Recent reporting indicates that 1 in 10 homes around the Atlanta metro area are now owned by real estate investment trusts. So why do you care? As a small investor, these large investment companies are forcing housing prices to dramatically increase – as you may have noticed. It is getting harder to find affordable homes that the small investor can purchase and still make a profit.
This run on housing is also affecting monthly rental rates with huge increases as well. However, with the massive inflation, wages are just not keeping up and renters are staying put. Renters are finding out that they are better off staying where they are with a $100 or $200 monthly increase than trying to find another home. This puts pressure on you – if you have a vacant rental.
Many small investors are looking at these rental rates and not renewing their current tenant leases. But before you go throwing out your tenant, review the big picture. You will have to do some updates and repairs costings thousands, which will take years to recover. The location of your rental may not allow you to increase your rents as dramatically as you’ve seen or heard about. And with renters facing the financial pressures of increase prices, lockdowns and business shutdowns, renters will pay for the things that keep their family functioning and set aside those expenses that can be delayed in the hopes that “someone” will do “something” to save them – just as the eviction moratoriums did.
Remember that rentals are a long-term investment. Slow and steady wins every time.
