Austin Property Management and How to Find Profitable Properties
The Austin rental market is booming right now! The demand for rentals is at an all-time high, the rents in the greater Austin area are way up, and the time to invest is now after Austin was named #1 place to live! If you can find an Austin rental property to invest in, you could be the owner of an investment that should have consistent income for years to come. However, choosing the right investment property can be tricky and if chosen poorly you could potentially lose money instead of earning!
The first course of action is to consider the type of property you would prefer to invest in. Single-family homes, condos and multi-family properties are all worthwhile investments. Before you start working with a broker, first decide what kind of property you’re willing to take on and what you can afford.
Consider who your ideal tenants are. Targeting areas of higher income such can lead to great, high-quality tenants though your initial investment will be greater. Also, consider whether you would be taking care of your rental property yourself or if you would need the services of an Austin property management company for your rental. Consider why you are investing in real estate and what you hope this investment will do for you. There are many books and online articles on this subject that can help you get started investing in real estate.
Once you know the tenant profile you’re after compared to the amount you’re willing or can invest, you should narrow down the neighborhoods and areas you would like to consider for your rental property. Our friends at Central Metro Realty offer a valuable tool for information on neighborhoods and the data for each region. On their home page you’ll see a neighborhood guide for all regions around the Austin area.
How do I identify areas and properties that would be a good investment?
Choose your desired rental area! The quality of the neighborhood will have a great impact on whether your rental property is a profitable investment, or whether it will sit vacant. However, Austin experiences an influx of people moving the area each day and while some regions are better than others, housing is booming and people are trying to live in all areas of the city. If you are not able to go to the neighborhood yourself, but aren’t working with a broker yet, use the neighborhood tool we provided above to learn more about the areas of greater Austin. Some neighborhoods that may appear bad at first glance can actually be great investments – as Austin is growing every single day with a great job market. It is wise, however, to check the crime stats for anywhere you are interested in buying rental properties, not just Austin either.
What Employers / Schools / Attractions are Nearby? The answer to this question will tell you what your potential tenants will do for a living, and what their lifestyle will be like. If high paying employers are in the area, your rental property may fetch a higher rent. Austin has experienced a tech boom comparable only to the likes of San Francisco. What’s desirable about that is these employers are spread all over the city. Up north you can find the likes of Samsung and Apple and as you move South you’ll find companies like Intel and Microsoft. Aside from excellent employers, Austin is home to the infamous UT so you can expect a steady flow of renters each and every year if you chose to invest close to the university. Finding a rental property with attractions nearby is ideal as you’ll be able to find quality tenants for your investment.
Consider your investment’s condition. You may choose a property that is in need of some renovation. You can usually find better deals on such rental properties, however your investment doesn’t just stop at closing. If you do so, you should prepare to experience a period of vacancy until the property is in rent ready condition. Keep in mind that different areas and different types of property will attract tenants with different definitions of what it means to be “rent ready.” Some properties that are generally in good shape may still need updates in order to become profitable rental property for the area all dependent on the profile of your desired tenants.
Look at property taxes in the area. If property taxes are increasing in the area, this can and is a significant expense for you. Be sure you have a firm grasp on the market and what you may be facing when it comes to taxes each and every year.
How much rent could I be earning in my desired location? All dependent upon the area and comparable properties in the area. Stone Oak Property Management actually provides those looking to invest in the area or those looking to begin renting their properties with a free rental analysis! You can give Jason Huval, our founding broker and market expert, a call – 512.921.7537 - and he can help you with that!
The best protection for your Austin rental property investment is quality property management services. Consider a professional Austin property management company with a record of excellence in the industry and years of expertise. Contact Stone Oak Property Management Austin to learn more about how we can make your investment a profitable one!