Old Bay Insurance Agency Blog
If you are looking for insights about investing in rental properties for the first time, this post will guide you as it will tackle the following:
Why Investors are going into Real Estate
This is simple to understand. A lot of investors have these two reasons why they invest in real estate:
Finding a Good Rental Property for Business
You will have the utmost convenience and guarantee productivity by considering the following in finding an excellent rental property for your business:
How to Find Out if a Rental Property Works for You
Business-minded individuals have realized the advantage of renting a property over owning one for business purposes. They rent for their business for an apparent reason — buying a property entails long-term responsibility while renting a place is a short-term undertaking.
If you want to find out if a rental property works for your business, check your return on investment (ROI). Here’s how you can calculate it: Business profit minus rental cost. Then, divide the result to the cost of renting. Then, multiply the result to 100 to get the percentage of ROI.
Your rental cost every month is $15,000. You made a business profit for the month amounting $30,000. By following the formula above, your ROI will be 100%.
Vacation Rental Property
If you’re into travel and hospitality business, another ideal investment is purchasing a vacation rental property. To ensure continuous profitability, make sure that the property that you wish to rent out in a vacation destination will be rented for the entire year.
One More Thing Before You Go
When you own a rental property, you will have responsibilities to keep in mind. For your convenience, get the essential rental property insurance plan now from a reputable insurance company to spare yourself the trouble.
At Old Bay Insurance Agency, Inc., we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (410) 777-5390. Get your free quote today by CLICKING HERE.