Listening to BP podcast, announcing book about 1st time homebuyers.
What if there was a gov't program that allowed landlords to set aside part of a tenant's rent in an HSA-style savings acct for the tenants to buy their first home? Landlord still gets full rent but say $20 or $50 or whatever the gov't wants to support goes to a savings account.
1. Landlord gets a token amount for participating in program + gets better quality tenants.
2. Tenants have to have a clean record in order to participate.
3. It shows in real time, every single month that landlords want to help their tenants live successful lives & the gov't supports landlords in finding higher quality tenants.
The relationship between tenants & landlords is at an all-time low & the relationship between gov't & landlords is quietly antagonistic at best (Gov't literally forced landlords to subsidize tenants rather than taking the cost of this on themselves.) A program like this would help ease all those tensions, turn things around.
It looks like Path to Ownership was an attempt at this but didn't involve landlords? I took a look at their site but it didn't seem to fit what I wish was out there. If anyone has any contacts in any part of HUD, give them a nudge? Bigger Pockets community could brainstorm & outline the program in a heartbeat. We're putting our blood, sweat, and oh-so-many tears (at least I am), our livelihoods, all of it, on the line to support better housing and creating a web of mutual support... we could build that. And if it has already been built in a way that I could participate in it tomorrow the same way I participate in Section 8 / MSHDA vouchers in Michigan, let me know.
Look up MSHDA Section 8 purchase program on the web.
@Drew Sygit I have a dozen MSHDA tenants and have gotten to know it well. Not even close to what I was suggesting. I don't mean to be rude. I'll reread my post to see where I wasn't clear.
We're NOT referring to the MSHDA leasing program.
MSHDA has a PURCHASE program for S8 voucher recipients!
Thanks. I was aware of the program, but hadn't considered it because what I am considering:
1) Isn't geared towards low-income. It's geared towards everyone who is renting, whether they've owned a home before or not, whether they are low or high income. Think HSA -- that type of model.
2) The landlord is fully involved (MSHDA is program+tenant, landlord does little & isn't seen as leading the program). With what I'm talking about, the goal is to have the landlord promote their properties as "the last place you rent". If you're too deep in profit-motive you might not be able to see this, but it is in everyone's best interest to have people be more responsible with their housing. I am *not* saying that everyone should own a home. I am saying that when renters are aware of who actually owns the home, they respect their lease. It would be so much easier if the cancel rent culture faded away but no one is actually moving on it from what I've seen.
3) Something needs to be done to shift the tide of entitlement with tenants. Landlords were actually forced to subsidize other people's lives far, far beyond "that's the risk you take being a landlord". I was exceptionally lucky and none of my tenants took advantage of it, but I took pre-emptive measures and I generally have tenants who are responsible future homeowners, MSHDA & not. Note I'm in Flint & nearby, areas that are some of the highest risk for evictions. I have seen there is a way to handle this so we can get back to the days of what it was like when Bigger Pockets was first started. Maybe I'm wrong? But it seems like we're going the wrong direction.
In case this helps with perspective -- I briefly started doing videos about what it's like to be a Philanthropic Landlord, but if there's not a single person on Bigger Pockets who gets this, then the market definitely isn't ready for it / may never be. There's an opportunity to create mutually beneficial relationships here, not just cash cows that are bad for people's quality of life.