Rental Property Amongst the Scope of Investment Property in Dallas

Jul 07

Rental Property Amongst the Scope of Investment Property in Dallas

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Much of the United States has taken hard hits with the sinking value in real estate. Dallas property investments are finally feeling the effect of the housing bubble that much of the country has already experienced. The rental property market is affected from weak sales in real estate.

Dallas has seen frequent high and lows for rental rates over the last six months.Most rental property rent rates from 1 bedroom and larger were falling from the last quarter of 2008 until the start of December.Rents began to increase through at the start of December and continued through the month until January where it went flat .Rent rates were stable from January to the beginning of March. At the beginning of March rates began to sink through the beginning of April.

The more interesting part of this data is that 1 and 2 bedroom investment property in Dallas has mild rate movements compared to 3 bedroom and larger units which had larger lease price movements. There are a few possible causes for this but it’s hard to know for sure. For the most part a 1 or 2 bedroom rental property will be less expensive to rent than a three bedroom rental.Volatility in the market can also come from a higher rent rate which places more of a burden on the tenant and that can lead to an eviction or abandonment from the tenant. If that happens a landlord sometimes has to find a renter fast to pay for the mortgage next month.To get the property rented out as soon as possible a landlord with cut rent rates down to make the lease more attractive. If this kind of activity is going on throughout the community it could cause a more volatile price movement and in this case it’s the 3 bedroom and larger Dallas rental property. However, Dallas investment property is overall a more stable investment compared to other regions in the United States.One and two bedroom rental property in Dallas have more stable rent rates than those of larger property .

The large amount of people foreclosing in the country could be another speculation .When a family looses their home to a repossession they tend to move into a larger rental property such as the three bedroom and bigger. These types of renters sometimes move around more until they finally settle.Activity like this makes the larger rental properties more volatile too.

From November to April three bedroom rental properties had a rally high of $2,925 and to a low of $1,950 which is a 34% drop from the high. 2 bedroom units had a rent high of $1,575 and a low of $1,350 which is a 14.Two percent drop from its high. 1 bedroom units had a high of $1,125 and a low of $950 which is a 15.5% drop from its high.Within Dallas investment property, two bedroom rental property (compared to 3 bedroom and larger) showed stronger signs of stability over the last six months.

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