Conroe, about 40 miles north of Houston, TX, is a growing area that was recently named 6th overall out of 100 American “boomtowns.”
So it’s easy to see why Conroe is also a hot spot for owning rental properties. Investors are getting great returns and you might be wondering how you can get in on the action.
Well, it’s a lot more than buying a property and then collecting rent.
To become a successful landlord, there are several other things you must do. These include determining the appropriate rental price, finding a qualified tenant, and overseeing the lease signing process.
Then, once your tenant is in place, you must be diligent about collecting rent, responding to any tenant needs, and maintaining the property’s condition to ensure a positive rental experience.
Is Being a Landlord A Lot of Work?
For new or accidental landlords, being a landlord will be a lot of work (unless you hire a property manager). But it’s worth it financially and offers various benefits beyond receiving a monthly rent check.
Benefits of Becoming a Landlord in Conroe
Investing in rental property can provide you with both immediate and long-term advantages. By owning rental property, you can generate a steady stream of income while also building equity that can serve as another source of income in the future.
Extra Source of Income
Becoming a landlord can bring in additional income through rent and fees collected from tenants. This can provide a dependable and passive stream of income every month. Depending on your goals and situation as a property investor, it can supplement or become your primary source of income.
Tax Deductions for Landlords
If you own rental property, you can lower your taxable income by deducting various expenses. These include mortgage interest, property taxes, repairs and maintenance costs, travel expenses, and depreciation. A rental property is like a small business and can qualify for similar tax deductions.
Increase in Property Value
It’s common for the market to fluctuate in the short term, but over the long run, your property’s value will likely increase. Some landlords buy rental properties with the plan of selling them later. While waiting, they can earn rent from tenants that may help pay off the mortgage.
Create Your Own Schedule
Owning rental properties as a full-time landlord allows for flexible work hours and the ability to manage properties remotely with the right property management systems in place. With rental properties in Conroe, you can earn income even while on vacation.
8 Steps to Becoming a Landlord in Conroe
Running a rental property business has both benefits and responsibilities. As a landlord, it is important to follow landlord-tenant laws and obtain necessary licenses and permits.
Additionally, you have the responsibility to ensure that your tenants have a safe and habitable place to live while residing on your property.
If done right, owning rental properties can be a wise financial decision. These 8 steps to becoming a landlord will help put you on the right path.
1. Get to Know Landlord-Tenant Laws
Before becoming a landlord in Conroe, Texas, it is important to research and understand the specific laws and regulations regarding landlord-tenant relationships and fair housing. Compliance with these laws is crucial, so taking the time to familiarize yourself with them is highly recommended.
2. Research necessary licenses and permits:
As a landlord in Texas, you are not required to obtain a landlord’s license. However, local municipalities can have separate licenses regarding local building codes. So it’s important to research if any licenses or permits are needed to own rental properties in the Conroe area.
3. Find a property to rent out:
If you’re a new property investor, finding the perfect property to rent out can be overwhelming. It’s a good idea to connect with other landlords in the area, and most property managers offer a free analysis of a rental property you’re considering.
4. Prepare the property for tenants:
It is important to check that your property is in good condition and meets safety standards before renting it out. This is also a chance to make any upgrades or improvements that could increase the rental price.
5. Set rental terms and advertise the property:
To rent out your property, it’s important to set clear rental terms, including the rent amount, security deposit, and length of the lease. Once you have these terms established, you can promote your property through various channels like online listings, social media, and word of mouth.
6. Screen potential tenants:
It’s important to conduct background and credit checks on potential tenants to ensure they’re dependable and able to pay rent on time. An effective tenant screening process is crucial to your success.
7. Sign a lease agreement:
Once you’ve found a suitable tenant, it’s important to create a lease agreement that clearly outlines the rental terms and conditions. While there are lease templates available online, it’s highly recommended that you consult with a lawyer to ensure all legal aspects are covered. To make the lease agreement legally binding, both you and the tenant must sign it.
8. Collect rent and manage the property:
After the tenant has moved in, it is important to collect rent every month and promptly address any maintenance issues that come up. You have the option to manage the property on your own or hire a property management company to take care of these responsibilities for you.
Conroe Property Management Companies
To fully benefit from owning rental property, it is crucial to effectively manage it. Purchasing a property and finding tenants is just the beginning. You must also consistently collect rent, address any maintenance requests, and handle any potential disputes with tenants.
For this reason, many experienced rental property owners in Conroe opt to utilize a property management company to handle the day-to-day responsibilities of being a landlord. Residential Leasing & Management has been assisting rental property owners in the Conroe area for over four decades.
Our property management team is available to provide assistance with rent collection, 24/7 emergency maintenance, and tenant management. Please don’t hesitate to contact us by phone if you have any questions about becoming a landlord in Conroe.
