Should You Keep Your Arizona Home as a Rental When You Move?

If you are moving out of state, the decision to keep your home as a rental could affect your decision of where to relocate. Generally, people make this call quickly, based on gut instinct rather than a real look at the numbers. Due to the large amount of appreciation in Arizona home values in the past decade, many have considered holding onto their single-family rental homes for long-term wealth and cash flow. The decision on whether or not to keep your Arizona home as a rental depends on various factors related to your specific home and circumstances.

That choice – keep the property rented out, or sell when you move – will depend on a few criteria. Those would be: how you perceive your rental property; your financial status; and how you plan to manage your Arizona rental from afar.

What the Numbers Actually Need to Show

First, run the numbers to calculate the rental’s actual cash flow. Using the same guidelines found in the IRS publication to calculate income, subtract your expenses – the mortgage, property taxes, insurance, HOA’s, etc. – then determine a reasonable monthly rent to achieve positive cash flow. In this example the numbers work out to be a monthly positive cash flow of $532 for this owner occupied home that would continue to appreciate in value as rental real estate while also having equity that could be used as a down payment on a home somewhere else in the country.

Arizona’s rental market is extremely strong for the greater Phoenix and Scottsdale area. Strong employment, increased population, and low vacancy rate keep the market performing well for rental property owners. While very strong market conditions are in place for rental property in the greater Phoenix area, that does not automatically mean that your specific home will rent quickly or for a good price. A 3 bedroom home located in close proximity to major employment centers will generally rent faster and for more money than a 2 bedroom condominium in a restricted rental property.

The HOA Factor Is Often Overlooked

Even if a property qualifies as a rental, a home owner must check into the CC&Rs for his or her homeowners association to see if there are restrictions on rental properties in the community. For example, a common restriction for communities in Scottsdale and Phoenix is a cap on the percentage of homes that can be rented at any time.

A homeowner could have their home rented out 100% of the time and still be out of compliance with their community’s rules. There are also restrictions that prohibit a home owner from renting out a property for short periods of time. Such restrictions are becoming more and more common to prevent turn-key rental properties in communities where home owners are not present to oversee the maintenance and care of the homes.

As you determine what to do with your Arizona home as you move to another state, be aware that you could violate a host of rules by renting out your home. The restrictions vary by community but generally track to: a) restrict the percentage of homes that can be rented in a community at any given time; b) restrict rental of specific units; or, c) prohibit short-term rentals altogether. There are a number of serious consequences should you decide to rent out your home in contravention of the restrictions, including substantial fines, that will compel you to immediately bring your home into compliance with the CC&Rs. These restrictions should strongly influence your ultimate decision.

Arizona’s Climate Creates Specific Maintenance Demands

With so much to keep track of and so many repairs needed to keep the house in good working order, as an out-of-state landlord you will need to ensure that you have an excellent team of contractors that you can call on when something happens. It is surprising how many Arizona homeowners neglect to do regular maintenance to keep their homes in the best of shape, yet a simple, relatively inexpensive repair to a leaky faucet or a small roof leak can prevent massive damage to a home and a significant loss of money for the homeowner. Additionally, many Arizona homes include a pool. This can be a wonderful amenity, but it needs regular upkeep, cleaning and balancing the chemicals to keep it safe for tenants.

With self-managed properties it is extremely important to have all vendors researched and prequalified before relocation. This way the owner can return to work and money can keep rolling in without them having to manage every repair call or deal with any other problems that may arise with tenants.

Many out-of-state owners have found hiring a local property management company to be the best solution, even if they feel capable of managing the property themselves – for example, companies like Five Oaks Property Management approach this by clearly outlining all included services, payment schedules, and whether professional management is the right fit for the owner and their property.

Two Homeowners, Two Different Answers

For example, suppose a couple has recently purchased a home in a prestigious area of Scottsdale, and a few years later both are offered transfer assignments to out-of-state companies. Their home, however, would be a superb rental property, and the couple could amass significant wealth in the years that follow.

Here’s a second scenario, this one about relocating from Scottsdale to another state: this homeowner’s 3 bedroom single family home is in a non-HOA area right near a large employer (sizable, relative to the newer development going up nearby). This owner built the home in the late 90’s and now has a considerable amount of equity in the home. She kept the home as a rental for the first few years because she wasn’t able to sell when the market first took a plunge due to overbuilding in the Scottsdale area.

After a few disappointing offers, and once the market started climbing again, she decided to hold on longer and build even more equity. Now with the current rent amounts compared to her current mortgage payments for her home and the associated fees for property management, property taxes, homeowners insurance, HOA fees (if applicable), maintenance and repairs, she would bring in a respectable amount of positive cash flow. There are very few new single family homes for rent in her immediate neighborhood. Given her circumstances, keeping the home as a rental and paying a property management company to find a quality tenant, handle repairs, manage tenant issues, and assist with rent collection as needed could make real sense for her. She is a good example of a long-term investor building equity in a home she loves, in the very strong rental market of the greater Phoenix area.

The second example is of a couple who are moving to the East Coast to be closer to family. The couple has a condo in a Scottsdale HOA community that restricts rentals to 20% of the units. Currently, the 20% has been filled and there is a waiting list to get a unit in the complex. After some investigation, it appears that it may be several years before a unit would become available for rental in this complex.

Even then, the HOA fees are currently high and there are limited cash reserves in place to cover any large repairs. The return on investment of renting this condo would be very low. Taking the down payment for a new home in a different part of the country and tying it up in a rental property that won’t be rentable for several years is not a smart financial decision for this couple. Therefore, they should sell their condo in Scottsdale and look for a home on the East Coast to purchase.

When to Call a Real Estate Agent Versus a Property Manager

With a strong equity position, no rental restrictions on your property, and a healthy rent-to-cost ratio, consider speaking with a property manager to get a rental market analysis. This analysis can help to determine whether keeping your home as a rental property makes sense for you before you list your home for sale. Often this analysis can cost nothing and can change your mind about keeping your home as a rental property.

On the other hand, if a homeowner has minimal cash reserves, is dealing with HOA complications, or realizes that their rental property will only break even at best, or lose money, a call to a listing agent would likely result in the clearest picture of what they would actually net from selling. A listing agent can provide the most current market data to establish the net proceeds from listing and selling the home, for a homeowner to consider.

Last Updated: July 2026