The rental market in Metro Atlanta and throughout Georgia presents lucrative opportunities and complex legal challenges for landlords. As a Partner leading the Landlord/Tenant practice at GSH Attorneys and a property owner herself, Mechelle Montgomery-Bumpers has practical tips to share about what it takes to scale smartly, save money and succeed in property management.
Understanding Atlanta’s Rental Landscape
After years of status quo landlord-tenant laws, legislation has changed multiple standards each year since the pandemic. Many laws have created increased requirements for landlords that, if not completed, could be terminal for an eviction or, worse, result in penalties.
“These increased requirements signal growing legal complexity,” said Bumpers, Esq. “Profitable landlords will create and improve policies that help them earn more while keeping tenants satisfied and following all laws.”
GSH Attorney recommends three action steps all landlords can take to increase profitability:
- Lease Review: review leases to find ways to better protect the investment by meeting the changing legal standard and provide transparency concerning expectations.
- Fee Strategy: set up fees that increase your income while keeping tenants happy and wanting to stay.
- Security Deposit: optimize security deposit practices to ensure compliance and minimize tenant disputes, which could result in the return of three times the initial deposit.
The Lease: Your Profit Blueprint
A lease agreement is not just a legal formality; it is a powerful tool to increase profits and protect interests. Profitable lease provisions include:
- Property Usage Guidelines: Clarify how the unit can be used, detailing maintenance responsibilities and rules for modifications or repairs to protect your investment.
- Late Fee Structure: Clearly state fees and procedures for late rent payments to encourage timely adherence, making sure to not exceed the legal limits.
- Pet & Parking Clauses: When properly phrased within the lease, pet rent and paid parking provisions can generate additional income while managing property wear and tear.
- Renewal Terms: Create automatic renewal plans that reward early commitments and include clear rent increase schedules.
Beyond Rent: Extra Ways to Increase Profit
GSH Attorneys wants Georgia landlords to know there are simple strategies they can use to boost their earnings per unit by 15–30%, often without greatly increasing maintenance costs or changes to how they operate. Bumpers, Esq. added, “Each property has multiple ways to increase the cumulative rent depending on its location, what it offers and who lives there.”
Ideas include:
- Offer Services: partner with tenant insurance, offer cleaning/maintenance plans, upcharges for furnished units, permitted parking areas, various services.
- Make Money from Your Space: rent out storage spaces, charge for reserved/covered parking, rent out common areas for events or co-working, share laundry room profits, rent areas for local dry cleaners to drop off/pick up or on-site car cleaning.
- Income from Tech & Utility: charge a clear administrative fee for utility billing, bundle internet/cable services, rent out smart home packages, install EV charging stations and charge per use or subscription.
This information is for educational purposes only and may not apply to your specific situation. This information does not constitute legal advice nor create an attorney-client relationship.
With six offices in Metro Atlanta and one in Columbus, GA, the law firm of GSH Attorneys (Goggans, Stutzman, Hudson, Wilson & Mize, LLP) provides high-quality, cost-effective representation and well-reasoned solutions exclusively for all types of residential and commercial real estate concerns. The firm’s vast experience and insight assists clients with their legal matters from start to finish. In addition to representing homeowners, developers, lenders, brokers, investors, and build-to-rent companies, GSH Attorneys also offers estate planning services and works with government entities, non-profit organizations, and housing authorities.