Section 8

I bought a house that needed allot of work done on it. While I was working on the house a lady approached me and said she lived next door with her grandmother and her 2 daughters and she is pregnant. She asked me if I was going to rent the place and I told her I was after I was done with the repairs. I am now about a week out from finishing the home and she came over again. She wanted an application to fill out, so I gave her one. I told here I still had a week or two before I am going to advertise it for rent. She now tells me that she has been approved for a section 8 voucher and that she will no this week for the amount. She wants to know if I will accept it. I told her I wanted $600.00 a month and s $600.00 security deposit and no pets allowed, and she said that was fine. The home next door looks well kept and clean. I have no knowledge of section 8 vouchers and I wanted to get some input from landlords that do. I know the home will have to pass an inspection and that's fine, I have replaced about everything. I haven't run a credit check or background check yet but I plan too.
Should I stay clear of section 8 vouchers?
If I accept it this time and the lady moves can I stop accepting section 8?
If she damages my house, what options do I have?
If she has pets after signing a lease saying no pets, can I do anything?
Thanks for any advice.
Richard

Edited: 06/26/2010 at 04:48AM

Peter Kandra

· NJ

30 posts

Icon_minipost Mar 04 '08, 12:06 AM

Rich,

Section 8 has it's benefits and drawbacks. 4 of my properties currently have section-8 tenants in them. The rent is equal to or even slightly above market value in some cases, but that's based on the HUD FMR (fair market rent) jurisdicstion you're in. Your unit will have a housing quality standards inspection done, called an HQS. Once you pass that and you approve the tenant according to your screening standards, you will fill out a HAP contract with the local agency administering the section 8 program in your area. After that, the monthly checks come like clock work. Depending upon your tenants income, section 8 will pay most or all of their rent. I'm not sure about your area, but where I am in New Jersey, it's illegal to decline tenants just because they hold section 8 vouchers.
You'd have to decline them for credit, etc.
gosection8.com has some good info as well as HUDs web site.
Hope this helps.

Peter

Edited: 06/26/2010 at 04:48AM

Michael Rossi

Real Estate Investor · Ohio

4587 posts
14256 Influence
14 Awards

Icon_minipost Mar 04 '08, 06:51 AM

Rbader,

I have a bunch of Section 8 tenants. I don't find them to be any different than other tenants. If you go to your local Hud office (section 8 office), they will be happy to give you a landlord packet that will explain the program. They will also be happy to put you on their landlord list, which they give to Section 8 tenants.

Good Luck,

Mike

Edited: 06/26/2010 at 04:48AM

Jim McMillen

Real Estate Investor · Columbus, OH

20 posts
11 Influence
1 Award

Icon_minipost Mar 04 '08, 10:04 PM

Mike,

From your experience do you find that rents paid through Section 8 are about the same as if you rented the house to someone not on section 8?

Can you ask for a certain amount to be paid in rent from Section 8 or do they say this is what we are going to give you, take it or leave it...

Thanks.

Jim

Edited: 06/26/2010 at 04:48AM

Michael Rossi

Real Estate Investor · Ohio

4587 posts
14256 Influence
14 Awards

Icon_minipost Mar 04 '08, 11:23 PM

Jim,

On average, the amount paid by Section 8 is about the same as the market rent. However, on any individual unit for any given tenant, it can be a little higher or a little lower.

You can ask for anything you like, but they will only give you a certain amount based on all the factors in their formula.

Good Luck,

Mike

Edited: 06/26/2010 at 04:48AM

Jim McMillen

Real Estate Investor · Columbus, OH

20 posts
11 Influence
1 Award

Icon_minipost Mar 05 '08, 09:06 PM

Mike,

I was browsing the local Section 8 website and I found that there is a form to ask for an increase in rent (after 12 months has passed on the original lease). Since you have some section 8, have you ever completed this form and was granted the increase? Would you ask for an increase which would be typical for the area? Have you ever been denied?

Just curiuos...

Thank you.

Jim

Edited: 06/26/2010 at 04:49AM

Michael Rossi

Real Estate Investor · Ohio

4587 posts
14256 Influence
14 Awards

Icon_minipost Mar 05 '08, 11:58 PM

Yes, I have asked for the increase and yes it always gets approved (provided you con't ask for something crazy).

Good Luck,

Mike

Edited: 06/26/2010 at 04:49AM