Atlanta Rental Market Update – How is the Rental Market
Mark and I have been speaking at various real estate clubs lately and the hot topic that everyone wants to talk about is how to fill vacancies.
People wanted to know about the vacancy rates so we shared with them based on the data collected across the top property management firms in Atlanta for September. There were a total of 4900 units on the market. We saw that the vacancy rate for single family residences (SFR) was averaging 11.62% while condos were 33.63% and townhomes were 23.04%
We talked about the new competition in the market place and what the tenants are looking for in their new home. The competition – Sellers who can’t sell, but need to relocate are putting their properties up for rental. Banks becoming landlords because they either foreclosed on tenant occupied homes or can’t sell in today’s market. Investors who are having a hard time making ends meet reducing their rents just to compete. Foreign investors that are taking advantage of the great deals here.
Tenants are looking for larger homes and consolidating families. Kids are moving back home with their children and we are seeing many more multi-generational families applying for homes. People are also downsizing. They are doing more with less.
So what can be done if you own rental property that is vacant? We provided tips to them most of which you can read more about by going to a previous post – http://sspmblog.solidsourcepm.com/2009/06/atlanta-rental-market-update/
The good news is that our move-ins have been steady even this time of the year. When I reviewed the numbers for this year compared to last year, we are renting at a rate of 6.8 move ins per month for the year versus 5.6 last year. We are also seeing an increase in renewals almost twice as many as last year. I have heard from other managers that this is holding true for them as well. So what this means is there are less people coming into the rental pool. So with more competition and less viable renters coming into the market the effect is depressed the rental rates.
Not that all of this is doom and gloom. There are some great deals out there and we will be talking on Saturday as panelists for the Ilyce Glink – Profit from Foreclosures Event to share with investors about how to change with the market and still make money in real estate.
Happy Investing!
November 1st, 2009 at 7:36 pm
Vacancies is becoming an issue all across the country. The market in Las Vegas is no exception. Not only are vacancies high but rental rates are falling.
I read your other article and you indicated you are using Rentals.com to advertise your listings. Do you find that is a good source? Right now craigslist appears to be working the best in my market.
November 5th, 2009 at 7:20 pm
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