RENTAL AGREEMENTS ON THE RISE IN DFW
Trends show that more millennials and transplants are choosing to rent rather than buy.
DALLAS/FT. WORTH, TX – Among one of the more interesting trends in the DFW real estate market is that fewer people are looking to buy their property—preferring instead to rent. Perhaps even more interesting is that many of these new-age renters are committing to their properties long-term—even up to 5 years or longer—rather than standard 12-18-month rental terms.
Part of the reason for this new trend in the DFW area is that many corporations are opening glistening new facilities, attracting transplants from all over the world and appealing to new college grads who are looking to boost their resumes. Many millenials and transplants report that part of the reason they don’t want to buy is because they don’t want to be tied down to a contract, should new opportunities arise. In short, they want the flexibility to go after the latest and greatest when it crosses their doorstep.
“It’s a fascinating trend to watch,” says Mike Jeppson COO of Specialized Property Management in Dallas—a company which also does property management in Plano. “This is great news for property managers and investors as well. It means that they get high quality tenants who are willing to commit for a few years and when the house does turn over, there is a fresh pool of similar tenants waiting to take over. Quite honestly, I’ve not seen anything like it.”
There is a downside to the increase in rentals. There is also a slow, but steady increase in the price per square foot for rentals. At some point, Jeppson argues, it will be come more profitable to buy than to rent. “When that happens,” Jeppson says, “we’ll probably see a pretty steep decline in rentals as well as rental prices, but who knows. If there is one thing I’ve learned with property management its that you can always be surprised by the way people purchase homes.”
This means that there really is no better time for investors to snap up a few rental properties to call their own. After all, as prices begin to rise, both to buy and to rent, locking in those rates now will ensure a long term investment that pays dividends for the renter as well as the property manager.