According to the Pew Research Center, more Americans are renting today than at any time in the past 50 years. What does this mean for your Atlanta property management? Find out why you should be paying attention to national and local rental market trends by reading below.
National and Local Rental Market Trends
According to Rentcafe, as of October 2019 rental markets nationwide continue to grow, affected only slightly by a slow fall season. Across the US rents increased 3.3% on average over last year, about $46. The national average price for an apartment is $1,476. In Atlanta, the average price for a rental is $1,475. In addition, Rentcafe reports 57% of Atlanta households are renter-led, and renting continues to be a popular choice in Atlanta despite neighboring markets trending toward homeownership.
What does this mean for Atlanta residents and Atlanta property management companies? If you do not already own investment property, now is a great time to buy. Many first-time investment property owners get their start by turning their family home into a rental property when they are ready to move. Others purchase a property with the intent to use it as a rental. We discuss options for entering the rental market below, but no matter your approach, there is no doubt that now is a great time to invest in Atlanta real estate. If you already own property in the Atlanta metro area, talk to your property management company about setting the correct price for your rental. You may be able to charge more than you think. When your current lease expires, take a look at comparable rentals in your area to see how yours compares. But be careful, pricing your rental too high can lead to expensive vacancy days. Pricing too low can signal something is wrong to potential tenants. Know what your rental is worth by talking to our experienced property managers.
Single Family vs Multi Family? Atlanta Property Management Can Help Decide
If you are going to invest in rental property, it pays to research what type of property will make you the most money. What is the average Atlanta resident looking for in a rental home? When investors picture rental properties, the first things that often come to mind are duplexes, fourplexes, or big apartment buildings. What about single family homes? In the past, single family rental homes were not in high demand. But the housing market has changed drastically in the last decade, and now more families are choosing to rent long term, and looking for single family rental homes.
According to Apartment List, “nationally, 12.3 percent of millennial renters say they plan to “always rent,” up from 10.7 percent just one year ago.” They also report, “the vast majority of millennials want to own a home, but millennial homeownership rates have significantly lagged previous generations.” The biggest reason for renting instead of buying? When it comes to the millennials surveyed by Apartment List, “69 percent say they will always rent because they cannot afford not to, compared to just 40 percent who cite the benefits of a more flexible lifestyle.” This is important news for anyone interested in Atlanta property management.
Recently, NPR reported a story on builders getting in on the single family rental home market. The trend toward renting single family homes as a lifestyle has gained so much momentum that builders are gearing their new builds toward it. Entire communities of single family homes for rent are under construction. In fact, The National Association of Home Builders reports that over 40,000 single family homes for rent have been built in the past year nationwide.
As any Atlanta property management company will tell you, you cannot go wrong owning rental property, no matter what type it is. But with the shift in the rental market toward single family rental homes, there is an especially good reason to invest in this segment of the market. According to Rentcafe, single family rentals grew faster than multi-family rentals during the past 10 years. Because the newest generation of adults is choosing to, or being forced to rent long term, they are looking for a place to call “home” and raise a family. Single family rental homes provide the lifestyle they are looking for, without the burden of homeownership.
What Rental Market Trends Should You Follow?
Even though rents are increasing around the Atlanta metro area, that does not mean every property owner will find success. To be a successful investment property owner, you need to know which real estate trends are important, and which to ignore. With decades of local expertise, your Atlanta property management company can help you sort through the current real estate trends. For example, tiny homes have become increasingly popular over the past few years. But will investing in a tiny home bring in much cash flow? And more importantly, if you ever need to sell your tiny home rental, will it bring in a profit? Even Forbes has warned against buying a tiny home stating, “the truth is, for investment purposes, it’s wildly impractical.” Unlike tiny homes, single family homes have lasting power. The buy and hold strategy of real estate investment provides cash flow now, and almost always brings excellent returns when you choose to sell. If you are in the market for a rental property we recommend looking for the following characteristics:
- Find a home with a standard layout, at least 3 bedrooms, and 1,500 sq. ft.
- Look for a location close to shopping, public transportation, and good schools.
- Make sure the home you pick is not older than 15 years, as older homes will require more costly maintenance.
Before buying, look at comparable rentals around the neighborhood to find out what they rent for and the average number of days on the market. Instead of following trends, follow tried and true facts that will bring you a higher return on investment.
Professional Atlanta Property Management Advice for Attracting Tenants
Attracting renters to your single family rental home takes expertise and local knowledge of what renters want, and what they are willing to pay. Before you put your Atlanta rental on the market, make a plan to attract more renters. Here is what we recommend:
- Look at comparable homes in the neighborhood when pricing your rental. If your rental is priced too high or low that could mean increased vacancy days.
- Make sure your home is rent ready before putting it on the market. To find out how to get your property rent ready visit this post.
- Market your rental home across multiple websites, not just Craigslist or Facebook. The wider you advertise the more qualified candidates you will have.
Attracting high quality tenants quickly is the best way to reduce costly vacancy days. With the right knowledge of the local rental market, your investment property will be rented in no time.
Professional Atlanta Property Management Helps You Ride the Market Waves
There is no doubt that the real estate market has its ups and downs, and some worry that we are headed for a crash. However, over the past 30 years, we have seen our fair share of market fluctuations and one thing has remained true, those who rode the market waves faired better than those who bailed. Unfortunately, a housing crash means more families will be looking for rental homes and those who still own their rental properties will be glad they held onto them.
As a professional property management company, we can help you ride the waves successfully. Specialized Property Management Atlanta started out at a time when single family rental homes were not the most popular form of rentals, and other property management companies were focused on large apartment buildings. Our expertise in the market has come from decades of serving our homeowners and tenants, and learning what makes a single family rental home great. The competition is now trying to catch up and learn how single family rental market trends differ from multi family rental trends. We have seen the ups and downs of the Atlanta real estate market, and we are prepared to help you weather them.
Choose a Professional Atlanta Property Management Company
If you are looking for an expert property management company, look no further than Specialized Property Management Atlanta. We are a full-service property management company, which means our team includes experts in every aspect of the rental cycle. All that is left for the property owners is to sit back, relax, and enjoy their investment. As one property owner put it, “Our leasing agent was a consummate pro in helping us to get our newly vacated property made ready and rented quickly. …His expert guidance helped us to focus on other important matters while he “took the reigns” and got our property leased in a timely fashion.”
If you are looking for professional Atlanta property management call the experts at Specialized Property Management Atlanta today. Request your rental quote by calling 404-596-8454.