Old Bay Insurance Agency Blog
Purchasing residential rental properties for business is a daunting idea for first-time investors. Being in the real estate business can become quite challenging, mainly because the field has carefully placed land mines. Fortunately, you can succeed by taking note of these few tips as you shop for promising properties for income.
Choosing the neighborhood on where you will have your rental property built can determine the types and number of tenants you attract. If you decide on one near a university, there is a higher chance of students dominating your property, leading you to a struggle of finding lodgers during the summer. However, you should be aware that there are a few towns that don’t approve of rental conversions. They may either impose expensive permit fees or red tape piling.
2. Property Taxes
Property taxes usually differ in your target area, and you’ll want to be aware of how much you’ll spend because of them. Although, if the neighborhood is peaceful with tenants planning to stay for the long-term, then having high property taxes is reasonable. You can visit the assessment office of the municipality and gather information regarding tax, or you can ask community homeowners.
If family homes surround your area, you can consider what local schools offer. However, your primary concern might be the monthly payment, but after you sell your rental property, that’s when the overall value presents itself. Make sure that there are promising nearby schools because it will undoubtedly affect your investment value.
4. Crime Rates
Always check the local crime rate before you put up a rental property by visiting the public library or the local authorities. Evaluate the neighborhood crime statistics; not a lot of people will want to live in an area with high criminal activity. Vandalism, petty, or severe crimes, should be noted if the rates are either increasing or decreasing. You’ll also want to know if the presence of police is frequent in the neighborhood.
Once you’ve chosen the perfect income property, with all the mentioned factors checked, it’s time to invest in insurance. Landlord insurance has two types of coverage: liability and property protection. These aim to protect you from sudden financial losses. Get one before you buy that lot!
At Old Bay Insurance Agency, Inc, we put our clients first by offering them policies that they can afford. Having insurance is a necessity nowadays and we're here to help you out. Learn more about our products and services by calling our agency at (410) 777-5390. You can also request a free quote by CLICKING HERE.