If you’re interested in becoming a property owner in Maryland, I have some exciting news for you:
Now is a great time make it happen.
More and more people are opting to rent rather than own due to the high costs of home ownership, the desire to change location frequently, and various other reasons. On top of that, millennials have abstained from home ownership for longer than previous generations did at their age, so a lot of them are looking for places to rent.
However, that doesn’t mean you can just start investing in random rental properties and expect to become an overnight success. Some markets are much more lucrative than others, and you need to pick the most lucrative markets (like Maryland) to start and run a highly profitable rental property business.
Now, you may be wondering:
Why is right now such a good time for me to purchase Maryland investment properties?
Keep reading to find out.
Why It’s a Great Time for You to Become a Maryland Landlord
1. Data shows that Maryland is currently a great place to invest.
Not only is Maryland full of potentially profitable rental properties – recent research that compared gross rental yields in many different cities showed that Baltimore City, Maryland had the highest annual gross rental yields at 28.5%.
The same research cited zip codes 21223 and 21205 in the Baltimore area as being top zip codes for single-family rental returns. The Baltimore Sun even noted that it can be cheaper to buy than it is to rent in the Baltimore area, which is great news for landlords looking to invest.
On top of that, you can find many Maryland investment properties in college towns like Baltimore City, Towson, or College Park. This is an attractive market for landlords because young people attending school often prefer to rent rather than buy.
Bottom line: If you’re thinking about investing in rental properties, you need to start looking around in Maryland – especially the Baltimore area!
2. Rental properties help you diversify your income streams.
Think about it – what would happen if you suddenly lost your day job or one of your main income streams?
Chances are, you’d take a huge financial blow. You might even struggle to pay your bills if you were fully dependent on the income stream you lost.
That’s why it’s a good idea to diversify your income streams by purchasing Maryland investment properties.
When you invest in rental properties, you gain a new source of income. Not only does that enable you to make more money – it allows you to gain peace of mind knowing that you’ll be able to get by financially, even if you lose one of your income streams.
3. You can save for retirement (or something else!).
When you own a profitable rental property business, you don’t have to rely solely on your 401K account to start saving for retirement. You can raise your rents as your property values increase over time to build long-term wealth and make sure that you have plenty of money to retire on.
Related reading: How to Fund Your Retirement with Rental Property Income
4. Rental properties tend to be stable, depression-resistant investments.
Even when the economy is struggling, people need a place to live. And when times get tough, they probably aren’t going to want to splurge on a mortgage – they’re going to rent instead.
Of course, rental property investing isn’t a foolproof way to make a lot of money. You have to be careful about the tenants and properties you choose if you want to make it work. But once you learn how to do that, there’s a good chance you’ll have a stable source of income for a long time!
5. You can become completely self-employed.
Maybe you’re thinking about becoming a landlord because you want to quit your day job. You dream of the freedom associated with being self-employed, and you’re ready to become your own boss.
It’s true that becoming a landlord can allow you to do that. When you run a rental property business, you get to call the shots in every aspect of your business. Self-employment also gives your personal freedoms, like the ability to set your own work schedule and vacation dates.
Of course, you won’t be able to take a vacation any time you want – you’ll still need to get organized and set regular work hours so you can take care of your tenants and properties unless you hire a property manager to run your rental property business for you.
6. You become exposed to new networking opportunities.
You’ve probably heard this saying before:
“It’s not what you know – it’s who you know.”
That certainly seems to be true in the business world. Often, you can majorly benefit from utilizing your connections and social networks.
Fortunately, when you become a landlord, you can meet all kinds of new people, like:
- Real estate agents
- Tenants (some of whom may have professional connections you can benefit from)
So if you decide to take the plunge into rental property investing, get ready to start networking and make the most of every opportunity. Who knows – you might just find yourself connecting with someone who can help you make your rental property business more profitable than ever!
7. Investing in rental properties can be semi-passive income.
Don’t get me wrong – owning a rental property business can be a demanding job if you go at it alone. You cannot simply purchase properties and collect a check every month. You have to handle maintenance and other tenant requests, deal with late rent payments, screen tenants properly, advertise your rental properties effectively, and more if you want to be successful.
However, you can turn your Maryland rental property investments into a source of semi-passive income by hiring an experienced property manager.
When you hire a property manager, they’ll relieve you of stressful, unwanted landlord tasks so you can take a more “hands-off” approach to your rental property business.
To learn more about how Maryland property management can help your business grow, contact Bay Management Group today.