Investing in rental properties can be tricky. Sometimes, you have to put yourself in a tenant’s shoes and make decisions based on what they might want in a home. After all, finding and keeping tenants is your number one goal as a rental investor. As such, choosing the right location is 
crucial in buying rental properties. Today, we’re reviewing Baltimore’s growing neighborhoods, the benefits of buying rentals here, and how to choose the right property.
Contents of This Article:
- Is Baltimore a Good Place to Invest?
- Baltimore’s Growing Neighborhoods
- Benefits of Investing in Baltimore
- How to Find the Right Rental Property
- Baltimore Property Management Can Help
Is Baltimore a Good Place to Invest?
It’s no secret that real estate prices have been high for a few years now, making it difficult for investors to buy more properties. However, as things settle and interest rates continue to decline, now’s the time for investors to start looking at their next opportunities. If you’re looking for a good place to invest in rental properties–consider Baltimore!
Baltimore is a relatively affordable place to invest, with a median home sales price of around $224,000–much less than the US median of nearly $500,000. Baltimore has a strong job market with numerous opportunities in healthcare, retail, and higher education. In fact, at least 12 schools offer degrees near Baltimore, including the University of Baltimore, Maryland Institute College of Art, Notre Dame of Maryland University, and more.
With an abundance of job and college opportunities comes a strong renters’ market. After all, people who work or learn here need places to live, and rentals are a popular choice! Rental property managers in Baltimore know there’s always demand for rentals here, making it a great place for investors to grow. If you’re wondering where exactly to purchase properties, read along as we go over Baltimore’s growing neighborhoods.
Baltimore’s Growing Neighborhoods
Baltimore is a large city with over 250 neighborhoods, each with its own personality and unique characteristics. If you’re considering investing in rental properties here, you may want to consider one of Baltimore’s growing neighborhoods, which include the following.
Federal Hill- Canton
- Fells Point
- Mount Vernon
- Roland Park
Federal Hill
Federal Hill is one of the best up-and-coming neighborhoods in Baltimore. The lively atmosphere and waterfront views make this historic neighborhood popular among young professionals and families alike. Not to mention, this area has it all–several bars, restaurants, and shops lining the streets. An added bonus is that the neighborhood is very walkable, making it great for those who don’t want to rely on a vehicle to get everywhere.
The average home price in Federal Hill is around $329,872, and the median rent amount is $2,115/month.
Canton
Canton is a popular area in Baltimore for young professionals and newcomers, and it would be a good place for investors looking to attract this demographic. It’s a popular waterfront community with close proximity to shopping, dining, nightlife, and recreational activities. Additionally, residents here have access to two public parks that often host various festivals, concerts, and community classes.
The average home price in Canton is $355,287, and the median rent amount is $2,300/month.
Fells Point
While Fells Point may be an older neighborhood in Baltimore, it’s an up-and-coming area for real estate investors. Many people love the old neighborhood vibe with cobblestone streets, brick townhouses, and harbor views. However, don’t think it’s equivalent to stepping back in time. This neighborhood has plenty of trendy spots for students and young professionals, especially when it comes to food, shopping, and nightlife.
The average home price in Fells Point is around $333,980, and the median rent amount is $2,318/month.
Mount Vernon
Another neighborhood with lots of historic character is Mount Vernon. This area is known as the home of the Washington Monument. However, even if you’re not really into history, there are plenty of reasons why this is one of the best places for renters in Baltimore. For instance, it’s a highly walkable area with a great public transit system, and endless attractions and things to do. Additionally, it’s quite affordable for investors to buy properties here compared to other major areas.
The average home price in Mount Vernon is around $222,933, and the median rent amount is $1,440/month.
Roland Park
If you’re looking to invest more money into a higher-end property, Roland Park is the place to do it. This area is known for being prestigious and historic, and it is often considered the first planned suburban community in the United States. If you buy a rental property here, you’re bound to attract individuals who are interested in top-performing schools or private schools and a high-end living experience.
The average home price in Roland Park is around $663,322, and the median rent amount is $1,050.
Benefits of Investing in Baltimore
There are plenty of advantages to investing in real estate. For instance, you benefit from property appreciation, rental income, and even tax benefits. Aside from that, there are extra benefits from investing in areas like Baltimore. Here’s why many investors like the Baltimore area for rental properties.
- Diverse Tenant Pool- With a diverse economy and sectors ranging from education and healthcare to technology and finance, Baltimore attracts a wide range of tenants. In turn, investors don’t have to worry (as much) about long periods of vacancies.
- Proximity to Major Cities- Baltimore is a large city, and it’s also located near several other large cities. For instance, Washington, DC, and Philadelphia are nearby, making it an even more desirable area to live in.
- High Return on Investment– Since properties are relatively affordable and the rental demand is quite strong, investors can benefit from high rental yields and potential appreciation over time.
How to Find the Right Rental Property
If you’re looking to invest in rental properties, knowing what to look for is crucial. After all, buying a rental property is different from buying a home to live in. You may have different preferences for a personal home than you would for a rental home. However, you have to choose a 
property that people would like to live in. Here are a few tips for finding the right rental property in Baltimore’s growing neighborhoods.
- Choose a Good Location- Rentals are in demand almost everywhere. However, choosing the right location is key if you want to get the best return on your investment. Try to invest in neighborhoods with good schools, amenities, and access to public transportation.
- Understand the Local Market- Before buying a property, research the local rental market to see what property types are in demand. For instance, properties near Baltimore universities may attract students, while those in business districts may appeal to young professionals.
- Consider the Property’s Condition- If you’re not looking for a fixer-upper, you’ll want to find an updated and well-maintained property. An older, more run-down property may be cheaper, but it’ll cost more to fix up to make it tenant-ready.
- Stick to Your Budget- Many investors make the mistake of going over budget, whether they mean to or not. Look at what you can afford and calculate your potential return on investment to ensure the property will generate positive cash flow.
- Check for Local Regulations- It’s crucial to be aware of Baltimore’s rental property regulations. Look into zoning laws, landlord-tenant laws, and neighborhood-specific rules to avoid legal issues later on.
Baltimore Property Management Can Help
Investing in real estate is a great way to expand your investment portfolio and potentially earn passive income. If you’re looking to branch out into a new area, consider buying real estate in one of Baltimore’s growing neighborhoods. However, if you have an extensive rental property portfolio and little time to manage it all, it’s time to hire professional help.
Need More Advice? contact us today!
Bay Property Management Group offers comprehensive rental management services throughout Baltimore, Philadelphia, Northern Virginia, and Washington, DC. So, whether you need help marketing properties, screening tenants, collecting rent payments, or performing maintenance, we’ve got it covered. Contact BMG to learn more about our rental management services and how we can help your business succeed today.
