AUSTIN (KXAN) – As more and more people move to Central Texas, there are details renters should consider before looking for a place to live. Whether it involves renting an apartment or a home, it is important to know that it will take some strategizing when it comes to the application process. The application process [...]
AUSTIN (KXAN) – As more and more people move to Central Texas, there are details renters should consider before looking for a place to live.
Whether it involves renting an apartment or a home, it is important to know that it will take some strategizing when it comes to the application process.
Dar McLane, real estate agent in Austin with McLane Realty, said renters should know that owners have two options: they can take the best-qualified applicant or the first-qualified applicant. And it does make a difference, McLane said.
What is that difference?
McLane said if renters are a first-qualified applicant, per the owner, then they get approved. If it's the best-qualified applicant, then that means there is more than one application, and the owner then gets the opportunity to decide between all of the applicants and who is the best fit for the property, she said.
When submitting a rental application, be prepared to pay an application fee, which is at the discretion of the owner of the property. Those fees are non-refundable and cover the cost of verifying credit, rental history and more, according to the Texas Apartment Association (TAA). A background check is also part of the application fee, McLane said.
Proof of income is also required, which means renters would need to submit pay stubs. Bank statements may also be requested to show proof that renters can afford the rent for the property, McLane said.
Each person who is 18 years old or older also has to submit a separate application fee, according to the TAA.
Renters who have pets should also make a pet profile, McLane said.
"Take a picture of your pet and write a little tidbit about them so that the owner can feel more comfortable with that particular pet being in their home," she said.
McLane added it is also important to ensure the rental listing says pets are allowed on the property before touring.
"I've seen everything from birds to snakes to dogs, cats. Kind of the full gamut on animals and what owners might or may not allow," she said.
The average processing fee for processing applications is $75 to $80, McLane said.
If someone applies for a rental with McLane Realty, potential renters get a link and pay $40, she said. However, McLane said other agents or owners could be using a more expensive system to process the application.
The processing fees could vary, depending on if the fee is sent to the agent directly or to the owner, McLane said.
Once renters get approved for a property, it is time to sign a lease agreement, pay a deposit/pet deposit and rent.
According to the TAA, it is important for renters to read the lease carefully before signing.
"Put everything in writing, including agreements, notices and requests," the TAA said. "Keep a copy of the lease signed by you and the owner or manager, as well as any community policies or rules. Under Texas law, you have a right to receive a copy of your lease."
Renters should make a checklist of the property, along with any appliances or furnishings that are included in the property and let the owner know of any repairs that need to be made prior to the move-in date.
It's no secret that it is cheaper to rent in Austin and the Central Texas area than it is to buy.
McLane said the average cost to rent in Austin right now is just under $3,000 a month. The average price for a three-bedroom/two-bathroom rental is $2,951.
She said if renters are paying closer to $3,000 a month in rent, then it may be worth looking into buying. The typical median mortgage per month is around $3,800 a month.
It is cheaper to rent, technically. However, when it comes to buying, McLane said homeowners are gaining equity.
"You will, you know, likely make your investment a profitable one at the end of the day," she said.
McLane suggests reasons to rent might be that people in Central Texas may not be familiar with the area, like someone who is moving here from out of town or out of state.
Or if someone is unsure of wanting a long commitment in buying, then renting would be the easier route.
"I think a lot of people do that, until they find out where exactly they want or need to be," McLane said.
Another advantage to renting is no maintenance.
"With the home, even if it's a brand new home, there's going to be some sort of expense, whether you know, it's just something minor, or perhaps something major, you're going to have some maintenance fees that come along with it," she said.
Renters who are tenants in a property with HOA fees do not pay those fees most of the time. McLane said the owners pay for that, because they do not want for a lien to be potentially put on their property. Because if the HOA fees do not get paid, then a lien could be placed on that property.
McLane suggests that students need to be looking now for a rental property.
"Those properties will fill up. They will, you know, get themselves into a bind, if they don't start looking immediately for housing, and you know, all the best places can go," she said.
McLane also suggests is for students to reach out to a friend or an acquaintance who are looking for a roommate or two, as opposed to living in a condominium or a townhome.
She said she also frequently sees parents who have students attending college sometimes purchase a property near the campus and rent it out to their child.
"For parents, if they can afford property down there, it might be a good option, especially even if you just owned it for the next four years, five years while you're while your child was there and then sold it. Not a bad idea."
