It’s easy to get carried away with thinking about all of the money you will make on your new rental property. The online calculator say the mortgage on the new property is $1,000 and surely you can rent the property for more than that. What could go wrong? Here are some atlanta rental property management tips to help avoid issues.
To have a rental property to rent out you first have to purchase one. Not complicated, right. But where do you buy and what type of property is best? A lot depends upon the type of tenants you want to deal with as well as how much money you have to invest. If money is not an option then you should look to buy in established neighborhoods where sale prices are appreciating. You’re typically looking to rent the property for at least 10% of the purchase price, so it stands to reason that a $100,000 home will rent for $1,000 per month and a $500,000 home will rent for $5,000. That’s not 100% accurate but is true in a ball park range perspective.
If you only have $100,000 to invest then the properties you can purchase are limited to those that fit your budget. In this case you still have some control to have a more positive impact on your success. Look for homes that are in a good school district, have a lower than expected crime rate, and are surrounded by nicer neighborhoods. Another good option is to look for a larger, rather than smaller, lot. If the area ever begins to revitalize your property may appreciate more based on a larger lot size. It might even be able to be divided into multiple lots down the road.
The key is to do your research and buy a property that provides long term growth potential and fits the profile of your ideal renter.
Once you’re at this point of renting your property it's time to slow down and make sure you make a good decision. Good tenants have expectations that the property will be in good repair, that you or your Atlanta rental property management company will be responsive, and that all interactions will be professional. Bad tenants never worry about these things because they are’t going to reciprocate on the behavior. Being professional may not be what initially attracts a good tenant but it will help in keeping a good tenant interested.
You have to pre-screen potential tenants. Often times the difference between a good tenant and a bad tenant isn’t visible on the surface. You have to dig deeper to try and discover potential red flags. Background checks into their personal and financial histories can help uncover needed info. Looking at their past rental experiences can give you a better understanding. And understanding the tenants intent can be important. Why are they moving? Is it a positive (better schools, larger space, better neighborhood) or negative reason (hated my landlord, could’t get along with other tenants, place was a dump)? Tenants with positive reasons more often than not will be better than tenants with negative reasons.
This final piece of advice is a little misleading because you might choose to manage the property yourself. You can definitely save some money initially by doing it yourself. But with going the DIY route will require that you have the time to invest to properly manage the property and educate yourself on the things like marketing tips, maintenance and repair, and legal requirements. We would also recommend that if you go the DIY route that you make sure your rental properties are in close proximity to where you live. You want it to be as easy as possible to inspect your property when needed.
If you choose to engage a Atlanta rental property management company then you’ll still need to invest some time initially to research and select the best company for you. You’ll need to fist establish what it is that you want a property management company to do for you. These tasks will include initially consulting with you to set a rental price, marketing your property to tenants, screening tenants, handling the leasing paperwork, managing monthly payment receivables, managing maintenance and repairs, and of course assisting with any legal issues.
Once your list is complete you’ll need to then spend some time evaluating options.
Investing in rental properties is great way to build income and wealth, but its not as simple as purchasing a property. These atlanta rental property management Tips should help you think about some things to consider before diving head first in.
GSPM assists property owners and investors in maximizing revenue potential while minimizing the hassles in marketing and managing their properties. We recognize that there are a lot of factors that go into making a property a successful investment and put our experience and knowledge to work for you. Call us at 404-254-4502 or complete our Fast Form below to learn more about our services.