There is a lot going on in the Austin rental market, and today I am providing a market update. We’re also going to talk about how to navigate a challenging market. I have some statistics that I don’t want to bore you with, so I’ll give you the bottom line: we’re in a competitive market right now. It’s not oversaturated in all areas, but the supply is exceeding the demand in several areas. This is leading to above average lease times.
Rental Market Trends: Quick Statistics
Here are some numbers that focus on Cedar Park and Leander:
- June, 2016: 166 rental homes were leased
- June, 2017: 178 rental homes were leased
- Currently: 243 active houses for lease
This means we have more than a 30-day supply of properties for lease, and this is the active season. People are moving and more rentals are becoming available. The people moving aren’t necessarily renting one of those 243 available homes, either. That creates the potential supply problem.
Even if we hit the 166 mark for this year, that still leaves 80 to 100 rental properties that are still active and not being leased. You need to be aware of these statistics and their potential impact. However, it’s not that bad. Most people out there right now will do nothing. They’ll stick with their same marketing strategies, and they won’t lower their prices. Those are the homes that will stay vacant. If you do something, you’ll be able to navigate this market successfully. I have three ideas for you.
Prepare Your Property
Focus on preparing your property for this competitive market. The things you might have gotten away with in the past need to be addressed now. Pay attention to curb appeal and updates. Have an honest assessment of your interior and exterior features. Things don’t have to be perfect, but you do need to address what’s needed.
We have been spoiled as landlords with built-in rental appreciation. It’s correcting now, and prices are falling a bit to address the supply needs. It’s a good time to tighten your belt, and sometimes you’ll need to tighten by more than one notch. Make sure you fit your market.
Presenting the Property
How are you presenting the rental home? Try professional photos and a floor plan. Make sure you have complete coverage on the internet. Get a virtual tour in your listing. You can get a marketing package that includes high quality photos, a floor plan, and a virtual tour, and it’s not that expensive.
Know that you’re in a difficult market. If you can keep your current tenants, try to do that. Otherwise, get creative and focus on what we’ve talked about today.
If you have any questions about this rental market analysis or property management in Austin, Texas, please contact us at Austin Landmark Property Services, and be sure to watch our other videos.