Can this be true?

Question

My son purchsed a 3/1 fixer upper in September.  It is only 864 sq, feet [ plus a sleeping porch off the back]but we have been busting our butts turning it into a little gem. New appliances,new countertops, new windows, paint,refinishing hardwood floors, installing a beautiful backsplash, new doors, landscaping, etc.

The plan is to eventually make it a home in an Autistic community we are putting together.  In the meantime, he will be renting it out [ two to three years] We realize it is a low income home and despite all of the work to make it a beauty, my son has no problem with receiving a low rent.

We have met a couple of the neighbors.  They loved the house.  My husband mentioned that my son was most likely going to rent it section 8 so that poor people could live in a nice place.  We were told that we should have no trouble renting but not to people with section 8 vouchers because section 8 voucher holders could live wherever they want and would never even look at a house this small or with only one bathroom.[ oh, and not terribly high ranking schools]

Is this true? I mean, this house is on the way to being adorable, but it is not good enough for people who receive assistance?

We really believed that by renting section 8 we would be answering some poor persons prayers.

Michele Fischer · Answer

Vicki, I rent in the space you are in.  You may want to look at my profile, blog posts, and podcast.  We have one bedroom rentals with very low square footage where section 8 tenants would not want to live.  We don't rent section 8, we rent one step above homeless shelter.  I'm sure you'll have no problem renting it, there is a need for small but functional housing even if it doesn't appeal to section 8.

I'm also pretty sure you will be taken advantage of if you don't get a great property manager or get educated about low income landlording pronto.  Your desire to answer prayers and make the world a better place are very noble, but many of your applicants will be giving you a believable sob story when really they leave a wake of trashed houses in their past.  You have probably spent more time and money in this rehab than the low income tenants have the capacity to take care of.

How many people are you willing to live in your house?  Pets?  What's the highest deposit you can charge in that neighborhood?  How much income are you expecting, and for how long?  I'd recommend setting rent a little above market and having really solid rental criteria.  Write down on paper what you want and don't want before advertising it, and stick to it.  You can also approach other non-profits that help with housing to work with them - vets, rental assistance, parole, etc.

Wishing you the best of luck, I'm happy to help as I can.

Arlan Potter · Answer

I have one section 8 house. The tenant is not my worst, but close, keeps a bunch of dogs. Now has her ex back in town. Also has her son and his significant living in the small two bedroom house.  That is four people in the house -all getting some form of government assistance, and subsidized rent. (I wouldn't be surprised the weenie dogs are also getting a govt check each month)

If I wasn't such a bad landlord I would have evicted her years ago, but I was generous and let her move in and she got the house approved for s8. I do like getting auto payments every month but could rent the house for more on a market rent.

You might think that section 8 helps people, but in truth it gives people an excuse to stay poor, keeps them in poverty and always will. Our federal government is determined to keep the poor POOR.

Mike Jones · Answer

You're in the business to make money, not answer prayers right? IMO many S8 renters thrash your house pretty good so you might not want to fix it up too pretty but maybe you will find one that doesn't want to treat your rental house like a rental car, doing donuts, pulling the e-brake, neutral drops...

Hattie Dizmond · Answer

@Vicki Gleitz The reality is that most of the time a 3 bedroom is going to attract a family.  Families are generally worried about things like school quality.  864 sq ft is also extremely small for a family home.  My last apartment was only 2 bedrooms and it was 990 sq ft.  It isn't about the house not being good enough for any particular person.  It's about whether the house meets the needs of the people who are looking.

On the other hand, even with the Housing Choice Voucher program, there are people who need to be in certain neighborhoods and areas.  There are people who may find this house fits their needs perfectly.

Think about this...  I was single, no children, 3 dogs and a cat.  I was renting a 4/3/2 at 2,800 sq ft.  Did I need 2,800 sq ft?  Heavens no.  Did I need 4 bedrooms or 2 eating areas or 2 living areas?  Not only did I not need them, I didn't even want them.  What I needed was a big yard and a landlord who didn't have an issue with my furry children.

You are going to be the answer to someone's prayers.  They may not be Sect 8, but they are going to need exactly what you have to offer.  Don't let the Negative Nellies get to you.

Michael Herr · Answer

I had a Section 8 applicant call me up and decide not to look at my rental because it didn't have granite countertops.

That being said, are you putting stock in things neighbors have said about section 8 tenants?

Was one of them a landlord or had any basis for thier claim? My guess is they would just rather not have a section 8 tenant for a neighbor.

Are there better areas of town where landlords are looking for section 8 tenants? If so,  the neighbors might be right.

Matthew Paul · Answer

i did that back in my 20's in a rental car , I practiced doing J hooks in a ford fairmont . It was fun .

Dan DeMott · Answer

@Vicki Gleitz ,

Your energy and passion comes through in your post and I hope you will share some photos of the home when finished.

My personal advice, don't be too concerned with section 8 or not. If you're improving a property in a rough neighborhood, you're creating a great home for somebody. I would advertise the property widely, and encourage neighbors and churches to refer potential tenants. You never know where the perfect tenant will come from.

Lastly, while I truly, truly appreciate where your heart is. I must suggest developing prudent tenant screening criteria and sticking to it. In these markets, you will hear many stories and excuses for bad rental history. You deserve a tenant who is as honest and thoughtful as you are, and screening criteria will help you make that decision objectively.

Good luck, and please keep us posted.

Vicki Gleitz · Answer

Oh, and Hattie...I initially misread your last name as Diamond.  Quite fitting in my opinion.

Vicki Gleitz · Answer

Thank you for all of your responses.  I guess I didn't realize how small 864 sq feet is.  Probably because I am a little old lady who owns a home, but lives in a tiny travel trailer in the mountains [at a nudist club.  My back yard is about  160 deer filled acres, and I can always use the clubhouse] with husband and youngest son.

Also, as an Autistic, [BTW, proud to be one] when I learn something, unless it becomes a "special interest," [and then feel compulsed to learn everything on a subject] I tend to believe what I was initialy taught years ago. So to me poverty meant rats and filth, and slumlords and no hot water.  So now, I have received a 50 year update.

So,  I just did a little bit of research  on section 8 and discovered that most low-income people are not on the program.  And many do live in bad conditions that rent for too much. I think that many of them will be happy with a tiny, cozy,beautiful,[ did I mention 2 of the windows still contain original craftsman style stained glass and we are repairing some incredible moulding] and clean home at a good price.

I do not believe that there has to be a choice between making money and helping to answer prayers.  If I DID have to make a choice, it would be the latter.  I know this for a fact because we used to have a lot of money. We spent it all over a period of 7 years keeping youngest son alive.  That was actually a tiny price for my sons' life.  Now he is planning, despite severe disabilities, to be a millionaire by thirty. And then,  living humbly in an intentional Autistic [and other neuro differences] community that he and his family prayed for and helped establish.

Can this be true?

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