Looking for a new project that could generate a steady stream of income on the side? Consider becoming a landlord of a rental property here in Akron. Close to 40% of Akron’s population rents rather than owns, which makes Akron an interesting place to consider an investment rental property.
With its very affordable cost of living and housing options all throughout the city, Akron’s a great place to pick up a property; the housing market is hot, with many homeowners choosing to sell. Buying a house with the intention to rent it out could be a great investment for the future.
Why rent out a house?
Apartments in Akron usually rent out for $500 to $1000/month; many of the houses on the market have competitive monthly mortgage payments, and can offer more.
A home can offer extra bedrooms, a nicer kitchen, and some additional green space over an apartment. Renting a home provides more privacy for the renter, and often comes with parking and garage advantages as well over an apartment. For someone new to the landlord experience, one house is much easier to manage than a collection of apartments, as well.
How can you protect yourself?
Buying a home with intention to rent brings more risk to the table because renters are an unknown variable. Make sure you have a good lease document in place which explains to renters what may be different between renting a home versus an apartment.
Be sure to protect yourself financially from poor tenant habits by ensuring rent money will be in your account even if your tenant stops paying.
Understand how an eviction would work and prepare properly for that worst-case scenario.
What is it about Akron?
The University of Akron is growing its nontraditional offerings, which will bring in older students who may want the space and privacy a house offers over the crowded atmosphere of an apartment complex.
The local farmers markets and crafting scenes are bustling, providing new opportunities for self-employed entrepreneurs, but they’ll prefer the larger space a house offers to have room for their crafts and products as well as a place to run their business.
Who to look for?
To differentiate from the apartment rental properties, or from University of Akron’s undergrad student housing, a house for rent would be a great opportunity for a grad student or a new employee having recently moved.
Consider targeting renters with pets, for whom a home may be a lot more convenient than an apartment. Older renters with children may sound like an accident waiting to happen, but often prove to be more stable, long-term renters.
For someone looking for a change-of-pace, who knows the Akron area well and has a good conceptual understanding of the real estate market, buying a home for renting purposes could be a great investment. If you can manage the duties of being a landlord, having that rental income as a guarantee for years to come is a nice thing to think about.