Do you have a home or any residential property in Atlanta you don’t know what to do about? If you’re one of those who are uprooting from the metro and into the suburbs or rural towns, and you’re leaving your Atlanta home behind, you can either sell it or transform it into a rental — short-term or long-term.
We understand how deciding can be overwhelming, which is why we always encourage our sellers to really think things through. So in this article, we dive more into one of your options — short-term rentals. We dive more into what short-term rentals are about and what it is like to own one in Metro Atlanta.
Pro #1: Great Market
According to recent stats released by vacation rental research company AirDNA, the average daily rate of short-term rentals in Atlanta is $168. With Atlanta’s flourishing tourism and business environment, short-term rentals play a major role in support of the growing tourist population year after year. In fact, the Hartsfield-Jackson Atlanta Airport has been the world’s busiest airport for 20 years, up until it was “dethroned” by Guangzhou Baiyun International Airport in 2021 —just imagine the number of transients coming in and out of Atlanta!
Pro #2: Top Tourism and Business Destination
If you’re afraid that no one will rent your place, research more stats. With a diverse landscape for cultural, leisure, and business activities, Atlanta is one of the U.S.’s top destinations both for short-term travelers and permanent migrants! World-famous travel guide publisher Lonely Planet named Atlanta as the 4th best travel destination in the world, and it is the only U.S. city that made it to their list!
Apart from being one of the top five (5) cities for inbound migration pre-pandemic, Atlanta’s tourism industry foresees a positive bounce back after the health and economically crippling Coronavirus pandemic. So let’s revisit those thoughts about not being confident of getting your rental occupied. At any time of the year, you’ll be sure to cater to guests who can’t get enough of Atlanta.
Pro #3: Few Restrictions
Compared to many other cities in the U.S., Atlanta has the least amount of requirements to start a short-term home rental business. You only have to obtain an Atlanta Short-Term Rental License (STRL) and post that on all your advertisements. As per the City of Atlanta, applications for the STRL will resume on April 1, 2022.
If you wish to establish a short-term rental in Atlanta, you also have to remember the following:
- Pay $150 for the certificate/license
- Pay the 8% tax rate
- Visitors can stay for a maximum of 30 days only for your place to be regarded as a short-term rental
Pro #4: Cash Flow and Appreciation
Homeowners receive passive income regardless if it’s a short-term rental or a long-term one. This is one of the biggest advantages of owning a rental. With today’s automated payment systems and platforms, all you need to do is give guests your payment information and wait for them to transfer the money—no need to go to the bank or check their deposit over the counter.
And in case your mind changes in the future and you don’t want to keep managing or to own the rental anymore, you can sell to another landlord at a price higher than when you first bought the property. As reported by Roofstock, home values in Atlanta have increased by more than 74% over the last five (5) years, with a sale-to-list price ratio of 100%. With a city that is endlessly transforming to keep up a hot real estate market, your rental property’s value will, no doubt, increase more in the next years (or even decades).
Con #1: Active Management is Needed
Short-term rent means that your guests are transient. It means that your customers will be in and out of your property constantly. As part of hospitality etiquette, every room/space has to be thoroughly cleaned and maintained every time a guest checks out. That’s why if you own a short-term rental, it is advised that you remain to live nearby or hire a property manager to handle your guests and maintenance.
Con #2: Active Marketing is Needed
With the rising competition within the short-term rental industry, marketing is important. By marketing, we mean your listing has to be visible to the entire world as much as possible. It has to rank in search results. It has to invite leads. It has to compel visitors to book your property. This does seem overwhelming; that’s why rental owners hire marketing gurus to handle the ads.
Con #3: Higher Risks
Unlike long-term rentals, where you get to screen your tenants thoroughly, managing a short-term rental doesn’t really give you time to do that. One of the biggest risks to owning a rental is getting a bad guest who:
- Damages your property
- Disturbs your neighbors
- Brings in a party despite not being allowed to do so
- Don’t play by your rules
- Doesn’t pay right
This is why if you want to operate a short-term rental, it would be best to receive guests through a reliable short-term rental platform like Airbnb and VRBO. This way, you’ll have a glimpse into your guest’s rental track record and get help from the platform in case your guest starts to act up.
In a fast-paced world, we understand how short-term rentals are not for everyone. To support homeowners who need help with properties they don’t want to own or live in anymore, Spire offers a no-frills solution so you can move ahead with your life. We can buy your Atlanta home at a fair price, and we can buy it for cash. You won’t have to wait for months to sell your Atlanta home because we can close a deal in as fast as seven (7) days!
See if our solution is right for you by calling us at (678) 318 – 1801 or leave us your name and contact information in the form below, and we’ll contact you in the soonest time possible.