Investors purchase rental properties in Atlanta based on certain criteria. Without strategic location planning for a purchase, it could easily be considered a poor investment. Why? Because some neighborhoods just aren’t very profitable no matter how well the housing market is doing in a certain area. You could purchase the most beautiful home with an array of luxurious amenities, but if it is in a terrible neighborhood, you are going to struggle with renting it.
Take time to analyze the neighborhoods within a market. This will not only help you to determine which areas are on the top of the charts but also which neighborhoods to avoid.
What do you look for to evaluate a neighborhood? Check it out.
Close Proximity to Amenities
An investment-worthy neighborhood will have easy access to everyday things that tenants may need -- without having to drive too far. This includes things like highly-rated schools, dining options, grocery stores, banks, medical facilities, parks, gyms, shopping centers, drug stores, and such.
Low Crime Rates
If the neighborhood has soaring crime rates, avoid it. Not all tenants look at these things when they sign a lease, but many do. And if they don’t before they become your tenants, they likely won’t renew their lease.
Look for neighborhoods with low crime rates that are safe -- and feel safe. These communities are more welcoming and tenants can feel it.
A Healthy Job Market
In areas where there is work, there are going to be people wanting to rent. Avoid desolate areas and those that appear as though they were once thriving, but no more. How is the job availability in the area? If the area is blossoming economically, then that is a very good sign.
Assess the Number of Homes for Rent or for Sale
Driving through neighborhoods you can see if there are a lot of “for rent” or “for sale” signs. If you see too many available rentals -- that could be a negative sign. It may mean that the supply is far greater than the demand. As for the homes for sale - well, it doesn’t make sense that so many people would be wanting to get out of a neighborhood if it were thriving, does it?
When investing in an Atlanta rental property, you always want to make sure you look at all areas of a neighborhood and gauge which area would be the best - now and in the foreseeable future. Tip: Having an Atlanta property manager care for your rentals means having a professional ally with which you can discuss future investments. Property managers are experts in the area -- and know the local market better than anyone.
Best of luck with your future investments!
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 atwww.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.