Rent Rates Continue to Rise Nationally and in Fort Worth Property Management

All over the nation rent prices are climbing, with RentCafe indicating the national mid-year average at $37 more than last year, with the highest rates in Manhattan at $4,190, and Los Angeles around the $2000s and $2500s. These rates are increasing quickly, with significant changes occurring just since January 2019. Chicago and Denver are 2 of the largest renter hubs in the nation and they both increased by 4.8% and 3.6% respectively in just 6 months. A blog article from Housing Wire explains,

“RentCafé’s data shows that 88% of the cities analyzed in its report experienced a rent increase in the first half of the year. In June alone, 35% of the country’s largest 260 cities had rents that exceeded the national average, whereas only 5% of rents fell below this median.”

“In true seasonality fashion, June brings rent increases consistent with the end of the second quarter. Nationally, average rent prices reached $1,465 following a 3.2% annual increase and up 0.8% since last month — the highest monthly jump since May 2018.  Compared to last June, renters pay $45 more on average according to the latest rent survey from Yardi Matrix.”- RentCafe

Why the Rise in Rent Rate

America’s current housing crisis is causing the steady and significant rise in rent which is affecting just about everyone nationwide, including Fort Worth property management companies like Specialized Property Management. As housing prices go up, people who would have been homeowners are now finding it more affordable to rent than to buy. This has lead to an influx of potential tenants in the rental market and especially single-family homes for rent. This has also created more competition among tenants because lower-income-earning tenants are now up against higher-income-earning tenants and property owners want tenants that they know can afford the increase in rent and afford to stay for a long time. In addition to the rise in prices, there’s also been a decrease in the construction of new homes and low-income housing, leaving millennials with almost no option other than renting. According to MySmartMove,  

Millennials now make up the largest generation in history and have a large impact on the rental and housing market. Millennial workers make an average of $21.80 per hour, $5.78 lower than the national average. National rent prices are so high that millennials are spending a greater portion of their income on rent. According to RentCafe, the average millennial will spend about $93,000 on rent by the time they hit 30. This is 45% of their income going to rent between the ages of 22 and 30.”

Rent in Fort Worth Compared to National Trends

The recent increase is also true for homes and rental properties in the Dallas/Fort Worth area, but at a slower rate. Fort Worth property management companies are happy to see the increase in rent because it means happier property owners with an increase in income. The rise in rent rates also means landlords can be more selective about tenants, which can increase the value of their property, decrease turnover rate, and continue the flow of a steady income from tenants who consistently pay their rent on time. Though the overall increase in rent rates is a positive thing for property owners, the slow growth of the Dallas area is raising concern in Fort Worth. Property management companies like Specialized Property Management are always up to date on current rent trends in the area and can help you choose the best rate to charge your tenants to stay competitive and avoid vacancies. According to RentJungle

“As of April 2019, average rent for an apartment in Fort Worth, TX is $1043 which is a 0.96% increase from last year when the average rent was $1033, and a 0.77% increase from last month when the average rent was $1035. One bedroom apartments in Fort Worth rent for $893 a month on average (a 0.56% increase from last year) and two bedroom apartment rents average $1139 (a 1.76% increase from last year).”

Good News for Property Owners

Though many people fear an impending housing market crash, the present and the future contain opportunities for rental property owners and rental property management. Fort Worth may not be rising as quickly as other cities in the nation, but it is still rising at a steady rate. This rise in rent rate allows rental property owners to make more money, cover their expenses, be selective about tenants, and make their property more competitive. Just by slightly lowering your rent rates or investing a small amount of money to update your property, you can make your property more desirable. With the large demand for leased single-family homes and the relatively small availability of these homes on the market, you and your Fort Worth property management company can decide who to rent to and for how much. 

Specialized Property Management 

You can look around the neighborhood to get a feel for how much rent to charge for your property, but trusting someone with experience and a vast knowledge of rental trends in your specific area can help you get the most money while maintaining consistent tenants. Specialized Fort Worth property management company takes the stress out of owning a rental property by doing everything for you in the right way. Our services include:

  • INSPECTING: Our team ensures the rental unit is “rent-ready” with curb appeal, making recommendations where necessary.  We also conduct mid-lease inspections to ensure lease compliance and care of the property.
  • MARKETING: We aggressively advertise your rental property across dozens of websites, post an eye-catching sign on the property, and post the vacancy to our high-traffic rentals listing and Youtube channels.
  • SHOWINGS: We prepare and post quality video tours of the property and take care of live showings.
  • SCREENING: Our team at Specialized Rental Property Management Fort Worth conduct rigorous background checks on all prospective tenants 18 years and older to place the most reliable tenants.
  • SIGNING: We prepare and execute all leasing documents in accordance with Leases & Addenda promulgated by the Texas Association of Realtors.  We secure rents and place deposit funds into escrow, and provide a formal new tenant training on how to care for the property.
  • COLLECTING: We enforce the rent collections cycle with a strict, yet respectful, process that helps avoid late payments.  We then quickly deposit rent funds to your account electronically.
  • MAINTAINING: We respond quickly to your tenant needs and emergencies, handling repair requests with our cost-effective team of qualified, insured maintenance professionals.  We also conduct periodic proactive interior and exterior inspections and preventative maintenance.
  • RENEWING: Our Fort Worth property management company actively works to retain tenants longer with excellent service and perks like our Resident Club.  As we proactively renew leases, we help you avoid costly turnover.
  • MOVING: When the tenant does move on, we process notices, educate the tenant on the process for a smooth transition, conduct the walkthrough and manage deposit disbursements.
  • REPORTING: In addition to the 24/7 client portal with on-demand, detailed accounting, activity, and maintenance reports, we provide detailed monthly reports and year-end tax statements. During the leasing process, owners receive weekly updates.

What Tenants Want

This article from RentCafe explains the rise in rent across the nation in more detail, with a chart that allows you to search your city and see what the average rent is there. It also explains what renters are searching for specifically when they look for housing in Fort Worth. Property management can save you time by doing this kind of research for you.

Rentals near me have dominated online searches throughout the first half of the year. Google searches including variations of apartment types within a certain radius of a person’s location have by far the largest search volume of the first months of 2019. Data on apartment-related searches showed that, next to a desirable location, the renters’ mindset is driven by functionality and financial awareness as the key terms that round up the podium are studio (6%) and cheap (4%).”

Since most tenants are looking for smaller and cheaper, marketing your property as such or showcasing all the other reasons why it’s worth paying more for is crucial to gaining consistent tenants. With the current situation being as it is, you also need to take advantage of this landlord’s market. Rather than spend your time worrying about how to market your property and interviewing tenants, it would be wiser for you to look into how you can invest in other properties, especially smaller, more affordable ones. Let Specialized Fort Worth Property Management take complete care of your current properties in Fort Worth and keep you in business. With our customer-driven service and seven specialized guarantees, you can’t go wrong by giving us a call and seeing how we can make your life easier, earn you more money, and protect you from legal complications. With rent increasingly on the rise, there is no better time than the present to invest in real estate. Call today!

Myths vs. Facts About Property Management in Fort Worth

People tend to assume a lot of things about the realities of owning a rental property, especially when they first get started. There’s a learning curve that may surprise those who are new to owning property. They soon realize that managing their property, finding reliable tenants, collecting rent, keeping up with maintenance, and staying in line with legal and financial obligations is incredibly time consuming and more than they bargained for initially. Then they start considering property management in Fort Worth, but they have a hard time finding a really good company they can trust. Bigger Pockets, a Real Estate Investment website, talks about the dirty truth about property management only experience will teach you, and how to know what to look for in a property manager. After you read the following six commonly believed myths and the real truth behind them, you’ll know what to expect and if hiring a property manager is something that you should do to save you time, trouble, worry, and money. 

Myth: Leasing Rental Properties is Easy

Fact: Property owners invest in real estate because they know it’s a smart way to make money. Unfortunately, they also tend to think that there’s not much work involved. Put a sign in the yard, post the home to Craig’s list, and the honest, reliable tenants will come running. That is a total myth. The truth is, the majority of homes stay vacant for an average of 52 days, and it can be even longer than that if your home is priced too high or isn’t ready to rent. Paying the mortgage on a vacant home is definitely not what you wanted to have happen. It’s crucial that you price your home well, update it so that it’s ready for move-in, and market it to your ideal tenant. Specialized Property Management in Fort Worth can lease your home for you and has leased most homes within 30 days of being on the market. We’ll perform background checks and debt-to-income ratio analyses on potential tenants to make sure they are reliable and trustworthy. We’ll also perform a property assessment, market the home on over 90+ sites, conduct all showings, sign the lease contract with the tenant, and collect the rent. The fee you pay us is well worth it when you consider the cost of an extensive vacancy and the value of your time. 

Myth: You Should Save Money and go With the Cheapest Property Management Company

Fact: People think that all property management companies in Fort Worth offer the same services. This just simply isn’t true. Smaller fees usually mean fewer services and guarantees, or poor customer service. Most property management companies require a group of people to multi-task and complete all the tasks for all of the properties. This means that everyone in the group must be knowledgeable about all aspects of marketing, leasing, maintenance, evictions, accounting, inspections, and legal obligations. With a group of people multi-tasking on your property, you may end up with someone who knows what they’re doing, or the new guy who is still learning. There is no guarantee, but either way, they won’t be able to keep up with the best practices or give you the specialized attention your property needs. Specialized Property Management in Fort Worth uses a team of specialists who all have years of experience and are up-to-date on the latest protocols in every area. This means you’ll receive the best possible service and outcome in every situation and won’t be left wondering why nobody knew what to do. 

Myth: It’s a Quick and Easy Process to Find a Tenant That Will Pay on Time and Take Care of My Home

Fact: This belief is very common and property owners tend to think that if a tenant doesn’t work out, they will be able to easily and quickly find a replacement. This is false. Placing the wrong tenant will cost you 4-6 times the monthly rent rate. If you don’t know how to identify falsified documents or be aware of red flags from tenants while you’re interviewing them, you could easily be stuck with a tenant who doesn’t pay their rent on time, or at all, damages your property in some way, or moves out without notice, leaving you in a bind. Specialized Property Management Company Fort Worth protects you and your wallet from having to go through any of this by heavily screening future tenants and making sure that their credit scores and documentation are real, that they’ll be reliable, and that they’ll pay their rent on time. If we weren’t there at the time you placed a less than ideal tenant and anything goes wrong, we can enforce rent collection and take care of the eviction process, but we can’t help you avoid the associated costs. The following example gives you an estimated cost breakdown of placing the wrong tenant:

EXAMPLE: $1,000 RENTAL

  • Tenant fails to pay for one month $1,500
  • Eviction court fees $500
  • Additional days to evict $750
  • Damage to the home $1,750
  • Re-marketing vacancy time $2,250
  • TOTAL COST $6,750

Myth: I Can Expect a High Enough Rent to Pay for My Costs Because My Home is in Great Shape and in a Good Neighborhood

Fact: So you took the time to update your home and make sure the schools were good and the neighbors were friendly. You should be able to charge enough rent to cover your costs right? Not necessarily. Most property owners discover that they have to lower their rent because the supply of rental homes on the market is greater than the demand and assume they can’t afford property management in Fort Worth. Unfortunately, the real estate market is indifferent to your expenses and “PITI” (Principal, Interest, Taxes, Insurance). In some cases, out of pocket costs are required to cover the expenses of the property owner since rent is not enough. On the bright side, owners can use their property as a tax strategy and/or receive large returns as the home naturally gains value in future years, and property management fees may be tax-deductible expenses from the IRS. Specialized Property Management can help you price your property in the best way so that your property doesn’t sit on the market and so that you can cover as many of your expenses as possible. 

Myth: Handling Maintenance Requests is Simple: Answer the Phone and Send out a Reputable Repair Company

Fact: It’s actually not that simple. Specialized Property Management Company Fort Worth is educated on and has extensive experience with all the property code, local city ordinances, and Federal Landlord Laws that must be followed indicating what must be repaired by landlord vs. tenant. Judges have zero tolerance for property owners who claim ignorance of these laws, so you need to spend a significant amount of time either educating yourself or finding a property management company that knows what they’re doing. The laws have specific instructions for details such as communication between the landlord and tenant, and even what type of technician must perform the repair. If you, as the property owner, don’t take the correct steps to ensure those doing the maintenance on the property have the right licensing and insurance, and the worker does not follow code or gets injured, you are responsible for those costs. 

Myth: Managing a Property Means Just Collecting Rent and Handling Maintenance

Fact: Property owners need to constantly be aware of liabilities involved with owning rental property via their insurance coverage and obligations to the tenant. You can either hire property management in Fort Worth, or you can try to stay up to date on all tenant and landlord laws, property code, Federal Fair Housing Laws, as well as local city ordinances that can change annually. Managing rentals also requires you to be an expert in marketing, real estate contract law, trust and escrow laws, accounting for tax purposes, collection laws, eviction laws, property inspection regulations, and much more. Here’s a guide from The Balance Small Business Blog on some of the additional responsibilities landlords have to their rental property and their tenants. 

Keeping up with all of these things in addition to collecting rent and handling maintenance requires a skilled and experienced team. Let Specialized Property Management Company Fort Worth step in and take out the stress and headaches of being a landlord. Not only do we know what we are doing from years of experience, we are up to date on changing local policies and provide seven specialized guarantees to protect you. Our team of experts takes care of everything in exactly the right way so you no longer have to stress about simple mistakes or not knowing everything there is to know about property code in your area. Few people have the patience, knowledge, or legal understanding to self manage their rental properties successfully. Give us a call and see how we can help you save money and properly take care of your property by doing everything right the first time.