Rental real estate is one of the most reliable investment choices of today. Property investments have the potential to create a consistent source of income that can benefit an individual for many years.
Investing in Atlanta rental property can provide you with a great opportunity to expand your investment portfolio. The local rental market has shown consistent growth over the past few years. This has made the Atlanta rental market attractive to property investors living both within and outside the city.
Among the reasons for the growth in the rental market is the city’s ability to attract new residents. This is mainly attributed to the growing economy and attractive job opportunities.
In this article, we here at Rent Appeal will discuss what you need to know about buying rental property in Atlanta. These tips will help you make the most of your investment property.
What Is the Atlanta Rental Market Like?
There are several factors that make the Atlanta real estate market a potential goldmine for property investors. The city is experiencing steady population growth driven by an attractive job market and a great quality of life. The influx of new residents makes it ideal for rental investment due to the growing demand for housing. Furthermore, properties in the market are relatively affordable. The prices are also expected to increase in the coming years. This anticipated appreciation has helped to create a sustained demand for investment property.
With the need for rental homes in the Atlanta market, property investment in the area will most likely provide significant returns. This provides a great opportunity for investors to scale their rental businesses.
Top Tips for Real Estate Investment in Atlanta
Find Properties That Suit Your Price Range
A good place to start when looking for investment property is to find all properties that are within your price range. There are a number of rental properties in the Atlanta market. These include single-family homes, condos as well as multi-family properties. Having a clear picture of the type of property you want to purchase helps to narrow down your choices for investment. This will help you to be more decisive when choosing a property. It will also enable you to focus on renovations so you can start earning your rent. When deciding on how much you’re willing to spend, you should also consider additional costs such as taxes and HOA fees. Such expenses can drive up the total cost of investment.Identify the High Rent Locations
Location plays a pivotal role in real estate investment as it determines the level of returns you could receive. A good location attracts more tenants, which an investor can leverage to receive a higher rental income. This will allow you to receive higher returns on your investment.
When identifying such a property, it is important to calculate the ratio between rental income and the purchase price. It is also essential to account for any upfront costs and the total cost of renovations you want to complete before renting.
Finding the Right Local Market
When researching the rental market in Atlanta, you should single out the most promising neighborhoods based on market behavior. It’s a good idea to focus on the recent trends in the market, comparable rent, and any proposed developments in the area. Your property’s surrounding neighborhood can have a significant impact on its performance. Market trends and local developments play a part in the demand for rental properties. Developments such as schools and hospitals can attract new residents and fuel growth in the neighborhood.Make the Necessary Projections
Once you have the expected rental income and cost estimates, you can start making financial projections of different income scenarios. These projections will give you an idea of what to expect from your rental property in Atlanta. It is important that you take a more conservative approach when making these calculations. Having overly positive projections may provide a false image of the potential returns on your investment. But a conservative approach can be more reliable and the property may still end up performing better than initially expected.
Improve Your Rental Property’s Appearance
After closing on the property, you can proceed with the necessary renovations. Making your property more appealing will help to attract many prospective tenants. Some of the changes you can make include:- Add a fresh coat of paint. Fresh paint can improve the appeal of a property as it makes it look new and well taken care of.
- Install new fixtures and appliances. Replacing the fixtures and adding new appliances can change the feel of a property and make it look clean and modern.
