Low Income Rentals. Do you like them?

[Jordan Moorhead]

So in October I bought a low income rental in and ok neighborhood. My other rental is in an attractive neighborhood in Minneapolis and has been a breeze. This low income rental has been quite a bit more work. It’s going well now but I probably wouldn’t buy something in this type of area again if I have to manage it. What’s your experience with low income rentals and why or why do you not like them?

[Denise Brown-Puryear]

@Betinna F.

Over the years, my rentals have primarily been the "working poor and those with moderate incomes in Brooklyn, NY and now in North Carolina.  I've never rented to Section 8 or any other programs, although I've recently have looked into it.  

However, I LOVE my working class rentals and have always  had long term tenants.  The key to finding "good" tenants regardless of income levels (because even high income earners can be more of a headache at times); is thorough screening (background criminal check, credit check, skip-trace check, housing court check) as well as reviewing bank statements, check stubs, 2 previous employers, references, previous landlords (at least 2) and where needed, personal guarantors.  In addition, I conversationally interview them indirectly and I guess because I've been doing this for over 30 years have developed an instinctive sense abount a prospective tenant.

I do put a little more into my properties than most would.  But my maintenance is very little if at all.  No problems.  I maintain a high standard and that comes across to my renters.  In 30+ years I've only had to do 2 court evictions.  Yes, I've had slow and late payers, but they would "always" let me know in advance that there would be a problem and always would get back on track with no future problems.  90% of my renters are and have been long term (3+ years).  

I look at the business of landlording as a service business.  I have a product that I provide which is a need for good, decent and affordable housing.  This approach has been a blessing to myself and my tenants alike.  I truly enjoy this business!