The best part of being a landlord.

[Ken Virzi]

All my units are in class C areas, and one is closer to C-/D+

As I rehab and fix up properties, it is nice to help out the neighborhood, hopefully provide good housing for those who often get overlooked, and help individuals and families as you go. In my less desirable areas I tend to get a lot more applications from those who are struggling in some way or another. They just went through a divorce, they have a felony on their record, their credit sucks, they a section 8 single mother of 5 kids. Watching people in similar situations have a hard time finding a safe and honest place to live, and getting taken advantage of with overpriced short term situations, they have an even harder time pulling themselves of the lack of savings and building of credit. 

It is always a risk, and it can definitely come back to bite you, but when I get to have a conversation with a guy who is really trying to rebuild his life, has the income to pay the rent, but maybe has a few past mistakes that he is still paying for years later, or a section 8 condo with a woman who has too many kids in a market where the demand greatly exceeds the supply, I know she would have no where else to go if I kicked her out. 

There is a real humanitarian side of being a landlord, a real ability to help people, to get them back on their feet or to give them a place to raise their kids in a safe and clean environment. I know we are not running charities, and we do this for investment and cash flow reasons, but I also know many who do not take in as much rent as they possibly can, or who build relationships with their tenants, etc. We hear about the dark side of real estate investing, and the dirt landlord or even slumlord stories are a plenty. But I also know there are plenty of great landlords and tenants who sing their praises. 

When I invest in stock I have no personal connection to actually helping someone, but in real estate this is so tangible and it is an often not talked about great part of owning rentals. 

[Nathan Gesner]

I highly recommend you read the book, "Evicted: Poverty and Profit in the American City" by Matthew Desmond. I'm half-way through it right now and - whether the author intends it or not - it speaks directly to this issue.

The author follows eight families in low-income housing. Without exception, these tenants make bad life choices every single day that keeps them in poverty. When the Landlord tries to help, it only serves to kick the can down the road. These people don't need opportunities! They need to make the very personal decision to seize the opportunities already available to them that will move them in a different direction.

At the same time, the book shows Landlords that are sometimes tough, sometimes soft. In fact, I would classify them as "wishy-washy" and believe their lives are significantly harder because they can't stick to their own agreements with the tenants. One minute they allow rent to be late in an effort to help their tenant; the next minute they are evicting the same tenant for being late. One tenant is allowed to be two months behind while another is served eviction the first month they pay late. 

My point is that you can't be a good Landlord and operate a charity at the same time. It's like water and oil and trying to mix them will only create frustration. If you really want to help people, run a fair, honest, legal business. Then use the money earned to set up a separate charity. I've given money to the local church for their benevolence fund, which helps people struggling to pay rent. That enables me to give someone a hand up while not interfering with my ability to operate the business.