Is buying property in Texas a good investment? The quick answer is yes, it is. Texas laws and regulations are landlord-friendly, and there’s no personal income tax. With steady population growth, the rental demand remains high, housing prices are very reasonable, and the state offers job diversity and a thriving economy that will produce consistent rental income. Buying property in Texas can be an excellent investment, and here are a few reasons why.
Consistent Increasing Demand
If you’re looking to purchase residential investment properties, you want to find somewhere that has a consistent population growth. The rationale for that is obvious; the more significant the influx of people, the bigger the need for rental properties to house them. Texas is already the second-most populous state in the union, trailing only California’s number of residents.
Ironically enough, a large portion of the influx of new Texas residents is coming from California for a variety of reasons. Among them are that California has higher taxes, a higher cost of living, unfriendly landlord laws, limited land availability for future development, very high competition for jobs, and skyrocketing housing prices. Moving to Texas negates all of these issues.
Strong Economy and Excellent Job Market
With a strong and successful economy, Texas makes an excellent rental market and consequently an excellent state in which to purchase rental properties. There are many reasons that this advantageous economic environment exists. First and foremost is the well-known gas and oil boom that’s the state’s calling card. In addition, there are many Fortune 500 companies that call Texas home across a wide variety of industries. There’s also a significant technological sector, a large health care sector, and a substantial manufacturing sector.
Add various leading universities and colleges to that list, and you have a recipe for a thriving, robust economy. And let’s not forget about the blue-collar jobs that are the backbone of this country and support the very foundation on which it runs. An economic environment like this creates a high demand for rental properties. It leads to tenants who have stable jobs with stable companies and are more likely to stay for years, meaning the tenant turnover decreases.
One of the base reasons one would look to purchase rental properties in a state is to determine if the laws are friendly to the property owner. If the laws aren’t favorable to you as a property owner when an issue does arise with a tenant, it certainly makes that state less attractive. Not to worry, though, Texas is a pro-property owner state and has taken the overall stance that the property owner should maintain crucial rights to their property. This stance makes sense, as property owners are the ones who put money into purchasing and upkeep of a property.
If you’ve been a part of the rental game for a while, you’re probably aware of the conflicts that can arise between tenants and landlords. Probably the most challenging kind of conflict comes in the form of eviction. If the state laws tend to favor tenants over property owners, it can cause a serious issue when they become delinquent on the rent and you need to evict them.
Optimally, the eviction process would be quick, and you could get a new paying tenant as soon as possible before losing more money. In tenant-friendly states, this can be an arduous process that can take months, not to mention the cost of legal fees and the hours you have to put into the process. It can be very frustrating and can cost you a lot of money.
Texas is landlord-friendly, so residential real estate investing in Texas is a good idea. The laws favor the property owner in general, specifically when a tenant violates their lease. Once it’s established that the tenant has violated their lease, the eviction process is quick and much cheaper, with far fewer legal fees. As long as you have a well-written lease, Texas property laws will work in your favor, making Texas a great place to invest in residential real estate.
No Personal Income Tax
No personal income tax is another huge advantage to purchasing a residential investment property in Texas. This lack of taxation can significantly impact your bottom line. There are still federal taxes to pay, of course, but that would be levied in each state the same.
Are You Ready To Invest in Texas Property?
Now that it’s clear that Texas is a great place to buy an investment property, your next step should be to contact us at Castle Development Group. You can see a variety of properties currently available on our website. Once you’ve made your purchase, one of our services is property management. The main goal of our property management service is to maintain a high tenant retention rate while effectively managing your property in order to optimize the return on investment fully.
There’s a lot more to what we do than just collecting rent and paying the bills. Unlike many other management companies, Castle Development Group maintains a constant presence at all properties we manage to ensure everything runs smoothly with tenants and the property. We’ll help facilitate a healthy relationship with owners and tenants to keep everyone on the same page.
We understand that property expenses incurred are a tenant pass-through, so they need to be mitigated as much as possible. Part of this process involves contesting county property tax assessments each year to ensure your tax burden is kept to a minimum. In addition, we have facility management services that include an in-house accounting team that monitors income and expenses for all properties you own in a format customized to your needs. Property expenses are constantly being optimized with rebidding efforts and with a continual analysis of landscaping, maintenance, and insurance as well as capital expenditures.
If you’re ready to invest in a property in Texas, there’s no better time than the present. Maximize your profit by taking advantage of what Texas has to offer today. For more information, you can reach the experts at Castle Development Group at 817-337-3433 or via our secure online form.