Is Texas a good place to be a landlord?
The simple answer is: yes. What you really have to ask, however, is whether you’re ready to become a landlord in Fort Worth. For many rental property owners, it seems as easy as listing your property on the market, choosing a tenant, and collecting rent.
Those are the basics of what you have to do, but there’s a lot more involved.
Effectively becoming a landlord and renting out a home requires you to put together a legally enforceable lease agreement, understand the Texas Property Code, follow the security deposit laws, and screen for well-qualified tenants. You’ll need to assemble a list of vendors and contractors and commit to providing a positive rental experience for your tenants.
Here’s how to know if you’re ready to be a landlord in Fort Worth.
Fort Worth Landlord/Tenant Relationships
Good landlords have a specific temperament. You’ll need patience, diplomacy, and professionalism in order to work well with your residents.
Can you establish and maintain positive, respectful relationships with the people who are renting your home? You need to know this before you become a landlord.
Prepare to establish expectations and communication standards. Be ready to listen. You’ll want to work with your renters so that small disagreements don’t become huge disputes.
Good relationships will help you retain your tenants. When residents renew their lease agreements, you face lower vacancy and turnover costs.
What Are the Requirements to be a Landlord in Texas?
To be a landlord in Texas, you’ll need to establish at least a basic understanding of the Texas Property Code. This is the law that applies to most rental properties in Fort Worth. You’ll need to follow its requirements as you’re preparing the property for the rental market.
There are also dozens of federal, state, and local laws and requirements that will need your attention as you become a landlord. Get to know the eviction process, security deposit timelines, habitability standards, and fair housing. Legal mistakes can be expensive.
Pricing Your Fort Worth Rental Home
If you’ve never rented out a home before, you’ll need to understand how homes are priced. The right rental value will ensure you find a qualified tenant quickly. You might have an idea about what you want to charge, but the actual rental price will depend largely on the market. Pay attention to what other homes similar to yours are renting for in your neighborhood.
Don’t overprice the home, otherwise tenants will not even bother seeing your property. Don’t underprice your property either, or you’ll end up losing money and you’ll also have a hard time bringing that rent up to market rates.
Prepare and Budget for Maintenance
Is it still profitable to be a landlord?
It is. There are costs involved in renting out a home, but you’ll earn consistent and recurring rental income. Your investment will continue to appreciate in value.
In order to make money, however, you have to maintain your property. Those repairs and replacements will often be your largest expenses. Set aside a reserve for potential repair issues.
To be a landlord, you’ll need a great list of vendors who are licensed, insured, and affordable. Develop relationships with these professionals before you need them so you’re sure you can get a plumber or an HVAC technician over to your rental property quickly if the need arises.
Being a landlord is a lot easier when you partner with a Fort Worth property management team. For more information, please contact us at Trend Property & Management. We’re here to help with all your Fort Worth property management needs. We also serve Keller, Saginaw, Hurst, and the surrounding areas.