Last updated on August 16th, 2023
short term rental vs long term rental in Atlanta
- For traditional landlords in Atlanta who want to up their rental collection, short-term rentals are a way to go. But for it to work, Airbnb hosts also need to do their part. If you’re already a short-term rental operator, incorporating data analytics into your strategy will give you a ton of insights when it comes to charging a nightly rate.
Pundits have declared that the 2023 recession is inevitable. As someone who owns one or several rental properties in Atlanta, you are surely restrategizing to make the most out of your real estate investments. Economic experts from the University of Georgia vouch for the strength of the state’s economy that it will even outperform the nation this year. While this is positive news, converting your rental property – from short-term to long-term, or vice versa – still crosses your mind. So, we’re here to guide you through.
Whether you own a short-term or long-term rental property in Atlanta, this article is for you! We believe that economic analysts should not be the only people who have access to numbers. You too can make sound investment decisions in the upcoming recession by relying on easy-to-use data analytics.
Differences between Short Term Rental Vs Long Term Rental
Let’s first distinguish one from the other. As we all know, long-term rentals have been a traditional form of housing. They are offered to tenants who choose to reside on a property for at least 6 months with a binding lease agreement. Property owners decide to collect a higher rent than the mortgage to generate monthly income that remains unchanged regardless of the ever-changing economic circumstance.
On the other hand, the setup for a short-term rental is renting out a property to visitors or guests for a very short period. It works pretty much like hotels where guests can stay in for only a couple of days. This can viably extend to weeks or even months. Short-term rentals offer a cozy atmosphere as well as significantly cheaper nightly rates compared to hotels. This is why guests keep coming back to short-term rentals.
Since short-term rentals have become widely used all over the world, rental arbitrage is another popular trend. It has given a lot of nonproperty owners a steady stream of passive income by simply re-renting a unit and listing it on Airbnb, VRBO, or HomeAway. This is a wise, effective, and legal income-generating hustle. Just imagine having a side income from a property that you do not own.
If you’re interested in having another stream of income via real estate without spending a fortune, here’s everything you need to know about rental arbitrage.
Rental Regulations in Atlanta
Atlanta Long-Term Rentals
The State of Georgia compels the landlords to shoulder the cost of repairs during the lease unless the tenants are directly responsible for the damage. Any failure on the part of the landlord to immediately repair such damages that result in injury qualifies for a lawsuit. Check this handbook for more information about Atlanta long-term rental regulations.
Atlanta Short-Term Rentals
Hosts are required to secure Short-Term Rental Licenses from the local government of Atlanta and pay $150 annually. You may register via this portal. Please note that you can have only two Airbnb units in Atlanta, one of which should be your primary residence.
Advantages of Long-Term Rentals in Atlanta:
Below are the advantages of operating a long-term or traditional rental property in Atlanta:
- High urban population – Atlanta is home to 4.5 million residents, making it 9th largest city by urban population in the United States.
- A steady stream of income – You are ensured to have a steady and regular monthly income immune to erratic economic conditions. The average monthly rent in Atlanta is $2,180.
- Steady operating costs – You do not need to shell out money upfront for furnishings since the tenants will most likely have their own.
- Laid-back management – You will have less interaction with your tenants, and you do not need to be hands-on with managing your property. This is risky, however, since damages on the property can get worse if they’re left unattended.
Advantages of Short-Term Rentals in Atlanta:
On the other hand, here are perks that short-term rentals can offer to Airbnb hosts in Atlanta:
- Low seasonality rate – Airbtics Dashboard shows that Atlanta has a very seasonality rate of just 41%. This means that cash flow is just as stable and does not get affected by the changing events or seasons in Atlanta.
- Flexible pricing – You can adjust the nightly rate depending on seasonality or market demand.
- Experience managing the property – Building connections with people by hosting different guests. If this is not your thing, you can still manage the property remotely via automated management tools.
- Feel more control over the property – Since guests only stay in for a limited time, you can easily make changes to your property. Without getting worse, any damages can be repaired in no time and also be covered by Airbnb insurance.
Do you make more money on Airbnb or long-term rentals in Atlanta?
Airbtics data shows that you can earn more from an Airbnb in Atlanta! A 1-bedroom property on Fairmont Avenue can earn a monthly rent of $1,861 or an annual rent of $22,332. But this figure can still increase via Aibnb! In fact, 1-bedroom short-term rentals in the same area earn an annual revenue of $25,613 from a nightly rate of $107 with an average occupancy rate of 49%.
Short-Term Rental Markets in Atlanta
We already have an idea of short-term vs long-term rental income in Atlanta. Airbnb is the way to go. Atlanta is already a rental market – and a very huge one at that. Thus, it’s understandable why it is one of the USA’s top STR cities this 2023. But what landlords do not know is Atlanta can be broken down into smaller markets where you can monitor your closest competitors.
It just so happens that Airbtics has this innovation that allows users to create a Custom Market. From 970 Airbnb listings in Atlanta, let us now dive deep into the top rental markets in the city and learn the best property features with the highest occupancy rate and corresponding annual revenue:
- Existing Airbnb listings: 468
- Average daily rate: $142
- Airbnb occupancy rate: 67%
- Airbnb annual revenue: $39,285
- Best property size: 3 bedroom
- Occupancy rate: 73%
- Annual revenue: $78,642
- Existing Airbnb listings: 426
- Average daily rate: $127
- Airbnb occupancy rate: 58%
- Airbnb annual revenue: $31,020
- Best property size: 2 bedrooms
- Occupancy rate: 57%
- Annual revenue: $38,349
3. Inman Park
- Existing Airbnb listings: 77
- Average daily rate: $158
- Airbnb occupancy rate: 68%
- Airbnb annual revenue: $44,335
- Best property size: 2 bedrooms
- Occupancy rate: 71%
- Annual revenue: $58,261
As you make use of the game-changing Airbtics Custom Market, feel free to draw your own “Atlanta Rental Market” as it is not limited by geographical boundaries. The only limit, however, is showing you a maximum of 20,000 Airbnb listings within your own market.
Maximize Your Rental Income
Every investor wants to get the most out of their investment This is understandable because their capital can be a few hundred thousand to even a million dollars. Real estate investments can be a bit tricky since there’s really nothing much that you can do with the property. Instead, homeowners can strategize their rental business for their financial freedom to be unscathed in the upcoming economic recession. This can allow homeowners not only to keep but also increase their market rent in Atlanta.
For traditional landlords who want to up their rental collection, short-term rentals are a way to go. But for it to work, Airbnb hosts also need to do their part. If you’re already a short-term rental operator, incorporating data analytics into your strategy will give you a ton of insights when it comes to charging a nightly rate. As we have seen, Airbtics can provide us with macro and micro views of rental markets for you to arrive at a data-driven decision!
Take your Airbnb to the next level, try this powerful Short-Term Rental Profit Calculator!