Why Should I Purchase a Rental Property in Killeen, TX
Is investing in Killeen, TX a good fit for your rental property investment plan? Learn how to analyze an area based on your goals, what data to look at when setting rent, and why a Killeen,TX property manager can help your investment business succeed.
Before investing in a rental property, do the research on home prices and rental rates so you can calculate the expected return. Can you expect any cash flow or are you looking at appreciation only?
Are there a lot of house, apartments, etc. in the area? What are the more popular home sizes? Are most people looking for a 3-bedroom home? Purchase a property people are looking for to reduce vacancy time.
You want to know you are investing in an area that is growing. Look at the job and city growth trends. The statistics will tell you a story about the future of the city.
About Killeen, TX
Killeen, TX is a military town in Central Texas best known as the home of Fort Hood, one of the largest military installations in the world. Two large lakes offer fishing among other recreational opportunities. Residents can enjoy golf at one of the many courses or spend an afternoon at the Mayborn Science Theater, a planetarium on the campus of Central Texas College.
- Population: 140,513
- Median household income: $48,898
- #53 for America’s Best Cities (Crime)
- Cost of living is lower than the national average.
Killeen real estate market
- $121,500 average current home value
- 5.9% appreciation over the last year
- 12.8 appreciation over the last 10 years
- Cost of living is 50% below the US average
Killen offers affordable investment properties with a potential for home price growth. If cash flow is party of your rental property investment plan, you will need to run the numbers to see if it meets your requirements.
Top rated neighborhoods in Killeen, TX
- Hood Road
Economy and Industry
- 1.9% recent job growth
- 35.6% future job growth
Many employment opportunities in Killeen are in the public service, retail, and healthcare industries. A large percentage of residents are active-duty soldiers or employed by Fort Hood, the region’s largest employer.
Killeen is growing and expects to have a population of 180,000 in the next 10 years. They continue to attract families looking for affordable homes and military personnel looking for the convenience of veteran services in the area. There is also a significant influx of Californians moving to Texas. If you are looking for a growing city with a strong economy and affordable home options, Killeen is worth looking at for investment opportunities.
How to Accurately Set Rent for my Killeen, TX Rental Property
How do you know you are setting your rent at the right price to maximize return and reduce vacancy time? Pull comparisons for the area, but only look at the properties that are like yours in unit type, size, and location for an accurate view of the current rental market.
Several factors can affect the rent rate including:
Demand vs supply - A shortage of rental supply with a high demand can cause rent rates to increase.
Rental Season – Are you looking for a tenant during the prime rental season? Most people move in the Spring/Summer months. If you must fill a vacancy during the offseason, you may not be able to get as much rent as during the prime season.
Location of the property – Is your property in one of the hot neighborhoods of the city? Is it convenient to a highway or major employer in the area. Location can affect the price both positively or negatively.
Curb appeal – Does your home have the upgrades people are looking for?
Do you allow pets? Allowing pets can influence both days on market as well as rent you can collect if pet homes are in demand.
Rental market in Killeen, TX
- $795 average rent for a 2-bedroom
- $1,145 average rent for a 3-bedroom
- Average days on market: 8 days
- Occupancy rate: 91.7%
- 30% renter-occupied
- 69% owner-occupied
Being a military town, a large percentage of renters are active duty soldiers looking for off-post housing. Rentals are leased quickly with an average 8 days on market. This is great news with a caution that you need to have your property rent ready before listing it.
Why Should I Hire a Property Management Company in Killeen, TX
What happens when you have a Killeen property management company helping you?
They can take the day-to-day operations off your hands. Most importantly, they know the laws and regulations that apply to your rental property and will make sure you comply.
Day to Day Operations
Your property manager will take care of the operations portion of your property. This includes tasks such as:
- Advertising and marketing the property
- Taking applications and screening them to find a quality tenant
- Handling maintenance issues (regular and emergency)
- Lease signing, enforcement, and renewals.
- Evicting tenants if necessary.
Typical maintenance issues in the area:
- Wood protection
- Heating/Air Conditioning
- Tiled Areas
Laws and Regulations
In addition to the operational tasks, there are laws and regulations that need to be followed. If you are self-managing your property, you are responsible for knowing the current changes that apply to your rental. Most people don’t get into investing to add a second job to their busy day. If this isn’t something you are interested in researching, hiring a property manager might be a smart decision for you. Mistakes can cost thousands in fines or court costs. Property management services provide you peace of mind that your property complies with local, state, and federal laws.
Example of laws that apply to your rental:
- Texas Concealed Handgun Law & Property Rights
- Texas Homestead Law Overview
- Texas Homestead Laws
Hire a Killeen property management company
Mynd’s Killeen property management office is ready to be your strategic partner. Interested in remote investing? We are experienced with working with investors looking to build a local team for expanding their portfolio into new markets. We offer a three-tiered pricing structure so you can choose the level of service that fits your needs, so contact us today.
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In the meantime, learn more about ways to start with a smaller downpayment here.