Houston rental market slow?

Question

Hi,

I am a new member of BP. I recently bought a new rental property at Houston TX. It has been one month and the real estate agent still cannot rent it out. I am out of town so I have to use a local agent. The price is suggested by the agent and I think it is reasonable based on my online search. My question is whether this is normal or is Houston seeing a slow rental market?

Thanks.

Ray

Account Closed · Answer

Have your agent take you to some cometitive rentals to see if there are differences between your property and theirs.  Udates, upgrades, etc. can make a differerence on which property renters choose.

Kent Harris · Answer

I have 12 rental properties and 3 vacancies right now. I keep lowering the price to get activity. I advertise on Zillow and one house only got 3 views in the last 2 weeks. It should pickup in January. I have most of my leases expire in June except 3 people bailed before there leases were up. In my neighborhood we have $300,000 to $400,000 homes, nothing has leased in the last 18 months and only one house sold in the last 12 months. Normally a 3 bedroom for $1,250 a month would be leased out in a week, it's been a month and so far no takers.

Ray Huang · Answer

@Petra M. No I did not buy as a turnkey.

Petra M. · Answer

@Ray Huang  Did you buy it as a turnkey?

Ray Huang · Answer

Wow, thanks a lot, I am a bit surprised I got so many helpful comments! My property is in Spring TX. Some good schools. I did have my agent pull a comp for the rental around, and then set the price. Seems like I will need to lower the price.

Hopefully the oil industry is at its bottom now.

Thanks again everyone!

Sharon Tzib · Answer

Before you purchase a rental property, review the rental comps and see how long a home typically takes to rent in that neighborhood, so you'll know what is "normal." Ask your realtor if you are getting any apps at all. If you are, then you know you're priced right, it's just a matter of accepting a quality tenant (I reject lots of apps for my clients if they don't meet certain criteria). If you aren't getting any apps, or worse, showings, then you need to lower your price.

Fred Heller · Answer

@Ray Huang  I personally am not seeing a slowdown. Every home I've listed for lease this year has rented in less than five days. I listed a home in Cypress last week for $2500. I was nervous about that one because the more expensive rentals take longer to rent. I listed it on Tuesday and had a qualified tenant apply on Wednesday. I completed the screening on Thursday. The owner accepted the application, and they moved in yesterday.

Rachel Pervis · Answer

Hi @Ray Huang I would have the agent pull leased comps for the past 2 months to check the list price and I would review the differences in the comps.

Chuck Webb · Answer

The market will bear what it can bear...everything else is just noise..(get accurate comps in other words).

Trey Watson · Answer

@Ray HuangNormal. 1 month is not something to worry about. If 1 month is the new redzone for people then we are all spoiled. It could be a little overpriced.