Are you considering purchasing a rental property in Howard County this year?
It could be one of the best financial moves you make.
Income potential is on the rise in Maryland and when you work with the right property management company, you’ll find that your rental property can be a stress-free investment.
There are several prime factors that make today an excellent time to consider buying an investment property in Howard County, MD.
- Demand Is High
Despite continued low mortgage interest rates, fewer people are able to buy homes these days. People who in other economic times might become first-time homeowners often are unable to come up with the 20 percent down payment they’ll need to purchase a property. Stagnant wages and increasing costs in Maryland have made it harder than ever for them to save for that purchase.
This means more people are renting today—and it shows in the demand. REIS, a real estate research firm, reports that nationwide vacancy rates for rental properties fell to only 4 percent in the first quarter of 2014, down from 4.2 percent in the last quarter of 2013. Although 2013 and 2014 statistics are not available for Maryland, figures for the state from 2007 to 2012 show a similar trend in decreasing vacancy rates, according to the U.S. Census Bureau’s American Community Survey.
Since the economy is still sputtering and showing only erratic signs of growth, these trends are likely to continue. If you buy the right rental property in the right areas of Howard County, you are likely to have potential renters knocking at your door almost immediately. If you choose the right company for property management, you’ll keep quality tenants (and rents) coming in.
- Mortgage Rates Are Still Low
Although the cost of borrowing money has risen slightly since 2012, mortgage rates remain low in Maryland. The real estate website Zillow lists the average market rate for Maryland mortgages at below 4 percent at the beginning of the second quarter of 2014. But with the Federal Reserve poised to reduce its purchase of bonds, no one knows exactly what the impact on interest rates will be. That means now is a good time to act.
- The Value of Residential Properties Is Likely to Continue to Rise
Zillow reports that the median home value in Maryland has risen by 4 percent over the past year; it also expects a rise in value over the next 12 months, although that will be a smaller increase.
Housing prices do decline (as we all learned during the recession) but for the most part they have increased over time. The average price of a Maryland home rose 7 percent from January 2013 to January 2014—where else can you get that kind of return on investment these days?
- Owning an Investment Property Doesn’t Have to Be Difficult
Being a landlord can be a time-consuming process. When you go it alone, you have to handle everything from routine maintenance (painting, landscaping, cleaning common areas, etc.) to collecting rents to emergency repairs. (Try finding a new refrigerator for a customer on New Year’s Eve, or listening to renters’ complaints when it’s a sweltering 95 degrees in August and the air conditioning goes out.)
That’s where property management companies, like Bay Management Group, come into play. A good property management company will reduce the difficulties of owning a rental in Howard County, starting with ensuring that your property is in compliance with local codes and laws and finding tenants who will respect your property and pay their rent promptly.
A reliable property manager will also keep up with the regular and long-term maintenance so that your property keeps its value over time. You get all of the benefits of investment property without the hassles.
If you have been thinking about investing in a rental property in Howard County, now is a great time to take advantage of all of the benefits that such a move would offer. From Columbia to Ellicott City and beyond, our experts have you covered!
Contact the property management professionals of Bay Property Management Group today to ease the burden of day-to-day management and maintenance related to investment properties. Then get ready to enjoy a steady stream of passive income.