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3 Reasons Property Investment in Dallas has a Bright Future

Property investment in Dallas

What does the future hold when it comes to property investment and management? 

That’s the question that plagues investors and managers when markets become volatile like they are now. The real estate market outlook depends heavily on the state of the economy, inflation, interest rates, and market projections. 

The good news is, despite some contradictory predictions, the Dallas rental market continues to perform well, as rents and occupancy rates have hit record highs and have stabilized.

“The future of the Dallas rental market looks promising,” says the owner and CEO of Class A Management,  Cathy Fontana. “We’re seeing positive things for all our clients’ Dallas properties.” 

With more than 40 years of property investment and management experience in the local Dallas market, Fontana says she is confident about the future.

“Now is a great time to own and manage multifamily properties in this area.”

Here are the top reasons we’re optimistic about the future of property management and investing in Dallas and nearby areas.

Reason #1: Demand Remains High

It’s no surprise that demand is high. Dallas continues to adapt to the needs of current and potential residents. Even though the area ranks first in new construction, the vacancy rate continues to stay low. 

In addition to attracting new residents, 62 percent of 2022 residents chose to renew their lease. The continued trend of potential residents from other states, such as California, also contributes to high demand. So, why is this area so appealing? 

Here are some of the top reasons Dallas is attractive to potential renters: 

  • A robust job market
  • Highly rated schools
  • Favorable local tax laws
  • Easy access to various entertainment venues

An appealing environment with ample opportunities is great for residents, but how does this translate into high returns on property investment? 

Reason #2: Market Analysts Love the Dallas RE Investor Outlook

Data from 2022 investment property research speaks to a promising future. Market research gathers and analyzes data property managers and investors use to make informed decisions about where to place assets. An expert manager knows market trends and outcomes, and how to leverage these into property management opportunities that result in investor asset growth. 

Research numbers take the following data into account: 

  • Number of days vacant
  • Percent occupied by renters
  • Number of prospective renters competing
  • Percent of renters who renew their leases
  • Share of new apartments completed in 2022

The results are in, and they show good standing and great potential for the Dallas property management market. The Dallas occupancy rate reached its highest at 95 % during 2022 and currently sits at 92.4%, ranking the city first in occupancy rates. In addition to high occupancy, Dallas was ranked as the third most competitive market at the end of 2022. 

How does this compare to other markets? Dallas beat out Houston, San Antonio, and Austin when it comes to Texas metropolitan markets. These areas also ranked high, with occupancy rates sitting just above 90 percent. 

Knowing where your investments sit within a market is good for big-picture analysis. Still, to ensure overall investment success, consider other factors more personal to residents. 

Reason #3: Residents Choose to Rent in Dallas

Here are five factors going beyond basic supply and demand to show why Dallas residents are choosing to rent, keeping investment properties in high demand. 

  1. Builders are catching up: New construction is catching up from Covid-19 delays. The worst of the slowdown seems to be over, but there are still some issues with supply and labor. Even with a large amount of new construction in the area, occupancy is keeping pace with development. 
  2. Home ownership is too expensive: Home ownership continues to trend downward. As prices stay high and interest rates continue to rise, home ownership is proving too expensive for many. What is disheartening for home sellers is positive for real estate investors. The situation increases the potential rental pool and rental market competition, helping maintain and raise rents and occupancy rates.
  3. Would-be buyers are risk-averse: There is just the plain old truth that many people are just too fearful to own a home in a volatile economy. Renting is seen by many as the “safer” alternative to making such a sizable investment, raising the national average age of first-time home buyers to 36 years old. Expert predictions from the early fall of 2022 were that rents would continue to rise over the first half of 2023, causing concern about renters’ ability to afford price rates. In reality, multifamily rents either remained stable or went down
  4. Younger adults prefer renting: New graduates and young professionals continue to show a preference for renting. Studio apartments tend to see the highest price growth for rental rates. In response, more units are being shared among younger tenants as they learn to navigate life outside of a school environment.
  5. Community keeps occupancy rates high: Owners might feel pressured to change up the look of a property to attract renters to maintain occupancy. This isn’t the case. Many different demographics are looking for properties, including communities just like yours. Your marketing should focus on attracting the type of tenant you want by accentuating your property’s unique amenities, location, and community characteristics.

Class A Property Investment Services: Your Partner for Profitable Investing

Many real estate investors are searching for property investment and management services in Dallas. Whether you live locally or simply own an investment property in Dallas, you need a management company that knows this city and keeps up with the changing market. 

Class A Management actively manages over 2,400 units in the Dallas-Fort Worth Metroplex. Our team offers a comprehensive menu of management services to maximize your investment growth. From feasibility to property renewals, purchases to divestitures, and all the property management in between, Class A Management has the experience to guide you to the best market opportunities. 

Contact us to see how we can help keep your property at occupancy regardless of market conditions. With Class A, the future for your property is in good hands.

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Co-Living and the Multifamily Industry

The concept of modern, dorm-like community living (i.e., co-living and multilevel real estate innovation) is rising despite the pandemic.

Co-living is a niche model in the multifamily ecosystem where tenants share common areas with other occupants while retaining their individual private spaces. Growing from just a few hundred beds to over thousands in the last five to ten years, co-living societies add value and a sense of community to renters’ everyday life. 

Companies like WeWork and many others are already up and running in the game, promoting the ideas of accessibility, community, collaboration, openness, and sustainability. The approach speaks volumes to Gen Y for its potential to offer Class A construction in an exceptional neighborhood along with assured affordability. 

WeWork is a co-working setup that leases its business office to individuals and/or companies. Having attained unmatched success with their primary business model, WeWork branched off in the multifamily sector and has since moved up in creating safe and reliable millennial communes.

As this new sector evolves, we predict a significant shift from traditional apartments to co-living spaces. Renters may gravitate toward these more affordable systems of housing to accomplish their American dream of homeownership. 

Is co-living something that has the potential to yield roots in your city? Also, how can a co-living property benefit your investment portfolio? Talk to a Class A Management real estate expert at 817-295-5959 to learn more about co-living and multifamily industry trends today. You can also email us at .

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When Property Management makes the most sense

Investing in real estate is an invaluable way of growing your wealth when done sensibly. But how can you manage your properties to curtail delinquencies, free up your time, market your property, avoid long term vacancies, sign new tenants, maintain premises, and carry out other associated responsibilities?

A dedicated, knowledgeable, and reputed property management firm can address your needs. It can mitigate uncertainties and ultimately protect your long term investments. Laser-focused companies help you maximize your returns while minimizing turnovers. They have all systems put right in place to handle day to day operations, perform inspections, oversee maintenance, assist with taxes, manage relationships, provide regular updates/ reports, and better optimize the entire property investment process for you.

Besides, having an experienced team by your side becomes even more critical if you own an out of state asset. Someone who can keep their eyes on the property and be immediately available under emergencies becomes essential. Plus, with their industry know-how, they can provide legal expertise to ensure state wise compliance. Many real estate investors consider partnering with an exceptional property management firm for they’re worth their weight in gold.

If you require assistance with managing and protecting your Texas investment property, we can guide you through! When you hire the Class A Management team, we assure you that your property returns are well optimized. We also provide exceptional customer support services, retain/ sign quality tenants, and use proven technologies to manage relations and other daily operations. We have a proven track record for helping investors with their multifamily investing decisions. Contact us to know more about our services – we’re one of the most trusted and competent property management companies in Texas you can rely on.

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How do property management companies work?

The property management companies process

Starting out in real estate investing involves a learning curve. A great property management company can help owners learn a lot about how to be successful in the local real estate market, but many prospective landlords hesitate to reach out. Their number one question is often: How do property management companies work?

Here’s a comprehensive guide to how property management companies work, typical fee structure, and services offered.

Hiring a property management company

Ask these specific questions when hiring a property management company to determine if they offer the services you need, and whether they’re good at what they do:

  • How many properties are you currently managing?
  • What experience do you have managing properties like this one?
  • What are your licenses and certifications? (Then verify.)
  • Have you ever had to evict a tenant? How did/would you handle that?
  • What is your average occupancy rate?
  • How long does it typically take for you to fill a vacant property?

Remember that these questions are just a starting point. You may have additional questions, depending on your property type, location, or other special considerations.

The property management fee structure

After an initial setup fee that covers the creation of marketing plans and other property-specific needs, the primary monthly property management fee can be structured as a flat fee, or as a percentage of rents collected. Fees can range from 7 – 12 percent of gross monthly rent. Typically, property management fees are higher for single-family properties and lower for multifamily properties.

Other fees aren’t monthly, and may include:

  • Tenant placement fee (covers advertising, screening, and lease preparation)
  • Vacancy fee
  • Eviction fee (plus court costs)
  • Early termination fee

The Maintenance Fee is usually included in the monthly management cost and placed into a Reserve Repair Fund to pay for emergency repairs. Landlords sometimes have approval authority for every expense out of this account, but property managers usually require a minimum balance be kept in the reserve at all times.

What can influence property management fees

All of the various property management fees can vary depending on certain property features or influencing factors:

Class A Management offers comprehensive property management services and can customize a package that fits your property, budget, and investment goals. Contact us today to learn more about how your single-family or multifamily property can become the crown jewel in your portfolio. We take pride in offering our clients complete transparency, and we’ll be happy to answer your questions and explain the Class A Management fee structure and provide references to existing clients.

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What is Property Management?

What is property management?

Property management is a scalable service that helps real estate property owners manage successful investments. Property management companies come in many different sizes, from a single property manager who lives on-site in an apartment complex to a large-scale company that manages properties for many different landlords for a fee.

What does a property manager do?

Property managers work to keep properties maintained and rented within a fair and profitable business model. From marketing to general repairs, managers work for both the property owner and the tenant to provide excellent customer service.

It all begins with establishing a relationship and management contract with the property owner. Property managers then set the rent, market the property to find and vet the right tenant, and work with the tenant to make sure the property stays in good working order and that the rent is paid on time.

Benefits of property management

Landlords who manage their own properties sometimes end up spending most of their time finding tenants or performing maintenance and repairs. Property management companies can ease that burden by employing industry best practices and leveraging resources not available to property owners. These companies often have rental applications and contracts designed to protect property owners and tenants from unfair practices and litigation, which is a win for everyone involved. Property managers also maintain real estate properties, which preserves their value. In addition, a good management company will provide a landlord with detailed expense reports and documentation that help simplify taxes for owners.

How to find a good property manager

The best property management companies offer consultation services even before purchase, helping prospective property owners through the vetting and real estate purchase process. Comprehensive property management services include marketing, operations, maintenance, accounting, and even disposition consulting when it’s time to sell. Ask any property management company you’re considering about their professional affiliations, what their occupancy rates are, and how they approach tenant disputes or non-payment issues.

Whether you’re hiring a management company or looking for a great rental property for your next home, finding a company with a great track record is essential for long-term success. Class A Management offers comprehensive management services, and our seasoned professionals are committed to serving our landlords and tenants fairly and efficiently. Contact us today to learn more about how we can customize a services package for your single-family or multifamily property. Maximize your investment with a team that offers the respect, value, and experience you and your tenants deserve!