The real estate market is always changing, and with everything that’s going on right now, it’s hard to say where we’ll be as buyers, sellers, investors, and owners at the end of the year. Anyone who owns rental property in Dallas-Fort Worth is in a good position. Even with the pandemic holding on, this is a stable market that has survived recessions and downturns before.
Today, we’re discussing some of the risks and rewards that exist for investors who are thinking about acquiring property in the Dallas and Fort Worth markets. Whether this is your first purchase or you’re building a stronger and larger portfolio of rental properties, there are a few things to consider.
Rewards: Tarrant County Real Estate Investing is Lucrative
One excellent reason to invest in the DFW market is the strength of the local economy. We are a large market with diverse neighborhoods and a lot of opportunity for investment. Maybe you want a single-family home in an established neighborhood or a new construction condo. Perhaps a multi-family investment fits your portfolio better. The Dallas-Fort Worth market has all of these types of rental homes available.
Rewards: Strong Tenant Pool in DFW
Landlords are quick to invest in Tarrant County because of the tenants. There are a lot of military families looking for housing, and there’s also a heavy population of tenants who work in the healthcare and tech fields. There are students and academics. The Dallas-Fort Worth market touches a lot of different industry, which brings a strong pool of renters into the area.
Investors have access to a pool of tenants with stable financial histories and a good track record of maintaining rental homes. Demographically, Tarrant County is also at an advantage. It’s one of the most desirable retirement destinations in the country, and a lot of people in that age group are choosing to rent or downsize. They enjoy the flexibility and the low-maintenance that comes with a rental lifestyle. This gives investors and landlords a lot of opportunity in terms of tenant access. Rental rates are stable and will likely increase once the economy stabilizes post-COVID.
Risks with Dallas-Fort Worth Rental Property Investments
The main risk right now is the same risk that every market is facing: we’re in the middle of a pandemic and we’re not sure what comes next.
This has been an ongoing crisis for many real estate investors and property owners. However, it has not been as devastating to our industry and many experts expected. There isn’t a lot of delinquency in rental collections, thanks to landlords and property managers working closely with tenants. Government stimulus and unemployment programs have also helped struggling tenants continue to make their rental payments.
The CDC has an eviction moratorium in place for residents who cannot pay rent due to the pandemic. This may scare a lot of investors away from investing in rental property. However, with a great screening program, stable and consistent policies, and an exceptional property management team in place, it’s easy to mitigate the risk of renting out a property during a crisis like COVID.
At Assign Property Management, we’re prepared to help. Contact us to talk more about what you have to gain when you invest in Dallas-Fort Worth real estate.