save a considerable amount of money by avoiding costly repairs of failed HVAC systems.

Ignoring Roof Damage After Monsoon Season

Arizona’s monsoon season typically begins in the middle of June and can last into late September. Many landlords are unaware of the damage that high winds and heavy rainfall can cause to the roofs of their rental properties. Flat or low-slope roofs in particular are prone to problems with standing water and roof damage from debris.

No two roof failures are ever the same. However, all roof failures are the result of moisture working its way into the roof system through punctures, cracks or separations in the roofing membranes or through other breaches in the roofing system. As long as water can penetrate the roofing system, the potential for damage always exists. And, while roof failures can occur instantly due to catastrophic weather events or structural damage, many roof failures occur slowly as water seeps into the roofing system and works its way into the structure of the building through walls and ceilings. As water sits within the structure of the building, it will inevitably cause mold and mildew to grow and structural damage to occur before any exterior evidence of a failure is apparent.

According to the U.S. Department of Housing and Urban Development, moisture intrusion in homes is considered one of the leading causes of substandard housing and the associated long term damage to a home’s structure and the negative impact on a tenant’s health.

Rather than spending a few hundred to several thousand dollars to repair mold damage or major structural defects in a roof after the damage has occurred, post-monsoon roof inspections by licensed roofing contractors cost only a fraction of the cost to repair after the damage has occurred. So, rather than waiting until after the damage has occurred, schedule a post-monsoon roof inspection.

Treating Landscaping as Optional

AZ is a very unique place. Treating your yard as “cosmetic” can lead to so many issues that most property managers have not considered until they become financial or structural issues. Overgrown landscape near structures can bring in moisture to damage exterior walls, pest problems to infest homes and become disease vectors to your renters and severe damage from wildfires as branches rub together to create spark. All of these problems can be averted by keeping up on yard with scheduled trim-outs, checking irrigation systems periodically for leaks to prevent wasted water and resulting erosion and keep a watchful eye on trees and branches that may become a problem. All of these upkeep are critical in helping a rental property attract the best possible quality renters and maintain the highest value on the residential market.

Many Arizona Landlords feel that the exterior of their rental is purely cosmetic. They often get “surprised” in the middle of a tenant’s term to find out that their negligence with their yard and irrigation caused damage to their rental property. This cost could have been prevented if they treated the yard and your irrigation systems with the respect that they deserve. If your rental property has trees, it is imperative to keep them pruned up to prevent branches from breaking in strong winds. Branches can cause significant damage to fences, roofs, and even holes in walls and ceilings. Regular servicing of your yard and landscape can pay huge dividends in the long run to help you keep your quality rental properties full of quality renters. And remember, a well-manicured yard is a big part of what first makes a great first impression.

Regular yard and irrigation work on a rental property can pose some challenges that, if left uncontrolled, can become expensive problems before a landlord knows it. Staying on top of these risks can help to keep a good landscaping look that can help to attract higher quality tenants, as well as to keep a landlord’s relationship with those tenants positive.

Skipping Routine Inspections Between Tenancies

Landlords who do not document the move in and move out inspections will be in for a costly surprise when they receive a list of damages that they did not know existed and are unable to argue against the repairs. Additionally, the landlord will not have knowledge of needed repairs until the damage has caused great damage and repairs are cost prohibitive.

However, every turn of tenancy represents a perfect time to put your rental property back into excellent working order, take your time to conduct and document a full and detailed inspection and take note of any damage, how it was caused and when. If a few hundred dollars of time and money are spent to repair damaged goods and the property is in excellent working order when a new tenancy ends then there is a greater probability that a full amount of a tenant’s security deposit will be returned and you will have a far greater chance of getting that next tenancy. Companies like Rhino property management approach this by consistently documenting everything and scheduling maintenance between every tenancy to prevent problems in the long run and save money.

Underestimating Plumbing Issues in Older Rentals

Some Galvanized and older Copper Plumbing systems found in Arizona Rental Properties were installed 20 or more years ago and are starting to fail. Many failures can be traced back to corrosion within the pipes, pin hole leaks in pipes and decreased water pressure. Even though these failures can be expensive to repair, they can often be prevented with routine plumbing inspections to locate potential problems before they become failures. The average life span for a water heater in Arizona is 8 to 12 years. Some water heaters have been known to last longer in some cases, but it is rare. A proactive landlord would consider replacing a 10 year old water heater to avoid potential future repairs and possible costly damage due to failure.

Property maintenance in Arizona should include plumbing inspections on a regular basis, especially for homes 20 years old and older with older plumbing systems. There is a large cost to repair and also to loss of rent due to an emergency repair.

How Professional Property Management Changes the Equation

The root of most of these problems for Landlords is the lack of processes and systems in place to complete routine maintenance. Many Landlords would like to keep their rental properties in great shape but they are not in a position to spend the time needed to create the appropriate systems.

Professional property management teams maintain preferred contractor networks, track maintenance histories, schedule seasonal service visits automatically, and respond to tenant repair requests on defined timelines. They understand Arizona-specific risks: the toll that UV exposure takes on exterior paint and roofing materials, how caliche soil conditions affect drainage, and which months demand the most attention from an HVAC standpoint.

The National Association of Realtors research consistently shows that well-maintained properties command higher rents, experience shorter vacancy periods, and retain value more effectively over time. For Arizona landlords, working with an experienced local team is one of the most effective strategies available.

What Proactive Maintenance Actually Looks Like

A good property maintenance plan is a planned maintenance program that the landlord uses to try to minimize the amount of money that they are going to spend on repairs. They schedule the repairs and maintenance for the different systems of the home throughout the year, and that helps them to save money in the long run, because they are not waiting for these things to break down.

The seasonal inspection of Heating, Air Conditioning & Ventilation systems (HVAC) should be scheduled in the early part of each spring (before warm weather sets in).

Complete a roof and exterior inspection in September after the monsoon season.

Auditing irrigation systems at least once annually

Document a walk-through of the property every time there is a tenancy change.

Plan for maintenance by setting aside 1% to 2% of the property value per year in a maintenance reserve fund.

Be prepared to replace older appliances and other mechanical parts before they fail.

These steps do not require a special kind of landlord. Instead, they require the landlord to maintain consistent and high standards in how he treats his investment and his customers.

The True Cost of Doing Nothing

Every maintenance delay compounds into bigger and bigger problems and greater repair expenses. A small roof leak develops into mold and health hazards. A poor functioning air conditioner can become a lease violation issue. An old irrigation drip can cause major damage to the property’s foundation.

The Arizona rental property market tends to reward those landlords who consistently keep their rental units in the best possible condition. Quality renters will willingly pay a premium to live in clean, well-maintained homes and will generally stay in a quality rental unit for longer periods of time than in poorly maintained homes. The costs associated with vacancies can be substantial. In some markets these costs can range from $1,000 to $5,000+ per vacancy per unit, and depend greatly on the local market conditions as well as the particular type and size of the rental unit being offered.

The landlords who consistently outperform in this market are not necessarily the ones with the best locations or the newest properties. They are the ones who treat maintenance as a strategy, not an afterthought.

 

Last Updated: May 2026