Seeds Of Success For A Nexus Office Have Been Planted In Baltimore. Who Will Be The Franchisee To Reap The Rewards?
Starting a property management business can take advantage of the many positive factors Baltimore has to offer as far as unit count, density, rent rates and more. Opening a Nexus Property Management office may just be the best way to achieve success as an entrepreneur in this area. We feel that buying a Nexus Franchise is a great business to start in Baltimore Maryland at this time!
Baltimore, Maryland is one of the cradles of United States’ history and civilization. A fun fact about the City is that it is the home to the writing of our National Anthem. At that time writer Francis Scott Key dubbed it “The Defence of Fort M’Henry” in 1812. It was published in newspapers and quickly gained popularity. It has since been changed to “The Star-Spangled Banner”, and become the country’s official theme song in 1931.
Baltimore and its surrounding area are extremely developed and integral to the State’s operations. The largest employer in the area is Fort George Meade, and it employs over 50,000 workers! Closely behind that is the famed Johns Hopkins University. This school employs just under 45,000 workers. Also to mention, the University System of Maryland, MedStar Health, United States Social Security Administration, Aberdeen, and 2 area casinos round out the largest outfits in the metro area.
On top of this, Baltimore has recently shifted from Owner-occupied to renter-occupied dominated. What this means is that there is a larger percentage of renters in Baltimore Metro compared to those who owner-occupy. This is incredible when it comes to investing and managing property! According to the Baltimore Sun, “52.5 percent of Baltimoreans — 310,945 people — lived in rented property in 2016, up from 45.5 percent a decade earlier in 2006. Meanwhile, the home ownership population fell to 281,290.” https://www.baltimoresun.com/business/bs-bz-renter-swing-20180130-story.html.
What’s important to note about this statistic is that it is a solid indicator as to how strong a specific market is doing. Take for example the fact that other cities that have high rentership vs ownership are Boston, Los Angeles, Miami, New York, and Newark. For Baltimore to be included amongst these heavy hitter metropolises it shows that the rental market is in demand and equally plentiful!
When asked about his visits to Baltimore, Nexus Property Management VP/GM Gregory J. Rice said “Every time I go to Baltimore I fall in love in so many ways; with the real estate landscape that is. It is a sea of multi-family properties in the Downtown, suburban single-family rentals in areas like Columbia, Elkridge, and Laurel, and also a bustling artsy/hipster community in places like Federal Hill. It’s the perfect combination for a Nexus Property Management Franchise location. Not too mention, it is home to professional sports teams like the Orioles and Ravens, and also host to some of the country’s largest outdoor music shows at the Merriweather Post Pavillion . Also, don’t forget Domino Sugar is there too. This place is jam packed with action.”
Another great feature of the Baltimore area market is the affordability and practicality. As a Nexus Property Management Franchisee, you are also able to assist investors locate and purchase cash flowing rental properties. This is an additional income stream as you are adding more units to your management portfolio, and you are also further strengthening the relationship you have with the client. Total win-win!
Here is an example of a current property that is for sale. It is a 3 family and certainly needs some TLC, BUT, it is habitable; that is the key! You want to help folks find properties that need cosmetic repair, not structural repair. This is a perfect example:
According to the Comprehensive Housing Market Analysis for Baltimore-Columbia-Towson, Maryland report issued by HUD the average rental amount is about $1,200 per unit. Conservatively, if you rented 3 units out for $1000 a month that is a healthy rent roll that will cover all property expenses and leave your client room for profit! Feel free to use our real estate investment calculator to determine what potential ROI’s would be on prospective properties:
The bottom line with Baltimore is that it has just under 1 million people within it’s district, and as you learned before, the city has a large influx of renters compared to homeowners for the first time in its history! It has a steady, consistent employment base, high rents compared to nationwide averages, affordable properties for purchase, commercial draw, and MOST IMPORTANTLY no brokers license requirement to open your Nexus Property Management office! This is the perfect storm, and someone will be landing on a bed of roses. Will that be you?
Gregory Rice is the Vice President of franchise sales for Nexus Property Management®.
Nexus Property Management® is a National Property Management Franchise that manages all types of rental property from single family homes or condos to large apartment buildings and complexes.
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