To Section 8 or To NOT Section8?

Question

We are looking to add a few properties to our rental portfolio and would love to hear feedback / thoughts/ advice on going the Section 8, affordable housing route. Seems that everyone I talk to either absolutely loves it or says it's a total nightmare. I'm trying to weigh the pros and cons of listing the houses as traditional LTR without accepting vouchers or as a Voucher recipient option . What has been your experience? Our rentals are in the South Carolina market. Thanks in advance !

James Wise · Answer

If you're properties are in a high crime and low income area, Section 8 tenants pose the lease risk to you. If they are in a low crime and high income area, Section 8 tenants pose the highest risk to you.

Michelle Fenn · Answer

That is the  most succinct and accurate piece of PM information I have seen in a long time.    Thumbs up

Kevin Johnson · Answer

I totally agree!  The rental rates can be fantastic, so it is absolutely worth the time spent on the front end evaluating your tenants.  Our brokerage manages several properties with Section 8 tenants, so if you need any guidance let me know!

Rachel Chwaszczewski · Answer

Initially we shied away from Section 8 due to others comments/opinions in regards to it but ultimately a few opportunities presented themselves and we decided to move forward.  We have had very good luck with affordable housing and Section 8 specifically.  The obvious up side is it is guaranteed rent every month.  With that being said the best thing we did to help the tenants and ourselves was to develop a process to vet ALL of our tenants to try and make sure we are getting the highest quality tenant, regardless of the location.  We also ask for a 2 year lease when feasible as this cuts down on turnover/lost income.  This strategy has worked well for us.  Our signing process is lengthy and we review all of the responsibilities with our new tenants and ask that they initial each page confirming they have read and understand the rules etc.  I would not say we have no issues ever but the turnover rate is very low and we generally have amicable turnovers when they do occur.

To Section 8 or To NOT Section8?

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