Planning on Buying Apartments? Choose The Houston Texas Rental Market

By Vestpro Residential Services

There’s no doubt that apartments or multi-family rental properties make excellent rentals because more doors equals more money for landlords. If you’re thinking about adding apartments to your portfolio or rental properties there no better place than the Houston Texas rental market.

Houston is in the midst of an apartment boom. A just-released, national report suggests that boom may not slow anytime soon, as it lists Houston as a top buy for apartment investors — and an area that will see rising rents in the foreseeable future.

Ten-X Commercial, an online platform for commercial real estate transactions, also identified Fort Worth as a city that commercial investors should target in its annual U.S. Apartment Market Outlook. Only three other American cities are considered strong buys for apartment investors: Raleigh-Durham, North Carolina; Charlotte, North Carolina; and Salt Lake City, Utah. The data in the report is generated from the more than $20 billion worth of transactions handled by Ten-X Commercial.

In analyzing the two Texas cities, Ten-X Commercial finds that both offer strong net operating income benefits (a key driver in commercial real estate) to investors for years to come. Houston’s apartment rents are buoyed by a “resurgent energy sector” that is “turbocharging the local economy” and jumped 6.1 percent year-over-year. The report also forecasts that Houston is “likely to prove considerably more resilient during a modeled downturn than other markets.”

A quick breakdown of the numbers illustrates good news for anyone looking to cash in on Houston’s apartment market.

  • Q1 2018 rent: $987
  • 2021 projected rent: $1,184
  • Q1 2018 vacancy: 6.2 percent
  • 2021 projected vacancy: 4.4 percent

Things look equally promising in Fort Worth, which the report notes is enjoying “low unemployment and solid job growth, with total employment up 3.1 percent year-over-year.” Apartment rents in the city are projected to leap to 12.3 percent higher by 2021. Fort Worth’s breakdown shows good news for investors and landlords, bad news for renters.

  • Q1 2018 rent: $907
  • 2021 projected rent: $1,018
  • Q1 2018 vacancy: 3.7 percent
  • 2021 projected vacancy: 4.4 percent

With every top buy report comes a warning to sell. Cities where investors should consider unloading are New York; Miami; San Francisco; Oakland, California; and San Jose, California. These markets are witnessing rising vacancies and flattening rents.

But how much is too much growth? Nationally, according to the research, multifamily completions should reach an all-time peak in 2018 as more than 300,000 new units flood the market, outpacing even the highest absorption levels in recent history. As a result, vacancies are expected to drift above 5 percent by the end of the year for the first time since 2011.

Ten-X Chief Economist Peter Muoio noted in the report that “while millennials and other demographic groups continue to forego homeownership in favor of renting in walkable neighborhoods, developers appear to have gotten ahead of themselves in creating rental supply.”

Get Property Management in Houston TX

For property management in the Houston Texas area contact Vestpro Residential Services by calling us at (832) 971-1841 or click here to connect with us online.

3 tips for getting your Houston Texas Rental Property Ready For Summer

 

Houston Texas Rental Properties

Summer is right around the corner and with the weather already in the 70’s and 80’s during the spring one can only imagine what the summer is going to be like that’s why it’s important for you to get your Houston Texas Rental Property ready for summer by following these simple tips.

Tip #1 – Inspect Your HVAC System

Since your tenants will be using their HVAC systems during the summer months you should get HVAC and air conditioning units inspected now to insure that they are all running smoothly during summer months once warmer weather arrives.

 

Tip #2 – Check Insulation and Weather Stripping

Last of all, but most important, you should check the weather and insulation in your Houston Texas Rental Properties because proper insulation and weather striping will help your tenants to lower their energy costs and insure that their homes stay cool during the summer months.

Tip #3 – Close Up Crawl Spaces Under Homes

If your Houston Rental has a crawl space underneath it you should close up that space or any access point to your basement or underneath your home immediately because snakes and critters will seek shelter in cool spaces during the warmer months in Houston.

Tip #4 – Clean Up Brush And Dead Vegetation Surrounding Your Property

Take the time to clean up brush and dead vegetation surrounding your property since this will also make your yard space less attractive to critters and also create a firebreak between your home and open spaces if a fire breaks out during the summer.

Tip #5 – Remove Wood From Your Home

Another fire hazard and inviting spot for critters like snakes are wood piles and if one of your Houston Rental Properties has a wood pile somewhere on the property you should move it immediately to insure that the best interests of your tenants are protected during the hot Houston summer.

Get Property Management For Your Houston Texas Rental Property 

To learn more about how you can get your Houston Texas Rental Property ready for summer, or to speak with us about our property management services, contact Vestpro Residential Services today by calling us at (832) 498-0016 or click here to connect with us online.