Rental Success in the Lone Star State: 5 Tips for Texas Landlords

Owning a rental property in the ‘landlord-friendly’ state of Texas has plenty of perks. Texas boasts a potent combination of great weather, strong employment and low taxes that attract plenty of renters to thriving cities like Austin, Dallas, Houston and San Antonio. 

But with reports of rents flattening in 2024 after years of sky-high growth, how do you ensure your Texas rental home works for you and your financial goals? 

To make sure your rental home runs smoothly (and with the best possible cash flow), here are 5 tips for owning a successful rental home in Texas. 

1. Take a long-term approach to your rental property in Texas

After huge price hikes in cities like Austin and Dallas, asking rents are starting to decline across Texas. But this isn’t all bad news for homeowners in the state and here’s why. 

First of all, price drops are largely impacting apartments, where supply has improved in the short-term. In 2024, Dallas and Austin are in the top five cities for supply of new apartments, which has helped to meet demand. But this short-term influx is expected to end in 2025, with new construction declining and long-term supply shortages to continue. 

Then you have the national issue of housing affordability. With homeownership remaining out of reach for many in 2024, demand will remain for livable single-family rental homes in Texas.

This is why having a long-term mindset for your rental home is so important. If your local area does become a renters market, your home should stand out as a place people would love to live in for years to come. Rather than trying to cash in on market fluctuations and riding the rollercoaster of high tenant turnover, look at investing in the livability of your home to make your listing stand out. 

Using this approach, Belong has helped over 2,000 homeowners make sure their rental homes meet a high standard of safety and livability to reduce vacancy, increase rental values, and attract dependable, long-term residents. We know it works, because 82% of Belong Residents renew their 1-year lease.

Read More: How Belong Inspections Reduce Vacancy and Prepare Your Home For New Residents

2. Prepare your Texas home for the market peak

Summer rentals usually make us think of vacation homes, but it’s also when long-term rental demand peaks. Summer is the time when families settle into a new area before the next school year commences. It’s also when people decide they won’t endure another frosty winter. So they look for a new place to call home and seek out the clear blue skies of Texas. 

This makes the winter/early spring months the perfect time to make those upgrades you’ve been putting off. Give your home a fresh coat of paint, tidy up the garden beds and get your home ready to list as rents rise. Establishing a 12-month lease in summer also ensures that renewals or lease expiries also coincide with this market peak year-on-year. 

Read More: Peak Cash Flow: How To Achieve The Best Rent By Listing In Summer

3. Lock in stable, predictable rent

There are few things more important to rental homeowners than positive cash flow. That is, having your rental home earn more income than it costs to operate and service debt. 

Cash flow in real estate is different to profit, because it’s not tied up in the asset itself. Cash flow is the passive income that unlocks a better lifestyle, the reserves to build for retirement — maybe even grow your investment portfolio.

If your residents stop paying their rent, this income will grind to a halt. As the expenses pile up, your cash flow can quickly slip into the negative. Belong protects Texas homeowners against disrupted cash flow by offering guaranteed rent. 

Guaranteed rent means your income is still paid on time, regardless of when we receive it. This makes your passive income more predictable by eliminating payment delays and rent chasing. 

Read More: How Guaranteed Rent is Changing Property Management Forever

4. Stay on the right side of local laws

Part of being a successful landlord is knowing your rights and responsibilities. But there is no one set of rules that apply to Texas homeowners. Rental housing is governed at a local level, with regulations varying between counties and cities. If you’re self-managing a rental, you’ll need to ensure your lease arrangements are current and keep an eye on proposed changes. 

In September 2023, House Bill 2127 was passed to allow state regulators to override local ordinances and create more consistent laws. But, the cities aren’t happy. This bill is now in litigation with Houston, San Antonio and El Paso all suing to block the legislation. 

That means that until this is resolved, you’ll have to keep an eye on local bills that could impact your rental. For example, Austin and Dallas are the only two cities that have a ‘right to cure’ law and require longer notice periods for evictions. 

Of course, you can also knock this one off your to-do list by hiring a trusted partner to stay up to date for you. 

Read More: What Texas Landlords Need To Know About Rental Housing Laws in 2024

5. Invest in and protect your asset

Your rental home can only be a reliable source of income if it stays rented. One way to ensure your rental home remains a successful asset is to invest in proper maintenance of the home and to have the right insurance coverage. 

Budgeting for regular maintenance and insurance is a short-term expense that can pay off long-term. It’s cheaper than having to make major repairs or go through a period where the home can’t be lived in, especially in the case of a fire or natural disaster. 

This is why Belong has built an incredible vendor network of over 10,000 vetted contractors across the country. Homeowners can make instant requests and set up subscriptions for regular maintenance on your rental home — even purchase rental home insurance. And to avoid any dents in your cash flow Belong offers flexible payment options for all maintenance and insurance services. 

Read More: Why Ignoring Rental Home Maintenance Could Cost You More Than Repairs

Achieve financial freedom with Texas real estate

If you’re looking for a long-term solution and stability in your rental experience, Belong has you covered. We’re making rental finances predictable by offering stable, guaranteed rent. We’re providing flexible payment options to keep your cash flow steady. And we’re doing it while providing a better way of living for the millions of Americans who rent. 

Working together, we can put people first and change what it means to rent a home in Texas. Belong can help you reach your financial goals, while also creating lasting, positive impact on innumerable lives for decades to come.

Interested in learning more about Belong PRO services and availability in Texas? Check out one of our local pages below:

• Austin Property Management
• Dallas/Fort Worth Property Management
• Houston Property Management
• San Antonio Property Management 
• Everywhere else!