Market Update
The conditions haven't changed in a significant manner, so there is not much to report. The overall sentiment is that we're in a buyer's market as we continue to come down from a strong seller's market during the Covid pandemic coupled with extremely low interest rates. We don't know how long the market will take to normalize or if we've touched bottom, and there are many factors that can influence the overall trend. Ultimately, our goal is to keep your property occupied, which we've mentioned may require incentives during vacancies and/or aggressive pricing in some areas. There is a lot of competition for tenants, so concessions for renewals can be helpful. If a turnover is in the cards, then approaching it with realistic expectations can be helpful in minimizing turnover costs and vacancy.
4th of July Holiday
From parades to fireworks, there is plenty to do around town this 4th of July! Whether you're watching fireworks, grilling or planning on attending Willis Nelson’s 4th of July Picnic, there is sure to be something fun for everyone in the great city of Austin.
Here is a link to some cool events happening near you!
4th of July Events in Austin, Texas
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.
Austin Fee Disclosure Ordinance
The city council passed a new ordinance that requires landlords to disclose all fees during the leasing process. Many landlords, usually corporate apartment complexes, will charge so called “junk fees” like trash concierge, required internet services, or other mandatory monthly fees. Starting on October 1, 2026 the new ordinance applies to a person who rents, leases or manages 50 or more residential dwellings. The second phase starts on January 1, 2027 and applies to a person who rents, leases or manages less than 50 residential dwellings or spaces for mobiles homes and RVs used as a dwelling. You can read the ordinance here, or there is an article here.
BMG Austin Blog
Please check out the BMG Austin blog!
Some recent posts include:
Check out more posts at https://texasbmg.com/blog/
Unclaimed Funds
Did you know that many state governments keep a database of unclaimed funds that belong to the general public? In Texas, there are hundreds of millions of dollars submitted to the state that are unclaimed each year. You never know if you or someone you know might be owed funds. In fact, when writing this post, I came across seven of my family members who are in the database with anywhere from $30 to several hundred dollars that are available to claim.
Check out ClaimItTexas.gov and search for similar databases in other states you may have lived in or think you might have unclaimed funds in. Beware of scam sites that are designed to steal personal info or charge a fee to help you recover funds because you can do it for free directly through the state’s process without paying a third party. It is not easy to claim funds but may be worth it depending on how much is available for recovery.
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, inadequateness, 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.
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.
