Is Ohio a landlord friendly state?

27 Replies

I'm currently looking to buy a multi family property(10 or 20 units) out of state to get some better cash flow.  I was thinking about Ohio.   After some quick google searches Ohio isn't coming back as one of the top land lord friendly states.  Should I avoid Ohio for this reason.  Are there any tough tenant friendly laws I should be aware of.  is it tough to evict? etc. Any experience here. 

   Thanks!

Ohio is good! Also, since you’re considering Ohio the Akron and Cleveland markets are great too!

the laws are online. Easy to look up. I think ohio is one of the more landlord friendly from my experience. 

Ohio is actually a great place for out of state investors to purchase. When you hire a property management team like us, we take care of all of those things so you don’t have to. We make sure that owners stay compliant with state and city legislatures so that the eviction process is a breeze. We also represent you in court. Many investors are taking advantage of the high return markets in the Akron, Cleveland areas right now.

Originally posted by @George Loveless:

I'm currently looking to buy a multi family property(10 or 20 units) out of state to get some better cash flow.  I was thinking about Ohio.   After some quick google searches Ohio isn't coming back as one of the top land lord friendly states.  Should I avoid Ohio for this reason.  Are there any tough tenant friendly laws I should be aware of.  is it tough to evict? etc. Any experience here. 

   Thanks!

 Overall the state of Ohio is pretty landlord friendly. However after the death of Cleveland Housing Court Judge Raymond Pianka (RIP) the city of Cleveland's housing court has taken a much more tenant friendly stance on a lot of their cases. The attitude in the courtroom was literally an overnight change after his passing.

Pretty good for landlords long as you play by the rules. You need to have your investment registered with the city. Don't try to be smarter than the city and not pay the license fee else you won't even get through the court doors.

Thanks for all the replies.  @Mark Ferguson : Do you know if there is any special city or state rent taxes as well ohio?  I hear that the city or the state has some special taxes.   @Brandon Turner may know.

@James Wise : thanks for the information on the housing judge. Any Particular cases we should know about?

@Shannon Collins , yes, it appears there are more listings in Akron and Cleveland. I'll probably start looking there.  Thanks!

Originally posted by @George Loveless:

Thanks for all the replies.  @Mark Ferguson : Do you know if there is any special city or state rent taxes as well ohio?  I hear that the city or the state has some special taxes.   @Brandon Turner may know.

@James Wise : thanks for the information on the housing judge. Any Particular cases we should know about?

 Evictions are still pretty simple. However security deposit disputes are considerably more tenant biased now. What the court now considers normal wear & tear is pretty astounding.

Hey @George Loveless Ohio is a great state in invest in. Lots of different opportunities and a lot of buzz around Cleveland, Akron, Columbus and Cincinnati make it easy to get a great understanding of these areas. These areas have heavy rental markets so there is always some inventory and it is easy to sell and exit if you wish to. I know of several 10-20unit in the Cleveland area that offer great cash flow and a good tenant base. One thing Ohio is well known for is lots of cash flow. PM me if you want to talk more.

@Bryan Blankenship does Turnkey Real estate In the Cincinnati, Dayton Market and may be able to give some good info on this. He has helped me a ton on better understanding our local markets and returns.

Cincinnati, Ohio does not have any extra rent taxes.  The state also does not have any taxes specifically towards rent.  

Special rent taxes. What are these ? Also some one said you have to have your investment registered, does that mean a certificate of occupancy? As far as landlord friendly what kinds of things do you look at in that kind of category? 

@George Loveless if you'll be buying from Utah and hiring a local professional management company for your Ohio properties, I'd suggest spending a lot of your time looking for good managers and letting them tell you how evictions are handled. Plus, tenant screening may be even more important that the state's eviction laws, since the goal is to get the right tenants in the property in the first place so that you have to evict as infrequently as possible. That again leads me to concern myself more with the management than the state-specific laws. But from what I've heard about other states, Ohio is pretty landlord-friendly.

If you're looking for PMs in the Greater Cincinnati area, I'd be happy to send you some of my contacts. Let me know!

Thanks for the mention @Darren Mullins !

He's right, we love Ohio Landlord Tenant law overall.

As @Slocomb Reed mentioned, it's far more important to find a great PM company.  We've been through 6 including the larger names and most of them suck royally.  

Originally posted by @George Loveless:

Thanks for all the replies.  @Mark Ferguson : Do you know if there is any special city or state rent taxes as well ohio?  I hear that the city or the state has some special taxes.   @Brandon Turner may know.

@James Wise : thanks for the information on the housing judge. Any Particular cases we should know about?

 Sorry for the late reply I was on vacation. I am not that familiar with Ohio. Even though I have a property there. lol

Does anyone have a list of the good zip codes to invest in with safer and higher returns? Also, which are the worst and unsafe zip codes in the Cleveland, Cincinnati and Akron areas

Originally posted by @Joshua Ryan Meador :

Special rent taxes. What are these ? Also some one said you have to have your investment registered, does that mean a certificate of occupancy? As far as landlord friendly what kinds of things do you look at in that kind of category? 

In Columbus, you have to register the rental property management contact with the city (its just a form you fill out) and pay I think $50/year. Maybe its $100. 

We had so many blighted properties with nobody in-state minding them, the city set up this registry so someone can be called if the property goes bad. 

I don’t think you can narrow down Cincinnati by zip codes and more have to focus on the area as some zip codes can have a variety of areas.  Depends on what you are looking for.  

Originally posted by @George Loveless:

I'm currently looking to buy a multi family property(10 or 20 units) out of state to get some better cash flow.  I was thinking about Ohio.   After some quick google searches Ohio isn't coming back as one of the top land lord friendly states.  Should I avoid Ohio for this reason.  Are there any tough tenant friendly laws I should be aware of.  is it tough to evict? etc. Any experience here. 

   Thanks!

 I always say it is in the middle but leans towards Landlord. It just depends on the are you invest in. The city of Cleveland is going to be much different than the city of Euclid or Bedford. 

George Loveless , in terms of any special taxes, there is something called Regional Income Tax Agency in the NE part of the state. Here is the current list of cities:

http://ritaohio.com/Municipalities

I am rather sure that the list has only been expanding over time.

As a person/entity who earns rental income in any of these jurisdictions, you are required to file a return not only for the state, but also for RITA. There may also be other specific requirements for rental properties in some jurisdictions - the list is clickable for more info on each jurisdiction.

I do not have local PMs, but would expect them to know all the nuances. I have a friend who bought multiple properties in various Cleveland suburbs, and the agent, the broker, and the title people were clueless about RITA. But the word is spreading, at least by me.

@Al D. ,  Thank you, I heard there was something but didn't know exactly what it was.  Good to know.

@George Loveless

I will "second" what others have said about Cleveland. I invest in mainly small multifamily out there and I live in California. Cleveland is MUCH more landlord friendly than California....unfortunately I had to evict a tenant in Cleveland because she wasn't paying....started the process in December and they were out in January....If I had started that with one of my California tenants in December they would still be in the property.....even WITHOUT paying

@ Brian Garlington 

 You say you have some properties in my area. How long did it take you to do some research before you bought in the city. Also if you don't mind, where is your preferred area? Thanks in Advance

@George Loveless Thanks for posing this question. I too am interested and looking into Ohio area. Already started a couple brief discussions on it with some turnkey providers, but would like to get as much research done as possible to understand the markets there. Great information here so far. First time hearing about the RITA thing mentioned by @Al D. Something more to add to the equation for cash flow and extra work to file that as well.

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