Investing in real estate in a college town is not for everyone. The positives associated with owning rental houses are significant a large, renewable tenant base, usually a stable community and a decent profit for the property owner. Many students and colleges are also scrambling to find off-campus housing as dorms are filled. However, not everyone wants to deal with students who may not have the most respect for your property.

Northeast Ohio has several college towns ripe for real estate investment. Archie Macintosh is a relocation specialist with Howard Hanna’s Aurora office and is a past president of the Portage Board of Realtors. Macintosh evaluated his hometown of Kent, the location of Kent State University.

The population seems to increase every year at Kent State. On top of this, the city has been transformed over the past several years with the intention of drawing students, their families and also the faculty to the downtown area for shopping, special events, eating, drinking and socializing. The new development downtown includes many new buildings, including a county courthouse, said Macintosh. Exciting stuff for a town of this size.

I feel that rental prices will go up here because many rental properties, including boarding houses, have been sold and razed to clear land for both the redevelopment of downtown area and the Esplanade walkway from the university to downtown Kent. All new construction of rentals is for student apartments with a couple of new ones almost always on the drawing board.

Macintosh said buying a rental property in Kent is similar to buying one anywhere: a buyer must consider location and square footage while always keeping condition and needed improvements in mind.

Gross and net income is pertinent to understand what the owner pays for historically, as some leases include heat, for instance, explained Macintosh. You can receive premium rents with a good location and above market condition. Kent is unusual because it has had restrictive zoning in place for years to deter unlicensed rentals and boarding houses.

Most city lots are on the smaller side and this makes a home almost impossible to be rezoned as a boarding house. When a true boarding house comes on the market, it normally sells very quickly. It is (also) very easy to rent a single family house that has a close location to the university, but is not located in a student dominated rental area.

Macintosh said these typical renters are grad students or KSU employees with families. Often, too, new instructors or athletic coaches rent for a couple years to get a feel for the area and their position before purchasing a house.

Other factors to consider when purchasing college town real estate for rental purposes: adequate parking, number of bedrooms and safety of the neighborhood.