Over the past ten months or so, we have seen so many promising projects come crashing down. Entrepreneurs about to launch their new startups, SMEs ready to market a new service, artists at the beginning of major tours. They’ve all had to put their plans on hold indefinitely, simply for having chosen the wrong time through no fault of their own.
If you invested in a residential property in Texas just before the pandemic, you might feel the same. You’ve probably kicked yourself for how the value of your property has dropped. And you may well have struggled to make the money off it you were relying on.
The good news is that it hasn’t been nearly as bad as many people predicted. In some parts of Texas, housing prices have even risen. And if you play your cards right, your investment in real estate could still pay huge dividends.
Here is how you can maximize your Texas residential investment in COVID-19 times.
Texas property will rebound
Even if your property value has dropped since you bought it, that is unlikely to stay the case for all that long. COVID-19 has caused some people around America to move to more affordable cities. However, for the most part, it has caused housing sales to decline.
This makes sense, as people do not have much freedom of movement right now. Nor do they have money to invest in property.
Once the pandemic has ended, there will be more interest from buyers. But sellers are likely to remain few and far between. Finding property to buy in Texas is going to be difficult. That low supply is set to lead to a major rebound in property values.
If all you want is to get back your money, waiting it out should get you more than you bargained for. You will have precious real estate in a sellers’ market.
Renting out property during COVID
However, while things may not have gone exactly as you planned, that does not mean making the money you expected to earn is impossible. There are still many people looking to rent property in Texas. The price of rent has gone down in the biggest cities, but in most of the country, it has stayed stable.
Making your property available for rent during the pandemic may seem like a shot in the dark. But you are more likely to find tenants than you think. As long as you are not trying to overcharge, you will probably find a number of people interested.
Prepare for COVID-19 renting
Once you find a tenant, the COVID-specific challenges become more pronounced. You are going to have to watch out for the possibility that a potential tenant won’t be able to pay rent in a couple of months. People are still losing their jobs as businesses shut down. Credit history is not as relevant as it was before, so try and get an idea of the individual’s work context.
You are also going to need to manage your rental from a distance, which might mean you have to take your tenants at their word when things go wrong. You will need to send service providers over without being able to meet them in person or watch that they are being honest about the cost of fixing the problem.
This will be frustrating if you’re the kind of landlord who likes to be hands on and in control. Then again, the pandemic as a whole has been a particularly hard lesson on how much control we really have in our lives.
One thing you can do to keep your tenants from losing you money is to require renters insurance in the lease. Renters insurance provides cover for their possessions and can include personal liability cover. This helps them stay afloat in case of disaster, and may help you get some of your money back if they cause damage while living on your property.
Read more here about what Texas renters insurance covers. You will benefit if your tenants are covered, even if it is indirect.
Don’t despair about your residential property. COVID-19 will end, and property values will likely boom. In the meantime, finding tenants is still perfectly possible.