The housing market in Toledo, OH has been notoriously inexpensive for decades. After the mass exodus of industry from the midwest, Todelo, and other Great Lake Cities (most infamously, Detroit), the population in the region declined, and subsequently, so did property values. But did you know that it’s a fantastic rental market? If you’re looking to invest in real estate, you need to focus your search on Toledo, OH.

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Landlords in Toledo, OH are getting average rent rates that generate upwards of 10% returns, and that’s before appreciation is taken into consideration. Here’s what you need to know about buying house rentals in Toledo.

Affordability of Toledo, OH Rental Properties

One of the main advantages of buying rental property in Toledo is the affordability of real estate in the area. Although the current median home price in Toledo is approximately $100,000, which is significantly lower than the national average, rental properties can be purchased at a much lower cost. So for the same money that an investor can buy just one home in other regions of the country, they can buy several in Toledo. The most significant benefit of multiple rental properties versus one is diversification. Instead of having just one income stream, you have several. That means that when a lease expires, and a tenant vacates, there’s still income from another property. Alternatively, Toledo is the perfect market for new real estate investors who don’t have large budgets. It allows them to buy rental homes within their budget.

How difficult is it to buy a rental in Toledo, OH

How difficult it is to buy real estate in Toledo will always depend on the real estate market conditions. For years, the Toledo market was a buyer’s market, but with increased investor demand, it can be a little more challenging. Investors should be patient and considerate in their search and look for single-family homes that are located in areas with good middle schools and high schools. Also, consider square footage and how many bedrooms the asset has. With digital accessibility, you can browse rentals online and even take virtual tours without leaving the comfort of your home.

Average rent rates in Toledo, OH are low but returns are HIGH.

The average rental rates on OH houses are low, and Toledo is exceptionally affordable compared to other cities in the United States. According to Zillow, the average rent in Toledo is $900, which is significantly lower than the national average. However, it’s important to note that rent in Toledo varies depending on the neighborhood. Some areas of the city may have higher rental rates than others due to factors such as proximity to amenities or demand for housing. Overall, while rental rates in Toledo are low, they are still high when compared to the cost of houses in the area. That’s why investors are earning such unbelieveable returns.

Toledo’s hottest neighborhoods.

Toledo, OH is a vibrant city home to various neighborhoods, each with its unique character and charm. Among Toledo’s most popular and well-loved neighborhoods are Westgate, Deveaux, Ottawa Hills, and Maumee.

Westgate

Westgate is a neighborhood on the west side of Toledo, OH. It is known for its beautiful homes and tree-lined streets, as well as its proximity to various shopping and dining options. Westgate also has the Westgate Park, which is a popular spot for outdoor recreation, including walking, biking, and picnicking.

Deveaux

Deveaux is another popular neighborhood located on the west side of Toledo, OH. It is known for its beautiful homes, many of which were built in the early 20th century, and its proximity to the University of Toledo, OH. Deveaux is also home to DeVeaux Woods State Park, a beautiful park offering hiking, fishing, and other outdoor activities.

Ottawa Hills

Ottawa Hills is a beautiful and affluent neighborhood in Toledo, OH, that is known for its large, beautiful houses and tree-lined streets. It is located on the west side of the metro area and is home to various parks, including Jermain Park and Ottawa Park. Ottawa Hills is also home to the Ottawa Hills Local Schools, which are consistently ranked as some of the best schools in Ohio.

Maumee

Maumee is a historic neighborhood in Toledo, OH, that is located on the Maumee River and has emerged as a great rental market. It is known for its beautiful houses and historic buildings, as well as its proximity to a variety of shopping and dining options. In addition, Maumee has Side Cut Metropark, which is a popular spot for outdoor recreation, including hiking, fishing, and picnicking.

Is it easy to rent out a property in Toledo?

Toledo has a high percentage of renters compared to homeowners, with around 44% of residents renting their homes, meaning that there’s considerable demand for rental properties, and this demand is projected to continue growing. In addition, rent in Toledo, OH is extremely affordable, so many residents choose to remain long-term renters instead of buying. If you want to rent a house quickly in Toledo, the best option is to have your listing with a property management company. They know the right rent price, how to create a web experience, and where to reach tenants.

Find the right tenant in Toledo.

But renting out a house requires more than just finding someone that is happy to sign a lease. Investors need to carefully vet rental applications. The type of tenant you find for your property can make a massive difference in your experience as a landlord and the return the property delivers. First, it’s critical that the listing clearly discloses the property’s highlights, including nearly elementary schools, the size of the property, finishes, and if it’s pet friendly. Then, you need to ensure you ask the right questions to ascertain if the individual will fulfill their tenant obligations. The last thing you want to happen is to end up with a tenant who you have to follow up each month to pay rent or who causes damage to your property.

Property management takes the stress out of Toledo rental homes.

Hiring a reputable property management company in Toledo, OH can help you maximize your rental property return. They know the market for rent in Toledo OH, how to search for tenants, and are continuously working to manage your asset for the best performance. While property management incurs an added cost, the extra can alleviate stress and get the best rent. Whenever there’s an issue with the home, instead of contacting you, tenants can email property management for repairs.

The best type of rental properties in Toledo, OH

When buying rentals anywhere in the country (including Toledo, OH), whether it’s a new home or apartments, you want to look for properties that are desirable to renters. Start by searching neighborhoods with good amenities and properties at the right price for your budget. When it comes to finding a rental property, there are several things that renters look for – from comfortable finishes to easy access to work, renters want a property that suits their lifestyle and needs.

Couple in the kitchen

Comfortable finishes

One of the first features that renters look for in a property is comfortable finishes. This includes things like hardwood floors, updated appliances, and modern fixtures. A property with comfortable finishes looks not only great, but also makes daily life more enjoyable. Renters want to feel like they are living in a comfortable and welcoming space.

Enough bedrooms

Another crucial factor that renters look for in a property is enough bedrooms. This is especially important for families or roommates who need their own space. An apartment with one bedroom will only suit individuals or couples, but a single-family home with three bedrooms will suit a wider variety of households. Having enough bedrooms that tenants can live comfortably and without feeling cramped. Renters want to feel like they have enough space to move around and make the property feel like their own. Having two to four bedrooms in a rental home will encourage longer tenancies and promote lower vacancy rates.

Easy access to work

Renters search for properties that offer easy access to their place of work. This can mean a short commute or convenient access to public transportation. Renters want to get to work without having to deal with long and stressful commutes, and many are willing to pay more for this amenity. Easy access to work not only saves time but also helps renters maintain a good work-life balance.

Good education programs

When it comes to choosing a place to rent in Toledo, many individuals with children prioritize proximity to good education programs. This often means being close to reputable elementary schools, middle schools, and high schools. Parents want to ensure that their children receive a quality education, and being in close proximity to good schools can also save time and hassle when it comes to drop-off and pick-up schedules. Additionally, being near good schools can add value to a rental property and make it a more desirable location for families with school-aged children. Overall, proximity to quality programs is important for many renters, particularly those with children.

Signing a contract

Toledo, OH, is a fantastic rental market for real estate investors who want high cash returns and a solid rental market. The housing market is affordable, with median home prices at around $100,000, making it possible for investors to purchase several rental properties for the same amount of money as buying a single property in other regions. While the average rent is low, it still offers an outperforming return for investors.

Oz Realty will help you maximize your Toledo investments.

Toledo, OH, offers an excellent opportunity for real estate investors looking for affordable rentals with high returns. If you want to make the most out of your Toledo investment property, work with a local property management company that understands the market. Oz Realty has been helping investors secure great tenants and maximize their rental property returns. For more information about how Oz Realty can help you level up your real estate investing, get in contact with one of our experienced property managers today.

About the Author

Kelsey Heath

Kelsey Heath is a real estate content specialist with an extensive background in residential, industrial, and commercial property. She has been involved in the industry for a decade as a professional and personal investor, gaining a deep understanding of the market and trends. With a passion for written communication, Kelsey loves helping people understand the sometimes-complicated concepts behind real estate and is now a sought-out guest and ghostwriter.

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