Blog posts are always inspired (well most of the time) by real-life real estate events. Something happens to us, or to one of our Buyers or Sellers and we want to share this knowledge to help out our future clients, or just other people in general.
Now, I don't like to give out free advice, but in this case, this just helps you the Buyer, and keeps me from showing you Midtown Atlanta condos you can't buy. Because you can't rent them. Again, there's more to it.
How Can I Rent My Midtown Atlanta Condo?
Here is another great post we wrote , "How Can I Lease My Midtown Atlanta Condo?"
Midtown Atlanta is fortunate to share part of our space with the Georgia Institute of Technology, or GATech for short. Over my years in real estate, I have had the good fortune to help many parents make good real estate investments by purchasing a condo for their son or daughter to live in while attending the school. When they graduate, they either stay in Atlanta and get a job and have a great place to live (and maybe start paying back some rent to Mom and Dad) or...they can sell it and see additional return on their investment.
Another option is to turn it into an investment property and rent it out. THAT, however, requires some planning! To lease a condo in almost every condo building in Midtown Atlanta, you are required to have a leasing permit, issued by the HOA to lease your condo. When my clients (the parents) purchased their condo, I have them immediately place their name on the rental wait list. Why? Because in many buildings, it can take anywhere from 3-5 years to clear that wait list and get that permit. During that time, the kid has completed their 4 year degree (well we hope, right) and maybe considering grad school. But what happens if they come up on that leasing permit list? Well, for one thing, in a two bedroom, you can lease the condo to your room mates! You now have a lease in place, and have your investment property for as long as you choose to rent it out!
Can I Buy A Midtown Atlanta Condo and Rent It Immediately?
As we said above, you have to have a leasing permit to lease. The only way to get one when you FIRST purchase, is to buy in new construction where they may still have leasing permits available at the time you purchase. As you may well know, Midtown Atlanta, or anywhere in Atlanta has seen almost ZERO new condominium construction in recent years. All the focus has been on building apartment buildings, which are for rent, but not FOR SALE! So, obtaining a leasing permit requires that 3-5 year wait we also talked about!
There are some rare exceptions with condominium declarations (the rules of the HOA) where you can purchase a condo that has a leasing permit, provided there is a lease in place at the time of the sale. This is complicated, and takes some work to find these options.
Can I Rent My Midtown Atlanta Condo for AirBnb?
Well, you can try, and I know there are several people that "get away with it" but you run some serious risks. Everything from one of those guests having an accident in the building...but more importantly, HOA's also require leases to be one (1) year in duration. No short term leases. Why? Because a condo building is not an apartment building. It's a residental building where you OWN your home, and hope that most of the people around you own theirs.
Some HOA's have really clamped down on short term rentals (of the AirBnb nature) and have fines of $500 per day from the date they find the property ADVERTISED FOR RENT, not when it may actually be occupied! That is some serious money!!
So my advice...is play by the rules and keep yourself out of trouble. I'm here to help you by NOT selling you a condo and thinking you are going to be renting it next month. I'll hope you appreciate my professionalism, and will work with me when the time is right, and help you find the right investment property for you.