How do you track Section 8 rents in your accounting?

Question

I use Stessa to keep track of my rental income and expenses. We have one section 8 tenant. There is a category under income for Rent and another for Section 8. My section 8 tenant pays $320 while the Housing Assistance pay $355 for a total of $675. Do I list the whole $675 as Section 8 or just the $355 that comes from Housing Assistance? Why is this category even there? I imagine it makes a difference for tax filing purposes but don't actually know.

Thanks,

Troy

Thanks,

Troy

Nick Sanders · Answer

@Brandon Rush and @Troy Froistad

I use Tenantcloud also and have a couple of tenants that are section 8. I found in a different post a year or so ago a good way to to this.

When the tenants pays part of the rent and Housing Assistance pays part. I create 2 entries for that tenant as though they are room mates. Label 1 with Tenants Name/info and rent amount and the 2nd as HAP being the roommate for the other portion. Doing it this way the tenant logs in and can see both entries but also only pays their portion. When HAP makes the deposit we record the HAP Entry as Paid. You will always be able to see which is not paid and Tenant sees whether or not entire account is current. The total of each show as the full rent.

I did not come up with this I found it in another post a little over a year ago and put it into practice for my tenants that are section 8. Works great and was glad I found that post because I was dealing with this same issue.

Brandon Rush · Answer

Hey Troy,

I currently use TenantCloud and when I receive my section 8 tenants' payment from section 8, I mark it as a partial payment. In the notes on that payment, I usually just put "HAP Payment #xxxxx". Once the tenant pays their portion, I mark the full balance as paid. In the end it's all just rental income, I do not believe there is any difference between income from the section 8 program and your section 8 tenant's rent payment. I am not sure why Stessa has that option, it may just be for tracking and reporting purposes.

Good Luck!

Basit Siddiqi · Answer

Rental income is the same regardless of whether it comes from section 8 or the tenant.

Troy F. · Answer

Thanks!

How do you track Section 8 rents in your accounting?

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