What new rental owners in San Antonio should know
Eight things we wish every first-time landlord knew before the first resident moves in, from pricing to deposits to the one call you do not want at 2 AM.
You kept the house. Maybe you moved for work, maybe you inherited it, maybe you bought it on purpose. Either way, you now own a rental in San Antonio, and the decisions you make in the first 60 days shape the next several years. Here is what we tell every new owner.
1. Price it to the market, not to your mortgage
The rent a home earns has nothing to do with what you owe on it. It is set by what comparable homes in the same area leased for in the last 60 to 90 days. Pricing even $100 above the market usually costs more in extra vacancy than it ever earns back. Our rental analysis uses closed MLS rentals, not asking prices, because what a home actually leased for is the only number that matters.
2. Rent-ready is a standard, not a feeling
A home that is clean, fully functional, and neutral leases faster and to better-qualified applicants. Before marketing starts we check the systems that fail most in Texas homes (air conditioning, water heater, garbage disposal, irrigation), the items Texas law requires on every rental (working smoke alarms, keyed deadbolts, keyless bolting devices, door viewers, and window latches), and the cosmetic items a renter notices in the first ten seconds. The rent-ready standard we use is written down, so you know what to expect before you spend a dollar.
3. Screening is where most problems are prevented
Every adult applicant goes through the same written criteria: identity, income, credit, rental history, eviction history, and criminal background. The word “same” matters. Fair Housing law requires that criteria be applied consistently, and consistency is also what protects you when an applicant is declined. Pet screening runs on every application, including the ones that say “no pets.”
4. The security deposit is not your money
Texas Property Code Chapter 92 sets strict rules for how a deposit is held, what can be deducted, and the deadline to return it or provide an itemized list after the resident moves out. Miss the deadline or deduct for normal wear and tear and you can owe the resident more than the deposit. This is the single most common way self-managing owners end up in Justice Court.
5. Maintenance will happen, so decide how it gets handled now
Most owners budget too little. A reasonable planning figure for a single-family home is 1 percent of the home’s value per year, more for older homes. What matters more than the number is the process: how a request comes in, how fast it is acknowledged, who decides what gets fixed, and what counts as an emergency. In our homes, residents submit requests through their portal, we triage and dispatch vetted vendors, and anything above your approval limit waits for your yes.
6. Know what an emergency is before one happens
An active leak, a sewage backup, no heat in freezing weather, an electrical hazard, or an exterior door that will not lock is an emergency. A slow drain on a Saturday is not. Having this defined in writing, for both the resident and whoever is on call, is the difference between a 2 AM phone call and a Monday work order.
7. Insurance changes when the home becomes a rental
A standard homeowner policy generally does not cover a home occupied by a tenant. You need a landlord (dwelling fire) policy, and you should require the resident to carry renters insurance with the manager listed as an additional interest. Talk to your insurance agent before the first lease is signed, not after a claim.
8. Decide whether you want to be the landlord
Managing one rental well means being available for showings, applications, maintenance calls, rent follow-up, inspections, renewals, and move-out accounting. Some owners enjoy it. Many find that the 8 percent they pay a manager buys back the one resource they cannot replace. There is no wrong answer, but there is a wrong time to decide, which is after the first problem.
Where to start
If you are weighing whether to rent the home or sell it, or what it should rent for, a rental analysis gives you real numbers to decide with. It is free, and there is no obligation.
This article is general information, not legal, tax, or insurance advice. Texas landlord-tenant law changes, and your situation may differ. Consult a Texas attorney, CPA, or insurance agent for advice on your property.