It is a function of limited supply and steady demand (some would say increasing demand). 

The other side has someone in the apartment and has only been able to attract a rotating group of young adults.

And as unfortunate it is that they are now charging the fee, it  will just be a function of turn-over costs for me

We struggled with finding the latter, so we ended up bringing that function in-house.

If the property is priced right in a good location and the rooms are about average size with a functional layout you may find the property is easy to rent.

I'm surprised to hear you passed a Section 8 inspection with non-functional fire system.It's your responsibility as a buyer to investigate what you are buying.

If you provide individual refrigerator units you will require them to keep running on minimum setting even if the room is vacant to keep them function, it can result in extra utility bill plus you will be dealing with more equipment maintenance in case of breakdowns. 

To me it’s just always hard to justify ripping out good functional stuff in rental properties just because it’s ugly.

They want a safe, clean, functional home for a fair price, to be treated honestly, responsive maintenance, good communication, and to be left alone.

Then move to an Apartment.[ my concern with this option is that because the house is so big and the layout not really functional for a rental or airbnb, I dont really know if renting this place will work unless I did a major rehab.