Landlord Resources
Should I Sell My Rental Property in Texas?
Dabney Real Estate Team•
2025 brought shrinking margins for Texas landlords. With insurance up 40%, rent growth flat, and new 2026 regulations (SB 38) looming, is it time to exit?
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If you own rental property in Texas, 2025 has been a year of shrinking margins. Between skyrocketing property taxes, insurance premiums that have doubled in some counties, and the "flatlining" of rent growth, many investors are asking: Is it time to cash out?
The answer might depend on your tolerance for new regulations.
The "Jan 1, 2026" Legal Shift
Governor Abbott signed SB 38, which fully takes effect on January 1, 2026. While it streamlines some eviction processes, it also introduces new compliance layers regarding "Right to Cure" notices and strict delivery methods.
⚠️ The Bottom Line:
Being a "casual" landlord is getting riskier. If you miss a step in the new notice paperwork, your eviction case can be thrown out instantly, costing you months of unpaid rent.
The "Cash Flow Squeeze" in 2025
In major Texas metros (Dallas, Houston, Austin), rent growth has stalled due to a surplus of new apartment complexes. Meanwhile:
📈 Rising Costs
- • Insurance: Texas landlord policies are up 20–40% this year.
- • Taxes: Non-homestead investment properties are bearing the brunt of appraisal hikes.
- • Maintenance: Contractor costs up 15% due to inflation.
📉 Stagnant Revenue
- • Rent Growth: Near 0% in oversupplied markets.
- • Vacancy Rates: Rising as tenants shop around.
- • Collections: More tenants struggling with payments.
Your Options Right Now
Option 1: Keep Renting
If you have low debt and long-term tenants, you can ride it out.
Best for: Properties with stable cash flow
Option 2: List Retail
If the house is in perfect condition, you can list it.
Warning: Expect 60-90 days on market
Option 3: Sell to an Investor
We buy rental properties with tenants in place.
- ✓ No eviction needed
- ✓ No fix-up needed
- ✓ Avoid 2026 laws
- ✓ We take the lease
2025 Texas Rental Market Reality Check
| Metro Area | Rent Growth | New Supply | Outlook |
|---|---|---|---|
| Dallas-Fort Worth | -1% to 1% | 25,000+ units | Oversupplied |
| Houston | 0% to 2% | 20,000+ units | Stagnant |
| Austin | -3% to 0% | 30,000+ units | Declining |
| San Antonio | 1% to 3% | 15,000+ units | Stable |
Selling With Tenants in Place
One of the biggest challenges landlords face is selling while tenants occupy the property. Here's what you need to know:
Traditional Sale Challenges
- Tenants may refuse showings
- Property shows poorly with belongings
- Must provide 24-hour notice
- Buyers want vacant possession
- May need expensive "Cash for Keys"
Cash Sale Advantages
- We buy with tenants in place
- No showings needed
- Lease transfers to us
- Tenants become our responsibility
- Close on your timeline
Tax Implications of Selling in 2025
🏦 Important Tax Considerations:
- Depreciation Recapture: You'll owe up to 25% on depreciation taken over the years
- Capital Gains: Long-term gains taxed at 0%, 15%, or 20% depending on income
- 1031 Exchange: Consider deferring taxes by exchanging into another investment property
Always consult with a tax professional before selling investment property.
Ready to Exit the Landlord Game?
With new 2026 regulations looming and the current market challenges, many Texas landlords are choosing to cash out now. We make it easy.
- ✓ We buy with tenants in place
- ✓ No inspections or repairs needed
- ✓ We handle the lease transfer
- ✓ Fair cash offer in 24 hours
"After dealing with problem tenants and the new regulations, I decided it was time to sell. Dabney Real Estate Group bought my rental with the tenants still in place. No hassle, fair price, and I was done being a landlord in 10 days."
— Sarah M., Former Dallas Landlord
QWhat is Texas SB 38 and how does it affect landlords in 2026?
SB 38 is new legislation taking effect January 1, 2026, that introduces stricter compliance requirements for eviction notices including 'Right to Cure' provisions. Missing steps notice paperwork can result in immediate case dismissal.
QCan I sell my rental property with tenants still living in it?
Yes, you can sell with tenants in place. Cash buyers like Dabney Real Estate Group will purchase the property with existing leases, taking over landlord responsibilities immediately upon closing.
QHow much have Texas landlord insurance costs increased in 2025?
Texas landlord insurance policies have increased 20-40% in 2025, significantly impacting rental property cash flow across the state.
Want a cash offer without showings?
If selling fast is your priority, request a no-obligation offer and we can typically respond within 24 hours.
Ready to Move Forward?
We've helped dozens of Texas families through difficult property situations with compassion and fairness.