Posts Tagged ‘rent rates’

While helping a client look at duplexes in north Austin to buy, we viewed several duplexes off of Well Branch, Duval Rd, and Parmer Lane area.  One of them had a long-term tenant of over four years.  While it is great that the tenant has been there a long time and has no plans to move-out, consider the below market ent rate.  It was renting for $775 for a 2 bed/2 bath/1 garage. 


Market rents are $850+ now.  It appears the owner or property management company failed to try keeping the rents close to market.  Rents have increased in Austin for the last 4 years or so, and this location is no exception.  By not increasing rents, even a small bit each year, it becomes doubly or even more difficult to increase rents with the passage of more time. 


There could be some underlying reasons for the lower rent rate, such as repairs needed or lack of maintenance.  Sometimes, a friend or relative of the owner may be given a reduced rent rate lease.  That is the owner has given a “special deal”.  The reduced rent can be more detrimental than many landlords think, not just monetarily but also reduce the appeal of the property when for sale.


While each case is unique, I would recommend trying to raise rents every year after evaluating the market conditions, the property and the tenant’s desires. 



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