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Written by James Beard | 23 September 2009

Pre-leasing 101- What you should know before pre-leasing any University of Texas Apartments!

Pre-leasing! When you first hear that term, you can’t help but wonder what it means. I have been an agent for over 2 years, and the most frequent question I have been asked is related to pre-leasing an apartment. I have been asked this question so frequently that I created a section dedicated specifically to pre-leasing on http://www.utluxuryapartments.com/preleasing101. Rather than confuse students who are trying to explain it to even more confused parents, I decided to spend a weekend writing a detailed description; an unofficial guide to pre-leasing. I call it: Pre-leasing 101 – “UT Off-Campus Housing Guide: Information Students and Parents Should Know”. I encourage all students who read this to go ahead and share, Twitter, Digg, or Facebook this article with your parents and anyone who may benefit from this information. Remember knowledge is power! Let’s get started.

What is Pre-Leasing at The University of Texas?

Pre-Leasing at The University of Texas is vastly different, compared to anywhere else in the world. It’s definitely not what you typically think of when it comes to leasing an apartment or condo in a designated (different) location. Two definitive acts make it essential to explain why it is necessary to understand the term pre-leasing: 1. You will begin looking for your apartment, condo, or house up to a year in advance of the actual move-in date! 2. Most leases automatically end on a certain date and they do NOT automatically renew. This is because most tenants are students at The University of Texas. Strong demand, limited housing supply, desired location, and most importantly the ability to locate reasonably price luxury apartments and condos make pre-leasing an absolute necessity. This shortage around The University of Texas’ campus makes students begin signing leases 9-12 months before the actual lease term begins. UT students who know exactly where they wish to live, are trying to get into a very popular, highly desired community, and those who don’t want to live farther away than anticipated will begin looking for their next place 11-12 months in advance.

Pre-leasing Housing Options

Housing for UT students can occur anywhere in the city of Austin, but there are some areas which are known to cater to UT students. We will focus on what could be arguably the three major areas: UT West Campus, UT North Campus, and UT Riverside /Oltorf. (Please note, there is a very expansive growth in the UT East Campus area; and I presume the next time this article is updated UT East Campus will be included.)
Most housing options, in these three areas, cater to UT students, in general. They are the big boy apartment complexes; individually owned condominiums or small apartment complexes; older 1970 huge frat houses; cute cottages or modern homes. All offer their own advantages and disadvantages which we will discuss.

Big Boy Apartment Complexes

In the last 5 years, unless you have been under a rock or studying 24 hours a day in a dorm, you have heard of these big boy apartment complexes. They range from complexes having some of the most amazing views (21 Rio, located in west campus), all the way to having doubles of everything: 2 pools, 2 basketball courts, 2 workout facilities, 2 complexes (Longhorn Landing, located off east Riverside). I am very tempted to list every single one of these properties and what I feel are their advantages vs. disadvantages. However, in respect to remaining neutral, I will resist the temptation. The main benefit to these mega apartment complexes is that they offer some really great all-in-one packages. The majority will include cable and internet, have wood or stained concrete floors, a pool, a workout facility, and ON-SITE maintenance. For many, this on-site maintenance is a huge deal and respectively so. Not having to go through various channels or wait a week to get your air conditioner repaired, in 101 degree weather, is a huge stress relief. Another HUGE advantage is the very low to non-existing deposits you or your parents will have to pay. Also the first month’s rent is typically not due, until your actual move-in date. This is huge for some students or parents who can’t fork up a tremendous amount of spare cash all at once, in order to sign on the dotted line. Sounds like these are the perfect places to live? Well hold on! Some of the negatives are: You typically have a louder residence in comparison to the smaller communities and more than likely you will be forking up at least an extra bill, if you need parking. Pricing per square footage, a term your parents are really familiar with, generally tends to be more expensive.

Individually Owned Condominiums

Most of the individually owned condominiums have been built for some time now. Very few have been built in the last 5 years. Condos are really like a box of chocolates in that you don’t know what you are getting until you open that front door. What makes condos so appealing? Diversity. Condos are individually owned, which means all are different inside based on the owner’s styling. You could have two condos next door to each other and the inside of one has been totally remodeled, yet the other hasn’t been touched in a decade. This depends on the owner. Condos are generally managed by a management company. This could result in a slight disadvantage since odds are the management is not on site. Therefore, if you find a condo you like, you need to make sure the property management is reputable. Individually owned condos also mean you won’t have access to these properties on your own. You must use an agent.
Because of individual styling, you also need to have your game prepared. If you see a condo you like, you need to be ready to move on it. There may or may not be another one like it, even in the same complex! I have mentioned these general characteristics first, so I can stress the single most beneficial advantage about pre-leasing an individually owned condominium. Because condos are individually owned, there is not a long chain of command. The property owners are generally more in touch with the management companies, who directly hear from agents, who directly hear from you. This means the rental rates are usually lower. Also, depending on the market, rental rates can be ever so slightly negotiated. In turn, this makes rental rates considerably lower. This all adds up to mean less headaches and more money saved in your and, more than likely, your parents’ pockets.

Frat Houses, Cute Cottages, and Modern Homes

This last group makes up only a very small percentage of UT housing options and will make up, eventually, even less as UT off campus moves toward larger buildings with denser development therefore consolidating student housing thats across the city of Austin. For this reason and a few more, houses are the first properties to be taken off the market immediately when pre-leasing begins. Some popular houses are taken off the market before their pricing is even made public. Yes, houses are always in high demand! You must have your game face on and be well prepared and ready for some major frustration for yourself, your parents, and probably your agent also. Got your checks out? Almost totally across the board, in order to take one of these bad boys off the market, you will need first month’s rent, total deposit which is equal to a full month’s rent, and applications fees. Definitely not the cheapest of all the options but for many, it’s the fraternity, sorority, or even UT student dream!

Pre-leasing Housing Rates And Professional Assistance

I think nothing has been more shocking than the look on a typical parent’s face, who is from the larger cities like Houston or Dallas, when they see the price per square footage, for some of these condo or apartment units around the UT campus. If not properly educated prior to the pre-leasing housing search, a student can expect to be frustrated when all their hard work has halted, because the parent isn’t aware of the typical market rates for rent in the various areas. So what can a student or parent expect to pay? I’m glad you asked! An estimated cost is around $700-$900 per bedroom in west campus, $700 per bedroom in north campus, and $500 or less per bedroom on Riverside or Oltorf. These differences do add up so you and your parents together have to weigh the value on proximity or location desired to pricing that is offered.

Real Estate Agents

I want to point out even if you know exactly where you want to live, YOU SHOULD ALWAYS USE A UT LOCATOR OR UT REAL ESTATE AGENT, WHEN PRE-LEASING. ALWAYS! Why? First, it’s a FREE service to you. Second, they act in YOUR best interest. Third, they are more educated on the matter. Just face it! They can help you make a very educated decision. Not using a locator is like driving a car without insurance. You just don’t do it.

Agent Vs. Realtor

Sometimes students or parents will want to know if the real estate agent they are working with is a REALTOR®. (Are you aware that the real estate license that you agent has does not make him/her a REALTOR®?) In contrast, just because your agent is not a REALTOR® that doesn’t mean the agents provide services of a lesser quality. Confused? Probably. So, you’re asking what’s the difference? To become a real estate agent you pledge to act ethically and always in the best interest of your client. But REALTORS® take it a step further and pledge to abide by a higher set of standards and ethical procedures. On the main webpage of the National Association of Realtors under Duties to Clients and Customers, is this statement: “When representing a buyer, seller, landlord, tenant, or other client as an agent, REALTORS® pledge themselves to protect and promote the interests of their client.” There is also an extensive list of ethical standards. Ultimately it is up to you, the client, to select an agent with whom you are most comfortable. Having extra credentials is great, but ultimately your real estate agent’s interest should always be YOUR best interest.

Pre-leasing Can Be Fun If Educated Early

If all parties are educated early, there is thorough communication, and most has been planned out properly, pre-leasing can be a breeze and even exciting. I have seen it! On the other hand, if pre-leasing is done last minute or parents have not been educated, pre-leasing can be a disaster. Below I have listed a quick A-Z checklist that students should use prior to thinking about pre-leasing.

At the bottom of this article I have also listed some websites, directories, and forums (including mine) that give some of the best descriptions, ratings, and unbiased/biased reviews on apartment complexes, management companies, and locator companies and even popular individual locators! I DO encourage you to visit them! In fact, if I could make it mandatory prior to signing on the dotted line, I would. Again, remember education or knowledge is power and can save you a huge headache in the end.

Complete A-Z Pre-leasing Checklist:

Before you start your search on pre-leasing, you should THINK about the following:

What are the things you like about where you live now? Location, amenities, noise level, etc.

What do you dislike about where you live now?

How is the rent effecting your budget? This will give you realistic insight regarding what you can afford.

Will you want or presently have a pet?

Will you want a roommate?

Lastly, show your parents this article! Let them become familiar with the pre-leasing process.

Before you start your search on pre-leasing you should KNOW the following:

Know the number of bedrooms you want.

Know the number of bathrooms you want.

Know your budget - the price range per bedroom or per person.

Know exactly with whom you will be living.

Know each resident will be required to fill out an application and sign a lease.

Know where you want to live. (West Campus/North Campus/Hyde Park/Etc....)

Know who will be your lease guarantor (If the applicant does not meet the minimum income requirements, typically 3 times one month's rent, you will need a co-signer)

Know if pets are allowed, if applicable.

To secure a property for pre-lease or to take it off the market, students are typically required to have the following:

Check or money order for your application fee - Typically between $30 - $75/ applicant and guarantor or a flat $250 fee that replaces the deposit.

A separate check or money order for your security deposit. (Typically one month's rent, fully refundable within 30 days of your move-out, minus any damage beyond normal wear and tear)

Another separate check or money order for your first full month's rent - typically due at lease signing, within 2 weeks of your application approval. Apartment complexes may require this upon actual move-in

Researching 101:

UTWestCampus.com: West Campus directory of apartments, real estate companies, and management companies that serve UT students. Contains some ratings and reviews for properties, companies, and even popular UT real estate agents. http://www.utwestcampus.com

Yelp! - reviews and ratings on steroids from everyone. http://yelp.com

Yahoo! LocaL - Directions, Office hours and reviews from past clients. Be very aware of shady comments placed just to boost positive scores. http://yahoo.com

UT Housing Forum -The largest UT forum for EVERYTHING that deals with UT housing and west campus housing! Ask tons of questions get answers from fellow students, real estate agents, to the actual apartment complexes themselves. http://www.uthousingforum.com

About the Author:

James William Beard, III

James is a real estate agent with Uptown Realty and a true internet entrepreneur. His driving passion for innovation and curiosity for developing special niches, has garnered him several respected internet websites. This would include UTLuxuryApartments.com, which has been the #1 resource for University of Texas luxury apartments, west campus apartments, and UT apartments since 2006. James avidly supports the development of more personalized communities. Therefore, in 2007 he developed UTWestCampus.com, as a means of forming a more specialized west campus directory and information hub. He also developed TexasTrainers.com facilitate better networking between Texas personal trainers and their clients. © 2009