Top Tenant Issues For Dallas Landlords

Top Tenant Issues For Dallas Landlords

National Association of Realtors ranks Dallas among the top 10 markets in a world post-pandemic for investors. Dallas-Fort Worth is a popular destination for investors because of its growing population, but the housing stock cannot keep up.

If you’re new to or are looking to expand your portfolio, you may feel overwhelmed.

We’ll compare Dallas with other markets today and examine some of the top neighborhoods that investors are looking to invest in. We will also reveal five of the most frequent tenant problems that Dallas landlords encounter and how to resolve them. This way, you can grow your portfolio in this booming market.

Dallas Real Estate Market Compares to Other Metros

Let’s first take a look at the Dallas-Fort Worth Metroplex.

According to a report published by Buildium, Dallas is ranked…

  • Rental investors expect the following markets to grow at the fastest rates in 2022/2023:
  • The top-rated local economies of the U.S.
  • #3: Markets that have a large proportion of young residents
  • #5: Markets that are projected to have the highest population growth and the largest number of households in the next five years
  • #7: The real estate markets that will be in the best condition by 2021
  • #7: Markets that offer the greatest development potential in 2022
  • Property managers predict the following markets to grow at the highest rates in 2022/2023:
  • #8: Markets that have a high investment level in community infrastructure
  • #9: Markets that are projected to have the highest employment growth in the next five years
  • The 10 most in-demand real estate investment markets for 2022
  • #12: The best cities to start your business in 2021

Dallas Neighborhoods for Investors

Dallas’s neighborhoods and their personalities could fill an entire book. Especially when you consider the Dallas-Fort Worth Metroplex, which has nearly 8,000,000 people. We’ll examine three central Dallas areas with high renter percentages that are attractive to real estate investment.

Deep Ellum

Deep Ellum, one of Dallas’ oldest neighborhoods, is located just east of downtown. Deep Ellum is celebrating its 150th anniversary in 2023. Local music scene has been home to many jazz legends over the years, including Blind Lemon Jefferson. There’s also a song ” Deep Ellum Blues”, which has immortalized Deep Ellum in song.

This neighborhood is especially attractive to real estate investors. Deep Ellum has a very urban feel, with a large percentage of households that are occupied by renters. This is a multifamily investor’s dream.

  • Population: 6,448
  • Median sale price: $650,000
  • Change in the Sales Price (year-over-year): 1.5%
  • Days on the Market: 49
  • Median rent: $1,300
  • Renter-occupied households: 77%
  • Median household Income: $56,108
  • Zip code: 75226

Uptown

Uptown, just north of Downtown Dallas, is a haven for all ages. It’s home to the Katy Trail and Oak Lawn, Dallas’ LGBT community. High-rise condos are popular among empty nesters who want a central location. This dense urban district has luxury shopping, restaurants and coffee shops. There are also parks and easy-to-walk streets. The majority of residents are renters, which makes it ripe for investment in real estate.

  • Population: 29,958
  • Median sale price: $476,000
  • Change in the Sales Price (year-over-year): 4.8%
  • Days on the Market: 44
  • Median rent: $1,762
  • Renter-occupied households: 79%
  • Median household Income: $105,667
  • Zip codes: 75201 and 75204

Oak Cliff

Oak Cliff is a large neighborhood located southwest of Downtown Dallas. It includes many smaller neighborhoods like Kessler Park and Bishop Arts. Oak Cliff is a neighborhood with a mixture of urban/suburban feeling. It houses a large population of renters, as well as a mix of single-family homes, duplexes, and multi-family dwellings.

  • Population: 290,365
  • Median sale price: $315,000
  • Change in the Sales Price (year-over-year): 21.4%
  • Days on the Market: 45
  • Median rent: $1,200
  • Renter-occupied households: 72%
  • Average household income: $66,230
  • Zip codes: 75208 75211 75224 75232 75233 75237

Common Tenant Issues Facing Dallas Landlords

Dallas real estate is not without its challenges, no matter where you decide to invest. As a landlord or real estate investor, you might face some of these top issues.

First: Maintenance

Many landlords find it difficult to keep up with maintenance. The landlord is responsible for maintaining the property in compliance with building codes, updating the security, and keeping common areas clean and functional. You can imagine that many of the day-to-day tasks will quickly add up to a seemingly infinite list. APM’s Guide to Maintenance provides general maintenance checklists as well as suggestions for keeping your property in top shape.

#2: Tricky Tenants

The majority of landlord/tenant relationships are friendly, but there are always some difficult tenants who make the life of a landlord more difficult. APM believes that the best way for to find and retain good tenants, is through a combination with adroit marketing, well-communicated expectation, clear communication, and mutual respect.

It’s important to spend time getting to know your tenants in order to build a good relationship.

Third: Evictions

Even with the best laid plans, sometimes things go wrong. You should be familiar with the legal process of eviction to prepare yourself for a worst case scenario.

If you don’t, then you are violating the fair housing laws and putting yourself in a dangerous position. You will be in violation of fair-housing laws if they do not.

You are required by law to provide a written termination to the tenant, which documents the reasons for their eviction. You can file a lawsuit if a tenant doesn’t pay rent or changes their behavior. You’ll want to consult a lawyer to determine the best course of action in your state.

You should be prepared to present your case in court if the eviction goes to court.

  • Warning Letters/Eviction Notifications
  • Documentation of third party complaints
  • Police Records
  • Logs kept by the management
  • Photographs

A court will issue a permission writ once it has decided in favor of eviction. You are now no longer in control of the situation. You cannot legally remove the tenant from your property. This is the job of local authorities. can’t shut off utilities, or change locks. It’s illegal.

Four local weather issues

Air conditioning is a necessity in Dallas, even though the weather can be unpredictable. Dallas’s temperature will likely be high for the majority of the year, with 18 days in 2022 exceeding 100 degrees.

The short winter, on the other hand, can bring freezing temperatures that are not something residents are used to. To keep tenants comfortable and safe, landlords need to ensure their properties are able to withstand extreme temperatures.

Mold in older properties is a problem that can persist if it’s not dealt with early. Before making any investment in real estate, get an inspection and learn about the weather history of your neighborhood. The effects of flooding, in particular vary greatly from one neighborhood to another.

How a Dallas Property Manager Can Help

Partnering with a local Dallas Property Manager is one of the best ways to make sure your investment is well-positioned for success.

The services provided by property management companies vary greatly, so ask yourself what you need a manager to do. Some owners may want to only delegate specific tasks to a property management firm, while being very hands-on in other areas. A different owner may prefer a more “hands-off” approach.

Fees vary based on location, type of property and estimated man-hours.

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