Atlanta had quite a year in 2020, growing to one of the top five largest housing markets in the United States, even in the economic climate of the COVID-19 pandemic. With low taxes and a lower cost of living than most major cities, the city has flourished into one of the hottest spots for owning property. This historic rise is expected to continue through the summer season of 2021.
Many recent trends in both the city’s culture and economy have encouraged property owners to consider entering Atlanta’s thriving rental market. There are many reasons why it’s crucial to have a rental property management company on your side.
Here are just a few reasons why Atlanta has become such a hot market for housing and why it’s important to have your rental property managed by professionals.
What’s Going On In Atlanta?
Atlanta, Georgia, has the 18th largest economy in the world. Many Fortune 100 companies, such as Coca-Cola, Home Depot, and AT&T, base their headquarters in Atlanta. A 2014 study showed that Atlanta’s economy alone generated $371 billion. More than 1,200 multinational companies have offices in the city, and it has been ranked as one of the hottest “cybercities” in the U.S., hosting over 100,000 tech jobs.
Often called the “Hollywood of the South,” the film industry has been moving from Los Angeles to Atlanta in recent years. Tax incentives introduced in 2002 were a major contributing factor in the decision made by many studios to begin shooting and basing their headquarters in the Atlanta area. Turner Broadcasting and Tyler Perry Studios are two prolific Atlanta-based productions companies.
Mild winters and summers have been a major contributing factor in many people’s decision to move to Atlanta. Lake Lanier and Lake Allatoona in particular are known for their scenic beauty and outdoor activities.
The Atlanta metropolitan area also has 21 golf courses, including 7 municipal courses, and TopGolf Atlanta.
What Does This Mean For The Market?
Home sales have almost doubled since 2012. In a market that has had a steady increase year by year, prices have grown a whopping 18% since 2020 and are projected to go up another 10% by 2022. As of January 2021, the median home price in the Atlanta area was $309,000 with an average 2.49% interest rate for a 15-year fixed rate mortgage.
Rising home prices influence rental prices, and Atlanta has one of the strongest rental markets in the country, with 50% of property being renter-occupied. Rental rates have increased 4% for a two-bedroom apartment to an average of $1878/month.
High demand and low supply have turned Atlanta into an ideal seller’s market. This trend is projected to continue well into the next year, and rental properties will remain the hottest part of the market.
Why Do I Need Property Management?
Including the cleaning, maintenance, and advertising that most people associate with managing a property, working with tenants to process applications and sign leases is a big part of a property manager’s job. In addition to facilitating all the payments, a property manager would handle the complicated business of eviction, should the need ever arise.
In a recent Atlanta court case, a property owner improperly filed documents when attempting to obtain months of unpaid rent from a former tenant. The court ruled in the tenant’s favor, and the property owner had to pay $6,000, not including expensive legal fees.
Eviction is a difficult process for tenants and owners, and it’s important to maintain a professional and accurate approach to the process. A property management company can help protect you from liability that comes from evictions. We work with tenants to maintain the property and keep your investment safe.
Why Choose LSI Property Management?
LSI has a combined 45 years of experience in short-term and long-term management in the Atlanta housing market. All of our property managers are licensed professionals who lease everything from low-income housing to luxury rental properties.
Our rates are low and include special discounts for owners of multiple properties. Contact LSI Property Management today to get started on finding the best ways to manage valuable property investments in the Atlanta area.