As one of the most experienced Dallas property management companies we like to think we know a thing or two about what makes a rental property successful. Whether you are in the market for your first rental property, or you want to add another property to your portfolio, we can help you choose a property that will appeal to renters in the Dallas area. Check out our tips below for buying the perfect real estate investment.
Picking the Best Time to Invest in Dallas Real Estate
Even if you have the money to invest in real estate, it may not be the right time. While no one can tell you what the future holds for the Dallas rental market, we can look at trends to determine whether or not now is a good time to invest in real estate.
The first thing you should take into consideration is the large number of renters flooding the Dallas area. As most Dallas property management companies will tell you, rental homes are in high demand in part because there are more renters now than ever before. According to Pew Research Center, from 2006 to 2016 the number of owner-led households remained relatively flat, while the number of renter-led households rose. In fact, NPR recently reported on a growing number of home builders who are building renter communities. Much like apartment buildings, these communities are made up entirely of rental units. However, each unit is a detached single-family home with a backyard. Individuals who aren’t ready to buy, or want the freedom that comes with renting, are looking for the perks that come with a single-family home.
Next, look at the Texas economy. Dallas in particular is growing, making real estate a great investment. New businesses and commercial growth coming to Texas mean more people relocating to the Lone Star State. Dallas, Fort Worth, and the surrounding areas have an ever-present need for quality rental units. Housing prices are rising, so now is a great time to consider your investment goals and start looking for that perfect rental home.
Finally, Dallas property management companies recommend speaking to experts in the area. Local realtors and property managers can give you inside information about the market. The team at Specialized Property Management Dallas has over 30 years of experience in professional property management. We also work closely with the top realtors in Dallas so we know who to refer our clients to when they want to buy more property. If you’re wondering when the right time to buy rental property in Dallas is give us a call today.
Picking the Perfect Location For Your Rental Property
We’ve all heard the old real estate cliche, “Location, Location, Location.” This saying, however old-fashioned, holds especially true for purchasing investment property. Location will dictate which tenants find your rental attractive, as well as how much you can charge for rent. Pick a property located close to shopping malls, grocery stores, gas stations, restaurants, and public transportation. Choose a rental property that is not too far from a freeway or a major road so that tenants will have an easy commute to work.
When you start your search for the perfect rental property it is vital to look for a home that supports a family lifestyle. Our Dallas property management company suggests looking for homes near good schools. Parents who cannot afford to buy in a neighborhood with great schools will often rent in that neighborhood while their child attends school. If your tenant falls into this category it is likely they will stay in the house for 4 years or more.
Look for a property in a neighborhood with lower vacancies, higher rents, and where the value of the homes is appreciating. You don’t want to be lowering the rent each year trying to attract tenants. You want a property where you can raise the rent annually. In addition, you want a rental that will increase in value in case you ever decide to sell.
If you plan to buy multiple properties, buying homes in the same neighborhood or area will help you to manage them efficiently. When you need to stop by one, you can stop by several to check them out. You will also become more familiar with the market around the area. Much like your Dallas property management company, you will learn what to charge in the area you decide on investing in. Another way to be efficient with your time is by purchasing properties on a route you take regularly. Purchasing properties on your route home from work, church or anywhere else you may already be driving 1-3 times a week will save you time and hassle.
If possible, avoid buying new rental property in a state you do not live in. This is a risky move when you are a Dallas rental property owner. If the homes are in your area, you can ensure they are being taken care of. Buying out-of-state typically means using an additional property management company that is local to the new market(s).
Navigating Local Ordinances and HOAs
Even if you are a Dallas native, chances are you don’t know the ins and outs of every ordinance in every neighborhood and suburb. The regulations and ordinances for landlords differ from city to city. In some areas, you can be fined for violating ordinances. Other communities are more laid-back. Take the time to find out the regulations required in the neighborhood you want to buy in so you don’t lose money. This is one area Dallas property management companies can be a huge help to investment property owners. Take advantage of our hard earned knowledge of local, state, and federal regulations in order to avoid big fines.
Does the neighborhood you are looking at have a Homeowner’s Association? Experienced Dallas property managers know that an HOA will be an attractive feature for some renters, but not for others. HOAs can be a great thing as often they are in charge of keeping the neighborhood clean and attractive to residents, driving up property values. HOA managed neighborhoods are also more likely to have well maintained parks and pools that will attract residents. However, if you aren’t familiar with the codes and rules for your HOA, you could lose time and money by violating them. Be sure to identify what the HOA codes are, and how you will enforce them with your tenants. You also need to decide if you will be able to cover the HOA fee on top of your property taxes and mortgage payments.
Home Features Recommended By Dallas Property Management Companies
You decided now is the right time to buy, you narrowed down the neighborhood you want your rental home to be in, and you know your budget. The next step is to choose the perfect house. The features you look for in a rental home are different than the features you look for in a personal residence. To pick the right investment property you have to think like the average renter in the Dallas area. Here are some general guidelines for purchasing rental property:
- Look for homes no older than 15 years. This will help keep down maintenance costs, and save you money long term.
- Look for homes that are not located on busy streets, and have fenced yards. This is more attractive to a family of younger children.
- Single-family home rental properties should have at least 3 bedrooms and 2 bathrooms.
- Look for “perks” that will make your tenant’s life easier, like laundry hookups and plenty of storage space.
- Avoid homes with unusual layouts as these feel less workable to the average tenant.
According to Dallas property management companies, buying the right or wrong property will determine your long term success. The property type you choose will affect what type of potential tenants you attract, and how long the home stays vacant. These are all things to keep in mind as you begin your journey in to the rental property industry. By making smart decisions today, you and your property management team will be pleased with your future results.
Get Started Today With the Top Property Management Company in Dallas
Making wise choices with your real estate investment doesn’t end when you sign your closing documents. Buying real estate is a great investment strategy, but only if you manage it correctly. Small mistakes made by inexperienced property owners can lead to increased costs, liabilities, and fines that put your investment at risk. That is why so many smart investors choose to work with Specialized Property Management Dallas. Our property managers have decades of experience in rental property management. We take the hassle out of the day to day, and save you money while doing it. Unlike most Dallas property management companies, we offer comprehensive property management services focused on single-family rental homes.
If you are considering purchasing a rental home talk with the experts at Specialized Property Management Dallas. We will help you make the right choice for your real estate investment. To set up an appointment call us today at 214-233-7572.