In the weeks and months after losing a loved one, making business decisions is the last thing on your mind. However, if you stand to inherit a house, action is necessary. The property should be protected and maintained to prevent it from falling into disrepair.
Atlanta has a booming rental property market, and landlords can make considerable profits on rental income. If you inherit a rental property in this growing metropolitan area, these are some things you should know:
Do Not Rush Into Any Decisions
While the temptation after inheriting a house would be to sell it and pocket the profits, this might not be your most lucrative approach. As a new rental homeowner, consider continuing to rent the property out. If you do not know much about being a landlord, seek expert assistance in property management in Atlanta from an established company such as One Source Atlanta Property Management, Evernest, Avison Young. These companies have a proven track record of outstanding service.
Property management companies are ideal for landlords who are inexperienced, live far away from their rental properties, or have insufficient time to deal with the daily tasks that being a landlord requires. Agents from these companies find and screen tenants, collect rent, and ensure that renters adhere to their rental agreement.
Avison Young has a stringent screening process to ensure that it recommends tenants that will pay rent on time and not present any problems to their landlord. Property management companies charge a percentage fee for their services. Many landlords are happy to pay this bill to avoid difficult tenants and unpleasant situations, such as evictions.
Atlanta is a Landlord’s Paradise
One Source Atlanta Property Management and other such companies operating in the area are kept busy by a demanding rental home market. Nearly half the homes in Atlanta are rented to tenants, and many landlords use property management companies to conduct the rental process on their behalf.
Rental prices in Atlanta average at $1,400, a substantial income earner for someone who owns a property and is no longer paying a mortgage. While there are additional expenses, such as property taxes, rental management company fees, and repair and maintenance costs, landlords can make good money renting out houses. Additionally, landlords can write off most of these expenses as deductibles on their tax returns.
With so many tenants seeking rental houses, landlords can charge slightly above-average prices and be extremely selective about which tenants they enter contracts with. Many landlords favor families as tenants as they tend to stay long-term and cause minimal property damage. Atlanta’s population has a median age of 36-37, an age at which most people have children.
Weigh Up Your Options
The supply of houses in Atlanta is insufficient to meet the demand, so homeowners can expect to get market-related prices or higher for their properties. Some agents report that homes are listed for less than a few hours before being snapped up by investors or buyers.
When deciding what to do about a rental property in Atlanta that you inherited, you should evaluate renting it out vs. selling it. It would be worth getting some financial advice on this crucial matter to ensure that you get the most out of your property.
While a sale means immediate access to funds, renting out provides a stable monthly income with the prospect of a substantial profit when selling the house later after prices have continued appreciating. Weighing these options against each other with only facts and figures in mind will give you the necessary answer. Less rational decisions tend to occur when emotions and sentimentality enter the equation.
Atlanta is a Growth Point
If you had inherited a rental home in a depressed area where people are leaving in droves or crime and unemployment are rising, selling might be the best option. However, a rental property in Atlanta presents none of these challenges.
Employment in Atlanta is rising, and many companies have made their headquarters there or established regional offices there. While it cannot be said that crime is non-existent, Atlanta is relatively safe when compared with other similar-sized metropolitan areas. Atlanta’s population has grown continuously year-on-year and, if you hold onto your rental property, it is unlikely that there will not be tenants wanting to occupy it.
Barring an unpredictable economic event, Atlanta’s property prices are expected to continue rising in the coming years. This also means that rental prices are likely to increase correspondingly. Although living costs in Atlanta will increase, experts predict that they will continue to be lower than in other major metros, such as New York City and Miami.
This means that regardless of whether you rent or sell, inheriting a rental property in Atlanta will benefit you financially. Despite the most dispassionate advice, the final choice is yours as the property owner. Which option is best depends on your context and how you wish to proceed.