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!

Why Single Family Homes are a Wise Investment in Fort Worth

Specialized Property Management started out over 35 years ago, and we went into the property management business with a focus on managing single-family rental properties. At that time, most rentals units were found in multifamily properties like plexes and apartment buildings. Read more

Arlington Residential Property Management: Dallas Market is Growing Fast!

As the top Arlington property management company, Specialized Property Management is dedicated to staying updated on housing trends to serve you better. A Metrostudy report recently found the Dallas-Fort Worth housing market is the top new home market in the country. Dallas-Fort Worth earns this distinction despite rising home costs nationwide that are driving down home purchases. On the other side, rents are rising, and the millennial generation is renting longer than previous generations. What does that mean for landlords and Arlington residential property management? With an abundance of homes at reasonable prices and more renters on the market, Dallas-Fort Worth and the surrounding areas are great places to buy rental property.

Arlington Property Management Company Sees Rise in Renters

The rise in renters, as noted by Forbes in a recent report, is important for landlords. With freedom and flexibility as top priorities among the millennial generation, many people see renting as the no-strings-attached way to live. It is easier to pack up and move across the country if you do not have a mortgage to tie you down. The Dallas-Fort Worth area is booming economically, with large companies such as Toyota opening their doors and hiring workers. Workers with families are attracted to the area’s many arts and cultural amenities.  They are looking for single-family homes to raise their families.

Arlington Residential Property Management That Works For You

If you’re looking to buy rental property in the Arlington area, you need an Arlington property management company that works for you. At Specialized Property Management we see the renting trends and do the research, so you don’t have to. We get your home rent ready, market, maintain, and much more. For the best Arlington residential property management, call Specialized today.

Property Management: Fort Worth and Dallas are the Best Places to Buy Rental Property

In an analysis of 30 rental markets, Business Insider ranked Dallas as the #1 place to buy a rental property. The Dallas Fort Worth area has become a booming economic center with large businesses, such as Toyota, moving to the area in the near future. With high paying jobs and cultural amenities like museums and theaters, you can be sure Dallas Fort Worth will attract many families who want to rent single-family homes.

Protect Your Investment With Property Management Fort Worth

For investors wanting to buy property in the Dallas Fort Worth area, there has never been a better time. Mortgages are still reasonable, with the median-investment home costing $199,300, and rents around $1,630. Dallas Fort Worth is a great place to purchase an investment home and make a big return, and with professional, experienced property management, Fort Worth landlords can make even more.

With Expert Property Managers, Fort Worth Landlords Win

Owning rental property is all about keeping your costs down. Cash flow is everything, but cutting corners can have consequences. Even though Dallas Fort Worth is a great rental market, landlords can lose big if their property is not run properly. Too often, landlords think owning property in a booming area will be an automatic win. Rental property is a long-term investment, and if it is not managed well, your investment could go south. With experienced property managers, Fort Worth landlords can keep costs down by performing proactive maintenance, placing qualified tenants, and avoiding costly mistakes.

For Property Managers Fort Worth Landlords Trust, Call Specialized

If you own rental property in the Fort Worth area, call Specialized Property Management. We have been in the business for almost 30 years helping landlords make the best return on their investment. Our property management team has the experience and professionalism you need to make the most out of this booming rental market. Real estate is a long-term investment, and with Specialized you can be sure your investment is stable for years to come. Call Specialized today to learn more about all our services.

2017 Outlook for Property Managers in Fort Worth

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The year 2016 proved to be a great one for property management. Fort Worth rental property owners saw rent rates continue to rise bringing in more income for their business. New construction continues to grow throughout the Metroplex. And, the relocation of many national companies to Texas brought new renters to the area. Specialized provides quarterly and annual economic outlooks to help rental property owners know what is on the horizon for their investments. Here is our 2017 outlook and how it could affect rental owners in Fort Worth.

Rent Rates

In 2016, the 4.8 percent year-over-year rental rate increase proved to surpass the 1.6 percent rate of inflation, with a typical three-bedroom single family home renting for $1459 on average. In 2017, these rates are expected to continue to rise making the same unit rent for over $1500. Even if the rate of inflation rises to over 2 percent, it will still lag behind the rental rate market.

Vacancy Rates

The rise of rental rates is beginning to stabilize demand which is predicted to keep vacancy rates in the low 5 percent range. Property managers in Fort Worth may experience a slightly lower vacancy rate. The end of Q316 showed the area with closer to 4%.

Mortgage Rates

The Federal Reserve announced an increase to the Federal Funds Rate meaning that 3% mortgage rates will be no more. We expect these rates to be closer to the 4% range in 2017.

Foreclosures

Currently at a record low since August of 2007, foreclosure rates are projected to remain low making it a challenge for property managers in Fort Worth to find a deal.

Housing Prices

Along with rental rates, housing prices are also on the rise with a national increase of 5.39% through September of 2016. While they have not yet returned to their peak prices of 2007, they are expected to continue to grow. However, with mortgage rates on the rise, homeowners will be hesitant to sell their existing homes to move to new ones as the cost will be more. This will limit the supply of current homes for sale.

While these predictions are mostly positive for property managers in Fort Worth, investors who are seeking to purchase new property may be faced with more of a challenge. No matter where you are in your journey as a property manager, our Specialized Property Management Fort Worth team can help you achieve your goals. Contact us today!

Fort Worth Property Management Teams’ 2016 Year in Review

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Each year Specialized makes predictions for what the year has in store for property managers according to the economic trends. While many predictions made in January are often forgotten by December, our Fort Worth property management team decided to take a look at the 2016 predictions to see how many of them were correct.

2016 Prediction #1: Investors will see shrinking opportunity for profitable rental properties.

This prediction proves to be mostly right as the supply of homes dropped to 4.6 months from the previous year’s 5.7 months, and the number of existing homes grew only slightly in 2016. With foreclosure inventories down to approximately 340,000 nationwide, the opportunities for investors to find new opportunities was a bit lower than in previous years.

2016 Prediction #2: Millennials will Begin to Form New Households

In January 2016, it was predicted that this was the year for Millennials to start to move out from their parent’s homes and begin forming their own households mostly in rental units. However, through September of 2016, only 1.16 million households were created as opposed to the 1.91 million in the same period of 2015. Homeownership also fell to a national low of 63.5% throughout the year.

2016 Prediction #3: Vacancy rates Will Stabilize or Slightly Drop

At the beginning of the year, the national vacancy rate was 5.2 percent for a three bedroom single family rental home. According to RentRange, this prediction was correct as vacancy rates fell from 5.4% Q315 to 5.2% Q416.

2016 Prediction #4: Rental Rates Will Outpace Inflation

At the end of Q316, an average three bedroom single family home was renting for $1,459 which represents a 4.8% increase over the previous end of year national rent rate average of $1,393. Though the consumer price index was up to 1.6% in October 2016, it was not up enough to outpace the rise in rent rates, making this prediction also true.

Fort Worth property management companies benefitted from these predictions as the local market continued to grow. Our local property managers Ft. Worth team is available to help you understand the market and look forward to the coming year to get the most out of your investment. Contact Specialized today!

Monthly Review of Texas Economy

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Texas continues to fare better economically than other places around the country. Companies are attracted to the state, so job growth increases. When other parts of the country seem to have hard economic downtrends, Texas stays relatively stable and experiences economic growth. Property management in Fort Worth should carefully watch the economy for indications of when investing in rental property and the demand for housing are changing.

Overall Economy

Texas has enjoyed a booming economy with businesses moving to the state adding job growth and people wanting to relocate to the Lone Star State. The Texas Leading Index gives an indication of what future direction and changes that might be coming in the business cycle. The Index looks positive because of stable stock prices of Texas companies. Jobs in the state continue to increase, and the unemployment rate is holding below the national average. A stronger dollar makes U.S. exports more expensive for overseas purchasing causing exports from Texas and the U.S. to fall. The decrease in the demand for oil and lower prices also slows down export growth.

Housing Prices

After a long run of house price increases, this past quarter saw some slowing down in the upward price climb for real estate. The price difference between the listing price and actual sale amount of new homes is widening. The price difference indicates a changes in the upward movement of new housing pricing as prices are starting to level out. Existing home prices are staying steady. However, the Texas Housing Opportunity Index indicates that the affordability of a home to a family with a median income is below the national index. Dallas housing is shown to be less affordable than compared to the rest of the nation where the housing market in Fort Worth shows to be more affordable than the nation. For investors looking to increase their opportunities in property management, Fort Worth would be a good place to start looking for those rental units.

Economy and Property Management in Fort Worth

Housing sales have also decreased as well as the number of permits issued for new single-family house construction. New housing is more expensive than existing homes. Overall, home prices are slowing down from their past increases.

As businesses and people continue to come to the state, rental owners should have their rental units rent-ready as Texas still has a higher demand for affordable housing than what it has in supply. Specialized is the leading property management in Fort Worth and surrounding areas that can professionally partner with investors for more successful real estate income. Find out how our proven processes can benefit your investment efforts at  www.specializedrpm.com

More information on the Texas economy can be found at www.recenter.tamu.edu/research/the-texas-economy

Monthly Review of Texas Economy for Fort Worth Property Managers

Property management in Fort Worth

Specialized Specialized Property Management keeps an expert eye on the economy to ensure our clients are well informed about the local and national trends in the rental market, and how the economy can have an impact on their bottom line both tomorrow and long-term. Informing our clients on economic trends empowers them to make strategic choices amid the ever-changing landscape of the real estate market. Our Fort Worth property managers are local experts that can help your business profit in any economy.

Texas Economy Overview

Our current economic status here in Texas is one of continual growth. Unemployment has dropped slightly and Texas-based companies are faring well on the stock market. Oil prices have slightly risen as well which is always good for Texas. Texas Leading Index shows two consecutive months of positive numbers.

Housing Market Overview

Housing sales have gone up. Particularly in the Dallas/Fort Worth area we’ve seen some growth thanks to new businesses attracting move-ins. Statewide we’ve seen a 2.1% increase in single-family housing construction permits, which is another solid indicator of the growing market. Housing supply hasn’t been able to keep up with demand, however, as a shortage of skilled labors or available developed lots slows new home construction. Still, numbers show that new home starts in the $300,000-$349,000 range jumped 81.2%. New homes at $200,000 and under dropped 14.6%. The demand for lower-priced housing is high, and again, there is not enough supply to meet the demand. Home prices may stabilize some, but trends are still predicting that prices will continue to inch in an upward fashion. Low-cost options will simply not be available for those on the hunt. To learn more about the current state of the Texas economy and the housing market visit https://www.recenter.tamu.edu/.

So What Now?

Potential buyers wanting a lower priced new home will either have to be patient and put their hopes on hold, or they may find themselves moving their search from a purchase to a rental. Preparing your properties to attract this type of potential renter allows you to target your marketing strategies to this audience. The market is hot and ready for summer renters, so get your management team ready for the summer fun.
For all your needs with property management in Fort Worth, TX, give Specialized Specialized Property Management a call. We will put you on the road for success if today’s changing real estate market.

Largest Fort Worth Property Management Company Looks at the Latest Housing Trends

property managers in Fort Worth

Property managers in Fort Worth, TX, are watching the current housing trends in the Dallas-Fort Worth area as the housing supply is showing less than the current demand. People wanting to buy homes are finding that houses on the market are going for more money than the listed price and multiple contract offers are on the table at once. Housing prices are on a steady rise as land and construction costs have had sharp increases.

“The growing Texas economy has made it difficult for homebuyers this year,” said Stefanie Mendoza, Director of Operations at Specialized. “As new residents come into the area with new jobs, they need housing. Moderately priced homes are not easy to find, and sell quickly. Area residents can look to single family rental units as a housing option.”

Property investors offering single family rental houses to residents may see fewer vacancy days as more potential tenants look for comfortable homes during the upcoming busy real estate season. With interest rates staying low for now, this could also be a good time to look at purchasing investment property. Housing prices are predicted to continue to rise. Prices of Dallas/Fort Worth area homes have increased 8.7 percent from 2014 prices, according to a Standard & Poor’s/Case Shiller Home Price Index. Getting into the market before more increases can be a good option for some.

The expert property managers at Specialized can help investment property owners be successful in their investment if they choose to add to their property portfolios. “At Specialized, our goal is that property owners make the most from their investment and that tenants feel at home in their neighborhoods, in any housing market,” said Mendoza.

About Specialized

Specialized offers 25 years of experience as the leading property managers in Fort Worth, TX, and provides high level real estate investment property management strategies to thousands of clients. For more information visit (www.specializedrpm.com)

Texas Economy and Property Management in Fort Worth, TX

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Even with a slow growing global economy and low oil prices, the Texas economy is still seeing a steady growth trend. The Real Estate Center, in the Monthly Review of the Texas Economy, reported that March 2016 was the third consecutive month Texas experienced an employment growth rate better than the annual growth rate in December 2015. The economy and the housing market always affect each other. How is the current economics of Texas affecting the housing market? As the leading rental property management company in Fort Worth, TX, Specialized keeps up on the housing trends to benefit property investors with management needs in any economy.

 

Outlook for Texas

The oil crash of 2015 hit Texas hard. But, Texas has been showing a steady economical upward trend. The seasonal adjusted unemployment rate fell in March as Texas metro areas showed more jobs in March 2016 than they did in March 2015. The economy is slowly recovering, jobs are being created, and the housing market is also showing growth.

 

Housing Trends For Texas

Housing demands are picking up this year along with the increase of available jobs. Statewide housing sales grew 5.8 percent; showing the highest rate since July 2015. Even though the overall sales growth is lagging behind the national rate, Texas housing sales are picking up. The issue with housing is that with the steady increase in demand, there is also a shortage of supply. People trying to find houses available, especially in the more moderate price ranges, are having a harder time finding homes. Buyers are quickly outbid or homes are only listed on the market for a short period of time before they are sold. Texas home prices are actually increasing at a faster rate than home prices on the national index.

 

What This Means to Property Investors

Rental property investors watch the housing markets and economical trends to know when to buy, sell, or hold on to their investment properties. With constraints on the housing supply, an investor offering rental housing may be just what some home buyers need. With interest rates still low, and housing prices starting to rise, now may be a good time to increase your rental property holdings. With expert help from a professional property management company in Fort Worth, TX, you can grow your rental property portfolio without stress or hassle. The other side of the current housing trend could also mean now is a good time to sell properties while it’s a hot seller’s market.

 

For more information on the Texas Economical Report visit https://www.recenter.tamu.edu/

 

Whether buying or selling, investing in rental property is made easy when you partner with Specialized Property Management. Call the leading Fort Worth rental property management company today and let us show you how we help make your rental property investment a greater success.