The best cities in Texas for rental property owners
Texas Housing - July 27, 2022
The state of Texas has seen a growth in terms of population and business prosperity over the past decade or even longer. The demand for single-family homes in Texas has been rising for quite some time. As a result, rental rates are rising. And Texas possesses numerous factors that attract Americans who want to relocate. Perhaps the main advantage is the lack of income tax. But, still, the question is – what are the best cities in Texas for rental property owners? We’ve got you covered. The best moving company Texas has will help you with your renting endeavors.
How to find the best cities in Texas for rental property owners?
Despite the fairly low housing prices across the state, many house seekers prefer to rent rather than buy. Renting can be very easy, but depending on where you are looking for the apartment, it can also be very challenging. In the real estate business, the most important thing is the location. But besides choosing a favorable location, there are other elements to consider. Today we will discuss the key factors to finding the ideal rental area.
Where to buy – near or far?
Most owners of rental properties buy within 30 minutes from their own homes. This has its advantages. You know the area well, you can visit the property. And if you do not want to hire a property manager, you are close enough to handle the situation yourself.
There are also risks and disadvantages. If you live in an expensive area, you cannot afford as much real estate as you would like. You are also more vulnerable to economic and weather events. If there is a significant recession in the local economy or a natural disaster, your investment is vulnerable because you have all your eggs in one basket.
Cash flow or appreciation?
In determining the area for investment, you should consider your goals. Before you hire movers Lockhart Texas, think about it: are you more interested in cash flow or appreciation? Cash flow means that you immediately earn on the property: the rent is higher than your expenses, including the mortgage. Appreciation means that the house will acquire more value during the period.
If you are looking for cash flow, you need to look for a less expensive home in less expensive markets. The price-to-rent ratio would be better for cheaper homes in less affluent areas. If you want to evaluate, your investment will be long-term. You will not make money right away. But the property will usually be newer and easier to manage because it will not require a lot of repairs. And the tenants will usually stay longer.
Another factor to consider is the vacancy. How long is a property in the area usually empty between tenants? You must set aside 5-7% of the monthly rent for the duration of the vacancy. It turns out about one month of no rental income every two years. Local property managers can get these numbers. Requiring notification from 60-90 days from your tenants and charging a fine if they do not provide it can help protect you from an extended vacancy.
Here’s a look at the best cities in Texas for rental property owners
Being the largest US state, Texas offers a variety of small and big cities to choose from. Also, it is home to the best long distance movers San Antonio who will be able to assist every renter with their relocation. Overall, Texas laws and regulations are very friendly toward real estate investors and property owners. This huge state consists of so many interesting places. However, some places have more favorable real estate markets than others. Some of the best cities in Texas for buying rental properties are as follows:
- Fort Worth
- El Paso
Fort Worth is one of the major twin cities of Texas, located next to Dallas, just a few miles from the Trinity River. It has many features that make it conducive to owning rental property. The population of Fort Worth has grown by about 6% from 2010 to 2018 and by 48% since 2000, when its population was only 534,694 people, compared with 792,700 by 2018. In addition, the average housing price is about $255,000, which is conveniently less than the average for the United States. No wonder more and more people are hiring long distance movers Texas and moving to Fort Worth.
Another great advantage for potential owners of rental properties in Fort Worth is several colleges in the area. College students are a profitable segment for rental property owners, especially because their parents – and their much more substantial wealth – are paying for their children’s rent. Because of this, property owners may charge a higher rent due to the almost insatiable demand for student housing. For example, the zip code 76109 in Fort Worth, which surrounds Texas Christian University, has an average rent of $2,874.
Garland, Texas, has several critical factors that make a large rental market: reliable performance and population growth. As well as excellent accessibility for potential investment owners. The population in Garland has grown by almost 5% since 2018 and by 10% since the beginning of the millennium. In addition, the average price of a house is $219,999, which is $50,000 cheaper than the national average and great for potential property owners.
A key factor to keep in mind is that Garland’s average income is lower than the average for the United States. In addition, in terms of the distribution of wages, 16% of incomes range from $20,000 to $30,000, and the cost of living in Texas is not that low, which can make home ownership a much less attractive option while renting becomes even more significant.
Arlington is also located in the Dallas-Fort Worth metro area. Thus, Arlington benefits from the general population and the economic recovery that the metro area and Texas as a whole are experiencing.
Like Fort Worth, Arlington has its share of colleges to lure tenants with money who pack for college and come to the city. Perhaps the most notable of these is the University of Texas at Arlington, which also boasts a modern planetarium. Other geographic bonuses include the AT &T Stadium, where the Dallas Cowboys play their home games, and Lake Arlington. The population of Arlington has grown significantly over the years. In 2010, the population of Arlington was 332,969 people. And in 2018, it exceeded 390,000 people, which is 18% over eight years. With so many people in the city, Arlington is one of the best cities in Texas for rental property owners.
El Paso is known to be a city with the lowest cost of living in the country. The main reason the housing market works so great and properties sell so easily is affordability. For instance, one can rent a house in this town for under $700. Also, the quality of life here is high, and the job market is booming. Therefore, apart from cheap housing, you get to live in one of the best places in the nation, according to various studies. The population exceeds 600,000 inhabitants, which makes El Paso a big city, but the prices are those of a small town. Having a rental property in this town is a big advantage because the big city vibe and low costs of living attract many renters from all over the country.
NASA’s Mission Control Center makes this city stand out and attracts a large number of people to move to Houston. Owing to this fact, the job market is flourishing, and the economy is booming. As a result of this, many people are looking to rent a home here. Also, housing prices are favorable to both the real estate investors and the people who are renting. For assistance with relocation to this amazing city, the best moving services New Braunfels are at your disposal. Home prices and average rent are below the national average, which makes Houston a city with one of the best housing markets in the country. The proximity to the beach is also one of many perks Houston has. Taking all these facts into consideration, having a rental home in Houston is a bingo.
The Texas capital has a very high demand for rental properties. A large number of young professionals are attracted to Austin for various reasons. An abundance of tech companies that offer very high-paid jobs draws many young people to this city and prompts them to rent a place to live. Also, Austin is home to Texas University, which also makes it popular for young residents to look for housing options here. For all these reasons, Austin is among one of the best cities in Texas for rental property owners. It is a very favorable ground for investors, as this city has a solid economy, a fast-growing population, a thriving job scene, and offers many activities to its residents.