AUSTIN (KXAN) – As more and more people move to Central Texas, there are a few things renters should consider when looking for an apartment.
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Whether you are renting an apartment or a house, it is important to know that the application process requires some strategic considerations.
The application process
Dar McLane, a real estate agent with McLane Realty in Austin, said renters should know that owners have two options: They can take the most qualified applicant or the first applicant that comes along. And that makes a difference, McLane said.
What is this difference?
McLane said if a tenant is the most qualified applicant according to the owner, they will be accepted. If it is the most qualified applicant, that means there is more than one application, and the owner then has the opportunity to decide between all the applicants who is the best fit for the property, she said.
When you submit a rental application, expect to pay an application fee, which is at the discretion of the property owner. These fees are non-refundable and cover the cost of checking credit scores, rental history and more, according to the Texas Apartment Association (TAA). A background check is also part of the application fee, according to McLane.
Proof of income is also required, meaning tenants must provide pay stubs. Bank statements may also be requested to prove tenants can afford the rent on the property, McLane said.
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As peak moving season approaches Austin and Central Texas, there are some details renters should know before the rental process. (Frank Martinez/KXAN News) -
As peak moving season approaches Austin and Central Texas, there are some details renters should know before the rental process. (Frank Martinez/KXAN News)
Each person aged 18 or over must also pay a separate application fee, according to the TAA.
Tenants who have pets should also create a pet profile, McLane said.
“Take a photo of your pet and write a little anecdote about it to help the owner feel more comfortable having that pet in their home,” she said.
McLane added that it is also important to check before viewing whether the rental listing states that pets are allowed on the property.
“I’ve seen everything from birds to snakes to dogs to cats. Pretty much the whole spectrum of animals and what owners allow and don’t allow,” she said.
Processing fees for applications
The average processing fee for applications is $75 to $80, McLane said.
When someone applies for a rental with McLane Realty, prospective renters receive a link and pay $40, she said. However, McLane said other brokers or owners may use a more expensive system to process the application.
Processing fees may vary depending on whether the fee is sent directly to the agent or to the owner, McLane said.
What happens when tenants are approved
Once tenants have been approved for a property, it is time to sign a lease, pay a security deposit/pet deposit, and pay rent.
According to TAA, it is important for tenants to read the lease agreement carefully before signing it.
“Keep 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 the right to receive a copy of your lease.”
Tenants should make a checklist of the property and all appliances and furnishings contained therein and notify the owner of any repairs that need to be made before the move-in date.
Rent vs. Buy
It’s no secret that in Austin and Central Texas, it’s cheaper to rent than to buy.
McLane said the average cost of rent in Austin is currently just under $3,000 a month, with the average price for a three-bedroom, two-bathroom apartment being $2,951.
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She said if renters are paying about $3,000 a month in rent, it might be worth considering buying. The typical average mortgage per month is about $3,800.
Technically, it’s cheaper to rent, but when it comes to buying, homeowners gain equity, according to McLane.
“You will know that your investment will probably pay off at the end of the day,” she said.
McLane cites possible reasons for renting as people in Central Texas being unfamiliar with the area, such as someone moving in from out of town or out of state.
Or if someone isn’t sure if they want to make a long-term commitment by buying, then renting is the easier route.
“I think a lot of people do that until they figure out exactly where they want or need to be,” McLane said.
Another advantage of renting is that there is no maintenance required.
“With a house, even if it’s brand new, there are always costs involved. Whether it’s just a small thing or maybe something bigger, there are maintenance costs,” she said.
Tenants who live in a property with HOA fees most often don’t pay those fees. McLane said owners pay them because they don’t want a lien potentially placed on their property. Because if the HOA fees aren’t paid, a lien could be placed on the property.
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McLane suggests that students should start looking for a rental property now.
“These properties are going to sell out. They’re going to be in a bind if they don’t start looking for a home right away, and you know the best places could all be gone,” she said.
McLane also suggests students reach out to a friend or acquaintance who is looking for a roommate or two rather than living in a condo or townhouse.
She said she also frequently sees parents of children attending college sometimes buy a property near campus and rent it to their child.
“For parents who can afford a property there, it could be a good option, especially if you only own the property for four or five years while your child is there and then sell it. Not a bad idea.”
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