Buying a rental property out of state might be a scary thought, but the positive benefits to your real estate portfolio could far outweigh the negatives. One thing that could help alleviate some of the headaches of owning property outside of your home base is hiring the right company to manage the property.
Some of the fears landlords have in buying out-of-state rental properties are the distance from the property and not being able to respond to problems quickly. However, you don't have to live near the property to invest in real estate. As a matter of fact, many investors add to their current real estate portfolios with out-of-state properties. Atlanta is a great place to look at for growing your real estate portfolio. Today our Atlanta property management team talks about the good, the bad, and the transformative benefits of investing in properties out of your area and how to increase your profits.
Maximize Your Return on Investment
While obtaining low-cost investment properties is beneficial, an investor's ultimate goal is to maximize profit. Depending on the state and area, out-of-state rental homes could boost your return on investment. Building your portfolio is more than just buying properties. Excellent property management is an essential aspect of turning those 'properties' into 'profit!'
However, becoming profitable means paying attention to supply and demand. Buying in an area with the right mix of rental properties and tenants is the best way to maximize your portfolio over time.
Access to More Affordable Real Estate
While property prices in places like California and New York might be out of reach, properties in Cobb County, Georgia, and the Atlanta rental market could be more budget-friendly, meaning more return on your investment.
The average prices of homes across the United States are going up. Still, a significant gap in average home prices exists. In contrast, the average home price in the Atlanta metro area is under $300,000. While certain growth areas around Atlanta, Ga. may drive the average price up, it is still a bargain compared to some of the country’s other hot areas. That lower initial investment cost is something a smart real estate investor can take advantage of.
Also, remember that interest rates on mortgages vary by state, so there could be some extra return on investment.
Larger Tenant Pool Means More Renters
Georgia's robust economy means more qualified tenants. In recent years, Georgia has experienced exponential job growth. More jobs mean more people, and those folks will need someplace to live.
Metro Atlanta is home to 13 Fortune 500 companies and 24 Fortune 1000 headquarters, employing more than 5 million Georgians. The state of Georgia, the city of Atlanta, and the surrounding areas are working together to bring even more jobs to the area.
Georgia governor Brian Kemp announced in August that Vanderlande Industries is expected to build a new $59 million headquarters in Marietta, GA, in Cobb County near Atlanta. The new company is slated to bring around 500 new jobs to the area. Each month, the state and local governments are announcing more exciting news about job growth.
More jobs equal more people, and those people will need housing. Georgia is considered one of the top states in attracting new businesses and jobs. An out-of-state landlord can capitalize on this growth while providing much-needed housing to transplants looking to start a new life in the Peach State. Providing affordable homes while growing your portfolio is a win-win for landlords and everyone else involved.
Overcome Obstacles With the Right Property Management Company
As mentioned earlier, some things make out-of-state ownership more challenging than owning property right around the corner. Some of those things are:
- Not being close to the property
- Not being able to respond quickly to problems
- Dealing with unfamiliar state property owner laws
Despite these looming issues, many property owners grow their portfolios with investment property outside of their current market. That’s where hiring the right property manager can help! Property managers take all of those headaches away, leaving time for you to focus on building your real estate portfolio.
Ready for the Transformative?
The right residential property management company specializes in taking care of the day-to-day issues out-of-town landlords might face. Look for experts that offer property management services, including:
- Providing market analysis
- Advertising and showing properties
- Finding prospective tenants
- Conducting a thorough tenant screening process
- Tenant Placement
- Monthly rent collection
- Taking care of maintenance requests
- Retaining good tenants
- Property inspections before and after tenants move
- And more
The key to success when investing out of state is finding the right property managers. Hiring the best Atlanta property management company is the difference between building a profitable portfolio or dealing with a potential drain of your finances.
Choose the Best Atlanta Property Management Company for Long-Distance Investing
If you are looking for property management in Atlanta, Ga, we would love to help your transform your portfolio. Revolution Rental Management is a full-service Atlanta property management company that handles all of the critical tasks mentioned above (and more)! If you're ready to invest in the Metro Atlanta area, reach out, and let's talk about how we can help.