Are You Ready to Be a Landlord in Houston?

Owning rental properties in Houston, Texas can be a wise financial decision! Houston is one of the country’s fastest-growing cities, and more and more people are opting to rent instead of buy their home. Often, that’s due to the costs and responsibilities associated with being a homeowner. Certainly, there are many costs and responsibilities associated with being a landlord, too—it isn’t for everyone! But it can be a tremendous way to invest in real estate and earn passive income.

Are you ready to be a landlord in Houston? Here are some things to consider before you put out a for rent sign. With homeownership rates at their lowest levels in 50 years, now might be the best time ever to explore that opportunity. 

1. Take a good look at the Houston rental market. 

Just as you perform due diligence on a prospective property and its condition, you should do your homework on the neighborhood’s rental market. Houston is home to many renters, but some neighborhoods are more in demand than others. That will be reflected in property pricing and may limit your options based on your budget. 

Will the market support the level of rental income you envision? At a minimum, you want to be able to charge enough rent to cover the property’s mortgage, tax, insurance, and maintenance. If you’re unsure about any aspects of the market for a rental property or how much rent to charge, talk to a licensed Realtor® like those here at Angel Fultz Realty who are familiar with the area.

2. Are you a people person?

Landlords in Houston who are liked and respected by their tenants earn more money than landlords that aren’t. Successful landlords find good tenants and retain them so both parties are content. If handling routine conflicts like collecting rent and addressing maintenance requests and complaints sound like a nightmare to you, you’ll need to hire a property manager. At Angel Fultz Realty, we specialize in property management and can take care of related duties including handling leases, managing funds, and screening applicants. 

It’s also smart to work with a Realtor® who is knowledgeable about local and state laws and tenants’ rights to ensure you are in compliance. Getting sued can sometimes be an occupational hazard for landlords, so make sure you’re as prepared as possible.

3. Be ready to be on call.

Emergencies WILL happen at rental properties that require a landlord to deal with. One nice thing about renting out a garage apartment or half of your duplex is that you’re never far away if there’s an emergency with the property, such as a burst pipe or a fallen tree. However, if you don’t live nearby, it may be difficult to keep an eye on the property to ensure it’s kept in good condition. This is yet another reason why it’s a good idea to work with a local property manager who can help look after your property.

As a landlord, you will be responsible for the routine maintenance and emergency repairs on a rental property. Maybe you can handle annual touch-up work, but unless you’re well-versed in HVAC systems and your city’s plumbing and electric codes, you’ll need phone numbers for reliable repairmen. You’ll also be responsible for ensuring that the yard, driveway, etc. are also maintained. 

4. Protect your investment. 

Landlords must have insurance, and the insurance coverage you need as a landlord is different than what you have as a homeowner. Landlord insurance can protect you and your investment property from loss of income in the event that the property becomes uninhabitable, like in the aftermath of a fire or flood, or during a tenant-landlord dispute.

5. Work with a licensed expert.

Finding a property, whether it’s for you and tenants or just to rent out, presents challenges that are very different from just buying a house for you and your family. Take advantage of the services of a licensed Realtor® with a background in property management, like the ones here at Angel Fultz Realty. We’ll help guide you through the process, from deciding whether now is the right time for you to become a landlord in Houston to finding properties that best fit your goals.