Short-term rentals are here for the long term: The market continues to expand, projected to reach nearly $230 billion by 2030.
Investing in short-term property in Maryland is a great way to earn some extra cash. With its proximity to the nation's capital and high property values, you can find some good investment opportunities.
Have you ever thought about short-term property management? Here are some aspects to consider before you make your decision.
Learn Local Regulations
Every state has different short-term rental laws. These can even vary from city to city. You need to ensure you comply with all laws and regulations to avoid penalties or fines.
For instance, in Baltimore, Maryland, you cannot rent out your property for more than 90 consecutive nights. You also need to obtain proper licensing.
Once your short-term license gets approved, you will have to renew it periodically. Take note of when you need to renew so it doesn't lapse.
Think About Using a Management Company
If you own a few short-term rentals, it may be worth it to use a property management company. These companies can provide a wide variety of services, from tenant communication to collecting payment.
Property management companies may also be able to help you with your short-term rental listing. You can attract guests during less busy seasons and turn a profit. In this case, it may be worth the extra expense.
A property management company is essential if your short-term rental is out of state or far away from your primary residence. You will not have to waste time or gas performing maintenance tasks that a third party can take care of for you.
Consider Your Target Market
When you think about purchasing a property, you need to consider who you want to rent to.
For instance, if it's a big house, it may be suitable for events like family reunions or wedding parties. A smaller condo, apartment, or cottage can serve as a great getaway for couples.
Location is also a key factor for where you want to buy your short-term rental. Make sure to leave a guide for your tenants, such as places to visit in Ellicott City, Maryland.
Calculate Potential Profits
Finally, and most importantly, you need to see if your property will make you money. Investing in a sinkhole can do serious damage to your bank account.
If you buy the property with cash, you can simply deduct your short-term rental expenses from your monthly profits. However, if you have a mortgage, you may not turn a profit for a while, or break even.
Ideally, your short-term rental income should meet or exceed your expenses.
Short-Term Property Management Made Simple
If you are interested in short-term property management, it doesn't have to be a daunting process. With this guide, you can navigate short-term rental laws, finances, and other factors.
Are you looking to buy a property in or around Ellicott City, Maryland? Let PMI Old Line help you with all of your property management needs. Connect with us today and we'll get in touch.