How to be a landlord in Texas
Ready to start earning money on one or more rental properties in the Lone Star State? Texas is a great place to become a landlord for many reasons. The average rent in top Texas cities can make for excellent passive income. From tech giants to the booming petroleum industry, jobs and the number of renters are on the rise.
Calculate ROI on Rental Property in Texas
How to Become a Landlord in Texas
1. Preparing your Texas rental property
The most successful rental properties in Texas are pet-friendly, feature tile or upgraded flooring, include a refrigerator, and outdoor living spaces. Upgrading your property to include these items can mean the difference between charging $1,000 per month and charging $1,500 per month for rent. If you are new to Texas, don’t forget the most important amenity of all — a working air conditioning system to tackle the hot summers and chilly winters.
Best Practice: Check out other properties in your area that are renting for your desired price. Does your property feature the same or better amenities? If not, perform the upgrades that fit into your budget. Get a free rent estimate report to find out what your neighborhood’s pricing market looks like.
2. Familiarize yourself with Texas Landlord-Tenant and rental laws
Set yourself up for success by brushing up on Texas landlord-tenant laws. This will help you to make the right decisions when it comes to security deposits, property maintenance, evictions and more.
Best Practice: Familiarize yourself with Texas landlord rights, tenants’ rights, and the fair housing laws in your city to make sure that you are always in compliance.
3. Market your rental property
Dont: Take photos at night. Natural light is needed to make rooms feel warm and welcoming.
Do: Make the room appear bright and inviting with light and the right angles.
4. Find the perfect tenant
You don’t have to rent your property to just anybody. Finding the perfect tenant will ensure that you’re paid on time each month, and that your property is well-cared for. Screening your tenants for common red flags is the best way to decide on who the best renter for your property is.
5. Landlord Check-Ins & Maintenance
Communication is the name of the game when it comes to managing your rental property. Clearly define when and how often check-ins or walkthroughs will be performed in your lease agreement. The lease should also include what types of repairs that the landlord is responsible for, and how quickly those repairs should be completed. The average time for repairs to be completed in Texas is ten days, though can be as short as 24 hours for something like a broken air conditioner in hot temperatures.
Best Practice: Clearly outline maintenance and repairs that you will cover in the lease. Make sure that you comply with Texas rental laws when setting them.
Bonus: Learn About Taxes on Rental Income in Texas
Rental property taxes in Texas differ by county. If you haven’t already purchased your rental property, look in areas where the property tax won’t drastically affect your return on interest. Make sure that you are aware of the average property tax in your county and factor that into your rent price to avoid taking a loss.
Being a landlord in Texas doesn’t have to be difficult. With free landlord tools like TurboTenant, you can remove management costs, accept applications, screen tenants to find the right renter, accept rent payments, and even correspond with your tenants from the comfort of your own home. With the Texas rental industry booming thanks to job availability, you can start earning passive income with only one property — but we dare you to stop at just one!
Join the 300,000+ independent landlords that rely on TurboTenant to create welcoming rental experiences.
No tricks or trials to worry about. So what’s the harm? Try it today!