If you’re considering owning rental property in Maryland, you’re not alone. There are quite a few others who are toying with the idea as well. When it comes down to it, it can be a really good investment if you take the proper steps to make it happen. Keep reading to find out the five best benefits of owning rental property in Maryland.
You bring in extra cash
It’s no surprise that one of the best benefits of owning a rental property in Maryland is that it earns you extra money. Depending on how much you charge, you could be pulling in thousands of dollars a month.
You have vacation property
Owning a rental property in Maryland means you have a vacation property to use, but this is where it gets tricky. You can only use it for a certain amount of time per year in order for it to actually be considered as a rental property by the IRS. If you rent the property for 14 days or less, you technically don’t have to report the income; if it’s 15 days or more, you have to. If you use the property for more than two weeks or 10 percent total of the days that you rented it out, then it’s considered your own personal home and not rental property, so you must use it for less.
It has great tax benefits
Owning a rental property in Maryland has a lot of tax benefits. If you drive there to make a repair, you can deduct travel expenses; if you install energy saving appliances, it’s a tax deduction. Even your mortgage interest is considered a tax deduction. When you buy your rental property, consult with your accountant who can give you an itemized list of deductions so it’s easier to keep track of them throughout the year.
You boost your credit score
When you make your mortgage payments on time every month, it gives your credit score a boost. If you’re also paying your other bills on time, your score can improve dramatically over time.
You diversify your portfolio
You’ve probably heard the old adage “Don’t put all your eggs in one basket.” There’s a reason for that. If you drop all your eggs… SPLAT! Then you’re stuck without anything. When you have a rental property, it helps diversify your portfolio, so if something isn’t so great in one area, you have other options.
A property management group will help you take care of your investments. Don’t trust them to just anyone. The Auburn Rose Property Management Group knows how to take care of you, your tenants, and your properties.
Auburn Rose Property Management was founded in February 2008, on the belief that our customers’ needs are of the utmost importance. Our entire team is committed to meeting those needs. As a result, a high percentage of our business is from repeat residents, realtors, owners and referrals.
We welcome the opportunity to show you how Auburn Rose can provide you with the best service in the industry.
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