It is a Landlord’s Market in Dallas Texas

For Rent Sign in Front of Home

I’ve been watching the rental market in the greater Dallas area for a number of years. It’s finally a landlord’s market again.

Since 2008 we have seen a steady increase in capitalization and occupancy rates. We’re to the point today that any decent rental property is leased in less than a week.

There’s nothing magic about the increase. It’s simple economics. As the availability of easy money dried-up in 2008, those would-be buyers went back to leasing homes. This allowed the glut of inventory we once had to slowly decrease.  This stabilized occupancy rates and prevented the downward spiral of capitalization rates we saw during the market boom.

Come forward to 2010 and there are a couple of other factors that are driving the need for rental and lease homes in DFW.  As homes went into foreclosure or were short-sold, those homeowners had no choice but to look for rental homes. While the Texas economy is stable, many of the people who could still qualify for a mortgage decided to sit it out and continue to rent. These two factors have basically drained the rental market in the area.

Currently I have almost 50 people looking for rentals and there are so few available. As soon as they come on the market, there are lots of showings and multiple lease applications.

I listed a large home in Frisco on a Friday. I had four applications on Monday. These were solid applicants with high credit scores, little debt, and substantial incomes.

We recently purchased a property for a local investor and leased it for him in less than a week. The Gross Rent Multiplier exceeded 10 with a Capitalization Rate of about 6.5 percent. This is prior to taxes and does not factor in appreciation over time.

It’s a great time to purchase investment property! Prices are low and the need for rental homes continues to climb.

Are you looking to purchase investment properties? Contact us! We have the experience and knowledge to find good investment properties, lease them to suitable tenants, and provide on-going property management if needed.

Tom Branch, Broker, CDPE, SFR

Leasing in North Texas is Hot

For Rent Sign in Front of Home

While the temperatures have been at or above the 100-degree mark, I’m not talking about the heat wave in North Texas. I’m talking about the lease-home market.

If you’re searching for a lease home in the area and find something you like, you need to be ready to submit lease applications because the good, clean, and well-priced leases are going faster than new listings are coming on the market. You need to have completed applications and funds ready for the application fee.

Search for Lease and Rental Homes in North Texas

If you’re an investor looking for solid income-producing properties, the North Texas market is a great place to be. Capitalization rates are on the rise, the local economy is stable, and with more people moving into the area, the demand for rentals is climbing rapidly.

Search the North Texas MLS

Have questions or need more information?  Contact us!