Double digit rent growth across Suburban Metro Atlanta Cities

[Matthew Nicklin]

The Atlanta Business Chronicle just published an interesting article showing that most of Metro Atlanta has seen double digit year over year rent growth. With pretty much every suburban area of the market seeing an increase. Just a few highlights

-In Kennesaw, one-bedroom rents climbed almost 14.5% year-over-year, followed by Stockbridge at 14%.

-Roswell: $1,180 per month, up almost 12.5%
-Brookhaven: $1,470 per month, up 12%
-Sandy Springs: $1,500 per month, the most expensive average cost for one-bedrooms in metro Atlanta. Rents have surged 11% since December 2019.

https://www.bizjournals.com/at...

[Curt Smith]

Hi Matthew, From my 3/2 SFR holdings in Atlanta and Chattanooga I agree that rents are going up. There is some pulling apart needed though. A 1 bed means thats a newer apartment building in nicer areas. Older apartments don't have many if any 1 beds and of course there are no 1 bed SFRs so its a non-representative statistic. Few of us own 200+ door newer apartments, whjere most here own SFRs. A 3/2 SFR will rent for some more then that 1 bed apartment.

My 3/2 SFRs in decent locations turn over so infreqjuently but I agree that I might up the rent an easy 15% each turn over every 2-4 yrs.  I have a $1275 for a nice 3/2 in Norcross turning over in a few months and I'll advertise at $1600.  

Read my Bullet Proof Portfolio paper linked off my BP profile 1st paragraph.  

Higher the rent lower the appreciation but still Atl rents are going up dependably.   I had a new rent up in Rex (Best side of Clayton), very nice new rehab.   See 6406 Skyline Rd Rex ga.   $1400.   It took 2 months to get a good tenant and still I didn't get my desired target;  family 2 kids and a dog or 2.  I got the dog but no kids.  Kids and dogs cause families to stay much longer.  

Also;;;  Not in that stat is as I aluded its intermitantly difficult to find strong teanants with good jobs and good bank balance who will agree to stay multi-years.   I only take multi year stays.  So many where weak or only wanted 12 mo lease.  I don;t do 12 mo leases!  FWIW you only get what you ask for, right?

Rent increases in SFRs and 3/2+ are lower then the apartment 1 bed stat, plus we are seeing an increasing struggle to find good tenants at the rising rents, thus limiting the rent increases.  Only once did I drop the advertised rent once I list a future vacancy.  I try to target just under the market when I list and do a good job of predicting where I'll get good application flow.  I will never negotiate rent with an applicant, that says too weak for me..   

Anyway, yes rents are going up, yes a good rental house and area in Atlanta area is a great asset and will be a good hold!!  See my buying rules in th Bullet Proof paper.