Let's follow the story of a family that set up a rental property in Austin. After their first tenant's lease ended, they faced a lengthy vacancy while searching for a new tenant, which made them anxious. In their haste to sign a new lease, they set the rent below market value and later realized this when they checked the surrounding market rates.

First, let's look at rental prices in Austin. As of August 2026, the median rent is $1,559 (according to Zumper). This is a 14.7 percent decrease compared to a year ago, indicating that the supply in the area has rapidly increased in recent years. A one-bedroom apartment averages $1,271, while a two-bedroom goes for around $1,604. If the family had been aware of this downward trend when finding a tenant, they could have set the rent a bit more comfortably.

Texas law prohibits rent control. While this allows landlords to adjust rent freely, they must provide written notice at least 30 days in advance. Missing the notice period in tenant relations can lead to disputes, so it's advisable to clearly outline the notice provisions in the lease agreement.

Also, consider property taxes. The effective tax rate in Travis County, where Austin is located, is 1.48 percent, which is higher than the Texas state average. The annual tax on a median home is $7,727. The family later felt the impact of Texas's structure, which has no income tax but higher property taxes.

Let's also discuss loan conditions. Investment loans require a down payment of 15 to 25 percent, which is higher than for primary residences, and a credit score of at least 620 is needed for approval, though a score above 740 is necessary for favorable rates. Rental income is only counted as 75 percent of the expected rent by lenders, so it's wise to keep this in mind before finding a tenant.

If you want to reduce the burden of tenant management, you can hire a management company and pay them a fee of 8 to 12 percent of the monthly rent. Landlord insurance is also something to consider, as it covers rental loss and liability, but the premiums are higher than standard homeowners insurance. You should expect maintenance costs to be about 1 percent of the property value annually.

Areas of interest for Korean families in Austin include Round Rock and Cedar Park. While you can refer to ratings from GreatSchools or Niche, keep in mind that school district boundaries change frequently, so it's best to verify the assigned school for the specific address before purchasing. The family also realized that areas with better school ratings tend to attract tenants more easily.

Austin has seen a significant increase in new apartment supply in recent years, leading to adjustments in rental prices. For those looking for tenants, comparing prices with nearby new listings has become much more important than before.

The family decided to be more thorough with home inspections for their next property. Even in areas with new constructions, the maintenance costs for existing homes can vary greatly depending on plumbing or roof conditions. Having the inspection report in advance can help build trust when informing tenants.

It's also a good idea to get insurance quotes in advance. Landlord insurance premiums can vary significantly based on the age and location of the property, so it's wise to compare quotes from two or three places. The family also decided to carefully compare insurance costs for their next contract and adjust their budget accordingly.

Ultimately, the family decided to check market rates first for their next contract and also seek help from a management company. It's worth noting that at the time of sale, a 1031 exchange can defer capital gains tax, which is something to keep in mind long-term. Managing tenants seems to be a safer choice when you first check market rates and procedures rather than rushing into it. This article is not investment or legal advice, and it's recommended to consult with a professional before entering into any contracts.