Tell me about the rental market in DFW (Dallas, Plano: for sale, apartment)

[skids929]

Seems like alot of the threads are always focused on where to buy, thought this thread was in order.

I am looking to better understand the rental market..If we were to move down renting may be the better option for us depending on circumstance and timing etc. Ultimate goal is to build/buy the home we want in any one several suburbs. Job location would potentially be in Plano off 121, wife is 100% remote. So I guess we have some flexibility in terms of commute.

My overall sense of the rental market in general in DFW is theres not alot of value (particularly in the burbs) and I attribute this to high property tax structure there-could be wrong there. But what I am looking to learn is a few things that I may not be seeing from the locals, or some advice on specifics to look for. For example, can I negotiate rents?

Ultimately we are ok with making some sacrifices in terms of what we would look for in a home. Specs can differ, we would be ok with less square footage and possibly take a 3 bed, even though we really need a 4, w/3 kids under the age of 4 then wife and I. I would want to stay below $2k a month, $1500 would be ideal, since it would really give us the ability to save for the home we want quicker.


Moral of the story is, we will be selling a home up here in the Northeast at a loss. We will have to recover from this financially, and I want to put 20% down on any home purchase. No mater how much I hate the idea of renting, I continually keep coming back to it as the safest and smartest option. Still hate it though..

[Squirl]

Renting is the most safe and can be smarter than buying. Homes don't increase in value sharply in DFW suburbs. They do tend to trend upwards in pricing better within the "loop" .... basically meaning the "M" street, Lakewood, and Park Cities areas and Preston Hollow areas.

Landlords typically will negotiate on rent if the tenant signs a longer term lease, offers an increased security deposit or perhaps pays several months in advance, or the property is not in such a "hot" area.

I think renting is the way to go if you can't be certain you'll be in a place more than 3 years at minimum.

[loves2read]

if you mean there is not lot of "value" in rental market because rents are high--then yes--you are not likely to find a killer deal on great house in great neighborhood at cheap prices--

plenty of people moving here who don't know the market and either have to sell a house elsewhere before they can qualify to buy here or who are likely to be transferred within 3 yrs so don't want to buy with that hanging over their heads means that the home lease market has been more active in higher priced homes than in the past 10 yrs or more--
owners who had to move and could not sell in the slow market for their price point turned to leasing vs selling--and there was bigger choice of homes --some in neighborhoods that had never known a rental home before--but because people were wanting to cover their own ownership costs (mortgage/insurance/taxes) they put a high price on their monthly lease--including property mgmt fees also--
so renting a house in nicer parts of DFW mean paying as much or more than you might spend on mortgage for same house--depending on variables like downpayment/interest

now at the height of the residential sales times--there are likely to be fewer homes for lease-so if you come here and have to find a house within a short time frame you may not see anything you like
just function of the market economy at work

I just checked the homes listed for lease on realtor.com in the Southlake and Colleyville markets at 3-4K a month and there were 4 houses on realtor.com

I think there are likely more homes than that available--4K a mo is reasonable amount for lower priced home in those towns which would still be great home to rent--but think that proves that people are trying to sell vs lease since market has gotten little stronger and this is prime selling time so people can relocate before school starts
later in summer there will be more homes on lease market when the relo sales slow down

[kenshi]

I used an agent to find my rent house and she said the rent market in DFW is hot right now. It's possible to negotiate a little off the price if you appear to be a favorable renter, but don't expect much.

[loves2read]

to the OP--1500 a month on the Tarrant side is probably going to get you a 3/2 w/ no pool, 2 car garage, older home and likely dated--probably still has wallpaper/brass fittings/and likely around 1800-2200 sq ft--not that familiar with market in Plano or Dallas per se

[TurtleCreek80]

The rental market in many parts of DFW is EXTREMELY tight right now- so many people are on the fence about buying, got burned in their last home sale (whether here or out of state), or don't have enough saved to buy, or just don't want to buy at all. This is causing many rentals to have multiple offers within a day of putting a "for rent" sign in the yard.

Is DFW a good place to be a landlord due to fairly high carrying costs (taxes, insurance, etc)? Not really, unless landlord has owned the property a long time.

However, the demand in the rental market is a completely different story and all I can tell you is that I have heard in Frisco, Plano, Coppell, central Richardson, and of course the desirable parts of Dallas, things are leasing quickly with multiple offers, little to no negotiating room, and for higher prices than 2-3 years ago...rents have moved up much faster than sales prices.

[roverchris]

Originally Posted by TurtleCreek80

The rental market in many parts of DFW is EXTREMELY tight right now- so many people are on the fence about buying, got burned in their last home sale (whether here or out of state), or don't have enough saved to buy, or just don't want to buy at all. This is causing many rentals to have multiple offers within a day of putting a "for rent" sign in the yard.

Is DFW a good place to be a landlord due to fairly high carrying costs (taxes, insurance, etc)? Not really, unless landlord has owned the property a long time.

However, the demand in the rental market is a completely different story and all I can tell you is that I have heard in Frisco, Plano, Coppell, central Richardson, and of course the desirable parts of Dallas, things are leasing quickly with multiple offers, little to no negotiating room, and for higher prices than 2-3 years ago...rents have moved up much faster than sales prices.

That was one reason I wondered about leasing a home for sale. I've seen some homes in the neighborhoods we're looking at that have been on the market awhile. Maybe work out some sort of lease purchase option or extended lease with the seller. I guess you never know until you ask.

[skids929]

Originally Posted by loves2read

to the OP--1500 a month on the Tarrant side is probably going to get you a 3/2 w/ no pool, 2 car garage, older home and likely dated--probably still has wallpaper/brass fittings/and likely around 1800-2200 sq ft--not that familiar with market in Plano or Dallas per se

Thanks, good to know..I am to concerned about finish out. Mainly want it to be large in enough for us, in a location that is not sketchy and priced right. Really the thought of renting in a strange place makes me nauseous, particularly where we own a nice home now in a great neighborhood. But if it were short term I could tolerate it I guess..I like owning a home regardless of all the negative aspects of the market.


We're in a 2600 square feet now, and use most of it, except one small bedroom since we have two kids sharing a room. So we're using about 2400 square ft now pretty comfortably.

Dallas market is really not all people think it is at first glance. I am finding it is tough to crack for us as after over a year of thorough analysis. Can't find a way out of my current situation without dumping the house in shortsale, which is not something we need to do. We're also not ones for taking the easy way out of things, but I can see why people throw up their hands and bail on homes these days. It's ugly.

Should I also be considering condos?

[TurtleCreek80]

Originally Posted by roverchris

That was one reason I wondered about leasing a home for sale. I've seen some homes in the neighborhoods we're looking at that have been on the market awhile. Maybe work out some sort of lease purchase option or extended lease with the seller. I guess you never know until you ask.

You can do something called "castle keeping", where you rent a home for an extremely low price (like $800-1000/mo for a $1M home) and pay all the bills (electric, cable, water, etc) - but the catch is once the home sells, you must move out by closing. You could be there for 3 months or 23 months, however long it takes to sell the home. The benefit to the seller is that they can move out & move on, yet have a more desirable looking home on the market (fudnished, appeara to be seller-occupied even though a renter is there) vs selling an empty home (which often screams "make a lowball offer!!").

[TurtleCreek80]

Originally Posted by skids929

Should I also be considering condos?

condos for rent? Sure- if you don't mind not having any yard while you're renting. Just be sure to check crime stats & sex offender registry for any condo- or apartment- you like. Some have none and others are a hotbed of criminal activity or sex offender "clustering", even in the burbs. Most are perfectly safe, just always want to dot your "i's", you know?