Homes for Rent
Leasing a home for a year can help you make an informed homebuying decision.
By Amy Selby
It’s a no brainer: Your top priority while planning a move to Atlanta is likely finding a place to live. Within Atlanta’s real estate scene there’s so much to consider. There are neighborhoods to explore, school districts to research, top builders to get to know and favorable work commutes to iron out. The best word to describe the Peach City’s housing market is diverse—you’ll find single-family homes in the suburbs, historic bungalows intown, high-rise condos and lofts and charming townhome communities everywhere in between. And, to top it all off—it’s a buyer’s market. Buyers have more choices than ever before, and some of Atlanta’s most-sought-after addresses are available at considerable discounts.
Yes, you can find a fantastic deal on a home, but you’ve got your work cut out for you. Property management companies in the metro area would like to offer this suggestion: Consider renting a home before committing to a mortgage. While it’s a buyer’s market in the homebuying scene, it’s also a renter’s market for the home rental scene. You’ll find many home rental choices in a variety of neighborhoods for discounted rent rates.
“Many homeowners are opting to rent their homes out if they find themselves being transferred to another location,” says Michael McCreary, president of McCreary Realty Management. “This has led to a surplus in inventory. In 2009, we were renting homes at 2001 rent levels.”
It’s the best time to be a renter. McCreary manages a four-bedroom home with an attached garage in the desirable Pope High School district of Cobb County. In 2008, the property was able to fetch $1,800 in rent, but in January 2010, the rent dropped to $1,295. That’s a significant savings any landlord or property management firm is happy to pass onto you, in exchange for an occupied property.
Home Rental Benefits
The advantages of renting a home all boil down to this simple statement: Why rent an apartment when you can live in a single-family home for nearly the same price? “That’s the crux of it,” says McCreary. “You can’t compete against the American dream. If you can’t own it, then you can simulate it and live in it for the short term.”
Renting this idyllic dream offers many aesthetically pleasing benefits. If you’re moving from a house, it’s difficult to downsize into an apartment. Renting a house gives you all the familiar comforts you’re used to, while offering a yard for you and your children to enjoy and a charming, quiet space to personalize.
Aside from living out the American dream, renting a home makes good fiscal sense. There are a lot of factors to consider when buying a home—decisions that go beyond the number of bedrooms and bathrooms, open floorplans and updated appliances. Buyers need to know the resale potential of various neighborhoods, how this new address affects their work commute and if the location offers access to recreation and other conveniences. “It’s better to be familiar with your new city through renting before committing to a mortgage and maintaining a house,” says Anne Lackey, a broker with Solid Source Property Management.
Mike Nelson, president of Excalibur Home Management, notes, “If you’re working Downtown and willing to drive an hour to work—that’s a big radius, and you may not know the differences between living in Powder Springs, Marietta or Suwanee.”
There’s also the advantage of renting up. “You can always rent nicer than you can buy,” says Nelson. “It’s easier to rent a lifestyle than being able to afford to buy it.” Renting a home for a year is a great way to test drive an area, and if you’re not pleased with the results, then you’re only committed for a year. You’ll walk away knowing you’d like to buy in a different area and what features in a home are most important for you and your family.
Also, if your time in the Peach City is limited, renting may be a better option, says McCreary. “Home values are dropping or staying flat. If you’re in the market for only two to four years, purchasing is not a smart choice.”
The Search
If you’ve made the decision to get acquainted with the metro area by renting, the rental search puts you in the driver’s seat. “If you want to be in a house, a property management company that focuses on single-family homes is a good place to start,” says Lackey. “If you want intown condos, interviewing a company that specializes in what you want is important.”
During your search, compare each company’s online presence, its Better Business Bureau ranking and its maintenance and service policies. You need to become familiar with the company’s property viewing instructions. Many newcomers have the impression that if they’re working with a property management company, a broker will escort them to home listings meeting their criteria. This is not the case. Most, if not all, brokers are not able to drive you to various homes. However, they can direct you to properties that match your needs. Each property management company has their own system, but most offer potential tenants specific viewing hours and access to homes via a lockbox code.
Each company’s searchable database of home listings is likely to include specific filters, allowing you to search by location, floorplan and/or rent rate. Each listing within your customized search should include a virtual tour through pictures of the property and a written description of the home’s features and floorplan. “Pictures and virtual tours are great, but they’re nothing like seeing the property with your own eyes,” says Nelson. “You have to remember that the agent took the picture when the property was looking its best and from the most flattering angles. Do not rent sight unseen.”
Once you’ve viewed your top listings, it’s negotiating time. Yes, even with rental rates available at a discount, tenants can potentially work out an even better deal. “Tenants are not used to negotiating like homebuyers,” says Nelson. “Tenants should get used to it—landlords with an empty house may not want to face another month of vacancy.”
Another point of consideration is the difference between renting a home versus an apartment. You are likely to pay a little more in utilities, due to the uniqueness of the space. Also, you will be responsible for yard maintenance. “Renters need to be prepared because there is more maintenance involved,” says Lackey. “Landlords will not screw in light bulbs for you. There’s more responsibility on the tenant if you’re going to live in a single-family home. If you want an immediate service response, then an apartment might be a better option. If you want the extra space and the flexibility to have a garden, then look at renting a home. The tradeoff is you don’t have to listen to neighbors overhead or below.”
In addition to requiring a little more maintenance, rental homes are an immediate market. Tenants are not able to select their home three months in advance. Most property management companies offer a 30- to 60-day notice. In other words, you can’t select your listing and put it on hold until your moving date. “Most occupants don’t make their home choice until three to 10 days in advance of their move-in date,” says McCreary. “You’ll have to make the choice to pay rent a little earlier or search more immediately.”
Make the Most of Your Move
If you’re planning a move from out-of-state, a home rental search is a convenient option. You can search listings online, visit properties during a weekend visit and settle the lease terms remotely. Searching for a home to buy over one or two weekends is a difficult feat, especially with so many choices in today’s buyer’s market. Even with the convenience, you are left with work to do—researching listings, your personal wants and needs and scouting properties. The good news is a reputable property management company can support you throughout the process. “Moving and getting oriented to a new city is tough enough,” says McCreary. “The last thing you need to worry about is maintaining a home in a place you don’t know."