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Posts Tagged ‘income property’

Most and if not all of the country has felt the pain of the value loss of the real estate market. investment property in Dallas is finally feeling the effect of the real estate market that much of the country has already experienced.Dallas rental property has felt the painful repercussions of the slower sales in the real estate market. 

The last 6 months has shown volatile highs and lows for rental property rates in Dallas.  In the last quarter of 2008, rental rates from 1 bedroom units on up to 3 bedrooms units and larger were in a decline until the beginning of December.  At the beginning of December the rent rates turned around and began to increase for a month than stabilized around the beginning of January of 2009.January to the start of March proved to be stable for rent rates .  At the beginning of March rates began to sink through the beginning of April. 

The more interesting part of this data is that 1 and 2 bedroom investment property in Dallas has mild rate movements compared to 3 bedroom and larger units which had larger lease price movements.  It’s hard to know exactly why this is but one can speculate.  The 1 and 2 bedroom rentals are for the most part cheaper to rent than the 3 bedroom and larger rentals.  Higher rent rates can cause higher volatility for the fact that it puts more strain on the tenant’s finances which can lead to an eviction.  If that happens a landlord sometimes has to find a renter fast to pay for the mortgage next month.In order to find a renter fast a landlord will reduce rents to attract somebody into a property.When the market activity is like this throughout the community you can begin to see unstable movement in lease rates as it is in the 3 bedroom units amongst Dallas rental properties.That being said, Dallas investment property has been known to be a safer real estate investment comparing to other areas of the United States .As we look at the rental market within Dallas we can see that rents are not as volatile in one and two bedroom rental properties.

The large amount of people foreclosing in the country might be another cause.When a family looses their home to a repossession they tend to move into a larger rental property such as the 3 bedroom and larger .Renters such as these generally move around a few times before they find where they want to live.Activity like this makes the larger rental properties more volatile too. 

Rental property three bedroom and bigger went to a high of $2,925 and had a low of $1,950 from November to April which is thirty four percent less than the high.  2 bedroom units had a rent high of $1,575 and a low of $1,350 which is a 14.2% fall from its high.  1 bedroom units had a high of $1,125 and a low of $950 which is a 15.5% drop from its high.  2 bedroom rental property within the scope of Dallas investment property had more stability for the investor over the last 6 months.