Why Should I Purchase a Rental Property in Temple, TX
Does Temple, TX offer the investment opportunity you are looking for? Learn what data to look at and how a Temple property manager can help you make smart investment decisions.
Before investing in a new market, research trend data about the city to determine if it fits in your rental property investing plan. Are rent rates going up? Are people and businesses moving to the area? What is the real estate market doing? Does this area offer the return you are looking for? Let’s take a look at Temple, TX.
About Temple, TX
Temple, TX is in Central Texas between Austin and Dallas. If offers small town charm and outdoor activities that include nearby Lake Belton.
- Population: 71,795
- Cost of living: 20% below the US average
- Median household income: $49,970
- Median age: 34
- Great Schools
- Family Friendly
- #6 Most Affordable Place to Live in the US – CBS News
- #3 Best Economic Climate – Forbes 2018
- #7 Most Diverse Community in Texas – Niche 2019
Temple is a popular weekend getaway for visitors looking for a break from the hustle of the bigger cities. The local VA hospital makes it a convenient place for veterans to spend their retirement years.
Real Estate in Temple, TX
- $136,300 average home value
- 7.2% appreciation this year
- 25% appreciation over the last 10 years
Temple offers affordable homes and has experienced significant appreciation over the last 10 years. This is important to know if appreciation is part of your investment strategy and you are looking for markets with home price growth. Before buying, run all the numbers so you have realistic expectations about your potential return. If cash flow is included in your strategy, you want to know what that number is expected to be. Making smart decisions based on real data before you buy helps you to avoid mistakes. Nothing is worse than depending on a $200 cash flow only to find out you have a negative cash flow on your investment. Making decisions on numbers and not emotions is vital for success in investing.
Economy and Industry
- 1.9% recent job growth (higher than the national average)
- 37.7% future job growth (higher than the national average)
Temple has great diversity in industries that include manufacturing, business support services, and logistics and distribution. The city is headquarters for several state and regional agencies of the U.S. Department of Agriculture. Baylor Scott& White Health is its largest employer.
How to Accurately Set Rent for my Temple, TX Rental Property
The market determines the rent rate
That can change from year to year. The rent amount should maximize return and minimize vacancy. If you price your rental too high, the extended vacancy time can cost you a lot in lost revenue. If you price it too low, you are losing some profit.
Rental market in Temple, TX
- $783 for a 2 bedroom
- $1,130 for a 3 bedroom
- Average days on market: 11 days
- Occupancy rate: 91%
Properties are renting quickly, and people are staying in the property. That is good news if you own rental property in Temple, TX.
- 35% renter-occupied
- 64% owner-occupied
Most of the homes are owner occupied, and your home value will benefit from that. Why? Statistically owners take better care of their properties. This results in neighborhoods maintaining their condition and home values increasing over time.
Compare similar properties only
When determining what your property will rent for, only look at properties like yours (unit type, number of bedrooms, square footage, etc.) that are currently for rent. You want to compare apples to apples. As you can see from the above average rent rates, an additional bedroom can make a significant difference in price.
Just because you rented your home for a certain amount in the past doesn’t mean it will rent for the same amount today. It could be less because of economic changes, or it could be more because of an increase in demand. There are many factors that can affect rent rates, so base your decision on current data. Your Temple property manager has access to current, proprietary data to help determine an accurate rent rate to charge. Mynd offers a FREE rental analysis if you want to know what your home can expect to rent for.
Why Should I Hire a Property Management Company in Temple, TX
When you own a rental property, you own a business.
There are daily operations to oversee and rules, laws, and regulations to follow. Does it make sense to hire a Temple property management company? What is your time worth to you? Most people purchase investment property for passive income, not to take on a second job. A property manager will take care of the day-to-day operations and ensure your property complies with the laws.
Operational tasks include:
- Getting the property rent-ready and up to code
- Marketing the property
- Taking applications and screening tenants
- Preparing and enforcing the lease
- Collecting rent monthly
- Handling maintenance issues
- Implementing an eviction if necessary
Maintenance can be a disruption when self-managing a property.
That means you get the midnight call about a water leak. If you are an out of town owner, you will feel better knowing you have a local property manager that is taking care of any maintenance issues including those dreaded emergency calls.
Common maintenance issues in the Temple area include:
- Gutter cleanup
- Carbon monoxide and smoke detectors maintenance
- Faulty furnace or exhaust venting
Laws and regulations
Keeping up with ever changing laws that apply to your rental property can be a time-consuming task. There are laws at the local, state, and federal level such as:
- Texas Leases and Rental Agreement Laws
- Texas Security Deposit Laws
- Texas Tenant Rights Laws
The laws constantly change, and it is your job as an owner to keep up with them. Mistakes can cost you thousands in court costs and fees. If you hire a Temple property management company, make sure they know the laws. Don’t be afraid to ask them questions about their policies and procedures. Mynd property management has inhouse council to ensure our processes and procedures comply with laws.
Hire a Temple Property Manager
Whether you are looking for an investment property or management services, Mynd is here to help. If you are interested in investing remotely in the Temple area, we are experienced in helping our owners expand outside of their current market. Our three-tiered pricing program is available in 19 markets and allows you to select the level of management you need. Contact us today for more information about property management in Temple, TX.
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In the meantime, learn more about ways to start with a smaller downpayment here.