Do you own a rental property in Atlanta? Then you have taken the first step to build wealth. The city offers a strong job market, a growing population, and a steady demand for housing. However, success will not come from just buying a property and hoping for the best. You should learn how to manage costs and minimize vacancies. Read on, and we will share more information on how you can do it.
Why Effective Property Management Matters for Atlanta Landlords
Atlanta’s rental market is competitive. Developments are popping up all over the city, giving renters more choices than ever. For landlords, that means that if you fall behind on property maintenance, repairing, or simply communicating with your tenants, you’re likely to lose good tenants and good money.
Vacancies are expensive. On average, national property turnover costs landlords about $1,750 per unit. In major cities like Atlanta, that figure can be even higher, depending on your neighborhood and rental type. And that’s not even including lost rent while finding your next tenant.
Property management is the answer. By keeping tenants satisfied, you’ll improve retention and save yourself a ton of money in the long run. Property management is critical in Atlanta for many reasons:
Atlanta’s growing population attracts new renters, but it also creates more competition among property owners. Renters expect more at all times. Whether it’s quick repairs, convenient payment methods, or responding to tenant messages. Property owners have to be aware of their local, state, and federal housing laws and regulations. Otherwise, they could face expensive fines.
Good property managers are proactive with maintenance. That means catching potential issues before they become big and expensive problems. Experienced landlords who run their rentals like businesses. They set policies, conduct regular inspections, have great tenant communication, and always outperform informal landlords.
Atlanta Property Management Fees
Property management fees typically cover services, such as rent collection and tenant communication. Unless you’re planning on going completely DIY, you’ll need to account for property management fees in your budget. Here’s what property managers in Atlanta typically charge, so you can be sure you’re making the right call on whether to manage on your own or hire some outside help.
Atlanta property management companies typically charge a monthly management fee of 8–12% of the total monthly rent they collect. For an apartment renting for $1,850/month, that’s about $148–$222 each month. Many companies offer a flat monthly rate instead of a percentage. Monthly rates are typically between $100 and $200, depending on the number of services included.
In addition to monthly fees, here are some other ones you’ll encounter:
- Leasing/placement fee – One month’s rent or 50–75% of the first month’s rent, paid once a new tenant is placed.
- Lease renewal fee – $100–$300 paid when a tenant renews their lease.
- Maintenance markup – Add-on of 10–15% of contractor invoices for arranging repairs.
- Early termination fee – If you cancel your contract with the company before it’s up.
Does all that make hiring a property manager worth it? Absolutely. For most landlords in Atlanta, working with a professional will market your unit faster, screen tenants more effectively, and take care of the daily headaches for you. They also know the ins and outs of local regulations, so you don’t have to. When you balance out the lower vacancy rate and reduced legal fees, you’ll find that a property management company usually pays for itself.
Of course, if you decide to DIY it, you can save on fees but will have to pay with your own time. Knowing what costs to expect will help you have a better idea of your bottom line either way.
What Is the Typical Vacancy Rate for Rental Property in Competitive Markets
Overall, the typical vacancy rate for rental properties is a key indicator of the rental market’s health. Vacancy rate isn’t the sexiest metric out there, but it might be the most important number in real estate investing. Vacancy rate tells you, quite literally, what percentage of the time your rental property sits vacant. When vacancy is lower, you have a more stable income from month to month.
The Sweet Spot: 5% – 8% Vacancy Rate
Atlanta’s metro area is a highly competitive rental market, and a 5–8% vacancy rate is very common and healthy for most neighborhoods. This translates to your rental property being occupied 92–95% of the time.
Neighborhoods with higher demand will usually skew lower. Here are two examples:
- Midtown Atlanta landlords added over 2,200 units of supply in 20|24 while maintaining a 90.9% occupancy rate.
- Dunwoody only had a 2.6% vacancy rate with much lower supply growth.
On the other side, the continually rising supply of apartments in Atlanta means landlords in some neighborhoods are increasingly competing for tenants, and vacancy rates are creeping up as a result.
Factors That Increase Vacancy Rate & How To Prevent Them
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Renting Too Much
The biggest culprit for high vacancy is landlords who price their rent too high. Compare your rent to other similar properties in your area; these are called “comps”. Empty units that rent for $500 less per month are better than units rented at a higher rate but constantly turning over tenants.
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Listing your rental on the market
If you’re struggling to find a tenant, make sure your listing looks the part. High-quality photos. Solid description. List on popular rental websites. Rentals with professionally taken photos rent 70% faster compared to generic smartphone pictures.
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Not responding to tenant inquiries quickly enough
You got a lead on a potential tenant. Great. Now make sure you reply to their questions within a few hours. Trust me when I say these leads will disappear quickly if you don’t nurture them. This tip even goes for maintenance requests. Your tenants will start seeking elsewhere if they feel like their requests are being ignored.
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Not screening tenants properly
If you don’t run background checks, verify income, and check rental history on all of your tenants, you’re destined to have problems. Bad tenants lead to evictions, which lead to vacancies. Make sure you run proper tenant screenings to avoid a rocky landlord-tenant relationship.
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Not maintaining your property
Yes, property condition can play a factor in vacancy rates. Dirtier rentals with missing fixtures generally take longer to rent, and they don’t rent for as much either. Things like painting, fixtures, and landscaping can go a long way when it comes to renting your property.
Final Words
Atlanta is one of the Southeast’s strongest rental markets. Rapid job growth, a young renter population, and steady demand create plenty of opportunities for landlords.
The competition can be stiff. To win, you’ve got to control your expenses, price your rental competitively, and take care of your tenants. Whether you manage your property yourself or hire a company to handle it, staying on top of things is essential. Minimize vacancy and manage your costs, and your Atlanta rental property can generate healthy returns for many years.
