Current tenant applied for Section 8
Hello all,
I have a current tenant in a duplex who was approved based on their current income. They have been with me for over a year and are good tenants so far. She just messaged me today that she applied for and received a section 8 voucher. She wants to send me the packet to fill out.
My question is, am I required to accept section 8 payments from a current tenant? What are the implications of accepting and denying section 8. My understanding is that section 8 is not a protected class in PA at the moment.
Any advice would be helpful.
Thanks,
Nick
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So you have a good tenant and wouldn't want the government to guarantee and make up part of the rent? Why on earth not?
@Nicholas Boccella
I don't know about PA. But here in Maine, we do not have to accept it. I would contact a local attorney who has experience with it and ask if that would go against any laws for your state.
My only concern is complication due to section 8 inspections. It is an up to date rental and I don't think there would be any infractions on the inspection. However, my worry would be I say ok, then section 8 doesn't pay due for some reason. I have never experienced a section 8 inspection. What should I expect? Thanks!
Aloha,
Here you will find all of the Section 8 forms and info, in particular look at the inspection checklist and inspection form:
https://www.hud.gov/program_of...
For those that always talk about "guaranteed rent", it is only guaranteed while the tenant is on the program. If they violate your contract, or the HAP contract, and housing removes them from the program, YOU will need to pay to evict and lose out on rent for the several months that will take in most areas. If you fail an interim inspection, they may stop your rent payments until repairs are complete AND reinspected. As is often said, there is no such thing as a free lunch.
Quote from @Nicholas Boccella:
Hello all,
I have a current tenant in a duplex who was approved based on their current income. They have been with me for over a year and are good tenants so far. She just messaged me today that she applied for and received a section 8 voucher. She wants to send me the packet to fill out.
My question is, am I required to accept section 8 payments from a current tenant? What are the implications of accepting and denying section 8. My understanding is that section 8 is not a protected class in PA at the moment.
Any advice would be helpful.
Thanks,
Nick
There are lot of misunderstanding about Section 8 voucher and inspection. Once you understand the process and procedures, you will always be looking for Section 8 tenants. Accepting or denying Section 8 voucher depends on State laws. IN New York, it is illegal to discriminate against source of income which means denying section 8 vouchers. I know several landlords love to take section 8 tenants due to guaranteed rent from the Govt. Inspection is very simple process, not to worry too much. Rent is guaranteed.
@Nicholas Boccella
Agree with @Jose Jacob. We are in Ohio and can say no to Section 8 voucher holders. We have three tenants who are on Section 8. We inherited all three tenants. Two were already on and one applied recently. We were worried when our tenant decided to apply for Section 8. Our property is old, not up to date at all but passed the inspection easily. If for some reason you didn't pass the inspection, they will give you chance to fix it. If your property is up to date, you don't have too much to worry about. Once they are on, rent is guaranteed from the government. That is why our other tenant is not in a hurry to find a job, lol. If they have no income, Setion 8 may even pay it all if your rent amount is up to their standard. Here in Ohio, 2 bed standard is $ 750. Hope this helps!
Quote from @Nicholas Boccella:
I believe you can reject Section 8 in Pennsylvania. If she's a good tenant and you would like to keep her, then why would you reject it? I'm not a fan of Section 8 renters, but once they've proven themselves as good renters then I'm willing to accept it, despite the extra paperwork involved.
I don't know the law in your state, but if the tenant has been there for a year it sounds like they are a good fit? If they now have guaranteed government money they went from a good fit to a great fit...
I would very much be happy about this situation.
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I've had a lot of inquiries on a property from Section 8 renters recently and I found this thread helpful. Thanks @Jose Jacob and @Robin Evans for the info!
Quote from @Reid Chauvin:
I've had a lot of inquiries on a property from Section 8 renters recently and I found this thread helpful. Thanks @Jose Jacob and @Robin Evans for the info!
Glad it helps! Actually the standard varies from county to county. Our neighboring county's standard is higher than ours. If it is the first time tenants are on Section 8, Metropolitan usually requires a one-year lease to start with. After that, it can be month to month. You can't raise the rent until annual review and determination time. Good luck!
Quote from @Nicholas Boccella:
Hello all,
I have a current tenant in a duplex who was approved based on their current income. They have been with me for over a year and are good tenants so far. She just messaged me today that she applied for and received a section 8 voucher. She wants to send me the packet to fill out.
My question is, am I required to accept section 8 payments from a current tenant? What are the implications of accepting and denying section 8. My understanding is that section 8 is not a protected class in PA at the moment.
Any advice would be helpful.
Thanks,
Nick
Nick - I am a landlord residing in PA, not too far from Wilkes Barre. To my knowledge, landlords have no responsibility to accept Section 8 tenants outside of Philadelphia, Harrisburg and Pittsburg (those cities have separate rules). With that being said, my FIL's property that I manage in PA is rented to a Section 8 tenant. My experience with the process is pretty simple. List your property, find a tenant, fill out a 10 page packet (with basic info), submit to the local housing authority. It took approx 3 days to gather all the materials required and fill out the packet. When I say 3 days I mean like an hour max per day in spare time. 2 weeks later they call to schedule an inspection. Inspection is not much different than a standard inspection for a certificate of occupancy i.e. windows, doors, appliances, electric, gas etc all in working order, no chipped paint, property is safe, property is clean, noting in disrepair etc. It is in my experience slightly stricter than a C/O inspection but not at all unreasonable. A simple 20 minute inspection which our property passed the first time. Should something be wrong, you have 30 days to rectify it.
We just started this lease with the Section 8 tenant so I can't speak to the tenant quality but all my interactions have been positive with her and we are looking forward to working with her as partners in the years to come. Yes, overall it takes 30-60 days start to finish but it is not all hard or unreasonable. I would certainly encourage you to give it a try, especially since you already have a relationship with the tenant, and she will continue to pay full rent until the process is complete. This sounds more like the ideal way to dip your toe in section 8 waters with little risk of a burn, whereas we went into this 100% blind and so far have not been burned. Worst case scenario, it doesnt work out. One thing thats great about renting in PA is that it is a landlord friendly state, and your worst case is someone in NY's unachievable best case scenario.
Best of luck!
@Robin Evans did you have any issues on inspection? We have an older building without overhead lights in some rooms and it looked like that is a requirement which was one reason I didn't bother with it. Difficult to address with the location and wall structure. Also low windows.
Quote from @Colleen F.:
Nope. We passed the inspection right away. It is an old house (over 100 years old) that doesn't have overhead lights either. The kitchen floor didn't look great either. But there was no issue with Metro. We actually did straighten up the floor and put new sidings on the whole house several months later to upgrade the house. The tenant is quite happy. It seems like our county is not that hard on Section 8 inspection.
Quote from @Nicholas Boccella:
My only concern is complication due to section 8 inspections. It is an up to date rental and I don't think there would be any infractions on the inspection. However, my worry would be I say ok, then section 8 doesn't pay due for some reason. I have never experienced a section 8 inspection. What should I expect? Thanks!
My experience with section 8 so far has been good. Choosing the right tenant is the challenge and from what you stated you have a good tenant. Section 8 has payments so far have been on time every 1st of the month my money has been in there. This is my first year working with section 8 so no complaints here. Choosing the right tenant is the key.
@Robin Evans good to hear. I have had calls but alway hesitated to do it. I had one grandma and teen that I would love to rent to but it just would have taken too long. And I have a representative of a local organization that calls every time I have a vacancy. My property is 1861 or earlier..and stone so the overhead lighting in some rooms just isn't realistic.
Quote from @Colleen F.:
@Robin Evans good to hear. I have had calls but alway hesitated to do it. I had one grandma and teen that I would love to rent to but it just would have taken too long. And I have a representative of a local organization that calls every time I have a vacancy. My property is 1861 or earlier..and stone so the overhead lighting in some rooms just isn't realistic.
I would say go for it, Colleen! Section 8 does their inspection they are more concerned about the general safety of the tenant on the property. If you are not a slumlord and refuse to upkeep your property then I would say Section 8 is not for you, but for most of us investors we want safe and clean homes for families and we want long-term happy tenants. Go for it it is money for 12 months that comes in on the 1st like clockwork I love it!!