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Landlord Updates

AZ Gets Rid of Rental Tax in 2025

Governor Katie Hobbs just signed a bill getting rid of the Residential Rental tax in Arizona. But don’t change your policies and procedures just yet! The change doesn’t go into effect until January 1, 2025. If you are in a city, such as Tucson, or a county island that doesn’t charge a rental tax, this will not impact you.

Here is what you need to know and what you need to do:

  • The law does not go into effect until January 1, 2025. Therefore, you have at least one year before you do anything.
  • On and after January 1, 2025, landlords are prohibited from charging the rental tax. In other words, landlords should decrease the amount they are charging residents at that time. The law creates a basis for a tenant to sue over the tax amount if it’s still being collected by the landlord. It says if there’s a civil suit—presumably filed by an unhappy tenant—the burden is on the landlord to show that none of the rent being charged is attributable to the Residential Rental tax once it disappears.
  • Remember, it’s not just the tax on rent that is decreased. The taxes applied to all previous charges should be reduced as well. For example, if late fees were $5.00 plus $.09 in tax, that part that is tax should be removed in 2025.
  • For all new residential leases starting on January 1, 2025, or later, the lease should not include rental taxes. This includes month-to-month and renewals or extensions of older leases.
  • Starting in late 2024, landlords should plan for the change in not charging rental tax and begin to notify tenants of the reduction in the amount owed.
  • This ban does not apply to commercial rentals (meaning cities can charge a rental tax).
  • This ban does not apply to “health care facilities, long-term care facilities or hotel, motel or other transient lodging business.” It appears that cities can tax short-term rentals.
  • Remember, this just came out and it won’t go into effect for a while. In the meantime, we will learn additional information and communicate it to our clients.

Rental Market Statistics

The number of active rental listings has been climbing since June of this year. There are multiple reasons for this.

  1. Seasonality – The 4th quarter of the year is a slower time for activity on rentals.
  2. Super Bowl season “Airbnb” (Vacation Rental) purchases. Many homes were purchased by inexperienced “investors” who wanted to cash in on the high rental prices during the Super Bowl. Now those homes are sitting empty from the drop in vacation rentals and some/many are being converted into long-term rentals and increasing inventory numbers.
  3. Vacation Rentals may become more difficult and expensive to carry as an investment. Several cities in the Valley have started enacting much stricter rules on Short-term vacation owners. They must be registered with the city and a local person listed who can be contacted regarding complaints. So the owners have to accept liability for the nuisances of their vacationers. They must also consider the cost of registering and the possibility of being taxed at a much higher rate than they are now. Municipalities are considering taxing these owners similarly to a hotel/resort. This is pushing more Vacation Rentals into Long-term rental inventory.

I am seeing the rental prices starting to drop which is common as the inventory rises. It is the principle of Supply and Demand. I think once we get through the 4th quarter, we will see rental prices stabilize and possibly increase slightly through the Spring.

If you have questions, I can help. Whether you’re contemplating the purchase of another investment property or considering the liquidation of a current one, both situations fall within my area of expertise. Feel free to give me a call, and we can discuss the opportunities available to you.

Louisa Ward
Associate Broker

Do Trash and Recycling Containers Go On the Sidewalk?

A friendly reminder to our neighborhood about trash and recycling containers:

  1. Sidewalks are for People: Please refrain from placing trash containers on the sidewalk. Instead, position them after the curb and on the street, leaving ample space for pedestrians to walk freely. The containers should be 4 feet apart.
  2. Be Mindful of Others: Remember that many of our neighbors, including those with disabilities, rely on clear sidewalks. Let’s be considerate and thoughtful of their needs.
  3. Timing is Key: Put your trash containers out for pick-up only on designated collection days and promptly retrieve them after collection to avoid prolonged obstruction.
  4. City Code Compliance: According to our city regulations, all solid waste containers must have lids. This is not only to prevent rainwater from accumulating inside but also to keep insects and pests at bay. If you have a container with a missing or damaged lid, you can request a replacement by clicking on this link.

Thank you for your cooperation and understanding. Your efforts in maintaining clear sidewalks contribute to the overall well-being of our neighborhood and the comfort of our neighbors. If you have a question about the placement of containers or containers blocking a sidewalk, contact 602-262-7251 or email

Financial Incentives for Water Conservation

Phoenix Water Services Department Announces New Financial Incentives for Water Conservation

To promote sustainable water use and conservation, the Phoenix Water Services Dept. is introducing new financial incentives for residents. These incentives are aimed at encouraging the adoption of high-efficiency appliances and fixtures, saving water, and reducing household expenses.

Residents can begin the application process by visiting the Water Conservation Incentives webpage

Key Highlights of the Incentive Program:

Water-Efficient Toilets: Residents can receive a $75 rebate for the purchase and installation of a new EPA WaterSense-labeled toilet of 1.28 Gallons Per Flush (GPF) or less.

Smart Irrigation Controller: A $75 incentive is available for the purchase and installation of an EPA WaterSense-labeled smart irrigation controller.

Both these devices can lead to an estimated saving of approximately 10,000 gallons of water per year for each household.

Free Xeriscape Plans Available Now 

Additionally, the City of Phoenix has released three free desert landscape plans for residents to implement at home. Native plants are a great way to save water and money. By choosing desert plants, residents can reduce outdoor water use by 85%. These plans are an example of the conservation team’s many program developments to come, with a greater focus on designing water-saving solutions that can easily be accomplished by residents. To download a xeriscape plan, visit

The Community Party is Cancelled

It is with regret that we announce the cancellation of our Community Party scheduled for November 12th due to a lack of volunteers. We deeply appreciate and want to express our heartfelt thanks to those who did reach out and volunteer. Your willingness to contribute to our community events is truly valued.

Organizing our Community Party is a significant undertaking that requires a considerable amount of planning and coordination. Typically, we need at least 10 people to assist in arranging and organizing various aspects of the event. On the day of the party, we rely on approximately 20 volunteers to ensure its smooth operation.

Over the years, our Community Party has served as a wonderful opportunity for neighbors to come together, enjoy delicious food, participate in family-friendly games, face painting, bounce house activities, and learn about updates in our community from the police department and the Councilwoman. It also provides a platform for us to connect with local businesses that support our community.

One of the remarkable outcomes of our Community Party is the positive impact it has had on Mercury Mine Basin Park. Due to the attention garnered by our event, the park has received additional resources, including more trees, a new playground shade cover, swings, and general maintenance of plantings and grass.

Moreover, our Community Party has gained recognition throughout Phoenix as the “Best and most highly attended G.A.I.N event in the City.” Your local Block Watch and Neighborhood leaders actively apply for grants to host this event, and our collective efforts have resulted in receiving significant funding, reflecting our community’s outstanding engagement and commitment.

While it is disheartening to cancel the party this year, we remain hopeful for future events. We encourage anyone interested in volunteering for upcoming community activities to reach out. Your involvement is crucial to the success of our neighborhood initiatives, and together, we can continue to create vibrant and supportive community events. Once again, thank you to everyone who volunteered and expressed interest. Your support is invaluable, and we look forward to working together for our community’s betterment in the future.

Neighborhood Updates – Restaurants

Manuel’s Mexican Food Finds New Location in our Neighborhood! 

Manuel’s Mexican Food has been a Nextdoor Neighborhood Favorite since 2017, they currently have eight locations around the valley. And now they are opening a new location at 3131 E Shea Blvd. Phoenix, 85028.

Save the date for September when they’ll be ready to serve up their amazing dishes.

Original Breakfast House Named Best Breakfast in Arizona! 

We are thrilled to extend our heartiest congratulations to The Original Breakfast House for a well-deserved triumph. It’s located right in our neighborhood, at 13623 N 32nd St, Phoenix, AZ 85032.

So, whether you’re a local enthusiast or an out-of-town traveler seeking the ultimate breakfast experience, look no further than Original Breakfast House. Your taste buds are in for a treat, and your mornings are about to become unforgettable. 

Check out the article on AZ Central Here!