Perhaps you live in the Cleveland area, or maybe you live elsewhere and have been considering northeast Ohio real estate investing to grow your portfolio. You may have read about the area’s thriving economy or booming real estate market. If you’re thinking of purchasing turnkey rental properties in northeastern Ohio, here are a few things to know.
Cleveland is Home to One of the Nation’s Hottest Economies
You may not realize it, but 11 companies on the Fortune 500 list are headquartered in Cleveland. These include American Greetings Corp, Applied Industries Technologies, Eaton Corp., Ferro Corp., KeyCorp, Lincoln Electric Holdings, Medical Mutual of Ohio, Nacco Industries, National City Corp., Parker Hannifin Corp., and Sherwin-Williams Co. Huge companies and a thriving economy draw a huge workforce, and that workforce needs housing. There are also 27 universities and colleges in the area. This means that whether you’re thinking of buying in Cleveland itself or simply interested in northeast Ohio real estate investing, the area has a great need for rental properties.
Steady Demand for Rental Properties is a Good Sign
The numbers show that current rental properties in Cleveland are absolutely booming. In 2017, the Q1 Downtown Cleveland Market Update showed that apartment occupancy rates in the area were at a stellar 95 percent. The average rent for a one-bedroom apartment is also on the rise, having gone up from $1,017 a month in 2015 to $1,189 a month in 2017. The explosion in the demand for urban residences has caused an increase in the number of retail stores, restaurants, medical clinics, and things like yoga studios — factors that make downtown Cleveland even more of a desirable destination for residents and visitors alike.
Understanding Northeast Ohio Real Estate Investing
To get an idea of what kind of properties will be the most desirable to potential tenants and bring you the greatest return on your investment, it helps to do your research. One useful tool is the Real Estate Trends in Northeastern Ohio report put together each year by the Urban Land Institute of Cleveland. Their 2018 edition points out that multi-family residences are doing well in terms of profitability — especially townhomes.
There are a lot of areas to consider for northeast Ohio real estate investing, whether you’re looking in Cleveland or other places. The report showed that prospects are looking good in several different submarkets for 2018. The prospects for University Circle have grown since 2017, for example. The eastern suburbs of Cuyahoga County are also doing well, as are Summit and Medina Counties. The numbers show that investors should also consider the City of Akron, as well as Lake County. This isn’t to say that these are the only areas worth investing in; some places don’t have any comparable data available from 2017.
Get Investment Expertise
If you’re new to the specifics of the northeastern Ohio real estate investing market, it’s a good idea to work with experienced professionals who can guide you to the best investments to suit your purposes. Whether you’ve been dreaming of owning a single-family rental home or investing in an apartment community, finding a good turnkey real estate company is the first step to finding the right property. Turnkey investment firms can help you find properties that are rental-ready from day one, which will save you time and money because you’ll immediately be able to install a tenant.
Work with a Property Management Company
Many first-time rental property investors don’t realize the time and energy required to become a landlord. Even if you have excellent tenants, you have to find those tenants, collect rent (and late fees) from them, as well as be on call to address repairs and maintenance issues with the property. For every property you add to your portfolio, the amount of work to be done increases.
This is why many people who enter the northeastern Ohio real estate investing market employ the services of a property management company. They take care of everything from finding tenants to handling payments and repairs — turning your investment into something that generates truly passive income. With the proper amount of research and the right people to help you out, Northeast Ohio real estate investing could be your path to building long-term wealth.