Updated over 3 years ago on . Most recent reply
Section 8/government assisted housing
Hello BP community,
My partner and I are currently in the process of closing on our first investment rental in the Memphis area. We plan to use a PM to handle the day to day. However, we want to see if anyone knows anything or has any experience renting a property through a government assistance program or Section 8. The pros and cons of opening that up as a potential client base.
Thank you!
Most Popular Reply
1) excellent tenant screening is a must! There are good people who need gvt. assistance for a while. Get as many applications as you can. Look at credit scores. They won't be stellar! But pick only the best few, two or three. Conduct interviews. Look for somebody who is working and could get promoted, or change jobs for something better.
2) Section 8 property inspections in my area are thorough and strict. No chipping and peeling paint! The fewer the painted surfaces the better. All paint has to be inspected and scraped and patched and re-painted (as needed) at every inspection (every two years.) That's interior and exterior.
3) Rent amount. Advertise the unit at the top of the market for the number of bedrooms and for the area. You will need to get as much as you can for the extra upkeep and maintenance (see #2) and, possibly for the extra tenant management time/costs.
Best of luck!