Real Estate Market Update
The trend towards what appears to be a market correction doesn’t seem to have changed. Recently we have seen articles that discuss property owners becoming accidental landlords because they cannot sell their properties and data showing that Austin growth is slowing. We’ve also seen increasing numbers of foreclosure properties at the county auctions through data shared by agents who track that info, and overall, the rental market continues to get more competitive. We can’t stress enough the importance of considering incentives and extremely competitive rental pricing if you have or wish to minimize a vacancy that isn’t leasing. Please discuss options with your property manager and leasing agent.
August Sales Tax Holiday
The State of Texas has several tax-free weekends for various purchases. The upcoming tax holiday from August 8-10th is geared towards school supplies and clothing. You don’t need an exemption certificate and most, if not all, retailers will automatically exempt applicable purchases during the tax holiday dates. The list of exempt items is very specific so check the Comptroller’s website for more details.
Property Insurance
An article in May asserted that Texas has some of the highest homeowner’s premiums in the country, and some lawmakers tried to tackle the high costs in the 2025 legislative session. The insurance industry is changing rapidly, and carriers are adjusting to an evolving market that is seeing more claims related to natural disasters and storms. Carriers are adjusting hail deductibles and other requirements when they review applications to remain nimble and provide policies in an uncertain market.
One of the more common things we’re hearing about is insurers inspecting homes and rejecting them if there are any tree branches over the roof. Another change we’re seeing is in the type of coverage being offered in terms of replacement cost value (RCV) vs actual cash value (ACV), which can have a significant financial impact if a claim is needed on an ACV policy. The ACV policy is usually less costly up front, making it more attractive to property owners who are shopping without realizing the impact on potential claims. There are pros and cons that should
be reviewed carefully, and a competent insurance agent should be able to provide guidance and comprehensive options. We are not experts but work closely with Andor Insurance. The principals of Stone Oak partnered with an insurance industry veteran to set up Andor Insurance Agency for the purpose of providing exceptional service and options to our clients after seeing some bad insurance related mishaps. Some common issues are having the wrong policy, inadequate or lack of coverage among other things. Ryan, the rock star agent and great human that answers the phones and emails at Andor, has spent a good deal of time putting together a strong portfolio of options that cater to real estate investors and homeowners. He’s happy to review your policies, answer questions, shop policies and make recommendations whether you become a client or not. He always enjoys the opportunity to research options for home, landlord, auto, business, and many other types of insurance and has no issue recommending that someone buy a policy that he did not quote if it is the best option for the circumstances. If you’d like to connect with him the contact info is available here.
Austin Air Conditioning Requirement
The Austin City Council adopted changes to the property maintenance code that requires all homes within the city to have functioning air conditioning effective on July 10, 2025. While the portion of Austin homes without AC is very small it is an issue that the city council felt they needed to address after several years of extreme temperature streaks over the summer.
The system does not have to be central AC. It requires any habitable rooms to be capable of being cooled to at least 15 degrees lower than the outside temperature. Rooms are considered habitable when they are used to relax, sleep, eat or cook, so it doesn’t include garages and attics for example.
There are already state and local laws in place that require landlords to fix any issues that relate to health and safety, so if a property has an AC that is not working it is imperative to get it fixed in a timely manner.
Home Repair Assistance
On June 5th, 2025 Austin city leaders voted to make “small-scale” landlords eligible for home repair assistance and loans, which his defined as property owners of four or less that are renting to lower-income tenants. There are certain income-based requirements that need to be met, but it is worth looking into if you think you and your property may qualify. There are several programs that include minor repairs, plumbing, and rehab among other things. The full scope of what is available to landlords will become clearer soon.
Scams Are Getting More Sophisticated
With the continuing technological advances in artificial intelligence (AI), we are seeing more scams that make it easier for criminals to socially engineer their way into people’s bank and other accounts.
AI is being used to imitate real voices, and sooner than later it will be able to create a video that mimics a real person’s image on a video call. Anytime someone contacts you and asks you for money or information that you were not expecting you should keep in mind “When in Doubt: Hang Up, Look Up, & Call Back.” This is even more important if they are trying to instill a sense of urgency, keep you on the phone without interruption, and tell you not to talk to anyone else.
While the advice to look up things is sound an additional issue to be aware of and on the lookout for is Google search results showing scam websites that fool people into calling them instead of the actual business. Scammers can manipulate search results and provide fraudulent contact info when people are looking for things like bank or retailer support. They get victims to call an alternative number with a convincing website, so always make sure you are on the official website when looking anything up online.
The US Federal Bureau of Investigation recently released a Public Service Announcement alerting the public about the increasing threat of AI based fraud. Some of the topics covered in detail are:
- AI-Generated Text
- AI-Generated Images
- AI-Generated Audio, aka Vocal Cloning
- AI-Generated Videos
The announcement has tips to protect yourself and a link to file a report if you are a victim of financial fraud.
REAL ID
The REAL ID Act that was passed by Congress in 2005 is finally being fully enforced as of May 7, 2025. This law created a federal baseline for security features in licenses and other IDs and prohibits federal agencies from accepting IDs that are not compliant. Most people will be impacted by this law if they travel, so we wanted to mention it in case you have summer break travel plans and have to make it through a TSA checkpoint. They have also provided a REAL ID FAQ page.
Thank you for your trust in us! We always welcome your feedback and questions. Please don't hesitate to contact us if should you need anything at this time.
Reminders:
Maintenance Approval Process Changes
In addition to the info below about funding repairs, we want to notify all owners that we are modifying our escalation process when we cannot reach our clients to ensure we are complying with property code requirements. In bonafide emergencies we are acting within our authority to mitigate damages, however after it has been contained or in non-emergency situations, we reach out to our clients for work authorization that is required above the limit set in the management agreement. In those cases, we now have a strict process going into effect that will have a time-based escalation if we cannot reach you. The protocol will be that if we cannot reach you by the 3rd day from when we first reached out, we will then reach out to your emergency contact who can aid us in getting authorization or contacting you. If you want to update your emergency contact on file, please contact your property manager. Keep in mind that this contact should be someone outside of your immediate household who can help us reach you or that you trust to make decisions on your behalf if you cannot be reached by them or us.
Funding Make-Readies & Maintenance for Your Property
Please note that it is Bay Property Management Group Austin 's policy that the owner has reserve funding on hand with Bay Property Management Group Austin to help us commence work faster when it comes to make-readies and maintenance on your property. Bay Property Management Group Austin cannot perform maintenance without first receiving authorization and funding, which can slow down the turn-around times of our vendors and their availability in this market. This can also potentially create a negative experience that tenants will remember when it comes time to renew, and we always want to avoid turning over the tenants. Any time we request authorization for work on your property, the best practice is to immediately fund your account when you provide written authorization to move forward. This is as simple as going into your owner portal and using ACH for a free transfer, or if you prefer a credit card the processor charges a fee as part of the transaction.
Keep in mind that tenant charges on your account are not considered an offset to this amount as we keep a strict accounting system for both our and our client's benefits. Any tenant chargeable items will be posted to their account, and once they are paid it is immediately credited to your account. If you have any questions about this reserve amount held with Bay Property Management Group Austin, please contact your property manager.
