Learn more about rental property investing in Atlanta, GA and use our local data to help you determine if buying a rental in Georgia would be a good investment.
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Your Best Interest: It’s the property manager’s duty to ensure your investment property is well maintained, occupied by quality tenants, in full legal compliance, and takes advantage of all available tax deductions.
Your Tenant’s Best Interest: Mynd strives for uninterrupted positive cash flow with minimal vacancies. This is accomplished by taking the best care of your tenants. Your property investment is their home, so we want your property to be as accommodating as possible so they deliver the return you deserve.
Our Duty to the Law: Reducing your exposure to surprising legal liabilities, minimizing the possibility of fines, protecting renters from harm, and getting you tax deductions all follow from following the law.
Georgia law dictates that a tenant is owed notice that they have violated a term of their lease agreement, such as a failure to pay rent on time, but the notice doesn’t have to be written. There’s no legally dictated amount of time that must pass between the notice being served and when the eviction process has to begin. However, three days minimum (or a week) is recommended so that the renter can make their rent payment or fix the lease violation.
One of the quickest ways to estimate how long it will take for an investment property to pay for itself is by combining the 1% rule for calculating monthly rent along with the gross rent multiplier (GRM).
Simply put, the 1% rule says that, at a minimum, your monthly rent should be 1% of your home's value at the time of purchase. That means a $100,000 home should have a monthly rent of at least $1,000. Include the cost of urgent repairs in your home’s initial value.
The GRM then takes that amount and divides the value of your home at the time of purchase to give you an estimate of how many months it would take to pay off your home. $100,000 at $1,000 per month would take 100 months to pay off.
How long a tenant can stay after a lease expires is up to the property investor. For a month-to-month lease, Georgia law dictates that tenants are owed 60 days’ notice before their expected move-out date. That means the homeowner must provide tenants a written notice and the official move-out date. If the tenant fails to move out by the move-out date, you can start the eviction process.
In the event of an early lease termination caused by a failure to pay rent or a violation of any other stipulations of the lease, the property owner can give the tenant as little as 24 hours’ notice before beginning the eviction process.
Lease agreements can stipulate how much notice must be given, in which case the homeowner must follow their stipulations.
There are some regular fixed rental property expenses that you should expect to pay yearly. This includes property taxes, insurance, and routine maintenance such as landscaping, etc. Generally speaking, you should set aside 1.5 times the monthly cash flow for all the repairs you'll perform in a year. You can keep that fund full by putting 10% of your monthly cash flow into it.
Given the age and condition of your home, the cost of routine maintenance may vary. You should also try to set aside money for capital expenses (CapEx), which are big-ticket items such as HVACs.
Some people use the 50% rule or the 1% rule to dictate how much they set aside for operating expenses. The 50% rule says that 50% of your monthly collected rent should go toward operating expenses. The 1% rule states that you should set aside 1% of your home’s value when you buy it.
There are no laws in Georgia that stipulate that a landlord has permission to enter a rental home whenever they want. A property can be entered without permission only if something dangerous is happening inside, if there’s an emergency, or to prevent damage to the property.
The law doesn’t specify how much notice is necessary before entering the property to perform a repair. However, as a courtesy, at a minimum, 24 hours' notice is recommended. Lease agreements often stipulate what is and is not permitted for a Georgia property manager.
Respecting tenant privacy is one of the gestures that show tenant appreciation to encourage lease renewals. To reduce liability, a professional property manager only enters the rental property when there’s an explicit reason to do so.
The average range for a professional property management fee is 6 to 12% of the collected monthly rent. Mynd has reasonably priced packages starting at $79 per month.
A Georgia property management company does so much!