Section 8 Rentals - OH
Hi all - I'm an investor in Canada and looking to expand into the United States. Looking for some feedback on the Section 8 niche, primarily in Ohio but I'm very open to other markets. The obvious benefits are appealing - mostly guaranteed rent by the government, great cashflow, long(er) term tenants, tenants incentivized to be great tenants due to the risk of being removed from the program, etc.
What are some risks/cons specific to the S8 program that I should be aware of? Anyone out there with any experience renting to S8 tenants that they'd like to share?
J
Great Post. I am also a Canadian Investor that just closed on a property in the US. The issue that I have heard other investors talk about is that Section 8 is slow to raise rents. Also section 8 sometimes doesn't cover all the rent. Good Luck.
Paul
My understanding is Section 8 usually covers only a percentage of the rent. Still, better than none of it.
**Disclaimer: speaking in generalities, not absolutes.**
Section 8ers are, quite frankly, typically low-caliber people and always come with a set of problems.
You can most-often point out the neighborhood section 8 homes, as their lack of upkeep/trashed exterior (and interior) is normally a tell tale sign.
The government gives the renter a voucher for the amount of rent they will pay, and the renter pays the difference of the monthly rent. It's not uncommon for those renters to fall behind although they pay very little every month. Imagine section 8ers owing back rent when they're only responsible for $175 of it every month.
And be prepared for there to be more people living in the home than what's stated on the lease. Section 8ers always have tons of people living in their homes.
And considering all this, their attitudes are horrible. Their sense of entitlement is through the roof.