Here in El Paso— a.k.a the Sun City— growth and development have skyrocketed in every area of town. From downtown renovations, parks and green spaces, and outward expansion, this West Texas town has a lot going on. It’s a mid-sized Texas city with all the opportunities and advantages of major metropolitan areas and a lot less population than the other Texas hubs like Dallas or San Antonio. There’s no denying that there’s something special about this Southwestern city surrounded by desert landscapes, mountains, and eye-catching views. When it comes to rentals, El Paso is a burgeoning market.
Positive Trends for the El Paso Renters Market
According to a study at the start of 2021, El Paso ranked 14th as one of the most demanding locations for renters. As reported by the El Paso Herald Post, business leaders in El Paso have seen a major upswing in the renters market.
The El Paso Herald Post reported:
- There is a strong upwards rent trend in the city
- El Paso has an above-average number of prospective renters per apartment
- Units stay vacant for about 34 days as opposed to the national average of 39 days
So whether you’re looking to rent your home or thinking about buying rental property in El Paso, renting might be a good opportunity for a steady cash flow.
Factors to Consider When Looking for a Rental Property
Putting your El Paso home for rent is a great way to make some extra money and help pay an existing mortgage.
Here’s what you want to consider:
Neighborhood and surrounding market. The well-known "location, location, location" mantra is not arbitrary. The location of the prospective rental home makes a big difference to its profit potential. A home in an expanding and growing real estate market is usually a good bet.
El Paso fits the bill and is currently has some of the important attributes that renters look for:
- Low crime rates
- Future development plans
- Nearby amenities
Take a Look at the Property Taxes. Higher property taxes aren’t always all bad news. That’s because higher property taxes will exist in more desired areas, which can attract long-term tenants. You can contact the county office to check on the taxes and get an idea.
Crime rates. Do some research pertaining to the crime rates in the area. Using FBI data from 2017, El Paso was ranked as the sixth safest city, with a violent crime rate of less than 4 per 1,000 residents.
Look at Future Development. It’s easy to tell whether a city is getting recent development or big investments coming in. There are signs to look for including a younger population moving in, new establishments, downtown revitalizations, and the attempt at newer and more green spaces. There are also other signs that include visible construction sites, new parks, schools, and recreation or entertainment centers. The location of big company headquarters, processing centers, or a burgeoning industry will also indicate a growing market.
Do a rental property analysis. Establishing a good rental property means you want to have a steady cash flow. A rental property analysis will provide a good estimate for the amount of cash flow your property may produce. These numbers include assessment of regular and frequent repairs, renovations, and landscaping. Rental management costs should also be added to this equation.
Check out the Job Market. A bustling job market is always a good indicator of a growing city. Locations that have growing employment opportunities indicate there is some upward movement happening in the city. Today with the work-from-home model, also means that people are able to move freely without worrying about changing companies or jobs. People can check out statistics with the U.S. Bureau of Labor Statistics. This means that they can move into places that have great weather and natural landscapes and keep their jobs in their previous city.
Choosing the Kind of Property You Want to Rent Out
If you’re looking for an investment property in El Paso, Texas, many investors look at single-family homes as a good way to start. Many times, more established professionals and families will be more stable tenants that are more financially stable.
Get a Good Property Management Company and Make Renting Easier
If you’re ready to make the leap into becoming a landlord, we’re here to help. A rental property is a great way to build wealth and enjoy a steady cash flow, but if you don’t want to deal with the heavy responsibilities of being the landlord, we can manage your property.
Not only do we vet tenants but we ensure your property is taken care of. Call us today!