I have a section 8 resident who is starting to fall behind on her rent. I am getting ready to start eviction, but before I do, does anyone know if accepting the rent from section 8 is the same as accepting a partical payment?
I am guessing it does, but since they come from 2 different sources i am not sure. Does anyone have any experience with this. The resident is my first on section 8.
Are you sure your renter is section 8? One big advantage of having a section 8 is that the government pays the rent, not the renter.
You may want to go and check it further. Sound really strange. Are you using a property management?
Section 8 does not always pay the full rent. I have one house that has S8 tenants - the administrator sets the total rent and then pays a portion based on the tenants income/kids, etc.
If I recall, the rules allow me to evict the tenant if they do not pay their portion
To the best of my knowledge (And I might be wrong...) section 8 pays by amount of rooms and Sq/ft. and allows a given renter certain amount of rent based on the size of the family, etc.
Now, if a tenant want to rent a property that is higher then that allowed cap, it's a different story. Then the issue is the tenant not paying the difference between the section 8 payment and the rent itself.
In my experience Section 8 rarely pays the full rent - generally each has their portion - not always - but in more cases then not the tenant does have a portion to pay.
I have evicted tenants who haven't paid their portion while accepting the Sec. 8 portion. The way the laws work in the states I have worked in (never in NY) are both parties are responsible for their portion.
So I would check with a lawyer especially considering your in NY but in a lot of states you can evict while collecting the Section 8 portion.
I have two tenants right now that section 8 pays the full rent. Having said that, however, the common rent in the area meets the section 8 contribution so in the end, section 8 pays all.
Yes, taking the Section 8 portion of the rent is considered accepting partial payment. In my area of Ohio, doing that will void the eviction. The simple solution is to simply send back the Section 8 portion of the rent.
If your Section 8 office is landlord friendly, I would call them and follow up with a letter stating that the tenant isn't paying their portion. Section 8 will usually inform the tenant that their Section 8 will be terminated if they don't pay their portion. Many times, that is enough to get the tenant to pay your rent!
This has more to do with what is "the law" where your rental is located. In some jurisdictions (example given by MikeOH), accepting partial payment hampers a landlord's ability to evict; in other places, accepting partial payment just reduces the judgment that would be given to the landlord at eviction. You will have to be familiar with your locality's Landlord Tenant laws; or, consult with a local attorney.
In the past I've been able to evict tenants who didn't pay their portion, even after accepting the Government Cheese.
Edited: 06/26/2010 at 08:45AM
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Hey Steve - how does that work? Say over three months the tenant owes me $1,000 and has paid nothing. Sec. 8 owes me $3,000 and I have received and deposited those checks.
I evict claiming $1,000 is owed (because that is all that is owed).
How is the $3,000 from the gov. deducted from the $1,000 I am owed?
I get what MikeOH is saying that if he deposit the $$ from the gov that is collected rent and the eviction is void.
It depends on your state laws; how your local court interprets the law; and maybe even the particular judge/magistrate you get for the eviction proceedings. I'm certainly not saying that accepting partial rent voids the eviction throughout the US or even throughout Ohio. All I'm saying is that accepting Section 8's portion is accepting partial rent. You need to KNOW how that affects evictions in your area. Any experienced investor or eviction attorney should know the answer.
Scott,
Sorry for any confusion; typing quickly into forums between other happenings sometimes leaves things less than clear.
When I have been in eviction court, usually they want to see what was due in full amount and when. From that, they subtract the amounts that were paid in partial fulfillment, and then your judgment is set based on result.
The math is just what you have shown; it's just how it is "presented" that will matter, and as MikeOH says, it varies all over the place.
So in your example, you would get a judgment for $1000 as you might hope.
In NJ we can accept the Section 8 payment and any tenant payments prior to the trial date in Court. We obtain a judgment for the unpaid balance and then at that point we can no longer accept any payments in order to preserve our ability to do the actual lockout 10 days later. Judges here also do not allow us to charge late fees for Section 8 tenants as it is against "federal guidelines". Our Sec 8 tenants split the rent based upon income guidelines - so they generally pay 30% of their monthly income to the landlord as their portion of the housing expense and Sec 8 picks up the remainder. If a tenant loses their job, then Sec 8 readjusts the rent and might pay the full rent until a point when the tenant obtains a new job.
In some instances rent is paid by the government in full. We call this TRA or Temporary Rental Assistance. People that are homeless generally receive this and the government puts up the security deposit and rent for the tenant. However, this is temporary, usually for one year at most, to give the tenant an opportunity to get a job. TRA is not guaranteed.
I have a tenant on Section 8 and one on TRA, which is paid by Social Services. This tenant has been on TRA for nearly 5 years (he's disabled) and they review his eligibility every 6 months when they sign a contract with the landlord. My first tenant was also on TRA until she was accepted in the Section 8 program.
As Ingrid said, TRA pays the full rent, and Section 8 pays a percentage based on the tenant's income.
Aly, do you get an actual contract from TRA?? I have one tenant couple with 6 kids in a 4 bed 2 bath and I never get a contract from them, each month we wait to see what amount TRA is sending and hoping for the best. The woman has a part-time job delivering newspapers and the husband is supposedly disabled. I really want to get rid of them as I never know what tomorrow will bring.
Hi Ingrid,
Yes, I have a contract with them, somewhat different from S8 though. It states the amount that they will pay me every month for x amount of months (6 so far). My lease is for a year and they told me when I signed the paperwork that they would continue to renew him every 6 months. My tenant is disabled so he doesn't work at all and collects something from disability. He's got 3 kids.
Is your tenant month to month? Perhaps you could notify TRA that you don't want to continue with 30 or 60 days notice? Or are you held to a 1 year lease? It does sound very stressful not knowing what amount you'll get every month.