2017 Outlook for Property Managers in Fort Worth

property management fort worth

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

property managers ft worth fort worth property management

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!

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

property management company in Fort Worth

 

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.  

 

Property Management in Fort Worth, TX Looks to Higher Rent Rates in 2016

Fort Worth Property Managers

Specialized Property Management is looking at 2016 as a hot year for the rental market. With 11,000 people moving to North Texas every month, the supply for rental units cannot always keep up with the demand. With this rising demand, Fort Worth property managers can expect higher rent rates for this coming year.

“The rental market is really hot right now,” said Russell Berry, President of the MetroTex Association of Realtors. “Month after month, the places that do have rentals, the prices have been skyrocketing.” A rising demand for rental housing gives Fort Worth property managers the opportunity to fill rental properties quickly and ask higher rent rates. Here are a few ideas for property management in Fort Worth, TX that will help shorten vacancy days for your rental property.

  1. Make sure your property is rent ready, and has curb appeal
  2. Aggressively advertise your property
  3. Paint and remodel before showing property
  4. Finish all repair projects and clean up messes before showing the property
  5. Ensure all safety detectors are in good working order

Specialized is the expert in property management in Fort Worth, TX. They provide all management services for single family rental units and small multiplex units. “With a booming rental market in Fort Worth, Specialized will make sure your rental property investment is professionally managed, and is a profitable venture for the rental property investor,” said Mike Jeppson, Specialized Chief Operating Officer.  For more information about rental property management from the industry leader, contact Specialized. Find more information at (www.specializedfortworth.com).

TOP FIVE REAL ESTATE TRENDS IN FORT WORTH

Predicting trends is about like predicting the weather. But the stats and data look sound for supporting these top five trends as we close out the 2015 market here in Fort Worth, Texas.

  1. It is still a seller’s market.

Temps are hot, but the housing market is hotter. Housing sales in North Texas are at a record high. Mid-summer this year more than 10,000 pre-owned single-family homes in North Texas sold in one month. RECORD BREAKING. A Fort Worth management company knows families are on the hunt for a new place to settle down. With sales numbers this high in North Texas it is an excellent time to look to purchase investment rental property. And there is no reason your property should sit empty.

  1. Inventory is low.

Permits to build are on the rise, but for the time being inventory is low across the Fort Worth market. Fort Worth property managers foresee this is a temporary advantage and seek to maximize investments now while the market is in the owner’s favor. As market inventory grows over coming months competition could get tough. With proper prep rental housing should see few vacancy days.

  1. Prices are up.

As part of a seller’s market, and with inventory down at the moment, prices have continued to climb. Locking renters in a slightly higher rate while it is comparable to other market rates is a way to get an edge on profit over time.

  1. Invest  Buying is Great

Unemployment is down, the economy is up, interest rates are low, and foreign investment in American real estate is high. Mortgage rates are cheaper than the average rent, so Fort Worth property managers are buckling down to make sure they have a competitive edge against an increasingly appealing option to buy. Choosing the best properties, and making those properties attractive to potential tenants gives that needed edge.

  1. Millennials are still looking to rent.

Although the market may favors buying over renting, the effects of the recession on lending are still present. The belt is still tight for young families looking for loans, and for many of them buying is not an option. Fort Worth management company personnel know the market demographics and how to cater to this type of renter and keep units full.

As we wrap up the year and the weather and the market begin to cool off, keeping these trends in mind will help owners maximize returns by reducing or eliminating vacancies.