A new index shows Atlanta ranks in the top 10 U.S. cities in terms of income for residential landlords.
Compiled by All Property Management (APM), the country’s largest online network of property management services, the new report’s goal is to help investors make informed decisions based on current marketplace analysis. Factors such as residential vacancy rates, cap rates and annual rent increases were considered, in addition to data from the U.S. Census Bureau, U.S. Department of Housing and Urban Development, U.S. Bureau of Labor Statistics and CoreLogic.
Depicted graphically at the bottom of this page, APM’s Rental Property Management Health Index found that Atlanta ranks sixth in the nation in terms of income potential for investors in residential rental properties. “The A” earned the number six spot for great job growth rate, high yearly rent increases and urban development cap rates despite mediocre housing appreciation and vacancy rates.
Rental income in Atlanta increased by a hefty 13.34% despite vacancy rates of 10.65%, showing the city’s growing economy is keeping tenants in the black and able to shoulder higher rents.
Atlanta is one of the busiest real estate markets in America; the large city’s population, estimated at 443,775 in 2012 by the U.S. Census Bureau, is predicted to grow by 43% by the year 2025, according to Jason Hartman of Platinum Property Investor Network.
“This massive metropolitan area attracts dozens of large corporations and industries, and thus thousands of employees who are transplants and commuters looking for Atlanta properties to rent,” Hartman says. “With an exponentially growing job market and ever-increasing worldwide economic impact, the demand for Atlanta rental properties is truly astounding.”
APM’s Rental Property Management Health Index provides essential information to help investors assess the long-term value of rental properties nationwide, according to Steve Cook, award winning real estate journalist and co-publisher of Real Estate Economy Watch.
“Not only does the Rental Property Management Health Index offer investors a quick, comprehensive grasp of the current rental market on a national scale, it provides the type of data that should be most important from a business standpoint, like yearly rent variances and a particular city’s urban development trends,” said Cook. “While other tools may show near term-deals on distress sales, the APM Health Index educates investors on the potential wisdom of investing in any given market for the long term, regardless of temporary price discounts or short-term market trends.”
APM’s new index provides a holistic view to aid potential investors in deciding where to purchase a profitable rental property. Research indicates 65 percent of individual investors plan to purchase additional properties in the coming year, and Wall Street firms have amassed more than $10 billion to invest in an institutional asset class.
“As investors look to explore new markets, get out of current markets, or double down, the data from this index will allow them to compare various factors and weigh which ones matter most to them,” said APM CEO Reggie Brown. “Good information is essential for a wise investment, regardless of the investor’s size.”
Founded in 2004, Seattle-based All Property Management, is the largest online network of property management services, connecting tens of thousands of property owners with thousands of licensed property managers across North America each year. All Property Management allows property owners to maximize rental investments by connecting them with professional property managers who can meet their specific property needs, from single family home rentals to multi-unit apartment complexes and homeowners’ associations.