As rents continue to increase, combined with the low interest rates and longer occupancy rates, you have a better chance than ever, to increase your net cash flow and create passive income. If your rental rate increases $100.00 over the next year, apply that increase of $100.00 to your mortgage amortization. The interest savings and reduction in length of the loan are added bonuses!
ABODO, reports the rent increase in Atlanta could result from a number of issues. “With homeownership rates falling, it makes sense for landlords to continue to raise pricing on their rental units, especially in markets with tighter inventory.” (as reported by Atlanta Business Journal).
Your Atlanta Property Management Company, Platinum Property Management has a compounding advantage! We have an established minimum 5% rental increase when the tenant renews the lease.
$1,000.00 rent at 5% percent each year, your yearly rental income would be:
Year 1 - $12,000
Year 2 - $12,600
Year 3 - $13,230
Year 4 - $13,891.5
A quality tenant will, overtime pay off your mortgage. Your tenant’s monthly rental payments will allow you to pay down the remaining principal, reducing your debt and increasing your net worth. Hiring an Atlanta Property Manager with a focused goal of platinum level customer service and quality tenants (and not just a promise of “a tenant in 20 days”) will be the determining factor to building your financial wealth.
In my next post, I will discuss how to find a quality tenant, as well as things to watch out for when selecting a tenant. If you’re a first-time or seasoned investor, comment to let me know if I’m missing anything, or what things you look for when selecting rental properties to invest in. To find out more about Atlanta Property Management, contact Platinum Property Management Call us today 678-710-8056 for your free Atlanta Rental Home evaluation.