Property Manager · Westminster, CO · Member since 2018 · 486 posts · 110 votes
Good afternoon everyone,
I’m trying to buy a house that is currently tenant occupied. The tenant has been there for 8 years. It’s a section 8 tenant so not sure if there is more that I need to be concerned about regarding laws or the fact that they are section 8. Should I try to avoid section 8 all together? Thoughts? Experiences?
Rental Property Investor · Auburn, AL · Member since 2015 · 227 posts · 80 votes
7y
I've had a house for a few years now that had a section 8 tenant. She lived there as a tenant for 12 years before I bought the house. The only problem I had was when she got a job and her Section 8 payments dropped significantly. She struggled quite a bit with making the rent on her low salary. When her company went out of business this year and all the workers lost their jobs, Section 8 picked up most of her rent payment. I can say that having a Section 8 tenant has been a good investment overall, but things can happen.
You did not mention in what city it is so it's hard to answer.
In my market (Buffalo NY) i bought a two family home with a sec 8 tenant occupying one of the units, i had no problem increasing the rent to market value and my lawyer said that i can give them a 30 days notice to vacate (They were on a month to month lease).
"Should I try to avoid section 8 all together?" Personally i think that it's all depend on the tenant itself, sec 8 has a lot of benefits and my tenant is great so far. Be aware that you cannot deny an applicant bc he is a sec 8 applicant. However, you can deny based on the income.
Rental Property Investor · Auburn, AL · Member since 2015 · 227 posts · 80 votes
7y
I've had a house for a few years now that had a section 8 tenant. She lived there as a tenant for 12 years before I bought the house. The only problem I had was when she got a job and her Section 8 payments dropped significantly. She struggled quite a bit with making the rent on her low salary. When her company went out of business this year and all the workers lost their jobs, Section 8 picked up most of her rent payment. I can say that having a Section 8 tenant has been a good investment overall, but things can happen.
Real Estate Agent · Buffalo, NY · Member since 2018 · 11 posts · 3 votes
7y
Also, make sure you check your fair housing laws in your area in regards to future tenants. Here is Erie county, as of May 2018, it is illegal to discriminate based on source of income which includes section 8.