The Benefits of Owning an Investment Property
As Baltimore County’s largest town, Dundalk offers desirable waterfront properties, some with historic significance, making it a great location to own a rental property.
Property in historical districts like Dundalk are valued by the state and protected. In addition to being eligible for state and federal tax incentives, investors will own a tangible piece of history and an important part of their town.
Top benefits of owning an investment property in Baltimore County include:
- Low risk investment. Unlike higher risk investments, such as stocks and business ventures, real estate is mostly low risk. Returns are typically steady across the board and property and land do not dissolve, as stocks can.
- Passive income. When you own a rental property, you are generating passive income. This is especially true if you own multiple properties or housing units. More tenants paying their rent on time means more money. Most investment properties pay for themselves.
- Tax incentives. Property investors have an array of tax incentives and deductions available to them. Not only are they able to write off property taxes and depreciation, but they can also deduct business expenses like travel and maintenance.
- Your mortgage is paid for you. Investment properties offer good leverage options. With bank funding, little money is required to buy a property, and over time your mortgage will be paid by renters. With good leveraging, the option will become available to “trade up” and acquire more property in the future.
Should You Use a Property Management Company in Dundalk?
Property management companies secure the condition and value of your investment. In addition to a network of resources, property management companies have an in-house staff that is experienced and quick to respond.
Ask yourself the following questions to determine if a management company is right for you:
- Do I have the time to manage on my own? Maintaining a rental unit takes a lot of time. Property owners invest hours repairing and cleaning their properties to make them available to new tenants. If you do not live close by, it will be harder to attend to your tenants’ needs should an emergency arise. A property management company will deal with these time-consuming activities so you can spend more time with your family or primary job.
- Do I know how to find high-quality tenants? Property management companies market your rental units by using their vast set of resources. They know the exact renters to target, appropriate to your housing criteria. Additionally, they know how to spot the telltale signs of a bad tenant. One bad tenant can lead to a lot of damage to your property. Using a management company ensures you will have high-quality tenants who pay their rent on time and respect your investment.
- Do I understand legalities? A problem tenant can result in an overwhelming amount of legal issues. Landlords who manage properties on their own tend to have a harder time with tenants and assume much more liability. Property managers know the nuances of legal documentation, including leases, evictions, safety codes, inspections, and security deposits. Leave the legalities to a property management company and save yourself valuable time and money.
- How will I make repairs? A good property management company will have a network of contractors for major repairs and an in-house staff for preventative maintenance and cleaning of the units. Without a management company, you will be responsible for cleaning, painting, changing the locks, and making or arranging for repairs on your own. If you do not have time to do that, a property management company is a great option.
- Are my tenants going to stay long-term? Property management companies offer quick responses for repairs or other tenant needs, so you do not have to respond. Rental properties that are clean and functional lead to happy renters. Tenants will not have to hassle you for repairs or other needs if they can contact a property manager directly. Rent is collected on time and in an organized way, which makes it easier on everyone. Additionally, many property management companies offer retention policies, ensuring your tenants stay and your money is well spent.
Bay Management Group?
Bay Management offers experienced staff who are available around the clock. They will respond to the needs of you and your tenants, quickly and knowledgably.Landlords can feel safe knowing their properties are maintained and tenants can feel safe knowing their issues can be resolved any time of the day.
Bay Management knows the ins and outs of Baltimore County and how to market your property better than any other property management company in the area. Using a network of websites, mailings, locators, and placement services, we will find the right tenant for your property.