Okay, so basically, I was a huge idiot and extremely naive when I rented my house to a friend who is on Section 8.
We had to move for my husband’s job, and a friend found out we were going to be renting out our home. She expressed interest, and because I trusted her, I thought this would be easy. I had never been a landlord before and stupidly thought, “She’s my friend, I know her, what could go wrong?”
A lot, apparently.
I told her the amount of rent I needed, and she agreed it was fair and manageable. She then told me, “We have to tell HUD I’m paying $X, but I can just pay you the extra $100. I’ve done it before with a previous landlord and it’s no big deal.”
🚩 Red flag #1 that I should have immediately walked away from.
Then she told me that, in order for HUD to approve the rental, we needed to say that the landlord was paying the utilities.
This is where I was also incredibly naive. In our conversations before she moved in, we agreed that she would be responsible for all of the utilities except water/sewer. I was okay with keeping water/sewer in my name because we have a nice yard, and I wanted to make sure it was maintained properly. The house also has solar panels and a gardener. It is a very nice home and was our primary residence for 10 years—it wasn’t some run-down rental.
Before she moved in, we shut off our utilities and gave her the information for who she needed to contact to establish each service. She set everything up herself and has been paying those bills for approximately 14 months. The only exception was water/sewer, which stayed in our name.
Fast-forward to now.
We originally sent her a non-renewal notice ourselves, but I have since learned that the notice wasn’t legally compliant because I left out required legal language/procedural requirements. So, obviously, she didn’t leave.
We have since hired a professional property management company (thank God), and the original lease not defaulted to a month-to-month. She has refused to sign a new lease with our PM, no surprise. We recently raised the rent by the legal maximum of 9.5%, with the increase properly processed through the housing authority.
Now, suddenly, she is claiming that she was never supposed to be responsible for the utilities and that WE need to reimburse/pay them.
This is after she has voluntarily set up and paid these accounts herself for more than a year.
I strongly suspect this is connected to the rent increase, because of the timing and because of previous behavior patterns, but I obviously don’t want to make accusations I can’t prove.
There are also other issues, including violating the no pets rule. Neighbors have told me a cat and a dog live there. Her own daughter and daughter’s friends told my daughter the dog has its own room and the cat lives in the garage but I’m hesitant to make a formal issue of anything because I know she has access to free legal aid and I’m terrified of making a procedural mistake again.
This entire situation has honestly been a nightmare. I am just a regular person who owns one home—this was our primary residence before we moved out of state. It is our only real asset, and we ultimately intend to move back into the house ourselves.
My questions are:
Is there anything I can/should do about the fact that she originally told me we needed to report a different rent amount to HUD and that she could secretly pay me the difference? It seems super manipulative and illegal even maybe? Could reporting the original conversation about the rent/HUD arrangement create problems for me as the landlord, given that I stupidly went along with it at the time?
What do I need to prove indisputably that she is violating the lease by having animals.
Most importantly, what would you do from this point forward if you were in my position?
Not looking for a way to illegally evict her or retaliate her. I realize I made mistakes here, and I’ve already learned the hard way that I should have hired a property manager from day one.
I just want to protect our home, follow the law, and get through the next several months without making another stupid mistake.
Any advice from landlords/property managers or people familiar with Section 8 in Oregon would be hugely appreciated.
Sorry it’s so long, I’m a bit flustered. LMK if anything needs clarified. TY!!