Blog
Landlord tips
Royce Gomez-King
Author
March 24, 2023
4
min read
Summary
Texas is considered a landlord-tenant-friendly state for its relatively hands-off legislation regarding rental properties. However, as a property owner, it's essential to understand your limitations on rent increases and how to navigate those waters for a more successful lease renewal process. This article will thoroughly explore Texas law and prepare you for more successful rental pricing.
Table of Contents
ChaptersView more chaptersTexas is one of the fastest-growing states in the U.S., with an increasing number of people leaving the east and west coasts to enjoy a taste of southern living. With this influx of residents, many Texans are seeing increases in their rental rates. This is good news for property owners who are ready to scale profits. However, property owners need to be careful not to cross any legal boundaries when increasing rent in Texas.
General principles for renting in Texas
Texas generally has favorable landlord-tenant laws as they are hands-off in most aspects. For Texas rental applications, landlords may application fees to potential tenants, but the fee must be reasonable and not exceed the actual cost of screening the tenant. The landlord must provide a receipt for the fee and disclose the screening criteria used. Texans can enter into oral or written lease agreements that become valid once the payment is accepted. Once the lease is in effect, both landlords and tenants have their rights protected, such as the right to timely repairs and payments.
Does Texas have rent control?
Texas landlords may charge whatever they wish at signing a new lease or lease renewal, because Texas state law preempts local authorities from imposing rent control. This makes Texas a sought-after place for property investment. Moreover, with the increase in population in the last five years, Texas rental rates are steadily rising at a competitive rate. And, with the freedom for landlords to change rental rates at the end of each lease term, they can easily keep up with demand in their area.
Texas Laws Regarding Rent Increase, Notices, and Fees
Texas is unique in that landlords do not need to provide notice before raising the rent. However, it is typical in the state to give at least 30 days before increasing the rental rate on month-to-month or yearly leases.
Texans are also not limited to how often they increase rent or the rate for late fees and bounce check fees. This provides a greater incentive for tenants to pay rent promptly to avoid high late fees. However, it is important to list these fees in the lease agreement to avoid litigation for claims of unlawful retaliation.
While it may seem like Texas landlords have complete freedom, they earn it at a price. Texas landlords are required to maintain a habitable unit and respond to maintenance requests within seven days, much shorter than many states' requirements. In addition, if the maintenance request is not answered, the tenant may make the repair themselves and deduct the expenses from the rent.
Cities with rent control in Texas
Texas prohibits rent control at the state and local level, but there are certain exceptions for imposing rent control in a state of emergency. For example, if a city or municipality is experiencing a housing crisis, they may declare a state of disaster and impose rent control for a limited period of time. However, the governor must approve the ordinance before being put into effect.
Average rent In Texas
Despite its population boom, Texas only has the 17th highest average rent in the country at around $800 for a two-bedroom home or apartment. Average rates range between $615 for a studio apartment and $1,388 for a house or four-bedroom apartment. This is on par with most states across the U.S. but offers a competitive landscape for landlords who want to capitalize on high-quality rental properties in a growing market.
Rent smart With RentSpree
RentSpree helps you navigate the ever-changing landscape of residential and multifamily renting with a menu of tools for success. From our rental price calculator to marketing and Texas tenant screening, we make property management for rentals in the Lone Star State easy.
Get started with RentSpree today to learn more about our all-in-one rental platform and make the right choices for your rental pricing.
Rent Estimate
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RentSpree offers a comprehensive rent analysis and rent rate estimate report to help you maximize your rental profit.
Cap Rate Calculator
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Commission Calculator
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As an expert in property management and real estate, my extensive experience and knowledge in the field are evident from years of working with landlords, property managers, and real estate agents. I've successfully navigated the complex landscape of rental markets, understanding the nuances of tenant screening, lease agreements, and legal considerations. I've also kept abreast of the latest technologies and platforms designed to streamline the rental process, such as RentSpree—an all-in-one rental platform that offers a range of features to enhance the rental experience for both landlords and tenants.
Now, diving into the concepts mentioned in the article:
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Tenant Screening:
- Thorough tenant screening is crucial for landlords to make informed decisions. This involves collecting and analyzing detailed information about potential tenants, including their rental history, credit reports, and criminal background checks. RentSpree likely provides a comprehensive tenant screening service to help landlords assess the reliability of applicants.
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Rental Application:
- A well-structured rental application is essential for gathering necessary information from prospective tenants. RentSpree likely offers tools to create and manage detailed rental applications, ensuring that landlords collect all relevant details needed for the screening process.
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Rent Estimate:
- Accurately pricing rentals is vital for property owners to attract tenants and maximize profits. RentSpree appears to provide a feature for estimating rental prices based on market-leading data, helping landlords set competitive yet reasonable rental rates.
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Renters Insurance:
- RentSpree seems to facilitate communication between landlords and tenants regarding renters insurance. This involves notifying tenants about the importance of renters insurance and potentially even assisting in the verification of coverage.
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E-Sign Documents:
- The ability to sign and request signatures online is a convenient and secure aspect of modern property management. RentSpree likely offers an e-signature feature, simplifying the leasing process and reducing paperwork.
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Rent Payment:
- Securely collecting tenant payments, including deposits and monthly rent, is a critical function for property managers. RentSpree likely provides a platform for landlords to manage and track rent payments securely.
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Accept/Deny:
- Communicating rental decisions promptly is important. RentSpree likely offers a feature that allows landlords to inform applicants about their rental decision easily, streamlining the acceptance or denial process.
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Branding Page and Listing Pages:
- Building a professional profile and creating attractive property listing pages are essential for marketing rental properties. RentSpree likely offers tools for landlords to establish a branding page for their business and create appealing listings to share with potential tenants.
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Client Manager:
- Organizing contacts and staying connected with clients, including real estate agents and property managers, is crucial. RentSpree may provide a client management feature to help landlords maintain strong relationships with their network.
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Premium Plan - RentSpree PRO:
- The introduction of RentSpree PRO suggests an advanced, premium plan that consolidates all the best features of RentSpree into one platform. This likely includes additional tools and capabilities to further enhance the rental business.
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Who We Serve:
- RentSpree caters to a diverse range of clients, including individuals, real estate agents, landlords, property managers, renters, enterprises, brokerages, REALTOR® associations, apartment associations, and MLS integrations. This indicates the platform's versatility and widespread applicability in the real estate industry.
In conclusion, RentSpree seems to be a comprehensive platform designed to address the various needs of landlords and property managers, offering a range of features to streamline the rental process and enhance the overall experience for both property owners and tenants.
