Have you considered real estate investing? If so, now is the right time. More and more people are leaping and investing in the rental market today as a way to supplement their income, or as a business venture in its own right. There are several things to consider, as with any large investment, but it can be a really good way to make significant returns.
Property Investment locations are one of many things to consider when renting out a single home, or when undertaking large-scale property management. My city Atlanta, for example, offers a lot to potential investors because of its continued popularity with renters. Although, even if you have already picked out the perfect location, it’s important to know the pros and the cons before deciding if it’s the right move for you.
When deciding where to invest in a property many variables need careful consideration. Atlanta, Georgia is an up-and-coming investment hub, and given that property management in Metro Atlanta is well supported with excellent services, it is a location worth investigating.
The job market is healthy and growing even in this economic time. Between March 2021 and the same month, a year later, the city added 22,900 private sector jobs, demonstrating a growth rate of 5.3%. Metro Atlanta Regional Economic Development places it as the top metro area for economic growth and strategic investment in tech innovation.
It is also worth noting that this city has a bustling international airport, 19 colleges, and universities. It has also been rated as one of the top 100 places in the USA for business and careers.
Pros of Investing
You may well be able to reduce your tax burden as a result of deductions you can make from your real estate investment. Fees that you pay towards property management, maintenance, and insurance can often be deducted leaving you with a smaller tax bill.
With a little luck, it’s not uncommon to find that your home will appreciate significantly over time. This can be even more effective at generating profit if you’re able to carry out repairs and maintenance that bring the property to a higher standard. To find out about great areas that are undervalued you can turn to a company that does property Investment. Atlanta, Georgia is just one example of an area that insider knowledge can help with when it comes to appreciation.
Maybe it goes without saying, but the single biggest pro of investing in the rental market is the fact you’ll have regular, recurring income. Not only that, but rental market fluctuations mean that sometimes your rental value will increase year on year without any material changes being made to the building.
Cons of Investing
Lots of Cash Upfront
To get the most out of the market, you’ll likely need more cash upfront than you would for other types of investments. A quarter of the value of the property is a good amount to aim for when it comes to an investor’s down payment.
Your time is every bit as valuable as the property you’ll be purchasing, so it’s good to be aware that investing in the rental market can be very time intensive. A handy way around this is to engage a property management company to handle the laborious aspects of the process.
Ultimately, your tenants are the source of your income, so you wouldn’t want to lease your building to anybody who won’t take care of it, or who would delay or miss rental payments. There are checks that you can do to help with this aspect but, again, it’s good to have some professionals there to take care of tenant relationships where possible.
Professional Property Management
There are a lot of things to think about when deciding to invest in the rental market, and although there is every chance you’ll make a good return on your investment, having people to help you is always a good thing. For that reason, it’s important to engage a company that can help you with every aspect of property management. Big and small cities will always have eager renters, but having expert property managers can ensure that you experience as few hiccups as possible.
What Do They Do?
The management company is not just there to collect rental payments; they can also provide an excellent bespoke service to take care of things like:
- Sourcing tenants for your property
- Organizing maintenance and repairs
- Managing bills and payments
- Inspecting the property
- Making sure the building is compliant with legal requirements
This is a simple but effective rule: always do your research before reaching out. Even if you’re short on time, a quick 30-minute internet scroll can reveal a wealth of information about a service provider. Be sure to check out customer reviews for honest opinions that can help point you in the right direction. It’s also worth checking out the larger directories for a more comprehensive list of companies in your area. From here you can begin to compare a few companies that you like the look of.
Don’t take anything for granted, that every company will have all the necessary credentials (you’ll be surprised how silver-tongued some firms can be!) Make sure that your agent is fully licensed; this is a promise of protection and will ensure that everything is managed professionally and appropriately within the legal requirements.
Why It’s So Important
Your time is important, and so is your property. That’s why engaging a management company ensures that you get the most out of your investment without having to operate as an on-the-ground landlord, which can be time-consuming and fraught with difficulty. Whether you need new tenants ASAP, or your current lease needs updating, you’ll be glad you hired a company to handle rental management. Here in Atlanta, GA it’s a competitive and exciting rental market right now, so if you’re thinking of investing, then the organizational know-how of trained professionals can give you the edge.
The cost of living here in Atlanta is higher than the average but there are more options for outdoor activities compared to neighboring cities. The average commute time here is 21-60 minutes, compared with hours in other places, and the climate is desirable – which is a plus when you have more time on your hands.
Summary of cost of living in Atlanta, GA, USA:
Family of four estimated monthly costs is $3,701.49 without rent.
A single person’s estimated monthly costs are $1,045.74 without rent.
Atlanta is 27.36% less expensive than New York
Rent in Atlanta is, on average, 52.35% lower than in New York.