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Houston Rentals: Renting is the New Norm

Have you tried to sell your Houston-area home or condominium and had little luck? Has it been on the market for months and months and have you slowly (and maybe even grudgingly) lowered the price again and again and still no takers?

 

Finally, have you thrown your hands up in frustration and replaced the “For Sale” sign with a “For Rent” sign from a property management company only to – happily – see it rented by a great tenant in a matter of a few weeks or even days?

 

You’re not alone.

 

Many sellers, frustrated with a sluggish sales market, have taken to putting their property up for lease and then watched as eager renters vied for the chance to lease it.


The number of single-family properties rented in the Houston area has risen considerably in the 12 months between June 2010 and June 2011, according to the Houston Association of Realtors (HAR): “Demand for single-family home rentals continued to soar in the month of June, rising 19.2 percent compared to one year earlier,” the association said in a July 19 news release. Condo and townhome rentals also jumped 19.5 percent year-over-year.

 

According to the release:

“This demand has been largely driven by Houston’s steadily improving employment landscape which has drawn consumers from around the country. According to the Federal Reserve Bank of Dallas' latest economic update for Houston, nonfarm payroll employment grew at an annualized rate of more than 3.2 percent in May to more than 2.57 million jobs. This brings the number of jobs added since the trough of Houston's business cycle to more than 81,600. Year-to-date, the average annualized monthly growth rate was 3.3 percent. Should that pace continue in the second half of 2011, Houston will have added nearly 84,000 jobs this year. The unemployment rate improved slightly to 8.4 percent, while the U.S. clocked in at 9.2 percent.”


Unsuccessful Home Sellers Resorting to Placing Property in Rental Pool

A major reason for the rise in interest of Houston rentals is the dearth in home buyers. Home sales have tumbled from their numbers of a year ago, when the federal tax credit for new home buyers ended. Many real estate experts believe the tax credit did encourage home buyers to purchase a home a bit sooner than they may have otherwise, however when the tax credit ended, so did the interest in buying homes. Thus, many frustrated sellers have decided to place their property in the hands of a Houston property management company to rent their homes until the market improves.

 

More People Looking to Rent than to Buy

The rental market is booming nationwide. WallStCheatSheet.com, a blog ranked by the Wall Street Journal as one of top finance blogs on the Web, reports that:

Among the signs of a rising rental market:

 

  • The pace of apartment construction has surged 115 percent from its October 2009 low. It’s still well below a healthy level. But permits for apartments, a gauge of future construction, hit a two-year peak in March. By contrast, permits for single-family home are on pace for their lowest annual level on records dating to 1960.
  • The number of completed apartments averaged about 250,000 a year before the boom. They fell to 54,000 last year and will probably number around the same this year. But then the number will likely double to about 100,000 in 2012 and hit 250,000 by 2013 or 2014, according to the CoStar Group, a research firm. The lag is due to the time it takes for an apartment building to be completed: an average of 14 months.


What’s more, this demand is raising rental rates, the article continues:


Demand is driving up rents. The median price of advertised rents rose 4.1 percent between the end of 2009 and the end of 2010, census data shows. Few expect the higher prices to stem the flood of renters, though. One reason: Younger adults don’t value homeownership as earlier generations did and many prefer to rent, studies show.

Houston Rental Market is HOT!

A May Houston Chronicle article reported that, according to one real estate investor, “properties that used to take two to three weeks to find tenants are now being leased in a week.” “’We're leasing faster and without having to give deep discounts and free months rent,’ said Davis, vice president of Lifestyles Unlimited, a real estate investment club,” the article continued.

 

How Property Management Companies Help Both Tenants and Owners

Whether you’re a property owner or a potential tenant, working with a property management company such as In the Loop Properties gives you a great advantage in this hot rental market.


Tenants who rent through a property management or apartment location services company will know that:

 

  • They’ll only be shown apartment leasing properties that meet the budget and housing needs they specify to the property manager.
  • The property they lease will be managed well. Pipe break at 3 a.m.? A property management company has a staff of experts on hand to come in 24/7 to fix problems.
  • The home, condo or apartment will be maintained regularly. Grass will be mowed. Exteriors will be repaired and painted.
  • If living in an apartment or condo property managed by one company, the neighbors will have been vetted and checked. Tenants will know that neighbors are responsible people who pay their bills on time.

 

Property owners who engage a town home leasing, duplex leasing or home leasing company will know that:

 

  • Their tenants will be reliable. Potential tenants will be thoroughly screened so that property owners may be rest assured that their tenants are reliable.
  • Tenants’ rents will be collected regularly. The leasing company will pursue on their property owners’ behalf those renters who are behind on their payments.
  • Tenants who won’t pay their rent will be evicted, saving the property owner from this time-consuming and stressful process.
  • The property will be well maintained. Lawns will be mowed. Leaky toilets will be fixed. Walls will be painted after move-out, etc.
  • The leasing company will communicate regularly with tenants to make sure they’re happy with the property. They will also work quickly to respond to any tenant questions or concerns, so that reliable renters will stay in the property for many months or years.

 

In the Loop Properties: The Houston Rental Firm That Cares for Both Tenants and Owners

If you’re looking to rent or to put your property up on the rental market, don't hesitate to give one of our experienced leasing agents a call! At In the Loop Properties we take pride in being Houston’s upscale inner loop rental experts and we look forward to being apart of your Houston rental needs! Give us a call today! 713.521.7368