Austin Market Data and Leasing Strategies
We have a brief Austin market update based on what we are seeing in real time across leasing activity.
Rents in Austin continue to trend downward, and in the current environment we are seeing pricing decisions play a much larger role in overall performance. Aggressive increases and starting out at a higher price are often leading to longer vacancy periods, and more lost income.
For this reason, we are recommending a more conservative pricing approach across the board. For tenants in good standing, our default recommendation at renewal is a 0% increase, and for vacant properties, pricing competitively has proven to be the most effective way to reduce days on market and stabilize cash flow.
This is a market-specific, data-driven approach designed to protect owner's income. It is not a long-term pricing shift or a blanket concession. Owners always retain final approval; our role is to share what we are seeing and implement your direction efficiently.
If you currently have a vacant property, an upcoming lease renewal, or a pending offer that has not yet been accepted, we encourage you to take this information into consideration when evaluating pricing decisions.
Please see the most recent Austin market snapshot attached for additional context.
Eviction Data
As the economy has slowed over the last few years data has been coming in that shows a rise in evictions around Austin. Local rent assistance programs have been overwhelmed. It’s important to be aware of this as a property owner. The data linked here can provide some good insight into the current situation.
Election Season
We don’t discuss politics, but we do encourage everyone to vote! The primaries are coming up with early voting starting in February. You can check your Texas voter registration. If you’re already registered, the Texas site will also provide you with the next election date, voting locations, general ballot info, etc. Alternatively, you can check out Vote411.org which will give you similar info.
If you want more specific info on candidates and ballot issues you can search for the non-partisan League of Women Voters, check local news station websites, or local new publisher websites among other resources.
One important item of note this year will impact anyone who votes by mail. The US Post Office recently changed how they define the postmark date, which dictates whether a ballot is accepted as timely or not. Here is some important information about it, and keep in mind that this change also impacts things like paying bills or other items that rely on the post mark as proof of mailing.
BMG Austin Blog
We’d like to introduce you to the BMG Austin blog. In the future we’ll include some of this content.
Property and Flood Insurance
In our previous blog post we talked about insurance and the changing landscape while costs continue to go up for policyholders. One thing we didn’t discuss, and feel is worth mentioning, is flood insurance. Most people don’t know if their property is in an area that has potential for flooding in long term scenarios such as 100 year or longer flood plains. Development can also alter floodplains significantly and cause flooding that standard policies don’t cover. We have seen it happen to our clients and recommend reviewing your property’s location and potential for flooding when considering whether you should have a flood policy. They are relatively low cost for the benefit of recovery if it happens and are definitely worth looking into.
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 didnot quote if it is the best option for the circumstances. If you’d like to connect with him the contact info is available here.
Thank you for your trust in us! We always welcome your feedback and questions. Please don't hesitate to contact us if you need anything at this time.
Reminders:
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.
