Buying property in Denton, Texas is a good investment. After all, Texas is one of the hottest real estate markets in the United States. With a population of more than 29 million residents, Texas generates a GDP of around $1.78 trillion. Legacy Realty and Management can help you invest in Denton property today.
Learn about investment opportunities here.
Investors benefit from investing in the Texas housing market because of the state’s favorable tax rates. In fact, the state income tax in Texas is 0%, while the property tax rate is only 1.80%. Since about 38% of Texas’ residents are renters, the state is a great location for rental property investors.
One of the best counties in Texas for property investment is Denton. Home to more than 130,000 people, Denton’s fast-growing population and thriving economy attracts property investors.
Around 53.5% of Denton’s residents are renting a home. This means Denton is an excellent county for rental property owners. If you want to take advantage of this, make sure you know how to find the best rental properties in Denton, Texas.
Here are the top expert tips when buying an investment property in Denton:
Know Where to Invest
Denton is a medium-sized county, consisting of 33 constituent neighborhoods. It’s worth noting that not all neighborhoods in Denton are good locations for rental property investment. It’s important to do your research first to understand why you should invest in Denton property and so you know which neighborhoods are likely to attract high-quality renters.
To find the best Denton neighborhoods for investing in rental property, we suggest considering the following factors:
Amenities
What are the amenities available in the neighborhood? Are there public transportation systems, schools, banks and medical facilities nearby? Check if there are shopping centers, grocery stores and dining areas close to or within the neighborhood.
Think about who your ideal renter is and what amenities would motivate them to rent your potential property.
Business Districts
Locations that are near business districts are also good for rental investment. You can attract working class renters looking for a rental unit near their workplace.
Safety
Denton has a crime rate of 26, meaning it’s considered safer than 26% of U.S. cities. This also means some neighborhoods in Denton are safer than the others. The best neighborhoods for investing in rental properties are those that are generally safe for everyone, especially families with kids.
Stay Within Your Budget
After deciding which neighborhood to invest in, you can now search for an investment property to buy. Keep in mind that since Denton is a hot real estate market, the demand is high from both homebuyers and investors. In fact, the average Denton property listing is on the market for only 54 days.
One reason why Denton properties get sold quickly is because a lot of homebuyers and investors are taking advantage of low mortgage interest rates. Because of this high demand, the median price for Denton housing continues to rise. In fact, home prices in the Denton real estate market have increased by 4.4% for the past two years.
When buying an investment property in Denton, make sure to set a budget for yourself and stick to it. Even though there’s a high demand for Denton housing, many homeowners are selling their Denton properties. This provides more options for both investors and homebuyers. We suggest surveying the market patiently to make sure you’re getting a good deal.
Be Mindful of Renovations
When investing in Denton rental property, keep in mind you might need to budget for property renovations. Home improvements make your rental home more appealing to potential tenants. Property renovations can help your investment property stand out to renters and add value to your asset, allowing you to generate a higher rental income.
However, we suggest being mindful of how much you spend on renovations as this can greatly affect your returns. It’s best to work with an experienced contractor when deciding which renovations are necessary.
Stay within your budget for renovations and don’t make too many improvements just for aesthetics purposes. While beautifying a rental home is great, going overboard can be costly. Stick to what’s necessary by prioritizing functional renovations over aesthetic improvements.
Owning a Rental Property in Denton, TX
The most common type of housing in Denton is a single-family home, which makes up about 55% of Denton’s real estate properties. This is followed by apartment complexes and small apartment buildings, which make up 28% and 10% of Denton’s properties respectively.
After buying and improving your rental property in Denton, you need to find quality tenants. To do so, it’s important to use marketing strategies that will help you attract highly qualified tenants. An effective tenant screening process will also help you identify potentially problematic renters.
To become a successful landlord in Denton, you need to find tenants who will pay their rent on time and take care of your property like it’s their own. If you’re a new landlord, you might not be familiar with the rental market in your area yet and finding the right tenants can be very challenging.
Landlords can work with a professional property management company in Denton such as Legacy Realty and Management to help them manage their rental properties. Working with experienced property managers can prevent many problems, including dealing with vacancies or problematic tenants. A professional property manager will also be familiar with all relevant law, including Texas landlord tenant laws.
Bottom Line: Investing in Denton Property
When investing in Denton property, we suggest you consider different neighborhoods and their attributes, stay within your price range and factor property renovations into your investment decision.
Still have investment or property management questions? If you need a property manager in Denton, Texas, contact Legacy Realty and Management at 469-576-7676.
