Why Should I Purchase a Rental Property in Conroe, TX
Thinking about investing in a Conroe, TX rental property? Look at key data about the city to determine if this is the right market for you. Learn how a property manager can be an important part of your team.
Before investing in a new market, research the area and determine if it is a good fit for your strategy. You will want to look at job growth, population growth, and real estate trends to form a better understanding of the health of the city.
- Is the city growing?
- Is a diverse selection of industries supporting the economy?
- What are the trends for real estate in the area?
About Conroe, TX
Conroe, TX is a growing suburb located 40 miles north of Houston. It was the ranked the fastest growing large city in the US in 2016. The city attracts commuters that prefer suburban life away from the city. Nearby Lake Conroe and Sam Houston National Forest offer outdoor lovers hiking, fishing, and other recreational activities.
- 87,654 population
- Population is growing 5% annually
- Population has grown 50% since the last census
- Average age of the population is 33
- Highly rated schools
Real Estate in Conroe
- $168,663 median home value
- 47.7% home appreciation in last 10 years
- 6.9% appreciation in the last year
Home values continue to grow along with the city. This is good news if your investment strategy includes appreciation.
Conroe has a diverse economy
When investing in real estate, look for a city that has a healthy, diverse economy. Conroe has jobs in the energy, retail, health care, education, and construction industries. Top employers in the area include MD Anderson Cancer Center, University of Houston System, Shell, Deloitte, Baylor College of Medicine, Halliburton, and NASA.
- Conroe has a 3.6% unemployment rate.
- $95,000 median household income
- 57% of people are commuters (2017)
Areas near Conroe, Texas
There are not a lot of zoning laws, so make sure you are buying in the right neighborhood. Areas near Lake Conroe between Hwy 105 and I45 is a great place to look for investment opportunities. Hot areas include the neighborhoods of Bender’s Landing and April Sound. Only a small portion of the lake area is in Conroe, and the rest is in unincorporated Montgomery County.
Because Conroe is a growing suburb of Houston, you can expect to get appreciation out of your investment. If you are looking to get cash flow as well, you need to run the numbers on the properties you are considering. A Conroe property manager can be an important part of your team when looking for investment property. Mynd manages property in the area and knows the rental market. We have access to proprietary data to help you make a smart decision when it comes to investing in the Conroe.
If Conroe doesn't fit your investment strategy or you want to diversify your portfolio across several markets, Mynd can help. We have offices in 19 investable markets and are available to help you find opportunities that fit your goals. Mynd offers the advantage and simplicity of working with one property management in multiple cities.
How to Accurately Set Rent for my Conroe, TX Rental Property
When setting rent, the market determines the price.
You do want to compare the purchase price to the rent rate to determine your cash flow. However, there are other factors that can affect the rate you can expect to get.
- How is the economy in the area?
- What is the demand for rentals?
- Is your property the type people are looking for?
This highlights the importance of researching a city for its potential growth and economic stability before investing in a rental property. An investment property located in a growing city has a better chance of increasing in value and rent rates over time.
Real Estate in Conroe, TX
- $1,600 median rent for 3 bed 2 bath house
- $243,000 median home value
- 3-4 bedroom homes make up 75% of the market
- 44% of the homes were built in the last 20years
Rent rates will vary depending on the type of property you have. Most homes in Conroe are single family units, so you can assume that is what people are looking for. You don’t want to own a property type no one is interested in because that's going to be hard to rent. The trend with new housing in Conroe has been toward single-family homes which now account for 80% of housing units.
Owners vs Renters
- 75% owner occupied
- 24% renter occupied
Because owners tend to take good care of their homes, having a 75% owner occupied area will help maintain the value of your investment property.
As an investor you want to minimize vacancy time and maximize your return. A Conroe property management company can help you determine the right rent. Mynd offers a FREE rental analysis if you want to know what your property can rent for.
Why Should I Hire a Property Management Company in Conroe, TX
Does it make sense to hire a Conroe Property Manager?
When you own rental property, you own a business. How that business operates determines your success. If you don’t hire a property manager, you will have to do some research yourself to keep up with the ever-changing laws and regulations that apply to your rental property. This includes city, county, state, and federal laws. If you do hire a property manager, they will ensure that your tenant is safe and your property complies with all laws and regulations.
A property manager takes care of the day to day operations such as:
- Getting the property rent ready
- Advertising and marketing the property
- Accepting applications
- Screening applications
- Getting a signed lease
- Coordinating the move in process
- Enforcing the lease
- Handling maintenance
- Collecting rent
- Handling lease renewals
- Processing an eviction if necessary
Each of these operational tasks may have laws and regulations that apply to them. For instance:
- Do you know what you can and can’t ask on the application?
- Does your screening process comply with the Fair Credit Reporting Act?
- Does your leasing process comply with Fair Housing laws?
If you are self-managing the property, it is up to you to know the law. Non-compliance can end you up in court and cost you thousands. You can do it yourself, but you need to dedicate the time to stay up to date on these ever-changing laws.
Montgomery County has a substantial list of local ordinances to protect the residents.
Your property manager can ensure your renters are complying with ordinances that include:
- Noise ordinances
- Animal and pet laws
- Towing and street parking rules
Mynd’s local property managers know the laws to ensure you are following them. We also have inhouse legal counsel available to represent your property should any issues arise.
When it comes to maintenance, landlords do not want to get that middle of the night emergency call. Maintenance issues will be taken care of for you if you have a property manager. How much is your time worth?
If you are looking for property management in Conroe, TX, contact Mynd today. We offer affordable management options with our three-tier pricing structure so you can pick the level of service that works for you.
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