The best cities in Texas for rental property owners
Texas Housing - October 10, 2022
The state of Texas has seen 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.
Location is the key to finding the perfect city to live in
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 of 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. Another advantage is that you might be able to save some money in case you buy a rental property in your neighborhood. Namely, you will not have to spend money on traveling. The extra money will be saved on bus or taxi fares, which will not be the case if you opt for a location that is far away from your home.
There are also risks and disadvantages. Buying a rental property does not always seem profitable. There are many reasons why this is the case. Namely, there is a possibility that you might choose the wrong time to buy a rental property. This greatly affects the cost of it. In case you choose an inappropriate time for the purchase, you might pay too much and lose money when you decide to sell the property. Moreover, 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 want the purchase of your rental property to pay off, you will need to determine which one of these factors is essential to you.
If you are looking for cash flow, you need to look for a less expensive home in a less expensive market. The price-to-rent ratio would be better for cheaper homes in less affluent areas. In case you are interested in the first, it is very important that you do not have a negative cash flow. In order to achieve this, it is essential that you figure out how much money you will need each month for your property. On the other hand, 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.
How to solve the problem?
Vacant days are one of the worst things that can happen to a landlord. Apart from the loss of money that is inevitable, they might experience negative cash flow. Moreover, the lack of possible tenants and the uncertainty about when they will give up on your property, etc. might bring lots of worry and stress. However, there are certain ways to reduce the risk of empty periods. For instance, you might appear more welcoming and warm to your potential tenants. Whether at work, in a supermarket, or as a tenant, it is a fact that everyone wants to be treated nicely. By improving your approach, you might also find out that tenants decide to stay longer.
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
- San Marcos
- Canyon Lake
- Round Rock
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. Since it is located close to DC and it is easy to get there via various roadways, Arlington stands as one of the most desirable locations to live and invest in. Moreover, although it is not cheap to live in Arlington, the cost of living is far from the one in the capital city or other cities nearby.
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 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 the 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.
If you decide to buy a rental property in this area, make sure to hire the best North Austin movers. Although moving rarely seems easy and simple, with Evolution Moving NB, your relocation can seem a breeze. Some of the reasons for this is that you will have all the help and assistance you need. With a team of professionals by your side, you will never have to stress and worry. Apart from being licensed, these experts are also insured and experienced. In case you want to move your entire household, rest assured that these professionals will prepare a detailed plan. This will allow you to have a quick and efficient relocation with minimal waste of time.
San Marcos is one of the best cities in Texas for rental property
Since this place in Texas is a college town, you might be certain that it is a good location to buy your rental property. Since they are many students who come to San Marcos to study each year, it might be a wise idea to think about buying a house there. San Marcos is definitely one of the best cities in Texas for rental property since it is safer to rent a property there than in other places. The ‘no vacancy’ period will certainly be rare if you opt for buying a property in San Marcos.
Before you get to enjoy the beauty in this splendid city, make sure to hire one of the most affordable and reliable movers San Marcos TX. Their primary goal is your happiness and satisfaction. Therefore, these experts will provide you with all the information and services you need at any time. Apart from offering residential moving, Evolution Moving NB provides many other services, such as commercial moving, long-distance moving, and packing services. Whichever service you opt for, rest assured that you will not be disappointed.
Kyle is a great place for buying a property due to its strategic location which is close to many airports and highways. Moreover, Kyle is a great school district and attracts many students each year. In case you have chosen one of the best cities in Texas for rental property, make sure to hire some of the best moving companies Kyle TX to handle your relocation. The experts who work there are well-trained and experienced. They pay special attention to little details to make each customer satisfied. Apart from offering a wide variety of services, these professionals provide their customers with furniture assembly and disassembly.
In case you are thinking about finding the best cities in Texas for rental property, activities and transportation in Canyon Lake will definitely not disappoint you. Namely, there are many restaurants, shops, and supermarkets. Apart from these everyday activities, bear in mind that the nightlife there is extraordinary. Therefore, great fun and entertainment are guaranteed in this area in Texas.
Before you get to enjoy the beauty and fun of Canyon Lake, make sure to contact one of the best movers Canyon Lake TX. These movers are famous for being very fast and efficient. With them, it doesn’t take days to relocate to the desired place. If you entrust your move to one of the best and also most affordable professionals, you will not have to worry about any issues or problems. You will have a stress-free and smooth relocation.
Pflugerville is one of the best places for a rental property in Texas
Pflugerville is a very lively and cheerful place in Texas. It is definitely considered one of the best cities in Texas for rental property. One of the reasons for that is that the place offers many entertainment options that attract hundreds of people. When it comes to attractions, there are many outdoor activities, such as water parks, lakes, and parks. However, before you decide to buy your rental property in this area, do not hesitate to hire one of the most reliable movers Pflugerville. Since they pay attention to every single little detail, there is no chance that your move will go wrong.
If you have been wondering whether Round Rock is a good place to invest in rental properties, bear in mind the following factors. Namely, its proximity to Austin makes it an ideal place for starting your rental business. Moreover, it is famous for its various business, such as computer and medical ones. It is a very desirable area with the possibility of more technological growth in the future. Apart from being powerful when it comes to business, Round Rock also offers excellent and reliable movers Round Rock TX with lots of experience. These experts are well-known for being very punctual and efficient. In case you are in a hurry to relocate, these professionals got you covered.
All things considered, rest assured that real estate investing works well in the Texas home market. Its robust economy has brought about some of the nation’s fastest population growth. Moreover, property prices are gradually climbing with time. In case you have had some doubts, make sure that you have chosen one of the best cities in Texas for rental property. What you can do now is try to do thorough research to find the best city in Texas to purchase a rental property and enjoy your new business.