According to a September 2023 Bureau of Labor Statistics (BLS) report, Dallas-Fort Worth-Arlington, TX, households spent an average of $71,932 on consumer expenses from 2021 to 2022. Housing costs averaged $25,975, accounting for 36.1%, much higher than the 33.5% U.S. average.
Such high housing costs also impact you as a Dallas-Fort Worth landlord. Yes, your primary goal should be to maximize your income. However, you should also be careful not to overburden tenants with exorbitant rental leasing costs.
To that end, we at Red Team Real Estate created this guide exploring expert property leasing tips. Read on to discover how to boost income without risking high vacancy and tenant turnover rates.
1. Use Property Analysis for Rental Market Insights
BestPlaces.net points out that the average 2024 rent in Fort Worth ($2,070) and Dallas ($1,860) are higher than the U.S. average of $1,840. So, if you charge even more than the average and what's justifiable for your property, you'll likely have difficulty finding and retaining tenants. After all, if they can rent something similar for less, why would they pay more for yours?
Prevent that from happening with a comparative market analysis. Using this strategy can help you determine fair rental prices, avoid overcharging or undercharging, and see ample returns on your property.
2. Put All Tenant Agreement Essentials Into Writing
Dallas-Fort Worth rental lease terms, conditions, and provisions must abide by Texas Property Code Title 8 Chapter 92.
Leases can be oral or written. However, as the Texas Government website explains, contracts with terms of over one year must always be in writing.
Even if you decide to rent your property for less than one year, you should still put all rental T&Cs into writing. A written contract is much better because it's tangible proof of the agreement. It also serves as a handy reference for both parties to abide by the lease terms and prevent costly issues that can lead to disputes and rental evictions.
3. Implement Effective Lease Negotiation Strategies
Communicating effectively, including using plain language and being willing to compromise, is the key to successful lease negotiation. So, avoid using technical jargon in the written lease and when explaining things to your tenants orally.
You should also consider reasonable tenant requests to modify lease terms. An example is if they're willing to take over some of your property maintenance duties (e.g., mowing the lawn, washing exterior walls, etc.). In exchange, they may ask you to give them a rental discount.
Consider agreeing to their request. They'll likely appreciate you more since it can help them save money. The more tenants appreciate you, the more likely they'd want to stay and renew their lease.
Achieve Rental Leasing Success With These Strategies
From using property analysis to having written leases and negotiating effectively, these are just some of the top rental leasing strategies you should implement. They can maximize your rental income by helping you find and retain high-quality tenants.
However, consider partnering with Red Team Real Estate if you want the simplest, most convenient way to earn rental income. We're a full-service property management company serving landlords and tenants throughout the Dallas-Fort Worth area since 2012. With our professional lease contract advice, property management expertise, and innovative technology, we can help you make the most of your rental.
Speak with us today so we can get started on your complimentary comparative market analysis!
