Austin Rental Homes : 3 Essential Things Managers Should Know

Managing Austin rental homes isn't the most difficult job out there, but there are a lot of things that these professionals need to know in order to do it correctly. Therefore, if you are an investor who has decided to provide Austin property management on your own, you will need to make sure you understand the three issues highlighted below.

1. Paint Disclosure - If you own any houses for rent in Austin that were built before 1978 and have lead based paint, then you are required by law to tell potential tenants about it. In fact, it's best to have this disclosure in the form of a document the new tenants must sign and date before they are allowed to move into these particular Austin rental homes. If you can't prove that you disclosed the lead based paint issue to your tenants, you could face a fine up to $10,000.
   
   
2. Security Deposit Practices - Most property managers in Austin understand the importance of collecting a security deposit before a new tenant moves in. Basically, a security deposit is held by the investor (or manager) until the tenant moves out. If the tenant moves out and the rental needs costly repairs, these expenses are taken from the security deposit. In Texas, investors are not restricted when collecting a security deposit. However, it is the general rule to not ask more than one month's rent as a security deposit.
   
   
3. Lease Agreement vs. Rental Agreements - Finally, there is a common misconception about what a lease agreement is and what a rental agreement is. Many first time investors with Austin rental homes think they are the same thing, but they aren't. A lease agreement is used when the rental will be leased for a long period of time...usually a year or more. However, rental agreements are used for short-term rentals (month-to-months).

The main difference between the two is that with a rental agreement investors can increase the rent at the end of the month or can choose not to renew the contract. However, a 30 day notice is required for rental agreements just as it is with lease agreements when the contract is going to be cancelled.