Seeking Creative Solutions – Below-Market Rent with Elderly Tenant (Oscoda, MI)

[Jim Cantrell]

Hi BP community,

I’m hoping to tap into the collective wisdom here for a situation I’m facing with one of my rental properties in Oscoda, MI.

I own a 3 bed / 2 bath single-family home free and clear. It’s currently being rented to a long-time family friend for $400/month. There’s no formal lease in place, and the rent is significantly below market—comps in the area suggest $1,200–$1,800/month. Between taxes and insurance, the rent barely covers carrying costs.

The tenant is elderly, lives alone, always pays on time, and is very easy to work with. Unfortunately, she’s on a fixed income and can’t afford a rent increase to market value. I’m not comfortable displacing her, as she has no family and would likely face serious hardship or even homelessness. At the same time, I’m trying to make this property work financially—either through reasonable cash flow or as a potential sale, but I realize selling might require her to vacate as well.

I’ve started looking into the Section 8 / Housing Choice Voucher (HCV) program as a possible solution. We’ve begun the process, but it appears there are no open vouchers for our region. From what I can tell, Northeast Michigan is severely underserved in this area, which limits that option for now.

I’m reaching out to see if other landlords—particularly those familiar with Michigan or similar rural/small-town markets—have navigated a situation like this. I’d love to hear:

• Any programs or subsidies that might help her pay more in rent

• Legal considerations I should be aware of if I try to formalize the lease at a reduced rate

• Creative structures you’ve used to balance compassion with the financial needs of your rental business

• Any experiences working with local nonprofits or Section 8 for tenants already in place

I’d really like to find a win-win if possible—keeping her housed while finding a way to make the numbers work. Open to any thoughts, resources, or even creative deal structures I might not be considering.

Thanks in advance for your time and insight.

With Honor,
Jim

Veteran Renovations

[Drew Sygit]

1) - get her on a MTM lease!
You have so much potential exposure w/o one!

2) How do you know what she can afford?
- Have you gone over her bank statements to see actual income vs expenses?

3) Can she qualify for foodstamps or utility assistance porgrams?

4) Advertise for two roommates!
- 3 tenants each paying $400 = $1200/month!