Rental demand can be highly volatile, regardless of your location, which is why rental property owners must always be prepared for shifts in dynamics. Today's competitive Atlanta rental market favors landlords, with high demand and low supply, but that might change in the coming year.
Key Highlights:
- Atlanta’s rental market is expected to face increased competition in 2025, with around 17,500 new apartment units projected to be built, making it more challenging for older properties to attract long-term tenants.
- Offering tenant-friendly policies and incentives, such as allowing pets, providing lease discounts, or adding small move-in perks, can help attract and retain quality renters in a crowded market.
- Tenant retention is key to maintaining profitability, as keeping reliable renters helps landlords avoid costly vacancies, marketing expenses, and screening fees.
- Building a strong financial safety net is crucial. Landlords should set aside at least 10% of monthly rental income or three to six months’ worth of expenses to stay financially stable during market shifts.
What Can Rental Property Owners Expect
The metro areas around Atlanta are set to see new apartment units constructed in 2025. With reports putting the number of rental units at about 17,500, it will be harder for older rental properties to attract long-term tenants.
By contrast, when the city saw a 1.83% increase in housing supply back in 2024, the occupancy rate was still at 90.9%. On average, seven people were competing for the same vacant rental unit, further underscoring Atlanta's status as one of the most competitive rental markets.
Standing Out In a Competitive Market
Many landlords use a plethora of strategic measures to gain an edge against similar rental properties, and applying them to your own could help you maintain profitability, if not outright increase your rental income.
Install Eco-Friendly Upgrades
Potential tenants can be swayed with unique amenities, but most will prefer essential amenities that will make their lives more convenient. Eco-friendly appliances, for example, can help them reduce costs. Even something as simple as a smart thermostat can be advertised as a key feature for your rental.
Optimize Your Marketing Strategy
Use high-quality photos when posting rental listings to stand out among the rest. To maximize exposure and attract more people, post on multiple listing websites and social media platforms. Many tenants choose to browse online rather than make in-person visits because of the convenience. Highlight the best features of your rental property.
Avoid Overcomplicated Application Processes
One good way to lose prospective renters is to require a lengthy application process. Stick to the necessary criteria in tenant screening, coordinate when you have multiple offers, and immediately take the listing down once rented to prevent other applicants from needlessly contacting you or processing paperwork.
Improve Curb Appeal
The exterior appearance of your property goes a long way in making a good first impression. Outdoor spaces like your yard should be cleaned and well-maintained, and a fresh coat of paint makes for a low-budget upgrade. This investment can also encourage tenants to stay long-term.
Allow Pets
Most landlords allow pets because it widens their tenant pool in a competitive rental market. However, it is important that you thoroughly screen the tenants. Aside from the usual criteria like credit reports, previous landlord references, and rental history, you should also ask about their pets, particularly their behavior and whether they are up to date on vaccinations.
Offer Incentives
You can inform potential tenants about the attractive incentives you can offer, such as discounts for referring other applicants, a free month for signing a longer lease, or access to premium amenities for reliable tenants. You can even provide a welcome gift on the move-in date to foster a good relationship and secure them as long-term tenants.
Set The Right Rent Price
Setting a price aligned with what your rental unit offers signals to tenants that it's a good deal, encouraging them to pay a fair price. Quality tenants are aware of which properties in the rental market are worth their cost.
Prioritizing Tenant Retention
You won't have to worry about a competitive rental market if you don't need to find new renters. If you already have financially responsible tenants and full occupancy, you can instead focus on improving your property for lease renewal.
This is an advantage many landlords would prefer, especially since you won't have to cover the costs of marketing, tenant screening, or other expenses associated with finding tenants who will pay rent.
Efficient property management is the key to encouraging renters to renew their leases. That means regular maintenance, good tenant relations, prompt repairs, and other ways you can be a good landlord. If you feel overwhelmed, it's a good idea to hire a property manager to help you out.
Being Financially Ready
There's a small chance things won't work out, meaning you'll lose some tenants and can't find new ones. As a landlord, you must be prepared for this situation and have money on hand to continue fulfilling your property management duties, even with negative cash flow due to a lack of rental income.
Start by saving three to six months' worth of operating expenses for your cash reserve, which you can get by setting aside at least 10% of your monthly rental income. Some landlords put a higher percentage into a reserve fund based on the rental's age, condition, property type, and number of units.
This will ensure the well-being of your tenants and your investment, even if you miss payments for a while, as you try to regain profitability or wait for better rental market conditions.
Increasing Atlanta Housing Supply FAQs
Is Atlanta's rental market competitive right now?
- For renters, yes. However, around 17,500 new rental units are expected to be built in 2025, which will create more attractive options for applicants.
What upgrades should I make for my rental property to stand out?
- Start by discovering which amenities tenants would like in their rental units. When you still have the budget for more upgrades, that's when you can start thinking about improvements for shared spaces.
How can I market my rental listings amidst increasing housing supply?
- You can optimize your listings to increase visibility, ot hire professionals to do it for you. Experts like property managers can create marketing campaigns based on data-driven insights to ensure maximum impact for any marketing effort.
We Can Help You Protect Your Investment Property
When things start to shift in the market and you need to up your game, hiring a professional property manager might give you the advantage you need. You can reach your target audience through our marketing services, and you won't have to stress about research and optimization strategies.
PMI Georgia's property management service will also increase your chances of tenant retention, so you won't have to worry about finding tenants in the first place. We will tackle every problem until your investment property's value is maximized.
Get ahead of the upcoming increase in housing. Contact us and let's make a plan!
