Pros and Cons of City Center Rentals
Are you considering purchasing rental properties within the city center? Whether Atlanta or another major city, investing in city center rental properties can come with pros and cons. It is important to weigh all your options before you pursue your investment.
Public transit and greater walkability. City centers usually have very convenient amenities within close proximity. This reduces the need for an automobile. Commuting will be much less hassle, assuming the potential tenant works within the city, as well.
Speaking of work, the number of career opportunities is greater in the city than in, say, the suburbs and outer lying areas.
Endless things to do. From dining and shopping, to live music and entertainment, the city center is full of things to do at every turn.
These are all great things that will help you promote your city center rental to potential tenants. However, you may want to keep in mind the cons that come with these rentals.
Smaller space, more money. It goes without saying that for all the conveniences that come with living in the city center, the price per square footage is much higher. And, often, these places have much, much smaller spaces than in other areas of a city. Though, keep in mind that although it means you will have to pay more to initially invest, the rent you will be able to charge is going to be higher than in other areas.
Transient tenants. While not always the case, there is a chance that you will come across a lot of transient tenants. Most people don’t dream of settling down with a family and renting a high cost, minimal space place in the city center. Instead, they work in the city, make their money, and have hopes of raising a family in the suburbs.
Check out the other rentals in the area. What is the going rate? Is there a high rate of vacancy? Who is the typical tenant? These are just a few of the many things to consider before you purchase city center property as rentals.
Marina Shlomov, a managing partner at ALH|Podland Rental Homes Property Management is the author of many articles on Landlording, Property Management, and Real Estate Investing. A residential builder in the state of Georgia since 1999, Marina is an investor herself. Her property management company is intended “For Investors” and “By Investors” for a simple reason – she knows what investors’ goals are and she works hard to reach their goals. In her spare time, Marina likes to spend time with her family, friends, garden, read and travel. Check her out at www.alhpodland.com. You can find Marina’s articles and comments at @rentalhomesatl on Twitter, on Facebook, Google+, Blogger. and YouTube,Bigger Pockets and REI CLub and LinkedIn.