All Forum Posts by: Rajesh Sharma

Thank you, everyone, for providing your reactions. It helps to hear different perspectives.

We are looking for a professional property management company to manage our SFH rental property in Arizona. One PM we talked to (and liked in all other aspects so far) has a practice of not sharing any detailed information about the potential tenants that will be placed. Their practice is to just share a very very brief summary of the final tenant they place. And the summary is basically the name of the tenant, if they have pets, and few other captions about the remaining screening parameters with a notation of "meets criteria". No additional paper work or evidence of background checks performed, or even what the credit score is. Is this common practice in AZ? They do provide eviction guarantee for non-payment of rent.

We have another rental property in a different state , managed by a PM, but we have always been provided all the paperwork of the background checks done. The final say on who gets placed is ours.
So, this approach is completely  new for us. Trying to get feedback from folks here on how you would feel about it, if you were the property owner?

Thank you, all, for responding! Very helpful!

@Drew Sygit As I continued my search, I did noticed those typical companies that act as a statutory agent for a monthly fee. Are they ususally reliable? I also called Maricopa county office and they mentioned that ususally whenever legal service is done, the documents are sent to the address of the person/business first even if they are out of state,  before they are sent to the statutory agent. Not sure how accurate that is. I wonder if anyone on this forum has actually experienced receiving legal documents through their statutory agent. Please comment and clarify.

@Melanie P. Can you please share the source of "not considered in the rental business until you reach 3 units"? I didn't come across this condition. I even called Arizona Department of Revenue and they said I need to. So, I went ahead and registered for TPT thinking it is just a matter of 6 months, till the end of 12/31/2024. Thank you for reminding that I will have to file nonresident Arizona income tax return.

Hello, 

I live in California, and bought my first investment property (SFH) in Peoria, AZ. Looking for guidance from the powerhouse of knowledge that this community is. Trying to educate myself on all the rules that I need to follow from regulatory perspective before the property is rented. So far I have learnt that we need to do the following:

1) Get a TPT (Transaction Privilege Tax) license. 

2) Register the property as a rental property in Maricopa county records. This will also require a designation of a "statutory agent", someone who is a resident of AZ.

My questions, for now

a) Are there any other initial registrations/licenses that are needed?

b) how much is the TPT that we need to charge on rental of a SFH in Peoria? is it standard practice to charge it from the tenant in addition to the rent? I also read that it will be eliminated starting 1/1/2025.

c) Can anyone be a "statutory agent"? Eg. the real estate agent who helped us buy the property and who is now helping us list it for rent? 

d) Are there any specific legal obligations that the "statutory agent" need to fulfill? To me it seems like the county just needs a local residence address to send any documents to, whenever needed. It doesn't sound like this "statutory agent" is an "agent" as we understand in normal course of day to day life where the agent can bind you with their actions. But please correct me if that is wrong.

Thank you!