Kyle Texas....Leasing a Home in Plum Creek

I'm frequently asked about how to go about leasing a home. 

Now I'll get this question from both sides of the table.  That is the person who owns the home, thinking about leasing it wants to know "what's the typical rent and how long will it take to find a renter".  While the person who interested in leasing a homewants to know what "they are going for". 

The answer is...it depends on the neighborhood.  So I thought I'd do a series of blogs about some popular neighborhoods around the Austin Area, looking at them from a Lease Perspective.  I'll focus on the landlords perspective.  My goal will be to give you, as the prospective landlord, answers to the following 4 questions. 

1. What is the current market is in a given neighborhood? (Not what it was last year.)
2. How long will it take to find a renter?
3. How do I know the renter will be a good one?
4. What are the costs involved in leasing?
5. Should I lease my home?
6. Is Plum Creek,a good lease market?

Let's start by looking the current market for homes for lease in Plum Creek, in Kyle Texas.

What's the current competition...how many other homes are there for lease in Plum Creek?

The good news is that there are only 2 homes for lease right now in Plum Creek.  That's not much competition.  You can see from the 'capture' that there were at least 11 that went under contract in August.  Must have been the rush to get kids in school. 

So if you know you have a 3 bedroom 2 bath, 1400 square foot home that you are thinking of leasing, then you can see pretty clearly what the market is doing.  Depending on how quickly you want to "get someone in there" you can price it between $1050 - $1175/month.  That would also make you the 'least expensive available home to rent in Plum Creek' right now which is a good thing. 

Keep in mind if you are thinking of leasing a home, you better do it quickly...homes for lease, like homes for sale, start moving slower as you get into the Fall months. 

How long will it take to get a renter?

The answer to question number 2, "How long will it take to get a renter?", is one no one can answer.  However you can look at the last column in the chart and at least see what has been happening lately.  When it comes to Real Estate, Plum Creekor elsewhere, the market is your best view of what is happening.  In the column ADOM, Active Days on Market, you can see in general, that the Plum Creek lease market is pretty hot. It might be cooling off a bit with the kids just starting school, but it looks pretty good right now.

How can you guarantee you'll get a good tenant?

So how can you guarantee that you'll have a good tenant...you can't.  If someone says they can...they're lying.  Before you accept a tenant your agent will have them fill out an application and pay for a credit check.  These can include checking references, credit checks, security checks, police record etc, but beyond that there are still unknowns.  While you hope it doesn't happen, no one can guarantee it.  But usually the past behavior is a good indication of future behavior.

You will usually have built into the contract a security deposit equal to one month's rent, payable before you accept the tenant.  You hold this until their lease is up at which time you are required to return it to the tenant, less any unreasonable damages.  (Discuss this term with your agent and tenant up front so everyone is on the same page.  Saves a lot of trouble at the end.)

What are the common costs involved in leasing a home?

I'm making the assumption that the home is clean, fresh and ready to go.  That may require some costs but again that varies so much from house to house that it makes no sense to deal with it here where we are dealing with generalities.  So we'll deal with the general costs: Relocking the home and paying the Realtor.

If it's the first time to lease then you have to make sure you have the home 'legally lease ready'.  That means that the state law requires that there must be a "peep hole" on any exterior door that doesn't have a window, including the door to the garage.  You must also have "keyless locks" that is on the exterior doors you must have bolt locks that do not have a key hole on the outside.  These allow the person on the inside to lock the doors and no one can get in...including the landlord.  These obviously are only activated when the tenant is home.  (This law was put in several years ago as you can guess, because unscrupulous landlords molested their tenants.  These locks protect the tenant from the landlord coming in to the home to do them harm.  When you think about it, it makes sense.)

Every time you get a new tenant you must always change the locks, (another state law).  Hint: The locksmith can put the locks mentioned above and the peep holes in at the same time if this is your first time to lease the home.

The remaining costs is what do you have to pay the agents:  While these are not set in stone, the typical fee would be 80% of one month's rent.  This is split 50/30 between the listing agent, and the buyers agent and is due after you get the first months rent from your new tenant.

Should I lease my home?

Only you can answer that question.  I know I wish I purchased homes years ago when a friend suggested it.  I didn't want any part of being a landlord.  This person now is worth millions.  Reading books like "Rich Dad Poor Dad", makes you realize that investing in Real Estate (wisely) can make a lot of sense.  (It's not about the quick buck...many people went bankrupt when they were buying up a lot of spec homes in Las Vegas a few years ago.  Then the prices dropped and they were left with homes they couldn't sell.  I'm talking purchasing a rental for the long haul)  People with young children are starting to look at expanding their investment portfolio by purchasing a lease home, with the idea that they can use it to pay for their child's education.  Look at the numbers and see if they work for you.

Is Plum Creek a good lease market?

With the new Seton Hays Hospital coming in down the road, and all of the upcoming shopping centers, movie theaters, I'd say YES!  I think we're going to see a lot of people coming to work in those places wanting to lease a home close by where they work.  Interest rates are still low and right now there still are some deals to be had.  So if after reading this blog and doing some research on your own, if you think you're ready...jump on in. Click here to get some idea of the future of the Kyle and Plum Creek area.

For some historical lease information for Kyle Texas click here.

Oh...in case you're wondering...Real Estate Prices in Plum Creek for a single family home starts about $150,000 and go to the high $200s.  There are a few townhomes and cottages that would be less.  If you would like to check out all of the active homes for sale in Plum Creek, go to Austin Home Search.