Owning rental properties can come with many benefits, like getting a new cash source every month from rental income and being able to grow the value of your property over time. However, becoming a landlord is not exactly a walk in the park.
Listing and advertising your rental, collecting income from rentals, managing repairs, managing security deposits, dealing with tenants, and working with the rental market are just some of the many things landlords have to take care of every day.
Additionally, to be a successful landlord, you must ensure your property complies with the housing laws of your state. Texas, for example, is a landlord-friendly state. Although landlords in this state have a wide range of rights, they still have many duties for their rental properties. Keep reading to learn how to prepare better to start investing in real estate in Midland, TX rental properties!
Understanding Texas Landlord Rights
Texas is one of the best states for landlords because the Texas rental laws often favor landlords and their rental properties. In Texas, for example, an oral or written rental agreement is enough to establish a relationship between a landlord and a tenant. This provides a set of rights to both parties. According to Texas landlord-tenant laws, landlords have the following rights:
- Collecting rent on the previously agreed basis.
- Charging additional fees for late rent payments.
- Raising rental prices by any amount. Income increases should be done while complying with discrimination and retaliation laws.
- Deducting the costs of repairs that exceed normal wear and tear from a tenant's security deposit.
- Being given at least a month's written notice when a tenant is planning to move out of the rental.
- Terminating the lease or rental agreement early if the tenant breaks the lease agreement.
- Evicting tenants when legally applicable.
If a landlord’s rights are violated, Texas landlord-tenant law is there to help. Property owners can file cases to settle minor disputes without the need to hire an attorney if the amount claimed is less than $20,000. However, it’s highly advised to contact a legal professional for guidance on property taxes and the like. The key to being a successful landlord is preparation!
Understanding the Responsibilities of Landlords in Texas
In Texas, landlords must always maintain their property in livable conditions. Additionally, they are required to attend to repairs within three to seven days, depending on the urgency. If a tenant makes any necessary repairs themselves, they have the right to deduct the cost from future rent payments.
In addition to this, landlords in Texas must comply with local, state, and federal Fair Housing laws. Landlords also need to keep tenants informed on necessary disclosures, including the following:
- If there are any concentrations of lead-based paint. This applies only to houses built before 1978.
- When renting out multi-family units, it’s necessary to disclose all parking rules and restrictions.
- If any late fees will be charged. To avoid issues or misunderstandings, it’s best to disclose this in the lease agreement.
Additionally, Texas property code states that landlords must provide a 24-hour emergency phone number that can be used to report any emergencies that may arise. They also have to provide tenants with the contact information of all parties involved in the management of the rental.
Guide to Renting Out Your Midland Property
Prepare Your Property for Renters
Now you understand the rights and duties of landlords in Texas, you can use the steps listed below to start renting out your home on the rental market. First, when entering the rental business, it’s important to ensure your house is in good shape prior to putting it up on the rental market in order to be a successful landlord. You'll also need to set the right rental price. You want to set a rental price that remains competitive with other rental properties in the local rental market but is also a reasonable rental price determining the size of the rental unit, the amenities you offer, and the property's location. You may consider renting out a furnished property; find out why we don't recommend renting a furnished property in this blog post.
A well-cared-for rental on the rental market will attract more potential tenants and will increase its value in the long run. After deep cleaning and making any necessary repairs, you can start working on the following steps. Determine maintenance costs and mortgage payments before you set your rental price under Texas law.
List and Advertise Your Rental
To create an effective listing for the rental market, start with an attractive title that hints at what you're offering. Then, write an informative description with key information such as rent price, number of bedrooms and bathrooms, location, and nearby amenities.
Lastly, add high-quality photos that showcase the best attributes of the property. To get the best pictures, it’s essential to stage your rental.
Once you’ve created a listing, you’ll want to post it on as many rental listing sites as possible. This will help reach a larger audience. Additionally, you should market your rental across other mediums, such as social media or your local newspaper. The more applicants you attract, the easier it’ll be to find the best renters!
Screen Tenants and Find Your Perfect Renter
If you want to avoid issues like late payments, unpaid rent, and tenant complaints, you need to find trustworthy renters. The best way to do this is through a solid tenant screening process.
You should check potential tenants' credit score, proof of employment, and criminal record for commercial or residential rentals. You want to find potential tenants who will pay rent on time and treat the property with respect. To save time, you can use a variety of tenant screening services or hire a real estate manager to help you vet potential tenants.
Hire a Property Management Company for Your Midland Home
Landlords have a lot on their plates, from dealing with maintenance requests to keeping track of their property’s finances. Managing a rental can be as time-consuming as a full-time job. If you want to truly generate passive income, hiring a property management company is highly advised.
A property management company can handle the daily operations of your rental for you. It offers services that typically include selecting the right price, listing and marketing the property, tenant screening prospective tenants, handling security deposits, collecting rental income, and bookkeeping. A property management company also can help you retain long-term tenants and handle all property maintenance and repairs for you. A property management company can even assist with more specific things, like property taxes, setting the rental price, and deciding how much of a security deposit to charge.
If you’re looking for a property management company in Midland, TX, you’ve come to the right place! With McCourt Real Estate’s property management services, you can be sure that your investment is in good hands. Our dedicated property management company is ready to help you maximize the profits of your rental!
Bottom Line
Renting out your property in Midland is no simple task. But the hard work is worth it! Now that you understand the rights, duties, and local laws for landlords in Texas, you can take the next steps to put your house up for rent. Plus, now you know how beneficial it is to hire a property management company.
If you want to reap the benefits of owning a rental without the hassle, contact McCourt Real Estate today! Whether you already own a rental or thinking about buying an investment property in Midland, our property management company is here to help you. Becoming a landlord has never been easier!