Section 8 Guidance Needed. Asking Rent $2450
Hello,
A tenant wishes to rent my property via Section 8. This is the first time I am planning to be a section 8 landlord.
I expect voucher approval to be around $2150, hence $300 short. How do you folks recommend I cover the additional $300 rent via paperwork? Should this be a separate lease from the one done for $2150 via Section 8? Does NJ law allow such as separate lease? If not what is the other legal way to get this additional lease incorporated?
Thanks
- Real Estate Consultant
- Cleveland
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Quote from @Andy S.:
Hello,
A tenant wishes to rent my property via Section 8. This is the first time I am planning to be a section 8 landlord.
I expect voucher approval to be around $2150, hence $300 short. How do you folks recommend I cover the additional $300 rent via paperwork? Should this be a separate lease from the one done for $2150 via Section 8? Does NJ law allow such as separate lease? If not what is the other legal way to get this additional lease incorporated?
Thanks
HIRE A PM CO before you can a huge fine or worse. You cannot collect more than the approved amount,
You really need to hire a PM co. BTW, Govt usually pays more than a cash tenant. Your numbers are off
good luck
@Andy S. contact the department that runs Section 8 where your rental is located and ask some questions. Each area is different. Some people are not approved for full subsidies and have to cover the rest out of pocket. However most Section 8 programs are pretty easy to get set up in as they are looking for more units.
I would be careful as I don't think two leases is ever going to be the correct answer though and that does sound like a legal issue.
- Rental Property Investor
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If you don't know the answer to these questions, you're not ready to be a S8 landlord.
You need to learn the laws before becoming a landlord, especially when the tenant is the government and a screwup can cause you massive losses.
You cannot have two different leases with the tenants or accept additional rent outside of what S8 approved. You can try to talk to the S8 case worker and see if they can adjust the amount if you believe that the FMV rent is higher and see what they can do. But S8 have guidlines on the maximum rents that they are allowed to pay so most of the time their hands are tied. We have had multiple times in the past in which the prospect tenants were not being approved for the full rent that we were asking so we had to drop them right away.
Quote from @Andy S.:
If it's below market, don't accept it. You would lose $3,600 a year to subsidize a less-than-ideal Tenant.
Thank you all for the valuable advice. I met the tenant, she seems genuine, sincere (based on her background check), and has been living as a section 8 tenant with the current landlord for last 4 years with no issues. Central NJ has seen explosion of market rent for the properties, that seems to be above what Section8 will cover.