In the last few years, Austin has experienced a veritable explosion, as transplants from other parts of the country relocated to Texas to take advantage of the strong economy and job market. Unfortunately, many of those transplants have not been able to sell their properties back home and as a result must rent rather than buy. This has created a strong demand for rental properties in Austin and the surrounding area. According to Zilpy, rents in Texas experienced an increase of 3.15% during the month of January 2015 compared to the previous month. This represents a 9.85% year-over-year increase. In Austin, the median rent for a one-bedroom apartment was $990, representing a 0.4% increase from the prior month. The median rent for a 5-bedroom property in Austin was $3,500, a 14.3% increase from the previous month.
Landlords Benefitting from Growing Rental Market in Austin
An increasing demand for rental properties in Austin has certainly proven to be good news for investors and landlords, who may find that they have more of a response to the advertisement of a vacancy than they imagined.
While such an eager response to rent one's property can be reassuring, it is also important to ensure that you do not overlook your responsibilities as a landlord when vetting prospective tenants. One thing to keep in mind is that people come to Austin for all sorts of reasons. Along with the strong job market attracting new residents, Austin is also a college town. To be more precise, it is a university town. The presence of University of Texas at Austin attracts students from all over the state as well as the country. While college students can be an excellent source for increasing your tenant pool, a few extra precautions should always be taken to ensure that you do not put your investment at risk. This can be particularly important when vetting prospective tenants who may be relocating to Austin from another state. When that is the case, it is imperative to ensure that you make sure you conduct a comprehensive tenant screening. With a tenant screening and background check, it is possible for landlords to ensure they are able to obtain all of the information they need to make an informed decision regarding applicants.
Rental Market in Austin Growing with Tech Sector Expansion
Recently, Forbes ranked Austin as one of the top five cities poised to be the next Silicon Valley tech hub. In that article, Forbes cited the young and educated population in Austin, along with the fact that Austin is home to no less than 17 companies on the Inc. 5000 list as being among the primary reasons that Austin is poised to become a new tech hub. The state capitol is also predicted to have some 9,000 new tech jobs within just the next two years. As more people continue to flood into Austin to take advantage of education and employment opportunities, they will need places to live. A tenant check through a service such as VerticalRent can provide property owners with the peace of mind they need to make informed rental decisions.