First time posting for some feedback but I figured I needed to get active. I'm looking at purchasing and renting a property to a not-for-profit agency that works with chronically homeless and mentally disabled people. The agency would take care of the rent, and they have people from the agency visiting the tenants on a regular basis (multiple times per week if needed). What are some things that I should be weary of and does anyone else have experience renting to similar agencies?? Thanks in advance!
Some additional info that I forgot, I've located an acceptable house that will cost 35k, they will rent it for 955/mo. I'm responsible for utilities and trash, which equates to $250/mo.
I'm jealous that you can find a house for 35K that will rent at 950... In my area that would be at least 85k. Good luck!
just a thought utilities could run a lot more
Social services agencies like these try to make a point of making group homes fit into the neighborhood as much as they can. They want their residents to feel at home. So you shouldn't (theoretically) have to think of this property differently than any other you might rent out.
But some things that may be different are related to increased traffic. If they have multiple residents, including employees and therapists who work with the clients you could have multiple cars on site. Would that be an issue at that location? Is there room to park? Would the neighbors be likely to complain? Also because of the "internal traffic" meaning more people coming and going, residents, relatives, etc. some things may wear out quicker. For instance more food that could be lying around if they don't clean up well, doors would be opened and closed more often, dishwasher and laundry machines would be run more.... More use means they may need to be replaced sooner. But aside from those two things (traffic outside and wear-and-tear on the inside) it really shouldn't be much of a difference.
The neighbors are going to love you . When I was looking to move to a better school district , I found a great deal in a great neighborhood , I was ready to put in an offer so I went back to check out the house and a neighbor told me of the house next door , that was similar to what you described . Wouldnt touch it with a 10 foot pole . That house stayed on the market over 1 year .
Thanks for the input everyone. The house ended up being sold before I could finish my due diligence on the property. When looking into it further the house turned out to have been previously zoned as occupancy prohibited, which I hadn't run into before. I ended up having to submit a freedom of information act request to find out why it had been zoned that way and while I was waiting for the information to come back the house went under contract. Chalk it up to a new experience and keep looking I suppose.
Occupancy prohibited? Did you find out why yet?
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