As a real estate investment company in Smyrna, GA, our team at Perimeter Property Group understands the complexities and challenges of owning rental properties. Smyrna, located just a few miles northwest of Atlanta, is becoming an increasingly popular destination for potential investors thanks to its stable economy, diverse community, and thriving real estate market.
In this article, we will explore the pros and cons of owning rental property in Smyrna, assisting property owners and investors in making well-informed choices.
Pros of Owning Rental Property in Smyrna, GA
1. Passive Income
Investing in rental properties can provide a steady flow of passive income. Given that monthly rent prices in Smyrna typically go for $1,200 to $1,800, acquiring a rental property can yield a consistent and stable return on investment.
2. Tax Benefits
As a property owner, you may be eligible for numerous tax deductions concerning expenses like mortgage interest, property taxes, insurance premiums, and upkeep costs.
3. Flexibility
Working with a commercial real estate investment company in Smyrna provides flexibility in managing your investments, allowing you to set rental rates, choose tenants, and make property improvement decisions at your discretion.
4. Diversifies Your Investment
Owning rental property in Smyrna, GA can help diversify your investment portfolio, reducing the overall risk in case of market fluctuations.
5. Appreciation
Historically, property values in Smyrna have seen significant growth. If you buy commercial real estate in Smyrna, GA, you can benefit from property appreciation, resulting in increased net worth over time.
Cons of Owning Rental Property in Smyrna, GA
1. Lack of Liquidity
Real estate investments are relatively illiquid, meaning it can take time to sell your property if you need immediate cash.
2. Rising Taxes and Insurance Premiums
Property taxes and insurance premiums in Smyrna are subject to local regulations and market conditions, which can lead to increased expenses for property owners.
3. Difficult Tenants
Handling tough renters can be hard and take lots of time and energy, especially if no one is helping you manage the property directly.
4. Neighborhood Decline
An area’s desirability can change over time, leading to a decline in property value and rental potential.
5. Unfavorable Changes to Tax Code
Changes to federal or state tax codes could negatively impact your investment, resulting in a substantial loss of tax benefits.
6. Upkeep
Owning rental property requires consistent upkeep, potentially taking away much time and energy dedicated to other parts of your day.
Alternatives to Being a Landlord in Smyrna, GA
1. Hire a Property Manager:
A property manager is a professional who takes care of everything from finding new tenants and collecting rent to taking care of maintenance and legal issues. Hiring a property manager can free up your time and reduce your stress levels.
2. Rent Out Your Property as a Vacation Rental:
Vacation rentals can be profitable and are a popular option for tourists, especially in desirable areas like Smyrna. You can list your property on vacation rental websites like Airbnb, HomeAway, and VRBO and have a steady stream of short-term renters.
3. Sell Your Property:
You can sell your property as-is, without worrying about repairs, tenant issues, or legal problems.
4. Lease Your Property to a Business:
Many businesses need rental space for their operations, and renting out to a commercial tenant can be a stable and profitable arrangement. You can negotiate a long-term lease, and your tenant can take care of maintenance and repairs, leaving you with a passive income source.
5. Turn Your Property Into a Storage Facility:
Storage facilities are in high demand, and you can use your property to store items like vehicles, boats, and household goods. You can hire a management company to operate the storage facility, and you can earn a passive income from rental fees.
Conclusion
While owning rental property in Smyrna, GA offers various benefits like passive income, tax advantages, and investment diversification, there are also potential drawbacks such as lack of liquidity, difficult tenants, and increased property taxes.
Partnering with a local real estate agency in Smyrna, GA, like Perimeter Property Group, can provide valuable insights and support in navigating these challenges. With over 10 years of experience in the real estate industry, our proven success record ensures that clients meet their investment objectives. Our dedicated team of industry experts offers personalized services and strategic guidance to help you make informed real estate investment decisions.
Contact us today to learn more!