Strategies to Secure a Lease in DFW Competitive Rental Market

As many have seen in the recent months, finding housing in a competitive rental market is no easy task. With high demand and low supply houses do not stay on the market very long.  So you may be wondering how can tenants secure a lease when competition is so high? Keep reading as we go over some strategies to help secure a lease in a competitive rental market.

What Makes a Competitive Rental Market?
As we have seen, the DFW housing market is booming. Houses are going for above asking price, interest rates are climbing and with the number of people moving to Texas, the supply can’t keep up with the demand. The result of this is many people and families are wanting or needing to turn to renting due to lack of homes available or purchase prices being unattainable.

A competitive rental market primarily benefits landlords since renters are competing against each other to score a rental unit. That said, tenants who are competing for a rental home must work towards beating the competition. Now how do they do that?

How to Secure a Rental in This Market
Since you’re likely competing against several potential renters, it’s important to act fast! Renters need to utilize resources and learn how to stand out on a rental application.  Try these tips:

1. Use Technology to Find Properties
2. Have References Ready
3. Be Honest About Rental History
4. Have Money Ready to Go
5. Take Care of Your Credit
6. Prepare for Tenant Screening

Use Technology to Find Properties
Finding housing in paper ads or yard signs is not a practical approach. Instead, most rentals are listed online on various sites such as, Zillow, or on a property management company’s website or  social media pages! Searching the internet to find nearby housing is an excellent way to find deals quickly before another prospective tenant secures them.

Have References Ready
If you know that you’re looking for a new rental home, gather references before applying. Make sure your references are trustworthy and professional people such as your previous landlord or property management company. Also, make sure to add a full name, up-to-date phone number, and email address for your references. If you don’t have references or someone gives you a negative review this can disqualify you from the pool of potential renters.

Be Honest About Rental History
Your rental history is highly crucial for landlords to know. If you have been in a tight financial situation in the past and have struggled to make payments, it’s best to be truthful. Keep in mind that if you have a record of poor rental history, landlords may be hesitant in signing a lease with you. 

Have Money Ready to Go
If you are confident that you’re signing a lease on a property, you need to be prepared financially. After all, in a competitive market, you need to secure a deal before another prospective renter does first. Keep in mind that most landlords require a security deposit along with the first month’s rent, so save up enough to cover these costs. Having the money ready to go will also tell landlords that you have the funds necessary to live in the property.

Take Care of Your Credit
Before renting to you, a landlord or property manager will look at your creditworthiness. It could be a red flag if you have a history of late payments and significant amounts of current debt. Even though this may not be a make or break in the final decision, be sure to keep an eye on your credit score and do what you can to take care of any issues.

Prepare for Tenant Screening
Before you get a lease, landlords or property managers will typically ask you several questions about you, your rental history, and why you’re looking for a new place to live. Make sure to have honest and reasonable answers to these questions. For instance, if they ask about pets, let them know how many and what kind of pets you have.

What Do Landlords/ Property Managers Look For in a Good Tenant?
• Satisfactory Credit History- Landlords typically look for tenants with good history and low current debt.
• Background Check- Be informed of what is on your record.
• Good Attitude- When dealing with landlords and property management professionals, it’s important to be respectful and accommodating.
• Adequate Income-  Most landlords look for renters that make 3 times the monthly rent amount.
• Good Rental History and References- Your rental history can be a deciding factor between you and  another applicant.  

Are you looking for a rental property in DFW? Or do you need help finding quality renters for your property?

At All County Property Management Group, we help not only renters find their next home but also property investors looking for an experienced property management company to take over the hard work of property management. We offer up-to-date listings to suit a variety of needs and budgets. In addition, our dedicated leasing staff works with you every step of the way so you can feel confident in your home choice. Plus our team handles all property management needs from maintenance, leasing documents, marketing and more! For more information or to see our available listings in your area, check us out today!

What To Do With Inherited Property?

Have you suddenly inherited a property? Now you have to decided what to do.  You have options! Read below to find out more.

What Happens If You Inherit a Property?
If you’re unsure what happens if you inherit a house, you have 3 options.

  1. Live in the property. 
  2. Sell the property.
  3. Use the property as rental investment.

Before making a decision it’s important analyze the home to make an informed decision. A licensed Realtor can provide comparable market and rental analysis to give you data to examine to help decide if selling or renting is the best option.

Factors to Determine If It Would be a Good Rental
Not every property makes a good rental home. Unsuccessfully renting out a property can cost you more money than you would earn. That said, it’s crucial to check the following.

• The Property Meets Market Demands
• The Size, Type, and Condition of the Property
• Favorable Rental Rates
• Up-and-Coming Location

The Property Meets Market Demands
Most renters look for amenities like new appliances, modern upgrades, and a location near schools and job opportunities. Plus, a property in a desirable area can charge more competitive rates and experience less vacancy.

The Size, Type, and Condition of the Property
Additional factors to consider while determining whether or not a property would make a good rental are the property size, type, and condition. For example, is it a single-family home? How many bedrooms and bathrooms are included? Has the property been upgraded or remodeled recently?

Favorable Rental Rates
Researching the rental rates in the location of your property can also help determine if it would be a good decision to rent rather than sell. Most property owners set a goal to set rental rates that are worth at least 1% of the investment. For instance, if the property is worth $170,000, you could charge around $1,700 each month for rent.

Up-and-Coming Location
Clearly, location plays a huge role in the success of rental properties. As such, an up-and-coming property location is best. When you have real estate in up-and-coming locations, property owners can make strategic improvements and profit quickly.

Advantages and Disadvantages of Renting
Like any investment, there are some advantages and disadvantages to renting a property. 

• Property owners can earn a steady monthly rental income.
• You can set rental rates according to current market.
• Owners can hire a property manager to handle the hard work and day to day tasks for them.

• Maintaining a rental takes a lot of time, work, and patience.
• Your property may need renovations or work before turning it into a rental.
• Rentals can experience vacancies, which means you’re not bringing in any income.

Advantages and Disadvantages of Selling
Although selling it is a quick and easy there are still pros and cons to this option as well.

• You can make a large sum of money right away.
• There’s no need to fix up the property or handle tenant concerns.
• You have the opportunity to invest the money into something else.

• Completing a property sale can take a long time.
• Renting a property can be a more profitable long term investment.
• Selling an inherited home can be difficult, especially if you have attachments to the home.

Get Help Managing Your Rental Home
Whether you decide to sell or rent, both options pose pros and cons. However, we can help with all the cons of renting! At All County Property Management Group, we help property investors looking for an experienced property management company to take over the hard work and day to day tasks of property management. Our team handles everything from maintenance, leasing documents, marketing and much more! For more information check us out today.