Are you considering buying a rental property in Georgia? Does the property cash flow? what are rent rates? Is there still room for appreciation? what are the rental laws? who do they protect the landlord or tenant? Why will it work?
Is there still appreciation in Georgia?
There is still room for growth in appreciation. Georgia in general has been so affordable. Compared to the rest of the United States the value here in Georgia is still very high. Even after this most recent surge in prices, the overall value of residing in Georgia is still there. Developers see the potential and are creating an infrastructure to accommodate overall growth.
Atlanta Hartsfield airport has become the busiest airport in the WORLD 2022
Why does that matter? That doesn’t happen by accident. Some of the top Fortune 500 companies reside in the Atlanta area like: UPS, Home Depot, Coca-Cola and Delta Airlines. Not too mention the most recent influx of movie production companies. These top companies recruit the top talent her to the Atlanta area which will also fuel the appreciation for years to come. The drive for these companies is tax breaks, over all affordability and close amenities. I’ve heard it be called the next Silicon Valley due to the influx of talent, tech and development.
How are rent rates?
Typically depending in the area homes can rent anywhere from a $1-$1.50 per sq ft. (You must consult with a professional.) If the home is larger than 2800 sq. ft. often times that value can change. A lot of homes in Georgia are larger so you will need to account for amenities being offered as well. Also, single stories or a ranch on a basement may bring more rent at a smaller sq footage because they are harder to find. You must consult with a professional if you are looking at buying and renting a home.
Rent control?
There is no rent control in the state of Georgia. This means you as a landlord can adjust the rent rates within the lease parameters whenever you want. Not like in California, where legally can only increase a certain percentage every year. Even if the market demands a higher rent for improvements for renovations, in Georgia you can increase rent for whatever you want. The current residents may not like it, but the law is on the landlords side. Which leads to the next topic.
Landlord friendly state Vs tenant friendly state?
Georgia is a landlord friendly state. This is actually a general statement for a few different factors. The first and most important is accountability for rent payment. In the state of Georgia you can start the eviction process the day after they are late. So if rent is due on the 5th and not paid, you can start eviction process on the 6th. After the eviction is filed, if uncontested the eviction can be served on the 8th day. Versus California, where you have to wait 30 days, then they can end up squatting for months or even years with non payment. California is a tenant friendly state. It does not protect the landlord at all. Landlords in Georgia can also charge whatever they want for a security deposit it just must be returned within 30 days of move out. Landlords overall have more rights in Georgia when dealing with tenants and evictions.
Influx of cash flow opportunities like VRBO and AirBnB?
The last piece, why Georgia is still a great place to buy investment properties is the influx and popularity of short term rentals. You may not think of Georgia as a destination city, but there are quite a few reasons this type of investment has become more popular. As I stated above the Fortune 500 companies recruit heavily to the area and professional consultants, paid for by the company may fly into the Atlanta area and need a fully furnished, fully functioning place to stay for weeks or even months. This type of opportunity makes it easy and appealing for professionals to feel comfortable with that process. The amounts that a landlord can charge is shocking as well.
On top of that movie studio productions in Georgia also may need seasonal type employees that will need places to live.
Lastly, there are several destination type environments in Georgia that will lend to vacation rentals. A few areas are Savannah, Georgia, or the Orange Coast which has ocean beaches for vacationing. On top of this there are several lakes that are great for vacationing like Lake Lanier, Lake Oconee, Lake Allatoona, and Lake Hartwell. Also areas of Elijay and Blue Ridge mountains offer fishing and hunting for very appealing destination vacations. So Georgia is not just Atlanta, there is so much more to offer.
Georgia ranked the top 5 places to buy an investment property:
The state of Georgia is ranked in the top 5 places to buy investment properties for several reasons:
- Landlord Friendly Laws
- Tax Rates
- Eviction Process
- Desirability
A few articles that support this are as follows:
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