Investing in rentals can be profitable. Here’s how.
Investing is one of the most popular ways to increase your wealth today. In an era of economic volatility and inflation, investing has become more appealing than ever, especially for younger generations. Some investments feel a bit like gambling, others take some insight into the market, and others are traditionally stable. One of these types includes rental properties. Is a rental property a good investment?
Benefits of Investing in Rental Properties
A rental property can be a great investment due to the many potential benefits.
One benefit is that it gives you a steady passive income. Once you have at least one reliable tenant, you can expect to receive a monthly passive income at least a few years at a time before finding another tenant to fill the vacancy. Over time, the rental income will pay off the mortgage and you will begin to make a profit.
Rentals in particular are attractive because you have more control over how much profit you can gain. You can increase or decrease the monthly rent and make changes to the property. You also have control over who can live there, provided you do not break any landlord-tenant laws.
You can also choose to call your own rental home. While diversifying your investment portfolio, you can also have a place to call home. Live-in landlords can either live in the same unit or a different unit from the tenant(s.)
How to Know If a Rental Property Is Worth It
Purchasing and renting out a rental property is easier said than done. You will need to assess the local rental market first to see which area is most likely to have the best success for rental properties.
Then, you will need to find a property that will allow you to charge rent that makes you a profit. The 2% rule is that you can charge 2% of the property’s cost per month. Can you make a profit?
There are also risks to manage when setting up a rental property investment, such as screening tenants to ensure they will be responsible with the units.
You can navigate the hurdles like a pro when you get guidance from a pro. If you are looking to invest in Frederick, Maryland, Clagett Enterprises is here to help.
Trust the Professionals at Clagett Enterprises for Your Realty Needs
If you’re looking for an experienced property management company, the perfect realtor for your property, or a professional to assist you during your purchase of any home, you can rely on Clagett Enterprises. Clagett Enterprises is a full-service real estate company with almost 30 years of experience in the Frederick and Western Maryland area. For assistance with commercial sales, leasing, management, and development and consulting, contact us online or give us a call at 301-665-6009. To meet our team and see some of our beautiful homes, follow us on Facebook and Linkedin.