How to Start your Real Estate Rental Business in Atlanta
Setting up your real estate rental business in Atlanta means you will need to decide on a business name, write up a business plan, and much more. Your business plan will act as the framework for your business and plot out every aspect of it, from the startup capital you will need to how much revenue you need to break even and start making a profit.
Draw up your business plan
Your business plan will include an executive summary, a description of your business, a market analysis, and much more. You will have to outline how you propose to organize and manage your business and what services you intend to offer. Financial projections are necessary to establish how much funding you will need and you will also need to show how you plan to market and sell your services. There are business plan templates online that can help you draw it up.
Once you have a number of properties, using a property management company for managing rentals in Atlanta could give you the best return on your investment. Property management company, Evernest, operates in Atlanta, Denver, Colorado, etc. and manages properties for up to 3,000 property owners. You can also choose from NestEgg, Home365, and Mynd are some other great options in Atlanta.
Find out what certifications and licenses you need
Before you set up your business, you must make sure you have the certifications and licenses required in Atlanta. Some leasing agent roles only require a high school diploma, but if you want to have your own business, you should have a real estate license.
A licensed real estate broker has taken courses and passed an exam covering property management and other topics like contracts, taxes, and insurance. Belonging to certain associations, such as the Institute of Real Estate Management (IREM), can also help to give your business credibility and give you a chance to network.
Register your property rental management business
You will need to choose a name and legal entity to register your business. Many property management firms are set up as LLC or Limited Liability Corporation. LLCs can protect your personal assets if your business gets into trouble. The legal entity you choose will affect your tax filing status.
Every small business in Atlanta must pay a non-refundable registration fee and the total cost of a business license will depend on the number of employees and the amount of money you expect your business to make.
Figure out financing
The capital you need to start your business can be one of the biggest hurdles you have to face. Today, entrepreneurs who want to start new businesses have more access to funding outside of the traditional channels than before. They can not only get the money they need but can often get it a lot faster than by going to a bank. Crowdfunding has become a popular way to raise funds for startups. You may be able to attract the attention of an angel investor or get help from friends or family for your venture.
Start small and grow
You can start your rental property business with only one property. You will need another source of income until your business grows but treating it as a business from the start is important. You will need to open a bank account for your business.
Being a good landlord requires knowledge and experience so you need to continually educate yourself. If you are serious about creating a sustainable business, you need to be professional from day one. When you are successful with one property, you can expand to more properties. Developing more financing options and business relationships can help you build a larger portfolio.
Set up efficient systems
Set up a system for applications, credit checks, and background screenings. Develop a professional rental agreement (there are online templates you can use). Talk to the local housing authority to understand the local landlord-tenant laws so you don’t inadvertently violate them.
Make sure your bookkeeping practices are efficient and you know exactly what is coming in and going out. Cash flow is a problem that shuts many businesses down once they have run through their initial capital.
Using proven rental property management software will enable you to keep track of your deposits, rent payments, lease details, renewal dates and maintenance requirements. Without efficient systems in place, you won’t really know whether your business is profitable or not.
Understand the necessity of property maintenance
Depending on the condition of the homes you want to rent out, you may need to fix them up. If you purchase homes through property foreclosure, they are often in poor repair. You will need to develop good relationships with contractors and repair people so you can get repairs done efficiently at the best prices. Even homes in good condition can have unexpected breakages. You don’t ever want home to get into a state of disrepair and lose their value.