First of all, with this post I do not intend to project any disrespect for any LL here that may be considered by their peers to be a slumlord. In the last 16 years, I have actually gained a lot of respect for the LL's in my town who own/manage rental properties in mostly Class D and F neighborhoods.

The reason I am posting this is because I have 2 properties in a Class D hood (I have tried selling them but I can't get any serious offers) and thus if I am going to continue renting/managing these houses, it may be in my best interest to change my Class A/B tenant management style over to the way most slumlords manage their D & F properties. Most slumlords that I know (locally) do only minimum repairs , offer no frills, and are willing to rent a house that is filthy and reeks of dog/cat urine. Their management style says "If the tenant wants a clean and sweet smelling house, they will clean it themselves." We will even give them the cleaning products at move-in too, but of course,...they never get used.

Now, for anyone to fully understand what I am talking about here, you would need to have extensive experience managing Class D and F tenants which in my opinion would include the Section 8 tenant pool also.

So, if you have any experience with Class D & F tenants and would not mind coming forward here, I would like to learn from you. My current management style works just fine with A, B and C tenants, but with D & F tenants (a different breed here), I may need to make some changes.

I wouldn't change my management style and would expect a "higher class" (so to speak) of the Class D and F tenant pool. Those who may have the ability to get to the Class C and D if you know what I mean.

If they continue to ruin your property then I would probably just hold out, do monthly inspections and only do month to month. It would mean a lot of work on my end and I would hate every minute of it. So to me - I'd probably end up selling it or just cleaning it up enough to then do a "rent to own" situation.

My attorney wouldn't like it but I don't know what else I would do.

Jonny,

It is difficult for me to explain (here) the psychological mindset or behavior patterns that is common among the poorly educated, ignorant Class D tenant pool which is what you find when you advertise a rental in a Class D hood. 90% of this tenant pool lives primarily on the government dole (welfare, SS, food stamps, SSI, disability, etc.) If a Class D tenant has a job, it usually the type where cash is paid under the table. That same cash gets offered to me when the rent is due and me trying to get these people to do direct deposit (Zelle) is next to impossible. The only way to get my rent paid on the 1st or the 3rd, is to pick up the rent at their door in person. Slumlords do not seem to mind doing this. It is what it is.

Ken,

Thanks Ken for that Cream of the Crap remark,..your choice of words is priceless.

I had a couple in a D neighborhood. It was right on the edge, the next block over was C and a few blocks the other way is one of the worst in town. I sold them a few years ago because, while they produced a pile of cash each month, managing this pool of tenants is time consuming.

I didn't do anything different than at my other units. I did have a little looser selection standards. For example, I normally require 2 years of stable employment. For this crowd I went down to 6 months. I never accepted government doles (S8, etc) those bring their own set of hassles dealing with government bureaucracies and entitled tenants. I also got a higher deposit (1 month rent VS .5 month rent on others). That tended to weed out a bunch of deadbeats.

While you have to meet the requirements for fair housing, I always targeted English as a Second language folks and the younger crowd, particularly those in early construction careers. I found that both of those groups tended to be on the way up in their life rather than the way down, I don't want to be the one stuck with someone who hits bottom while living in my unit. My plumber and electrician both were sending me their apprentices, I just required that they be on the job for 6 months before they were in. By then you tend to weed out the ones that aren't going to make it to journeyman and will flame out sooner than later.

Keep your personal standards but don't improve the property itself as much. Functional and clean is what you are searching for. Brad's "Momma rents the kitchen" (I forget how he phrases it) does not apply.

Laminate kitchen counters in whatever color is on sale, a return or even two different but similar colors/patterns on opposite walls. Same with cabinets. An odd place for a cabinet? Put up two open shelves.

1 x 2s instead of baseboard and window molding. Bolt curtain rod brackets at the top of the windows.

Functional although perhaps not attractive doors.

Drop ceilings rather than change over to drywall.

No storm doors.

Functional and clean although dated look in bathrooms and kitchens.

In bedrooms, lay a piece of carpet cut to room size - I did not say padding and I did not say "install" - I said lay it down. If you wish, staple or nail 3 times on each side.

When I had my smaller cash cow efficiencies, I put stick down 12 x 12 tiles around the perimeters and placed an area rug in the center - tossed it when they moved out. $89 and done.

No need to replace/repair closet doors - hang a rod and a cheap curtain with gromets.

Instead of replacing kitchen counter tops, I used to lay a piece of cheap/pieced plywood. We then bought a sheet of glue on laminate from hd/lowes. Painted the edges a similar color.

Broken cabinet drawer? piece of plywood instead of matching drawer front.

4" square pieces of plywood on walls behind door handles.

read the Section 8 Bible. A lot of it is off the wall but many usable ideas and/or guidelines.

Ken ... perfect wording.

Roy .. I know all too well what you are stating. I was thinking the same thing as Ken tho ... if you already have the place that is "fixed up" then keep doing your thing. Yes, I do understand the "pick up the rent" thing (I now have started charging a fee for this) and sometimes (mostly) they don't do Zelle .. you have to do CashApp or something else that seems to be the thing that they have that most others don't.

I have one tenant that made the comment to me a few months ago "man, I wish you had cashapp ...I'd send you the money right now but instead I gotta transfer it then pull the money". I signed up and said "here's my id". I still didn't get it for another few days but now they don't have an excuse (meaning that it's "my fault" for not having what they have". MY daughter asked me the other day why I had that .. then she said "oh... is that so some of your tennies will pay you?" I laughed and said "yup, otherwise I have to chase them down".

I have not had anyone ask if i have cashapp,zelle or anything like that and i have no interest in getting any of them.I generally send an invoice with a stamped envelope with my name and address on it to the low end tenants and they get money orders and return them to me.Better tenants make the deposit directly into my account.I am turning new houses over to a young manager so that is his issue to deal with but i am teaching him.

Nicole,

I have read both volume's of Section 8 Bible and those are my favorite LL books of all time. For years I have wanted to adopt their methods of managing high risk Sec. 8 tenants but I just can't seem to bring my own standards down to their level. Those are the kind of street-wise landlords that I would love to sit down and talk shop with.

"It is what it is", Right ?

When I had lower end places, I tended to have higher turn over. At that point in my career, I didn't realize what a turn over actually cost me. If you want to stay where you are at and not not move upward, I would focus on retention.

One of the class D properties I am referring to in this post is right now listed for sale on the MLS but this listing will be removed today since I can't even get a low-ball offer on this place. It has been listed for 6 weeks now and the RE market is supposed to be 'on-fire' here. Maybe so, but those flames are not burning anywhere near where my house is.

If you want to see my listing, go to ValleyMLS and type-in this MLS#: 1808904 Street address is: 507 Bryan

People often ask me why I would want to sell my very best cash cow. This is a rental unit where my cost basis is $18K and rents for $650/month. Insurance and Taxes are dirt cheap too. Do the math.

I bought this MH in 2010 for $5K and back then I did not know what I know now. Back then (2006-2013) I made some killer RE purchases but without any regard for what type of neighborhood they were in or what it would be like to manage the tenants those places would attract. Back then, most of the houses I bought dirt cheap were in Class C hoods but I did end up two houses that were in Class D hoods. Back then, I did not understand the differences (ie. managing tenants) between the B, C and D hoods. Now I understand and my patience in managing Class D tenants and all their stupid ridiculous drama is wearing me down.

There are some who consider me a slummer based on the location and condition of some of my properties, but based on my tenants I'm a Class C+ or better generally.

I don't envy slum lords, but I do recognize the economic niche they fill in any town/city. Slum tenants need slum land lords. I was over at my one vacancy yesterday to pick up a lock box. Lo and behold: the yard looked list a trash cart had tipped over followed by a windstorm. Litter everywhere. Someone had even tossed an old ratty sofa on my curb and the curb of the house next to us. The house next door is boarded up. Trash on the porch. Upper story window wide open. No signs of life anywhere.

Our 4-plex there is nicer: semi-remodeled by the previous owner, and when we bought it in March 2020 (new flooring, fresh paint) and I put in brand new central heat and air because I got a deal at $3500 per unit for 4 units. Probably a mistake, but I thought the neighborhood was gentrifying at the time, as there were several houses being fixed up and signs of construction activity. Something must have gone haywire, because the fixer uppers are no longer there and it's slipped back down to grungy. Probably will exit that hood soon.

I'm getting close to the point of exiting residential C/D property. I won't touch F. I also won't do Sec 8. When you accept Uncle Sam's money, you play by his rules. I'm not interested in his rules.

Commercial is so much easier. I love these large metal boxes with concrete floors. I also believe that ultimately it will be more profitable and less drama as I find better opportunities to space for higher and better purpose, raise rental income, and boost value.

Sid,

Thanks for your reply. I do envy slumlords for the following reason,...they provide a very real public service which most people are not aware of.

Roy, we are buying a '77 mobile on half an acre with septic but we will have to drill our own well, for $22,000.00 Well will be close to 9,000. I would have thought somebody would have grabbed yours quickly. It looks like a rental that would easily go for 650. or more here.

Ken,

I have sold several Class C houses on the MLS with no problem. However, Class D is another story. As you know, anytime a property lists for less than $50K,...getting any type of mortgage can be next to impossible, especially when the property is a 1976 vintage SW MH. So, if I really want to sell this place, I will need to Owner-Finance it via a Lease-Option or do some type of RTO deal. Today, the best cash offer I would accept is $30K. However, I will owner-finance today at $45K with 10% down.

Roy, yes, I could not believe how much wells have gone up. We usually do 24" bored but with this small of a lot, a 3B drilled well has to be done. (due to septic lines, etc.)

Our last 24" bored well in 2013 was $5,000.00.

Roy, that is a clean mobile home. If you would take $30K my experience is price it closer to what you want to net. $32,500K and you will get closer to asking price if not full asking price.

Today's buyers will skip over a listing if it's over priced.

The market has cooled and is not hot like it was in the past month or two.

Roy,

GKARL,

I don't disagree with a word of what you said, Roy....except once again I don't envy slummers. I recognize they are a necessity, but I don't want to be one. Sort of like how some folks don't want to be sanitation workers.

I've written extensively on the topic in local forums where tenants whine about slummers. Want to talk about a way to stir up a hornet's nest of ad hominim attacks and ranting diatribes! Of course, they never actually ADDRESS the issues I raise: they just howl that slummers are evil and fail to acknowledge the existence of slum tenants. My favorite is "everyone DESERVES decent housing."

When you ask, "Can you define what you mean by decent?" or ask "what should we do with people who trash their decent houses?" and "who should pay for this entitlement?" they go into full-on REEEEEEEE mode!

Sid,

No one is saying you have to like or envy slumlords,..just don't treat them like the scum of the earth (like they do on Facebook). Actually, a few of my local LL business associates are very successful slumlords. In their way of thinking, all they do is give tenants what they pay for. For example, if a tenant pays little or nothing for rent (ie. Sec. 8) and in return the slumlord provides the tenants with the very minimum level of comfort. And if the tenants choose to live in their own filth, hey that is their business but don't blame the LL for it by calling him or her names on Facebook.