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RENTAL PROPERTY IN AUSTIN, TEXAS
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Quick Reference Chart
(A clickable way to go to the info that interests you most!) |
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Successful property management does not require a formal education, merely a set of guidelines and a good pulse on what�s going on in the city. I began my career in real estate in residential leasing in 1991. When I opened a brokerage firm in 1993 called The Relocation Station, we focused on relocation, apartment locating and leasing rental properties. At the time, occupancy rates were high and the composition of owners to renters was 50/50. That percentage has most likely changed to 70/30 (similar to Houston and Dallas). A large part of our city�s base of renters comes from government and the University of Texas. This fact helps to create a strong rental population in Austin. In addition to examining housing trends don�t forget your own neighborhood. The amount of available rental and homes for sale at the time you are renting is extremely important. Don�t forget it is what�s going on in the neighborhood of your property that requires the most consideration. Checking the local newspaper will assure you of what�s available as well.
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STAY ABREAST OF CURRENT TRENDS IN THE CITY
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 Are people moving closer in or farther out? What are population expectations? Austin�s population has grown to over 1.329 million (expected to rise to 1.399 by 2003*). Our apartment occupancy rate is expected to go down to 89% but rise to 93% in 2003. Planned new construction of apartments will slow down. We must take these ideas into inconsideration when acquiring new property and in managing our real estate in Austin, TX. I personally believe that if you buy the right property in the right place with good financing (this is critical), your property will be valuable and can be viewed in the same way you view your 401k plan or IRA.
*Source www.angeloueconomics.com |
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WHAT TO DO ABOUT RENTAL RATES in 2002
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 Don't guess. You can't afford the risk of gambling time or money. Confirm your answers with facts. Hint: when you see apartments start to give a way free rent it's a sign that it might be a good time to offer aggressive rents to existing tenants and acquire real estate that is in high demand areas such as Central Austin. But one important note is that if you do plan to raise the rent, do so in small increments where the tenant feels it is more costly to move than it is to stay in the same place. Don't assume that tenants are not bright but in the same instance not every one that rents is a scholar. You can be the judge of what your tenant can tolerate! |
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HOW THE SALES MARKET EFFECTS YOUR RENTAL PROPERTY
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 When real estate listing inventory is on the rise, (we are at a 5 month supply of homes), sellers place their homes on the market. Be aware of the current inventory of homes by checking the newspaper, reading online reports or doing a drive-by. www.alamotitle-austin.com |
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COLLECTING RENT
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 If your renter will pay before the 5th give them a discount! How much is $5 going to change your life? Keep your tenants happy! If you live out of town, consider drafting their account. This has become a more accepted practice used in the payment of many bills. Auto draft makes it easier on the tenant and they don't have to look at how much they are paying on a regular basis. Be cautious to use a third party though, sometimes companies can convince you that you need to pay for a service that is offered free by the financial institutions you already do business with. Start first with your bank. |
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LEASE EXPIRATION AND RENEWAL
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Think ahead! Give yourself at least 60-90 days to get your property rented. Plan your lease expirations for late winter (February) spring and summer months. This gives you time to prepare for the prime time of renting. Keep your leases current (update with new forms offered by TREC) and you can renew with a one-page form! Here's access to the forms you need! |
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SOFTWARE CAN HELP TO MANAGE YOUR PROPERTIES
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If you decide to go at it on your own be a good property manager and stay abreast of current software. If you use property management firm, be sure that they have state of the art tools to do it for you. The software is amazingly inexpensive and can save you so much time. See for yourself! Be sure the version is compatible with your computer. There are more expensive versions that might be better out there. www.tenantpro.com |
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USE ONLINE SERVICES TO GAIN EXPOSURE
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Austin American Statesman Classifieds http://www.statesmanclassifieds.com/realestate/rentals. Rental Housing Services http://rhol.org/rental/default.asp. Online exposure is extremely effective if used correctly. Keep ads short and sweet. Try to use free online services because you know they are out there and you're smart enough to go look for them. If you don't have time to spend your advertising money wisely, hire someone to do it for you! |
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MANAGEMENT AND LEASING FEES
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 Management fees are about 8-10% of the month's rent (on a monthly basis) and some firms charge to lease the property (50%) and are allowed to keep reletting fees if your tenant moves early, etc. Read the contract! Some companies will just charge you to lease the home without management services. For the most part, the price you pay often dictates the service you will receive. Experience and research are necessary here. Go with a company that charges 50-100% of one months rent. Outline what they will do for you prior to committing. Look at a list of their current inventory and see if it works well for your property. If they specialize in North Austin and your property is in South Austin, what good will that do you? Use common sense here. |
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TAKE PHOTOS OF THE EXTERIOR
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 Every few years, if you are an absentee owner, take photos of the exterior. I offer the service of taking a few photos FREE if you commit to listing the property with me when you sell. Send me an email now and consider it done. . |
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I hope this list of ideas is helpful. If you would like more information I am available for consultation. I do not specialize in leasing rental properties however I am focused on sales in the Central City and would be happy to chat with you especially if you live out of town and need some assistance from a local expert.
Take Time to Do Research on Managing your Property
and You will Succeed!
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