Welcome to August!
Austin is in the second half of summer, and oh boy the unending weeks of straight triple digit weather has arrived! As with every year, this means HVAC systems are working hard to cool and end up running for a majority of the day and night. As a rental property owner, this can help expedite the early demise of your HVAC systems. So please keep in mind that if your system:
- Is getting to or past the average life expectancy of 13 years,
- Experiencing increasing repairs
- Has had notes on the spring HVAC check up checklists of potential future failure,
These things can mean you're headed towards needing to replace your HVAC system. We at Rollingwood Management have a straight forward approach to HVAC systems when we're in our triple digit weather seasons!
First: Extending System Lives
We always start by taking a pro-active approach to maintenance. Through our Spring HVAC Maintenance Program we ensure your HVAC system is serviced each year before it gets hot. Allowing technicians to complete proactive repairs, make evaluations and help you get ahead of costly, peak summer, repairs and down time. This is all geared towards ensuring your investment last as long as possible, and providing exceptional customer service to your renters.
Second: Proactive System Replacement
By choosing to replace your system in advance of a full failure, you can save money in the short run and long run by:
- We're able to utilize an HVAC firm that only does full system replacements, but that has a significantly longer turn around time on jobs, to the tune of two to three weeks on turn around.
- A new system can help eliminate ongoing maintenance expenses (through labor and parts warranties!)
- And even more important, gives your renters a great customer service experience by showing them you want to get ahead of issues and take care of them. This can help secure and improve the chances of those renters renewing. Don't forget, HVAC system going down when it's 100 outside during the summer is one of the biggest customer service events that damages a renters desire to renew their lease when the time comes up.
Third: Reactive System Replacements
The priority becomes quick service. As noted in our
April 2025 blog post
, the City of Austin updated our Local Property Code to require that each room of a home is a habitable temp. Failure to comply can result in fines and escalation of enforcement and restrictions. With keeping the focus on quick service, we can avoid these issues and get your renters cooling quickly. In these instances we have the following practices:
- Temporary window units can be provided to help bridge a short gap of services. We provide this equipment at a daily rate, and have it available on a first come basis.
- We don't chase multiple bids for repairs or replacement as this often means a delay of at least two days to get the secondary bid, and an unknown turn around on repair/replacement.
- We don't utilize our slower vendors, and prioritize next day replacements. We can't ask your renters to wait two to three weeks for a replacement.
Remember, service companies are in their busiest season! If you wish to take a proactive replacement into mind, touch base with your property manager to discuss further. Not sure the condition of your system? Reference past property surveys for assistance.
Service To Our Community
One of Rollingwood Management's core beliefs is giving back to our community. We do this through continued support, both financial and hands-on service of a few local organizations. This month I wanted to take a moment to spotlight one of the organizations I hold close to my heart, The Marbridge Foundation. This organization is one of only three in the United States that provides a full lifespan of services for adults with intellectual and developmental disabilities through their community. Their mission ensures that this often-neglected community has a place to grow and live their lives safely. The service and care this organization provides is truly unmatched. Having had a family member live with their community, I can say first hand that they truly live their mission.
As a new client, know that your first full month’s management fee is either donated to this amazing organization or another one of our partner charities. As an existing client, your continued business ensures that we as a firm can continue to help these truly amazing organizations improve the world around us. We're incredibly thankful! If you ever want to see our team in action with these organizations, keep an eye on our social media. You can read more about Marbridge and the other amazing organizations we support here in the Austin Area on our community service page.
Rental Market Statement
As we reach the pitch of the summer leasing cycle, trends we've been seeing in the sales market are showing true in the rental market. A “softer” market is making things more buyer / tenant-friendly. As outlined on Realtor.com, this trend isn’t just localized to Austin. Nationwide rents are down $72 from the 2022 peaks but remain about $238 higher than their pre-pandemic highs.
With the softening of the market and still strong competition from the apartment sector, we’re working hard to keep your home in A-Grade condition to entice that A-Grade Renter. One strong shift we’ve seen that helps homes rent is providing and maintaining a refrigerator in your home. In the past, we’d seen roughly 45% or less of rentals providing a refrigerator. Now we’re seeing listings without a refrigerator sit on the market longer and be priced lower to entice renters. Other things like ceiling fans in bedrooms, upgraded blinds, or other improvements are one-time expenses that can really help your home pop and attract a new renter!
Sales Market Update from Mike Minns
For the past few weeks its looked like we are past the peak of the summer sales market. Although the Local Board of Realtors paints a positive picture, suggesting the market is improving – and this year was better than last year - it's still far from a normal market. Demand is significantly below typical levels for this season. The bad news is that conditions will likely worsen considerably this winter. The usual seasonal slowdown will be worsened this year by the ongoing war in Iran, which is continuing to worsen the inflation we never fully recovered from due to COVID spending. I believe neither Iran's leaders nor the US leadership will withdraw, likely prolonging the conflict for another two years. This suggests a potential two-year period before any recovery can start. If the Fed raises rates this year, those rates might stay high for the same duration. I hope I'm mistaken about this but if oil prices stay high, higher rates will be inevitable.
In summary, mortgage rates are already higher than they have been all year, demand is decreasing, and these factors could lead the Federal Reserve to raise the benchmark rate this winter. Consequently, the chances of a real estate recovery in the near future are slim, likely not something we'll see for several more years.
My advice to anyone who needs to sell their house this year is to reduce the price further. If you've already lowered it recently, consider lowering it again to the minimum, as the market probably won't improve for at least the next one or two years.
If you're looking to purchase, this winter might offer chances to purchase homes at reduced prices; however, because of taxes, insurance, and current rental costs, it's unlikely the investment will generate positive cash flow unless we find a good duplex or make a down payment exceeding 20%. If you’re considering selling this winter, it’s best to wait unless you have an urgent need. The market is expected to be slower than last winter, and prices may decline to 2025 levels.
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Mike Minns, Atlas Realty
Thank you!
To all of our clients, residents, vendors and Realtors. Thank you for making what we do possible at every step. We're honored to be able to provide the services we do, and work with you.
Thank you for your continued trust and business.
Christopher M. Francis
Owner
Rollingwood Management, Inc.