GoodRents is a Los Angeles-based company that acquires, rehabilitates, operates, and sells rental properties in Cleveland, Ohio.
GoodRents has established partnerships with contractors, leasing agents, realtors, long-term debt providers, wholesalers and vendors such as appraisers, inspectors, contractors and various sub-trades in Cleveland which allow us to quickly acquire, rehab, and stabilize properties. Additionally, we have partnered with a Cleveland-based property management company that handles leasing, unit turnover and rent collection.
GoodRents has built a social impact strategy directly into our operations to ensure that our investments are creating pathways to prosperity for hardworking low-income Clevelanders, in particular the Black community. Our goal is to use real estate as a vehicle to create value and recycle that value in the communities where we operate in order to counter decades of disinvestment in marginalized people and communities.
GoodRents sets aside 5% of gross rental income into a down payment assistance fund for each tenant, which can be used by the tenant to purchase the property back from GoodRents if and when the tenant is able. According to rent-to-own calculations on existing investments, a tenant will accrue 3-5% in down payment funds after 3-5 years living at the property. Through either an FHA loan or our lending partners, the down payment assistance may be enough for the tenant to purchase the home outright. If tenants can afford to pay $900 per month in rent, they can afford the $350 per month in principal, interest, taxes and insurance as homeowners. The GoodRents model is designed to address the main barrier to purchasing a home: access to down payment funds.
If the tenant does not elect to purchase the property from GoodRents, the 5% fund is transferred to our nonprofit housing assistance partners in Cleveland for down payment assistance to their own rent-to-own residents. In doing so, a portion of the value created by our project will continue to directly assist low-income tenants in purchasing their first home and build equity and generational wealth for their families. GoodRents seeks to create paths to homeownership for hardworking people who have been systematically excluded from homeownership.
If you’d like to partner with GoodRents, please use the contact form to get in touch!