Owning a rental property in Tempe presents unique opportunities. Home to Arizona State University, a thriving technology sector, and a growing workforce, Tempe attracts a diverse tenant pool ranging from college students to young professionals and relocating families.

While this demand creates excellent investment potential, it also means landlords must understand which tenant demographic best fits their property and investment goals. At Real Estate Brokers of Arizona, we offer Tempe property management with experienced advice to help owners navigate the differences between student housing and traditional residential rentals.

Why Tempe Is One of Arizona's Strongest Rental Markets

Tempe consistently ranks among the Valley's strongest rental markets thanks to several long-term demand drivers.

Arizona State University

Arizona State University attracts tens of thousands of students each year, creating steady demand for rental housing near campus. Every summer, leasing activity accelerates as students search for housing before the fall semester begins.

Employment Growth

Tempe is also home to major employers in technology, healthcare, education, and finance. Companies continue to attract professionals relocating from across Arizona and the country.

Lifestyle and Location

Residents appreciate Tempe's:

• Walkable neighborhoods
• Light rail access
• Downtown entertainment
• Tempe Town Lake
• Easy freeway access to Phoenix, Scottsdale, Chandler, and Mesa

For rental property owners, this translates into strong occupancy potential. However, maximizing returns requires understanding which tenant demographic your property is best suited to attract.

Student Housing vs. Professional Rentals

Which Tenant Is the Better Fit?

Neither option is inherently better. The right tenant depends on your property's location, condition, and your investment goals.

At Real Estate Brokers of Arizona, we manage both student housing near Arizona State University and traditional rentals throughout Tempe. Each asset class requires a different leasing strategy, maintenance plan, and risk management approach.

Student Housing Near ASU

Tempe's proximity to Arizona State University creates one of the strongest student rental markets in Arizona. Every summer, thousands of students begin searching for off-campus housing before the fall semester, creating a predictable leasing season.

The owners of Real Estate Brokers of Arizona personally own and manage rentals that cater to the ASU student demographic. Through years of experience, we've developed leasing practices that help protect owners while maximizing occupancy.

For student rentals, we have found that:

• Holding the maximum refundable security deposit allowed under Arizona law (one and one-half times the monthly rent) provides additional protection against excessive wear and damage.
• Charging reasonable nonrefundable cleaning fees, as permitted under the lease agreement and Arizona law, helps offset the higher turnover and cleaning costs commonly associated with student housing.
• Beginning marketing several months before the fall semester helps reduce vacancy and capture the largest pool of qualified applicants.

Pros

• Consistently high rental demand near campus.
• Properties often rent more quickly during the summer leasing season.
• Student renters generally place less emphasis on high-end finishes and luxury upgrades.
• In some cases, renting individual bedrooms to unrelated students (where permitted by local ordinances and HOA rules) can generate higher total rental income than leasing to a single household.

Cons

• Higher turnover, with many leases renewing annually around the academic calendar.
• Increased wear and tear from more frequent move-ins and move-outs.
• Greater potential for property damage and noise complaints.
• More frequent inspections and maintenance coordination are often necessary.

Professional Housing

Professional tenants often seek long-term stability and a home that reflects their lifestyle. Professionals are often looking for upgraded properties that are kept in top condition.

Pros

• More likely to stay for multiple years, reducing turnover costs.
• Typically treat the property with greater care.
• Tend to generate fewer noise complaints and neighborhood issues.
• Longer lease terms can provide more predictable cash flow.

Cons

• Often expect updated finishes, modern appliances, and well-maintained landscaping.
• Properties may experience longer vacancy periods if they are not located near major employers, business districts, or convenient transit.
• Rental rates may be lower than what can be achieved with a student rental, depending on the property and location.
• Professional tenants are generally more selective, so marketing and presentation are especially important.

These properties are commonly found throughout South Tempe and neighborhoods farther from the university.

Best Tempe Neighborhoods For Investors

Housing Near ASU:

• Mill Ave/Downtown

• University Park

• Tempe Town Lakes

• Maple-Ashe

Outside University Area:

• South Tempe

• Kyrene-Superstition

FAQS

What does a property management company in Tempe actually handle?

A professional property manager coordinates marketing, tenant screening, lease preparation, rent collection, maintenance, inspections, lease enforcement, and communication while helping owners remain compliant with Arizona law.

How much does property management cost in Tempe?

Many companies charge 8% to 10% of the monthly rent. Real Estate Brokers of Arizona offers a flat-rate pricing model, allowing owners to keep more of their rental income as rents increase.

How are tenants screened?

We conduct comprehensive screening that includes credit history, income verification, rental history, background checks where permitted by law, and employment verification to help identify qualified applicants.

How is rent collected and enforced under Arizona law?

Rent collection follows the lease agreement and applicable provisions of the Arizona Residential Landlord and Tenant Act, including A.R.S. § 33-1368 regarding nonpayment and available legal remedies when necessary.

How are maintenance issues handled?

Tenants submit maintenance requests through our online system. Our team coordinates repairs using trusted vendors while keeping owners informed throughout the process.

What happens if a tenant stops paying rent?

We follow Arizona law, communicate promptly with both parties, and initiate the appropriate legal process when necessary while documenting every step.

What are my responsibilities as a landlord in Arizona?

Arizona landlords are responsible for maintaining habitable premises, complying with applicable statutes, honoring lease agreements, and following the Arizona Residential Landlord and Tenant Act, including A.R.S. § 33-1321 and related provisions.