Keep getting lot of Section 8 inquries, Worth it?

Question

Hello,

I listed my property for rent it's in a Class A area and I am getting a lot of section 8 inquries. Are they worth it? How should I pursue if they are worth the effort? Is there going to be a lot of paper work with City? Appreciate your inputs.

Thanks

Nathan Gesner · Answer

If it's Class A, it wouldn't be affordable to anyone under Section 8. I would simply ask them how much they are allotted from Section 8 and that will likely weed them out immediately.

Some states require you to accept Section 8. Check your laws before making any decisions.

I personally don't like Section 8. I'm against long-term dependency on welfare, which most of them are, and I don't like all the extra paperwork and time required to get it rolling. And most of my Section 8 renters have been bad renters.

Tom Dickerson · Answer

Hi I am a PM from Albuquerque NM and here they just passed a law that we can not discriminate against source of income. So we can not say no to section 8. I would make sure that your laws where you are allow you to say yes or no to section 8. That being said, section 8 has raised their market rents as well and they always pay on time. So you should be able to charge top dollar for your property and get sure rent. I would just make sure that your screening process is top notch so that you can weed out the problem tenants. I would recommend using a professional PM to take care of the property for you.

Tim Miller · Answer

@Peter Morgan As others have stated, either your rent is too low or the voucher holder thinks their voucher amount will pay the monthly rental amount. Learn more about how your local Housing Authority works and how they calculate rent & utilities. This will help you to better understand what's going on and how to handle these people going forward.

Here are just a few items in the Housing Assistance Payments Contract that keeps us from accepting section 8

1. The owner must give the PHA any information on rents charged by owner for other unit.

2. PHA shall not be obligated to pay any late payment if HUD determines that late payment by PHA is beyond the PHA's control.

3. HUD
shall have full & free access to contract unit, premises, & all
accounts & other records of the owner that are relevant to HAP
Contract.

4. The owner must grant such access to computerized or
other electronic records & to any computers, facilities & must
provide any information or assistance needed to access the records.

5. PHA failure to pay the owner is not a violation of the lease. The owner may not terminate the tenancy for nonpayment.

6. Must give 90 days notice to vacate

As
you can see there are a number of reason not to take section 8. We will
not allow them full access to any of our computers, smart phones,
office and so on.

Malkia Ra · Answer

I agree with the advice given here, and I cannot stress ENOUGH how having strict screening in place/HIGH tenant standards will help you avoid this demographic.

Also make sure you've set the rent accordingly for your Class A property.  Getting alot of calls regarding Section 8 concerns me.  If it's priced right, they should be priced out of your rental.

Mike Webber · Answer

In Virginia source of income is now a protected class.

That said, I have investor clients who exclusively rent to people on sec. 8 because they are vetted and the money comes directly from the government. If the tenant doesn't hold up their end of the deal (keeping your property in good condition for example) they get kicked out of the program. The rents they receive from the voucher is often times higher than they could get on the regular market.

So there are some benefits, but I think it depends state by state. I have friends in Maryland with horror stories about sec 8 tenants. I'd ask local investors for their opinions. They will be able to give you the lowdown on your area and if it is a net positive or negative.

Ika Sargeant · Answer

After years of resisting taking in section 8 tenants I have one this year for the first time. My resistance was primarily their inspection and had gone through one and everything fell apart. I will still tell you their inspection is still very stressful over so many useless items. To make the story short, I did a background check on the applicant and they pay a portion of the rent. So far it has been nothing but positive. The tenant has taken to sending me pictures of the inside home to show me how well she keeps the home. Of course this does not mean you will get the same experience but it tells you things are always a little bit more layered. Do not dismiss it just because you assume the tenant will be terrible. And yes states are making it that you can not discriminate against the source of income. In Virginia, this rule has been adopted recently.

Bud Gaffney · Answer

Class A...Sec 8 won't be able to afford it.

Bud Gaffney · Answer

Section 8 = guaranteed income + guaranteed problems (most of the time)

Malkia Ra · Answer

You may find this article helpful.

https://www.rentalincomeadviso...

Keep getting lot of Section 8 inquries, Worth it?

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