Does Anyone Own Out-of-State, Austin Rental Property? (homes, neighborhood)

[aakridge]

Would you be willing to share your good/bad experiences about owning out-of-state rental property? I'm particularly uneasy about repairs on the home. It seems that a lot of property managers in Austin have their painters, etc. This arrangement is good, but does the property management company take a cut of the repairs costs? In other words, is there an incentive for the property manager to drive up repair costs if repairs should be required?

I interview a personal that seems like he'd be a good property manager (seems practical). He charges 80% of rent to fill a vacancy, then 7% of rent each month for management.

In short, is there every a time when the client's interest is not the property manager's interest?

[mark311]

I actually moved to Austin from California last year. The Austin housing market is still thriving in most areas. I can't answer your property management question, but if you haven't bought your property yet, keep the following points in mind.

Property taxes are much higher in Texas than in California so you'll probably be looking at about 3% depending on the area. It can also be a bit more difficult to rent a home here and cover the mortgage/property taxes. Since the homes are more affordable, people tend to buy rather than rent. I've seen a couple homes in my neighborhood sit around with for lease signs for months before they had to lower the rental price to get somebody in it. However, anything close to downtown would probably be fine for a rental. Just something to keep in mind....