Section 8 Processing Delays

[Michael Weis]

We have approved our first Section 8 tenant for one of our units, but the processing time for the housing office is insane. The prospective tenant told us it will take the office up to 30 days just to get the landlord packet together for us. I really want to proceed with this tenant, but that just seems like an undue burden to keep the unit open until all that has taken place. We haven't signed a lease yet. We still have other applicants we could screen in the meantime, and a steady stream of calls from other people who still want to see the apartment. Since there's no lease, should we let the prospective tenant know that the only way we can keep the apartment available for her is to sign a lease and provide the full deposit pending the approval of the Section 8 office? Or should we just tell her that we we are going to continue to take applications and hope that the apartment is still available for her when Section 8 gets their act together? If we do the latter, we could potentially have a paying renter in much sooner. If we do the former, we run the risk of having the unit vacant for much longer than we would like.

[Mike Wood]

@Michael Weis I just took my first section 8 tenant earlier this year, and like you, experienced delays. What I did was confirmed that the tenant had a current voucher (without a current voucher, forget about going any further in my opinion). Then I worked with the tenant and explained that they must pay the rent until her package is approved by the local HUD office and I start getting rent. The tenant agreed to pay weekly rent until the section 8 payments started, with any duplicate payments being returned to the tenant. Once they agreed, I collected the entire deposit from them. I did allow the tenant to move in before everything was finalized with section 8, based on the above.

In my case, it took 45 days for process to be completed with the local HUD office. It took just over 3 weeks for the landlord package and inspection to be completed, and 45 days to get the HUD contract finalized and section 8 rent to start (they did pay back rent from the inspection date).

If your local HUD office is similar to mine, they should pay you from the inspection date, so you will get back rent. But the risk is when that will happen. That also assumes you will allow them to move in with rent due and no contract with section 8.

If you have alot of market rate renters, I would personally pursue that over section 8.

[John Underwood]

In my experience once the tenant is approved you can sign a lease and they will send you back pay to when the lease is signed.

Be patient it takes time, but is worth it. My section 8 tenants have been with me for many years.

[Michael Weis]

Quote from @John Underwood:

In my experience once the tenant is approved you can sign a lease and they will send you back pay to when the lease is signed.

Be patient it takes time, but is worth it. My section 8 tenants have been with me for many years.

 That's what is making me hesitant to just move forward with market rate renters at the moment. There are very few Section 8 rentals in my area, especially for the size unit we are offering. I feel that this is a potential renter who could be with us for a long time and will take good care of the unit. She's a former police officer with three kids. My wife, however, is not as patient as I am and wants us to not wait. Is there a way to move forward with other potential renters while waiting for potential renters, or are we opening ourselves up to legal problems by telling the Section 8 tenant she's approved but then moving forward with someone else because it's just taking too long?

[Michael Weis]

Quote from @Mike Wood:

@Michael Weis I just took my first section 8 tenant earlier this year, and like you, experienced delays. What I did was confirmed that the tenant had a current voucher (without a current voucher, forget about going any further in my opinion). Then I worked with the tenant and explained that they must pay the rent until her package is approved by the local HUD office and I start getting rent. The tenant agreed to pay weekly rent until the section 8 payments started, with any duplicate payments being returned to the tenant. Once they agreed, I collected the entire deposit from them. I did allow the tenant to move in before everything was finalized with section 8, based on the above.

In my case, it took 45 days for process to be completed with the local HUD office. It took just over 3 weeks for the landlord package and inspection to be completed, and 45 days to get the HUD contract finalized and section 8 rent to start (they did pay back rent from the inspection date).

If your local HUD office is similar to mine, they should pay you from the inspection date, so you will get back rent. But the risk is when that will happen. That also assumes you will allow them to move in with rent due and no contract with section 8.

If you have alot of market rate renters, I would personally pursue that over section 8.

 This sounds like a reasonable approach, but I would be extremely wary about allowing a tenant to move in before that process was completed. Everything else I've seen says don't let anyone move in until the Section 8 approval comes through. No lease, no keys, no nothing. This is someone who is already on Section 8, so they already have a voucher, but it would have to be transfered for her to rent my unit.

[Bob Stevens]

SEC 8 IS SLOW. What we do is take her app but still show it. If a better cash tenant comes along, we then say sorry and move on , Sec 8 pays more and pays like clockwork. Check your area see if there is a program called EDEN, they are GREAT, pays more than sec 8 and moves fast, typically two-week turnarounds, JUST MAKE SURE you screen them. 

Good luck