Tag: Texas

4 Rental Property Market Trends To Watch In 2023

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With the new year comes key themes and market trends that have carried over from 2022 and will continue to affect rental properties in 2023. While rent prices in Greater Austin have increased since the pandemic, we noticed a cool down at the end of last year that is promising coming into the new year. 

Take a look at 4 of the top rental market trends to watch in 2023:

Record High Inflation

Inflation is at a 40-year high, and everyday items like food and gas cost more than they used to. The price increase is causing renters to struggle with household expenses and paying their bills on time. Property managers should watch how high costs rise and have an open line of communication with renters, both of which will play vital roles in property management going forward.

Mortgage Rates May Continue To Rise

Rising mortgage rates have made it difficult for some would-be buyers to purchase homes, so they are turning to renting. As much as this affects buyers, it affects sellers’ plans, too. Sellers are shifting their plans to sell, and many are looking to rent out their homes since many buyers cannot afford them. 

Renters Looking For A Diversified Space

Working from home remains prevalent going into 2023, so many renters are looking for more diverse rental properties. In addition to a home office, renters are looking for properties with outdoor space, larger kitchens, and flex spaces. 

Single-Family and Suburban Area Rentals

Due to high inflation, rising mortgage rates, and remote work, renters are coming from many different age groups. While most renters are millennials, many baby boomer renters are tired of the upkeep of a home. This is leading renters to look for single-family properties in suburban areas.

While none of these trends are necessarily new, they are still important to think about going into 2023. If you have any questions or need recommendations, reach out to us! We are always here to help.

How To Warm Up Your Bathroom For Winter

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Texas is in for some frigid air and cold temperatures this winter, and nothing is worse than stepping out of the warm shower onto cold tile floors in your bathroom. Luckily, we have six easy tips to warm up your bathroom this winter!

 

Seal Your Windows

Cold air can get inside even through the smallest of gaps. So make sure to check around the glass and frames to feel for drafts and caulk the edges if needed. In addition, keep the blinds up on days when the sun is shining. The sunlight will raise the temperature in the bathroom slightly and help with any cold air.

 

Add Warm Decor And Paint

Paint isn’t going to help you feel physically warmer, but painting and decorating with warmer tones can help give the room a warmer feel. Bold, warm colors like red, orange, or yellow or cozier options like taupe and creams are great options.

 

Update Your Showerheads

Shower heads are usually only replaced if they break or stop working, but consider this an opportunity to update them. Many water-efficient showerheads use less hot water than older models, meaning you can take longer showers and conserve water. In addition, the longer shower will make the bathroom warmer when you step out.

 

Change Your Lightbulbs

Heated light bulbs may not make a huge difference, but they will help, especially in small areas like bathrooms. Most heated light bulbs are energy efficient, which is different from traditional light bulbs, and they provide light and heat in one!

 

Install A Heated Towel Rack

Pretend you’re at the spa all year long and have a heated towel rack installed. Most heated towel racks are electric, but some can be connected to your hot water system. Depending on which type you decide on, you may need a plumber or electrician to install it.

 

Add Heated Floors

If you want to get fancy, you can add heated floors to your bathroom. Not only will they keep your feet warm, but they will radiate heat throughout the entire bathroom and help dry up wet floors faster. 

 

Incorporating a few or all of these tips will help bring some warmth into your bathroom this winter. If you have any questions or need recommendations, reach out to us! We are always here to help.



Pros and Cons of Month-to-Month Tenants

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Regarding leasing agreements, the two most popular agreements are month-to-month and year-long. Most landlords prefer the traditional year-long agreements because they lock tenants into a rental property for an entire year, but let’s dive into the pros and cons of month-to-month leases and see how they could be beneficial to you and your Round Rock rental properties. 

Pros of Month-To-Month Tenants

Flexibility

Month-to-month agreements allow landlords to control whether they want to keep the tenants in the rental. All landlords have to do is give adequate notice per state requirements that the agreement will not be renewed and the tenant would have to move out. Texas and most states require a 30-day notice, but be sure to verify with your state.

Rent Raises and Policy Changes

With month-to-month agreements, it’s easier to implement rent raises and policy changes when your rental properties are vacant. You also won’t have to worry about losing any tenants during this time, so you can see what works and what doesn’t. 

Keep Great Tenants

If you have tenants who pay their rent on time and aren’t ready to sign a fixed lease, being able to offer them a month-to-month lease is a great option. It will keep them there longer, not cause you any problems, and will save you from having a vacant property. 

 

Cons of Month-To-Month Tenants

Lack of Stability

One of the biggest cons of month-to-month agreements for landlords is the lack of stability. It’s challenging to figure out how profitable you will be in a year with the unknown of how many tenants you will have and how much rent you will collect. 

Flexibility = Uncertainty

The flexibility of controlling tenants and end dates can also mean uncertainty. Not knowing how long a tenant will be in a rental property means you don’t know how much money you will make or when you will need to find new tenants. 

Short Notice

While landlords can provide notice to tenants to move out, tenants can also give a 30-day notice to landlords at any time. This means short notice for landlords to find new tenants, which could lead to further issues if landlords rush and don’t conduct a proper screening.

 

Overall, there are a lot of benefits to month-to-month leasing agreements, but it is important to compare them to yearly agreements and decide what is best for you as a landlord. If you have any questions or need recommendations, reach out to us! We are always here to help.

 

4 Ways to Prepare Your Rental For Winter

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The weather outside will soon turn frightful in Round Rock, which means it’s time to start thinking about winterizing your rental property.

 

Here are 4 ways to get your rental home ready for winter:

 

Service Your Furnace

With the colder temps coming, you’ll want to make sure the furnace is in working order. Make sure to get an appointment on the books to have the furnace serviced and the filters changed. Having your furnace checked doesn’t take very long and it will go a long way with your tenants to know they’re good to go.

 

Check the Roof and Gutters

Make sure there is no damage to your roof or gutters. In addition, make sure the gutters and downspouts are clear of debris to avoid blockage and potentially further damage.

 

Winterize The Pipes

The last thing you want is for your pipes to freeze because they are very expensive to have repaired, so make sure to have them winterized. Make sure exposed pipes are insulated and all exterior faucets and hose bibs are turned off.

 

Check for Cracks

Inspect the foundation, doorways, and windows for cracks and signs of moisture build-up. If water seeps in, it can cause additional cracks and further damage. Also, gaps in the doorways and windows can let in moisture and cold air so make sure to caulk any gaps.

 

Winter will be here before we know it in Round Rock, so it’s important to check these items off your maintenance list. If you have any questions or need recommendations, reach out to us! We are always here to help.



Fall Home Improvement Projects To Tackle Before The Holidays

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The true start of fall in Williamson County is a clear signal to homeowners that it may be time to tackle that ever-growing list of home improvement projects before the holidays officially roll around. Fall also means more downtime for homeowners. The long-lasting Texas heat begins to dissipate, and cozying up inside with a cup of hot tea sounds better and better. Before the season is over, take a look at some of these easy home improvement projects that’ll keep your home in pristine condition for the holidays.

Put That Leaf Blower To Work

A muddy entryway is the last thing you want your holiday guests to see. To combat this, as the season grows colder, grab your leaf blower and clean any debris from your porch, driveway, and patio. This will keep your home clean in the future and brighten up your entire property!

Organize Your Book Collection

Let’s be honest – was this one of your new year’s resolutions last year too? With the new year creeping up faster than expected, it would be wise to get ahead of your past resolutions before you start adding even more to the list! Sift through your shelves and make a pile of books to donate, and consider organizing by book height or color to add a modern touch to your home.

Wipe Down Any Lights And Decor

This project is so simple and quick that it may not seem worth completing, but we assure you that you will notice the difference. A clean home is a happy home, so grab those cleaning supplies and a hefty stepladder to dust off every nook and cranny.

Getting a head start on your home maintenance projects before our Texas weather gets too chilly will yield great results, allowing you to properly relax and enjoy the holiday season. If you’re hoping to jump on even more fall home projects, don’t hesitate to reach out!

 

What Does A Home Seller Pay for in Closing Costs in Texas?

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Last month, we covered what a homebuyer pays in closing costs in Texas, and now we’ll cover the other side! The buyer and seller will pay different amounts when it comes to closing costs. The good news is that some of the costs are negotiable. Here is a breakdown of what a seller pays for in closing costs and if it’s negotiable. 

Title Company Fees for Homesellers in Closing Costs

These fees are specific to the title company that the seller usually pays. 

Title Insurance Premium

This is the most common seller paid expense in Texas, but it is negotiable depending on the situation. On a $450,000 home, the title insurance will cost $2,677. The state sets this fee and calculates it as a percentage of the sales price on a sliding scale. The sliding scale means it will change as the price increases. For a more in-depth understanding, visit the Texas Department of Insurance website here. 

Escrow Fee 

The buyer and seller each pay their own escrow fee. An escrow fee is the title company’s administrative fee for working on the file through closing. This fee is set by the title company and can range from $350 to $700, depending on the title company you choose. 

Document Preparation

The documents you sign at closing, like the deed, are put together by a third-party attorney. This expense is a non-negotiable seller expense. It usually ranges from $100 to $150. 

Tax Certificate

This is another non-negotiable seller expense. A tax certificate will verify the correct amount of taxes to collect in order to balance the taxes at the time of closing. The pricing varies by company or county but typically ranges from $40 to $70. 

Delivery/Courier Fees

Depending on what the title company charges, the buyer and seller can share these delivery fees. Not all title companies charge this fee, so ask the company or your REALTOR®. This fee covers any documents that need to be collected and mailed. Price will vary depending on the postage cost and how much a courier service may charge but typically ranges from $25 to $250.

Mobile Notary

Especially during the pandemic, this was a more common fee as a mobile notary allows for someone to come to you to sign instead of signing in person. This fee will range from $100 to $250 for each signing, meaning the buyer and seller sign separately and each pay this cost.  

Contractual Expenses for Home Sellers in Closing Costs

These expenses don’t go to the lender or the title company. They are expenses that go to third parties or directly to the buyer. 

Home Warranty

A one-year home warranty will cover items insurance won’t cover, like HVAC and the water heater. Typically, a buyer will ask for a credit to cover the cost of this. This expense is entirely negotiable and ranges from $500 to $700.

Home Survey

Usually, the seller furnishes the buyer with an existing survey. If one doesn’t already exist, the survey can be negotiated for who pays for it. The average cost is $400 to $550 but can easily cost thousands of dollars for larger properties. 

HOA Documents

The buyer will typically ask the seller to cover the cost of furnishing the HOA bylaws, rules, regulations, and other documents. Price will range depending on the HOA but cost around $200 to $250. 

Resale Certificate

Sometimes included in the HOA documents is the resale certificate. The HOA documents and the resale certificate together are called a resale package and can cost $400 to $500. 

If it’s not included in the HOA documents, the accounting information the title company needs in order to close will cost $200 to $250 to receive. 

Transfer Fee

The buyer usually pays for this fee. A transfer fee is an administrative fee paid to the HOA to transfer ownership to their system. It costs from $150 to $250.

Commissions

The most considerable fees the seller will pay will be the commission for the seller’s and buyer’s agent. A seller will usually pay 5% or 6% of the sales price in total commissions between the agents.

 

If you’re ready to sell this month, contact us today! Reach out to TALK Property Management– We are here to help: (512) 721-1094 or dbrown@talkpropertymanagement.com.

How Texas Is a Landlord-Friendly State

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Texas consistently ranks high as a landlord-friendly state, and there’s a reason for that! The main reason is the state laws that favor the property owner/landlord, and Texas has a robust system that preserves owner rights. We’ll cover what those laws are and what it means to be a landlord-friendly state. 

What Does It Means to Be a Landlord-Friendly State?

Several factors running from laws to taxes are considered when evaluating whether a state is landlord-friendly. Texas is landlord-friendly because these factors make owning property and being a landlord easier compared to other states. 

There could be an endless discussion about what the factors should be when assessing a landlord-friendly state, but here are five universal factors found in today’s most landlord-friendly states: 

  1. Eviction Process
  2. Landlord & Tenant Rights
  3. Rent Control & Deposit
  4. Registration & Licenses
  5. Competition

Eviction Process

Evictions are the worst and most feared situation of owning property and renting it out. Luckily, Texas is one of the few states that makes the process easier. Texas takes lease violations very seriously. As long as the landlord can show that tenants are not complying with lease conditions, the eviction process is easy. Landlords seeking to evict non-paying tenants only need to issue a 3-day notice. As a landlord, they’ll receive more effortless relief, compensation, or repossession of the unit, which is reassuring to landlords.

Landlord & Tenant Rights

As mentioned above, Texas takes lease violations very seriously. Our state emphasizes the preservation of landlords’ rights in the event lease conditions are broken. This is a significant factor investors consider and what makes Texas a popular investing market for property owners. Texas is also unique because the state laws allow tenants and landlords to enter into their own agreement for repairs. This is not an option in other states. 

Rent Control & Deposit

Another unique perk to investing in Texas is the state’s no cap on rent or applicable fees like pet fees or application fees. There is also no limit on how much landlords can charge as a deposit. The last benefit is no Texas laws require landlords to provide tenants with notice of rent increases between lease terms. 

Registration and Licenses

Depending on your property, you might have to register your property with the city. Multifamily rental units need to be registered to the city, and it only costs a small annual fee of $10 to $25 per unit. Once the tenant submits a simple form identifying basic information about the property, the city will inspect it. The city does inspections once every three to five years to check for significant code violations and life-threatening conditions. If a tenant is renting a single-family property, they can usually skip this step. 

Competition

Population growth will determine how competitive the market will be for your property. Austin and the Austin area are multiplying as more businesses and companies are relocating, creating new jobs, and requiring their current employees to transfer. Texas has a high-demand rental market, so it’s wise to tap into this market as an investor. 

Are you thinking of investing in or buying an investment property? Contact us today! Reach out to TALK Property Management– We are here to help: (512) 721-1094 or dbrown@talkpropertymanagement.com.

4 Tips to Prepare Your Rental Property for Cold Weather Pests

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While the weather hasn’t cooled down much in Texas yet…make no mistake; winter is coming – well, Texas’ version. And, even though our winters don’t bring much snow at all (if any), there is still a chance for cold weather pest problems. How do you protect your investment from these unwelcome intruders? Here’s a look at a few tips to prepare your rental property:

cold weather pests

Seal possible entry points
Walk around the inside and outside of the home and look for any deteriorating structure or holes that a pest can fit through. Keep in mind; no hole is too small. Also, make sure your drains are covered with screens or metal gates to keep rats out of the sewer pipes.

Keep the exterior clear of debris and shrubbery
Clear any piles of debris around the house that may act as a hiding or access point for potential pest intruders. While you’re at it, also think about trimming any overhanging branches as these can act as a ladder/bridge for pests to access the home.

Pass along these tips to your tenants to ensure they don’t have any pest problems during their lease:

Store trash safely
While many know to store food safely inside your home, it is equally as important to store your trash safely, too. Trash all over the place can attract pests to your home. With that in mind, make sure to remind your tenants to keep their trash in a secure and sealed trash can. Don’t forget to eliminate any pools of water, as these can also attract pests.

Check for signs of pest activity 
Inspect both the inside and outside of the home for signs of pest activity by looking for rodent droppings of shed bed bug skins. Looking outside can ensure you catch the issue before the pests find their way inside.

Find a pest problem? Call a professional in Austin to help you remove any unwanted visitors. If you’re looking for a recommendation, give TALK Property Management a call. We have a list of trusted professionals we would be happy to share with you!