Section 8 - My Experience Two Years In

Upstate New York, New York
General Real Estate Investing
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Section 8 - My Experience Two Years In

Jamie O'Connell
Rental Property Investor · Elmira NY · Member since 2023 · 143 posts · 143 votes

I started my real estate journey 2 years ago and bought my first duplex fully rented. One unit ended up being a Section 8 tenant so I started Section 8 from my first day. This tenant has since had another child and moved to a different larger unit of mine and is still one of my favorite tenants.

I now have 11 (soon to be 13) doors and 7 of those are now Section 8 tenants. As I get vacancies I try my hardest to fill those spots with only Section 8 tenants if I can. I do get a lot of “push back” from both real estate and non real estate people on it due to the negative (sometimes earned) connotation that comes with it.

If you made it this far congrats. I do have a lot of people who have started asking questions so I figured I would give the good and the bad from my experience over the last two years so others can make their own decision.

The Good

 - Guaranteed rent payments which is great. 5 of my 7 Section 8 tenants only pay $50 a month for their portion of rent. The government auto deposits the rest of the rent directly into my account the first of every month.

 - The “inspection” if you can even call it that, is set so low its laughable. A smoke detector in every bedroom and a smoke detector and carbon monitor in hallway of every floor and in the basement or attic IF you have furnace, hot water heater etc in them. ONE window that will stay up on its own in each room, no holes in flooring (oddly strict on this one, even a dime size tear in a floor is considered a tripping hazard) a light in every bedroom and enough room for a twin bed and a dresser. An Oven and a fridge in the kitchen. A Living room. Running water and Heat. Thats it

 - The tenants (rumor has it) that they stay for 10 - 20 years on minimum. I am obviously only two years in but so far all of my tenants have already signed their 2nd year lease. I have two Section 8 tenants who are moving in in the next month that have lived in their current places for over 10 years and are only both moving because the owner of their duplex got arrested and a life sentence. So they have to move. They will both most likely live in my units for a very long time.

- The yearly rent increase is very easy. Two months out from end of the yearly lease I reach out to the tenants Rep and tell them what I think the lease should be moved up to (go off FMR) and they approve or deny (always approve so far because I am realistic) an automatically increase it at the one year mark.

 - Yearly inspection!!! This one is not important or good if you don’t take care of your properties but I update all of my units AND want my tenants to take car of the unit so a yearly inspection with the Sec 8 Inspection is great for me. Get to get in, make sure its clean, everything is in good order, change out filters and such to make sure its done properly and also make sure nothing is broken.

 - If you are a good landlord you are helping those who are normally looked down upon and normally have to deal with bad landlords just to have a roof over their head.

 -Section 8 paid security deposit. This is great, just fill out one page and the government pays their full security deposit. Though it can take months to get the actual check.

 - Section 8 signing bonus. This one might be case by case ( I believe it is ) but my county does a one months rent signing bonus for each new tenant moving into your unit. This is your money to do what you please with and does not get paid back to tenants at end of their lease. Like the security deposit this check can take months to get but hey, who’s complaining on free money.

The Bad

- There is no month to month in the first year. After that your lease can turn month to month (even while still getting a yearly rent increase). This doesn’t matter to me but I do know some landlords prefer month to month.

- Some tenants are to worried about you getting annoyed and kicking them out (and section 8 accepting landlords can be hard to find) so they might not want to bother you for small or big issues and that can hurt you later on when things are more expensive. The yearly inspection does help for this IF you pay attention. Luckily most my tenants are comfortable enough with us that they do let us know because we fix it fast and theres no repercussions.

- The utilities. This is both a good and a bad and really depends on your utility companies. In Upstate NY we are held hostage by our electric and gas company so you never know if you will get a $120 electric/gas bill or a $3,000 bill. I spend half my days reporting them to NY state for fraud.

- There are not a ton of repercussions. In theory if they don’t take care of your property and such they can get kicked out of the program. To me, I think this is probably fairly rare to actually get someone kicked out of the program. I have one tenant who snuck in a dog (I dont allow dogs) and has not paid their $50 portion in 5 months OR the $45 a month pet payment I added when they snuck the dog in. Section 8 does three letters. First letter saying I complained, second letter saying I complained, third letter saying I complained. Unknown what will happen after or if just more letters. So you have to decide should you just bite it for 3% of the monthly rent your not getting or fight it, kick them out and have to get another new tenant in.

 - The entitlement is sadly very real. The tenants know that the government is paying 97% of their rent and that you most likely wont kick them out over 3%. Which is true in my case. BUT when you go in to fix something that you see they have a brand new PS5, or a new phone, or a nicer car than you do etc. To me, I don’t mind this IF they pay their portion. But if they keep coming up with excuses every month on why they cant pay such a small amount yet spend money on all of this it does grade.

 - The Job turn over (this is my personal experience) I have found that my Section 8 tenants tend to change jobs MUCH more than my non Section 8 tenants. That means they usually go a month or two without a paycheck or use it as an excuse to not pay rent anyways.

 - Can be harder to get ahold of. This in my experience is across the board with tenants, specially those who aren’t paying their rent on time. However, my Section 8 tenants all have gone through multiple cell phone numbers in the last 2 years. I think all but one of them has had at least two numbers in the last two years. This is new to me because I have had the same cell phone number since 2004 so it just always stuck with me as I was shocked. This means you have to stop by and leave a note to “remind” them to reach out when they don’t answer your texts for a few weeks. Also so far emailing has also been a big issue.

 - It takes time. You have to sign the lease with the tenant (normally in person because of the email issue mentioned above) THEN you need to send to the Section 8 rep to do their part (this can take 1 to 30 days) and then they need to schedule the inspection ONCE all the paperwork is done. Now that I know all the reps in my county I can normally get this done in 2 - 3 weeks but its taken A LOT of personal relationships built up to feel like I can get it done that fast.

 - Can take time to get paid. My first six Section 8 tenants I did not get paid for first four months AFTER the tenant moved in, so I had to cover those carrying costs out of my pocket. On the forth month I did get the four months in one lump payment which felt great, but really was just refilling my account or paying off my credit card which was stressful. Same with if you get a singing bonus or a security deposit. It can take months before randomly the check just shows up in your mailbox. It just takes time. Once you get the kinks worked out though and the first direct deposit hits your account it shows up like clock work from there!

Things to Know

- Rent Increases are easy and simple because its FMR and right there on a website for everyone to see based off state and county. Don't get greedy and you will be fine

- Utilities v No Utilities - If you cover the utilities you will get the full FMR value. So if they say FMR is $1,550 a month for a 3 bedroom than you can ask for $1,550 a month. If you do NOT pay utilities and its the tenant responsibility than you would only be able to charge probably $1,300 - $1,350 a month for rent.

- The time it takes - See Above. Dealing with government agencies is not for the weak. I am a nice person but I do burn out on feeling like im being let down so it does sometimes take some patience (and space from your phone) so you don’t loose your cool because you do NOT want to make a bad name for yourself with the agency.

- Lease v HAP - This one took me a few turns and thankfully the Section 8 rep worked with me as I sounded like a complete idiot the first 2 - 3 leases. The lease is what you sign with the tenant. The HAP and related documents is from the state and very specific. Not to confusing but the first few times is rough.

- Grew up, stay on - All of my tenants who are on Section 8 grew up on Section 8. Their parents had it, they got it when they turned 18, their kids grow up on it and so far I have seen a few of their kids also get it when they turn 18. I like my tenants and they are mostly all very respectful so I love to keep housing them but it does seem rare to ever get off the program.

- Kid Count - A lot of tenants don’t even understand how this works, and it changes somewhat often. I had one tenant who had a 1 bedroom voucher that I inherited when buying a property and she had a 17 year daughter move in with her after she got her voucher and all it took was a simple paperwork form and she got moved to a 2 bedroom voucher and moved to a two bedroom unit of mine. I got to keep a great tenant, I got more money a month and her portion didn’t change a bit. Also (and this is a change in the last year) if they have children of different genders than the government will give them a bigger bedroom count. My first tenant had a 2nd child and her first child was a boy and second child was a girl. So she went from a 2 bedroom voucher to a 3 bedroom voucher. Also I believe if there is a big age difference than they can also get more bedroom count vouchers.

- 6 and under - This one goes along with the inspection but is only if you have a child under 6. If you have flaking paint its a big no no. This is anywhere, so I had one house that was a 2 story property with no upper porch (aka no way to get to the roof of the house) where one peak of the property trim was flaking that you could see from the ground. I had gutted the inside of the house and painted the exterior but honestly was not going to scrape and repaint the peak of the house because no one can reach it and I figured I would get to it in a few years when had more money. However, the Section 8 tenant I was moving in had a 4 year old and they flagged it and I ended up having to scrape and paint it to get approved for them to move in. Even though the kids couldn’t haven’t reached this peak unless they grew wings.

- Treat with Respect - These tenants need a helping hand and they should be treated with respect. I treat my tenants all the same and I fix things just as fast in my Section 8 properties as I do in my none Section 8 properties. I also leave a gift for every new tenant of mine, on the program or not. Its not a ton but its what I am always missing when I move. I go to Sams and buy a big pack of toilet paper, tissues, paper towels, paper plates and a $50 gift card to the local pizza place with a nice welcome card. I think it helps them feel at home, less stressed and most importantly that its their home, in hopes they will treat it with respect and save me hassle later on.

***** Side Note - When I say I in this monster of a post I definitely mostly mean my property manager. I deal with all the paperwork and the negative side like chasing unpaid rent and such but my property manager is amazing and deals with the day to day inspections, fixes, tours and most the communication.

Would love to hear others good and bad experiences so that new landlords or landlord who might be on the fence about Section 8 can make their own opinions. I wish I had had more information when I first started so I didn’t have to learn from scratch but so many of the gurus charge an arm and a leg I have always planned on being upfront about my experiences so others can maybe get a leg up.

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Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
1y

That is an excellent post.

I would like to point out a couple things. First, you are making a mistake keeping the tenant who violated your no-pet policy and hasn't paid their share of the rent ($50 a month). I can assure you, this will cost you more money before it's over. Second, I think you are still looking at this experience through rose-colored glasses. Things have gone pretty well for two years, but it's only two years. I've had Section 8 tenants that were great for 3-4 years before trashing the place, stealing appliances, not paying rent, and eventually abandoning the property with over $10,000 in damages.

On a personal note, it chaps my hide that we have people in society that live off the backs of taxpayers for decades. I am willing to be dollars to donuts that most of your Section 8 tenants are able-bodied humans intelligent enough to get a job and pay their way through life, but they somehow manage to milk the system. They eventually get a sense of entitlement. This could manifest itself in additional damages and financial losses when they decide they don't want to put up with you any more.

Also, Section 8 does require more work setting up, renewing, increasing rent, etc. On top of that, the tenants are lower-quality, so it takes more work to maintain communication, enforce the lease, etc.

In my experience, the additional work and eventual losses erase any benefits of Section 8. I'm glad it's working out for you now, and I hope it continues into the future. I'm skeptical.

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  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    1y

    That is an excellent post.

    I would like to point out a couple things. First, you are making a mistake keeping the tenant who violated your no-pet policy and hasn't paid their share of the rent ($50 a month). I can assure you, this will cost you more money before it's over. Second, I think you are still looking at this experience through rose-colored glasses. Things have gone pretty well for two years, but it's only two years. I've had Section 8 tenants that were great for 3-4 years before trashing the place, stealing appliances, not paying rent, and eventually abandoning the property with over $10,000 in damages.

    On a personal note, it chaps my hide that we have people in society that live off the backs of taxpayers for decades. I am willing to be dollars to donuts that most of your Section 8 tenants are able-bodied humans intelligent enough to get a job and pay their way through life, but they somehow manage to milk the system. They eventually get a sense of entitlement. This could manifest itself in additional damages and financial losses when they decide they don't want to put up with you any more.

    Also, Section 8 does require more work setting up, renewing, increasing rent, etc. On top of that, the tenants are lower-quality, so it takes more work to maintain communication, enforce the lease, etc.

    In my experience, the additional work and eventual losses erase any benefits of Section 8. I'm glad it's working out for you now, and I hope it continues into the future. I'm skeptical.

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  • Jamie O'Connell
    OP
    Rental Property Investor · Elmira NY · Member since 2023 · 143 posts · 143 votes
    1y
    Quote from @Nathan Gesner:

    That is an excellent post.

    I would like to point out a couple things. First, you are making a mistake keeping the tenant who violated your no-pet policy and hasn't paid their share of the rent ($50 a month). I can assure you, this will cost you more money before it's over. Second, I think you are still looking at this experience through rose-colored glasses. Things have gone pretty well for two years, but it's only two years. I've had Section 8 tenants that were great for 3-4 years before trashing the place, stealing appliances, not paying rent, and eventually abandoning the property with over $10,000 in damages.

    On a personal note, it chaps my hide that we have people in society that live off the backs of taxpayers for decades. I am willing to be dollars to donuts that most of your Section 8 tenants are able-bodied humans intelligent enough to get a job and pay their way through life, but they somehow manage to milk the system. They eventually get a sense of entitlement. This could manifest itself in additional damages and financial losses when they decide they don't want to put up with you any more.

    Also, Section 8 does require more work setting up, renewing, increasing rent, etc. On top of that, the tenants are lower-quality, so it takes more work to maintain communication, enforce the lease, etc.

    In my experience, the additional work and eventual losses erase any benefits of Section 8. I'm glad it's working out for you now, and I hope it continues into the future. I'm skeptical.

    Love to hear your experience on it! 

    Im glad you posted this so people can have both outlooks. I can guarantee all but one of my section 8 tenants (the one who has same phone number I mentioned) are able bodied and could make more but I believe are not so they dont loose their benefits. But as I said, they are raised on it and taught to live on it and get by on the rules. Do I agree with it? No. But do I enjoy not having to go to court every few months to kick out tenants who dont take care of my property AND not pay their rent? Yes. 

    So to me the upside is still better. The town I invest in is a crap town. It has always been a crap town. Drugs are rampant, abuse is prevalent, it is how it is. So I would rather have (so far anyways) good section 8 tenants where I know the bills are paid v the bad non section 8 tenants who cost me thousands of dollars in unpaid rent and court costs. 

    So far I have inherited 3 tenants who were there when I bought that were not on the program who paid maybe one months rent and then nothing for the three - four months it took for me to kick them out plus legal fees (Ny if its in an LLC you have to be represented by a lawyer). I have inherited one tenant who paid their rent though never on time but I worked with them to pay weekly and worked out. I have also put in two tenants on my own who are not on Section 8 who are great.

    As you said it does take more work which I believe I went through pretty well on my post because it is emotionally tolling without a doubt. 

    I'll keep you posted on the tenant who doesn't pay their portion. She is the epitome of pure entitlement. While she does fill her apartment with very expensive things while saying she cant pay her $50 she does take very good care of her unit. That might change but so far... I have had to truly suck up my principal which has been hard and one day I might but starting out you know that it is just survival mode so you can afford to grow more and ten years in be able to be more picky if choose to change routes. 

    I do tend to agree with some of your points but im very happy that you took the time to comment such a good response because people do need to make their own decisions and hear from both sides because you 100% get horrible Section 8 tenants who destroy your units. Just as you can with non Section 8. 

    I did try and come up with every bad and good thing I could think of so that people are informed from my personal perspective so great to hear everyone's experiences. 

    8Reply
  • Mike Dymski
    Investor · Greenville, SC · Member since 2016 · 5k+ posts · 13k+ votes
    1y

    From what I read on the forums, section 8 works well in certain markets and not in others.  I own a small apartment community, and I've had no issues with section 8 over the past eight years (a few of the units have section 8).

    6Reply
  • Jamie O'Connell
    OP
    Rental Property Investor · Elmira NY · Member since 2023 · 143 posts · 143 votes
    1y
    Quote from @Mike Dymski:

    From what I read on the forums, section 8 works well in certain markets and not in others.  I own a small apartment community, and I've had no issues with section 8 over the past eight years (a few of the units have section 8).


     I would say that Is probably true. I leave near Baltimore MD and I have heard horror stories about the tenants AND the section 8 department. So while it would be nice to have a few units there since I am near it, it just doesn't seem worth the bother to me. But my area in Upstate NY had a good Section 8 team running it so it does make it a little easier. Which area is your Section 8 in? Greenville? 

    2Reply
  • Michael SmytheBusiness Member
    Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
    1y

    @Jamie O'Connell well written!

    We manage almost 100 S8 leases and have over 24 years of experience - so we have a different perspective than someone like you who is so hands on.

    Agree with @Nathan Gesner that you really haven't seen the BAD with a S8 tenant yet - hopefully you never do:)

    Couple of points:

    1) Most S8 Housing Commissions do NOT pay for security deposits, so you are getting a big bonus!

    2) Have never heard of a 1-month bonus from S8.
    - They must be pretty desperate for participating landlords in your area!

    3) Fair Market Rent: S8 was originally designed for affordable housing, so included ALL utilities. As the program expanded over the decades, it now allows owners to decide whether or not to include utilities.
    - Most S8 Housing Commission voucher amounts include all utilities. Each area has a table owners can use to calculate the deductions for utilities they do NOT want to include (or can't - like MFR with only one water meter). To avoid utility abuse, we always recommend NOT to include utilities in rent. Otherwise, an S8 tenant has no incentive to report a water leak or running toilet.

    4) Give them an inch & they want a mile: tenants that aren't working, or barely working, have nothing but time on their hands to come up with ways to scam their landlords. $5 to these people is a bid deal! Letting lease violations go should be approached with caution.

    Hope it continues to work out for you.

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  • Jamie O'Connell
    OP
    Rental Property Investor · Elmira NY · Member since 2023 · 143 posts · 143 votes
    1y
    Quote from @Michael Smythe:

    @Jamie O'Connell well written!

    We manage almost 100 S8 leases and have over 24 years of experience - so we have a different perspective than someone like you who is so hands on.

    Agree with @Nathan Gesner that you really haven't seen the BAD with a S8 tenant yet - hopefully you never do:)

    Couple of points:

    1) Most S8 Housing Commissions do NOT pay for security deposits, so you are getting a big bonus!

    2) Have never heard of a 1-month bonus from S8.
    - They must be pretty desperate for participating landlords in your area!

    3) Fair Market Rent: S8 was originally designed for affordable housing, so included ALL utilities. As the program expanded over the decades, it now allows owners to decide whether or not to include utilities.
    - Most S8 Housing Commission voucher amounts include all utilities. Each area has a table owners can use to calculate the deductions for utilities they do NOT want to include (or can't - like MFR with only one water meter). To avoid utility abuse, we always recommend NOT to include utilities in rent. Otherwise, an S8 tenant has no incentive to report a water leak or running toilet.

    4) Give them an inch & they want a mile: tenants that aren't working, or barely working, have nothing but time on their hands to come up with ways to scam their landlords. $5 to these people is a bid deal! Letting lease violations go should be approached with caution.

    Hope it continues to work out for you.

    Thank you! To your point in number 3 - yes I have done utilities included for the sole purpose of being able to show as much money coming in for refinancing and for the banks. Now that I can afford to live a little I am starting to do new leases without any utilities included. Will drop my monthly income by about $150-$200 a month on paper but will absolutely make me more money in the near future. 

    I wondered if it was just my area or if it was common for the sec deposit and the bonus. I will take both for as long as I possibly can! We both know without assistance sec 8 tenants will never come through with a sec deposit. 

    yes the mile has been taken by a few people and I spent a year being a hard *** (as much as I can anyways) with sticking to my guns. 


    3Reply
  • James Hunt
    Member since 2022 · 3 posts · 3 votes
    1y

    Great post.  We have some properties with S8 tenants and others without.  My biggest issue with S8 has actually been with working with the organization.  My business partner handles the property management side of things but they can be difficult to communicate with at times.  The tenants for the most part are fine.  You still need to screen them thoroughly just like a market renter.  Once the process is in place, it is nice when at least the majority of the rent shows up regularly.  Definitely is more work to get things set up however.

    2Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    1y
    Quote from @Nathan Gesner:

    That is an excellent post.

    I would like to point out a couple things. First, you are making a mistake keeping the tenant who violated your no-pet policy and hasn't paid their share of the rent ($50 a month). I can assure you, this will cost you more money before it's over. Second, I think you are still looking at this experience through rose-colored glasses. Things have gone pretty well for two years, but it's only two years. I've had Section 8 tenants that were great for 3-4 years before trashing the place, stealing appliances, not paying rent, and eventually abandoning the property with over $10,000 in damages.

    On a personal note, it chaps my hide that we have people in society that live off the backs of taxpayers for decades. I am willing to be dollars to donuts that most of your Section 8 tenants are able-bodied humans intelligent enough to get a job and pay their way through life, but they somehow manage to milk the system. They eventually get a sense of entitlement. This could manifest itself in additional damages and financial losses when they decide they don't want to put up with you any more.

    Also, Section 8 does require more work setting up, renewing, increasing rent, etc. On top of that, the tenants are lower-quality, so it takes more work to maintain communication, enforce the lease, etc.

    In my experience, the additional work and eventual losses erase any benefits of Section 8. I'm glad it's working out for you now, and I hope it continues into the future. I'm skeptical.


    in most markets section 8 only allows one year leases.. and in my experience with 200 plus section 8 doors tenants move every 18 months they trash one house then go find another freshly rehabbed one.. of course each market will be different..
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  • Jamie O'Connell
    OP
    Rental Property Investor · Elmira NY · Member since 2023 · 143 posts · 143 votes
    1y
    Quote from @James Hunt:

    Great post.  We have some properties with S8 tenants and others without.  My biggest issue with S8 has actually been with working with the organization.  My business partner handles the property management side of things but they can be difficult to communicate with at times.  The tenants for the most part are fine.  You still need to screen them thoroughly just like a market renter.  Once the process is in place, it is nice when at least the majority of the rent shows up regularly.  Definitely is more work to get things set up however.


     100% Agree. Our area is small so they only have 4 or 5 people in the program running it. Which is nice because you get to know everyone and they have more of a personal connection. However, they still have a ton of vouchers so it can take forever! 

    2Reply
  • Jamie O'Connell
    OP
    Rental Property Investor · Elmira NY · Member since 2023 · 143 posts · 143 votes
    1y
    Quote from @Jay Hinrichs:
    Quote from @Nathan Gesner:

    That is an excellent post.

    I would like to point out a couple things. First, you are making a mistake keeping the tenant who violated your no-pet policy and hasn't paid their share of the rent ($50 a month). I can assure you, this will cost you more money before it's over. Second, I think you are still looking at this experience through rose-colored glasses. Things have gone pretty well for two years, but it's only two years. I've had Section 8 tenants that were great for 3-4 years before trashing the place, stealing appliances, not paying rent, and eventually abandoning the property with over $10,000 in damages.

    On a personal note, it chaps my hide that we have people in society that live off the backs of taxpayers for decades. I am willing to be dollars to donuts that most of your Section 8 tenants are able-bodied humans intelligent enough to get a job and pay their way through life, but they somehow manage to milk the system. They eventually get a sense of entitlement. This could manifest itself in additional damages and financial losses when they decide they don't want to put up with you any more.

    Also, Section 8 does require more work setting up, renewing, increasing rent, etc. On top of that, the tenants are lower-quality, so it takes more work to maintain communication, enforce the lease, etc.

    In my experience, the additional work and eventual losses erase any benefits of Section 8. I'm glad it's working out for you now, and I hope it continues into the future. I'm skeptical.


    in most markets section 8 only allows one year leases.. and in my experience with 200 plus section 8 doors tenants move every 18 months they trash one house then go find another freshly rehabbed one.. of course each market will be different..

     So far so good, I did one year leases with everyone and then when it ended it just went to month to month but I renegotiated the monthly price with the section 8 rep. Not sure how it's done elsewhere but that is how it's done in my area. 

    0Reply
  • Reesey Ann
    Member since 2023 · 8 posts · 4 votes
    1y

    great post! thank for sharing. 

    We always use section 8 for our SFH property. Over the years, we have had some great tenants and some nasty ones. Our most recent tenant just moved out and did not keep a clean house so our clean up and turnover is taking longer than usual.

    1Reply
  • Jamie O'Connell
    OP
    Rental Property Investor · Elmira NY · Member since 2023 · 143 posts · 143 votes
    1y
    Quote from @Reesey Ann:

    great post! thank for sharing. 

    We always use section 8 for our SFH property. Over the years, we have had some great tenants and some nasty ones. Our most recent tenant just moved out and did not keep a clean house so our clean up and turnover is taking longer than usual.

    O wow! I just moved one tenant to a new unit of mine so I could update hers and she took two weeks to move but left behind an entire dumpster full of stuff.. I text her and was like you left so much stuff and she said just get rid of it and bill me. Not going to lie I was very shocked she offered to pay so I did clean it out and charged her for the dumpster and labor I was charged and she’s paying it off monthly. So it was a tad entitled but honestly not bad at all. Thought I was going to have to have a thrown down. 
    3Reply
  • James Gouveia
    Member since 2018 · 3 posts · 7 votes
    1y
    I have had nothing but disasters with Sec 8 tenants.  They typically do not pay their portion of the rent, do not stay very long and without fail trash the property.  I am glad to hear others are doing well with Sec 8 but in my area it's a fast track to ruin.
    5Reply
  • Louis P Lessor
    Janesville WI · Member since 2019 · 55 posts · 36 votes
    1y

    Thank you for sharing your experience with section 8. I have never considered this avenue, but based on what you wrote, there are many good reasons to look more into it. 

    2Reply
  • Jared Rebling
    Member since 2019 · 4 posts · 5 votes
    1y

    Thank you for posting! We currently have just 2 section 8 tenants in our small 16 unit apartment complex. One has been there for over 24 years. She keeps her place very tidy and it is much appreciated. She didn't start out on section 8 but had to quit working due to health reasons. Most likely just what the program was meant for. Our other tenant also does a good job taking care of the place but he's only been there 3-4 years. We purchased the complex from my father who had many section 8 tenants during the 20 years that he owned it. He was NEVER good at tenant screening. Other than the first tenant I mentioned that we inherited with the place, he had others that were terrible. I am a huge supporter of screen, screen and screen those potential tenants. The more we can learn about them, the better chance we'll have of protecting our investment. Section 8 isn't a hassle for us. We never have to be there for inspections. Paperwork to be signed is mailed back and forth and we only do our own lease as a formality and an extra chance to go in and check out the apartment to see if we need to fix something. I don't believe section 8 in our area, here in se Iowa, will back pay for the time waiting for applications to be approved. They usually say what there's a waiting list for available funds also. No security deposit either. 

    2Reply
  • Jamie O'Connell
    OP
    Rental Property Investor · Elmira NY · Member since 2023 · 143 posts · 143 votes
    1y
    Quote from @James Gouveia:
    I have had nothing but disasters with Sec 8 tenants.  They typically do not pay their portion of the rent, do not stay very long and without fail trash the property.  I am glad to hear others are doing well with Sec 8 but in my area it's a fast track to ruin.

     Sorry about your bad tenants! Tenants are definitely the main reason why I think a lot of people dont get started in real estate. Blows my mind that someone who is using your property can treat it so poorly! 

    2Reply
  • Jamie O'Connell
    OP
    Rental Property Investor · Elmira NY · Member since 2023 · 143 posts · 143 votes
    1y
    Quote from @Louis P Lessor:

    Thank you for sharing your experience with section 8. I have never considered this avenue, but based on what you wrote, there are many good reasons to look more into it. 


     Im happy that I could give you some insight into it. Make sure to read all of the other comments as well. As you can see it's not always roses but that goes hand in hand with real estate sadly. 

    0Reply
  • Jamie O'Connell
    OP
    Rental Property Investor · Elmira NY · Member since 2023 · 143 posts · 143 votes
    1y
    Quote from @Jared Rebling:

    Thank you for posting! We currently have just 2 section 8 tenants in our small 16 unit apartment complex. One has been there for over 24 years. She keeps her place very tidy and it is much appreciated. She didn't start out on section 8 but had to quit working due to health reasons. Most likely just what the program was meant for. Our other tenant also does a good job taking care of the place but he's only been there 3-4 years. We purchased the complex from my father who had many section 8 tenants during the 20 years that he owned it. He was NEVER good at tenant screening. Other than the first tenant I mentioned that we inherited with the place, he had others that were terrible. I am a huge supporter of screen, screen and screen those potential tenants. The more we can learn about them, the better chance we'll have of protecting our investment. Section 8 isn't a hassle for us. We never have to be there for inspections. Paperwork to be signed is mailed back and forth and we only do our own lease as a formality and an extra chance to go in and check out the apartment to see if we need to fix something. I don't believe section 8 in our area, here in se Iowa, will back pay for the time waiting for applications to be approved. They usually say what there's a waiting list for available funds also. No security deposit either. 


     That is great! I have always heard if you have a complex of type NOT to do full section 8 but I think maybe just enough to cover the carrying costs would be nice! Idk if I will ever get to a small complex but maybe one day I'll be lucky enough! 

    Definitely agree on the screening! So many "gurus" tell you not to screen and thats a big no for me. If they dont pay their car note, their insurance or even just small cell phone bills I know there is a zero chance they will take care of my prop OR pay me. I definitely agree! 

    As long as the Hap is signed they will back date it. I dont allow them to move in unless the paperwork side is taken care of by the tenant and Section 8. But it can take months for them to file the paperwork and do it and that is what we eventually get back paid for in a lump sum. From the sounds of it we are very lucky they do the security deposit. Im in the process of filling a new prop I have with section 8 (first one in a few months) so im hoping they still do the security deposit and the bonus payment. It wont last forever but I'll enjoy it while I can. 

    0Reply
  • Mark Cruse
    Investor · Fort Washington, MD · Member since 2014 · 1k+ posts · 1k+ votes
    1y

    Glad to hear you are doing well with this. I have a vast degree of experience in section 8 rentals myself. Its great to hear positive experiences because most dont seem to have them. Like you, I have had positive outcomes. It honestly depends on the landlord and their abilities for the most part. Many fail to understand screening, managing, understanding the culture and treating people with dignity.  You are doing things right and I can tell from how you present yourself, you somewhat understand and respect the environment. Congratulations and keep up the great work.  You are providing a wonderful service and positive experiences to the community that typically has negative experiences in housing oh too often.   

    6Reply
  • Jamie O'Connell
    OP
    Rental Property Investor · Elmira NY · Member since 2023 · 143 posts · 143 votes
    1y
    Quote from @Mark Cruse:

    Glad to hear you are doing well with this. I have a vast degree of experience in section 8 rentals myself. Its great to hear positive experiences because most dont seem to have them. Like you, I have had positive outcomes. It honestly depends on the landlord and their abilities for the most part. Many fail to understand screening, managing, understanding the culture and treating people with dignity.  You are doing things right and I can tell from how you present yourself you somewhat understand and respect the environment. Congratulations and keep up the great work because you are providing a wonderful service and positive experiences to the community that typically has negative experiences in housing oh too often.   


     Thank you! Yes I think that is why the Section 8 people always seem to be happy when I have a new property available because the amount of tenants I have had to take because slum lords dont take care of their property has been staggering. I wont say I go above and beyond on fixing up the places and making them jaw dropping beautiful, I still do them up enough to where I would be comfortable living there. I think that is a big thing that a lot of people dont understand. 

    1Reply
  • Mark Cruse
    Investor · Fort Washington, MD · Member since 2014 · 1k+ posts · 1k+ votes
    1y
    Quote from @Jamie O'Connell:
    Quote from @Mark Cruse:

    Glad to hear you are doing well with this. I have a vast degree of experience in section 8 rentals myself. Its great to hear positive experiences because most dont seem to have them. Like you, I have had positive outcomes. It honestly depends on the landlord and their abilities for the most part. Many fail to understand screening, managing, understanding the culture and treating people with dignity.  You are doing things right and I can tell from how you present yourself you somewhat understand and respect the environment. Congratulations and keep up the great work because you are providing a wonderful service and positive experiences to the community that typically has negative experiences in housing oh too often.   


     Thank you! Yes I think that is why the Section 8 people always seem to be happy when I have a new property available because the amount of tenants I have had to take because slum lords dont take care of their property has been staggering. I wont say I go above and beyond on fixing up the places and making them jaw dropping beautiful, I still do them up enough to where I would be comfortable living there. I think that is a big thing that a lot of people dont understand. 

     Seems like you have learned certain concepts that work but tend to escape even the most experienced landlords. For you to be in the game 2 years Im impressed and see you are headed to much bigger things. Your approach of fixing them up nice enough is one of several things some dont seem to comprehend. The best thing you can have is good section 8 tenants who respect and take care of your place. Treating them with respect and providing a good experience  keeps them there for a very long time; pushing your cash flow  and building your equity. The notion that slumlords believe their tenants will positively be receptive to living in sub-substandard sht holes while being treated with disrespect escapes me.  Either way its so refreshing to hear this work for others in this forum as opposed to people saying they are savages and need to be treated like animals. Back when I first joined BP, I linked up with an experienced low income landlord. We toured his units and he was horrible to his tenants. Then he advised me that If I rent to so called "these people" I need to put in animal cages. Again, its so refreshing to see the genuine side of this coin. Congrats again! 

    1Reply
  • Jamie O'Connell
    OP
    Rental Property Investor · Elmira NY · Member since 2023 · 143 posts · 143 votes
    1y
    Quote from @Mark Cruse:
    Quote from @Jamie O'Connell:
    Quote from @Mark Cruse:

    Glad to hear you are doing well with this. I have a vast degree of experience in section 8 rentals myself. Its great to hear positive experiences because most dont seem to have them. Like you, I have had positive outcomes. It honestly depends on the landlord and their abilities for the most part. Many fail to understand screening, managing, understanding the culture and treating people with dignity.  You are doing things right and I can tell from how you present yourself you somewhat understand and respect the environment. Congratulations and keep up the great work because you are providing a wonderful service and positive experiences to the community that typically has negative experiences in housing oh too often.   


     Thank you! Yes I think that is why the Section 8 people always seem to be happy when I have a new property available because the amount of tenants I have had to take because slum lords dont take care of their property has been staggering. I wont say I go above and beyond on fixing up the places and making them jaw dropping beautiful, I still do them up enough to where I would be comfortable living there. I think that is a big thing that a lot of people dont understand. 


     Seems like you have learned certain concepts that workbut tend to escape even the most experienced landlords. For you to be in the game 2 years Im impressed and see you are headed to much bigger things. Your approach of fixing them up nice enough is one of several things some dont seem to comprehend. The best thing you can have is good section 8 tenants who respect and take care of your place. Treating them with respect and providing a good experience  keeps them there for a very long time; pushing your cash flow  and building your equity. The notion that slumlords believe their tenants will positively be receptive to living in sub-substandard sht holes while being treated with disrespect escapes me.  Either way its so refreshing to hear this work for others in this forum as opposed to people saying they are savages and need to be treated like animals. Back when I first joined BP, I linked up with an experienced low income landlord. We toured his units and he was horrible to his tenants. Then he advised me that If I rent to so called "these people" I need to put in animal cages. Again, its so refreshing to see the genuine side of this coin. Congrats again! 


     Thank you! Yes ive seen that too! I toured one slum lords building to possibly buy and the tenant took such good care of his unit but there was mold everywhere and the bathroom light (not the light bulb, the light itself) had gone bad I guess 5 - 10 years ago and the tenant was just using a lamp to shower with. Idk how they kept passing inspection. Anyway, I stole that tenant and moved him into one of my one bedrooms and he is one of the kindest human beings ive ever met. 

    2Reply
  • Craig Janet
    Member since 2019 · 223 posts · 261 votes
    1y

    What's the process to evict a tenant who doesn't pay their small portion or otherwise trashes the place. 

    0Reply
  • Jamie O'Connell
    OP
    Rental Property Investor · Elmira NY · Member since 2023 · 143 posts · 143 votes
    1y
    Quote from @Craig Janet:

    What's the process to evict a tenant who doesn't pay their small portion or otherwise trashes the place. 


     Unsure yet as I luckily have not had to do it. But I would assume it is along the same as a normal tenant. Which in NY means like 3 months of notices and then a court case and an additional two weeks past that even if you win. 

    0Reply
  • Reesey Ann
    Member since 2023 · 8 posts · 4 votes
    1y
    Quote from @Jamie O'Connell:
    Quote from @Reesey Ann:

    great post! thank for sharing. 

    We always use section 8 for our SFH property. Over the years, we have had some great tenants and some nasty ones. Our most recent tenant just moved out and did not keep a clean house so our clean up and turnover is taking longer than usual.

    O wow! I just moved one tenant to a new unit of mine so I could update hers and she took two weeks to move but left behind an entire dumpster full of stuff.. I text her and was like you left so much stuff and she said just get rid of it and bill me. Not going to lie I was very shocked she offered to pay so I did clean it out and charged her for the dumpster and labor I was charged and she’s paying it off monthly. So it was a tad entitled but honestly not bad at all. Thought I was going to have to have a thrown down. 

     that's great she is paying her bill. My tenant claim she didn't have no one to help her move. We are keeping her security deposit and just moving on. 

    1Reply
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