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User Stats

16
Posts
5
Votes
Gene Paniccia
Agent
Pro Member
  • Realtor
  • St. Petersburg, FL
5
Votes |
16
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Section 8 Question

Gene Paniccia
Agent
Pro Member
  • Realtor
  • St. Petersburg, FL
Posted

I recently purchased a property in Cleveland. I found a tenant with a Section 8 voucher. Yesterday, I got my rental offer from CMHA. The offer is for $1,442.00. The tenant is responsible for $87.00. I'm being told, from someone with Section 8 tenants, that I can ask the tenant to pay me more than the $87.00. This would be in a separate agreement from the lease.

Is this true? Is this legal? 

I'm erring on the side of caution that this wouldn't be allowed. 

User Stats

27,359
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18,585
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James Wise#1 Ask About A Real Estate Company Contributor
  • Real Estate Broker
  • Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH
18,585
Votes |
27,359
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James Wise#1 Ask About A Real Estate Company Contributor
  • Real Estate Broker
  • Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH
Replied
Quote from @Gene Paniccia:

I recently purchased a property in Cleveland. I found a tenant with a Section 8 voucher. Yesterday, I got my rental offer from CMHA. The offer is for $1,442.00. The tenant is responsible for $87.00. I'm being told, from someone with Section 8 tenants, that I can ask the tenant to pay me more than the $87.00. This would be in a separate agreement from the lease.

Is this true? Is this legal? 

I'm erring on the side of caution that this wouldn't be allowed. 


 lol, no not allowed. 

User Stats

16
Posts
5
Votes
Gene Paniccia
Agent
Pro Member
  • Realtor
  • St. Petersburg, FL
5
Votes |
16
Posts
Gene Paniccia
Agent
Pro Member
  • Realtor
  • St. Petersburg, FL
Replied

Didn’t think so. 
Thank you! 

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User Stats

27,359
Posts
18,585
Votes
James Wise#1 Ask About A Real Estate Company Contributor
  • Real Estate Broker
  • Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH
18,585
Votes |
27,359
Posts
James Wise#1 Ask About A Real Estate Company Contributor
  • Real Estate Broker
  • Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH
Replied
Quote from @Gene Paniccia:

Didn’t think so. 
Thank you! 


 Yessir.....Avoid taking any landlord advice from that dude.

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1,735
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Travis Biziorek
  • Investor
  • Arroyo Grande, CA
1,735
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1,592
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Travis Biziorek
  • Investor
  • Arroyo Grande, CA
Replied

I don't know about Ohio, but I assume it's the same as in Michigan.

That is not legal.

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Drew Sygit
Property Manager
Agent
#2 Out of State Investing Contributor
  • Property Manager
  • Royal Oak, MI
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Drew Sygit
Property Manager
Agent
#2 Out of State Investing Contributor
  • Property Manager
  • Royal Oak, MI
Replied

@Gene Paniccia  read the HAP contract. It states that side deals are a violation of the contract.

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David Krulac
  • Mechanicsburg, PA
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3,421
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David Krulac
  • Mechanicsburg, PA
Replied

its against HUD rules to acept money under the table. If they find out HUD will kick both you and the tenant out of the program. HUD publishes the Median Fair Market Rent on their web site for the entire country. So you can know what they will pay before even advertising your rental. web site is HUDuser.org look for FMR, Fair Marlet rent

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3,566
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Bob Stevens
Pro Member
#3 Real Estate Agent Contributor
  • Real Estate Consultant
  • Cleveland
3,566
Votes |
6,254
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Bob Stevens
Pro Member
#3 Real Estate Agent Contributor
  • Real Estate Consultant
  • Cleveland
Replied
Quote from @Gene Paniccia:

I recently purchased a property in Cleveland. I found a tenant with a Section 8 voucher. Yesterday, I got my rental offer from CMHA. The offer is for $1,442.00. The tenant is responsible for $87.00. I'm being told, from someone with Section 8 tenants, that I can ask the tenant to pay me more than the $87.00. This would be in a separate agreement from the lease.

Is this true? Is this legal? 

I'm erring on the side of caution that this wouldn't be allowed. 


 100% NO! I have been working with CMHA for 10 years, 100s of move in and outs ,I deal with them weekly, so I am not speculating, 

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Bob Stevens
Pro Member
#3 Real Estate Agent Contributor
  • Real Estate Consultant
  • Cleveland
3,566
Votes |
6,254
Posts
Bob Stevens
Pro Member
#3 Real Estate Agent Contributor
  • Real Estate Consultant
  • Cleveland
Replied
Quote from @Gene Paniccia:

I recently purchased a property in Cleveland. I found a tenant with a Section 8 voucher. Yesterday, I got my rental offer from CMHA. The offer is for $1,442.00. The tenant is responsible for $87.00. I'm being told, from someone with Section 8 tenants, that I can ask the tenant to pay me more than the $87.00. This would be in a separate agreement from the lease.

Is this true? Is this legal? 

I'm erring on the side of caution that this wouldn't be allowed. 


 You need to hire a PM, co ASAP, 

User Stats

16
Posts
5
Votes
Gene Paniccia
Agent
Pro Member
  • Realtor
  • St. Petersburg, FL
5
Votes |
16
Posts
Gene Paniccia
Agent
Pro Member
  • Realtor
  • St. Petersburg, FL
Replied

Thanks for all the replies. 

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2,106
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2,544
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John Morgan
Pro Member
  • Rental Property Investor
  • Grand Prairie, TX
2,544
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2,106
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John Morgan
Pro Member
  • Rental Property Investor
  • Grand Prairie, TX
Replied

Some housing authorities don’t pay you market rent. So I can see why some do side deals. But most pay at least market rent so no need to ask for $ on the side. I’ve got two houses with sec 8 in AR that won’t pay me market rent. I may have to kick them out so I can at least get market rent. It’s frustrating, but I understand they have low funding.

User Stats

23
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11
Votes
Francesco Ponticelli
Pro Member
  • Investor
  • Miami, FL
11
Votes |
23
Posts
Francesco Ponticelli
Pro Member
  • Investor
  • Miami, FL
Replied

Nope. I had my last 2 tenant with partial contribution and you can't change that. 

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Bob Stevens
Pro Member
#3 Real Estate Agent Contributor
  • Real Estate Consultant
  • Cleveland
3,566
Votes |
6,254
Posts
Bob Stevens
Pro Member
#3 Real Estate Agent Contributor
  • Real Estate Consultant
  • Cleveland
Replied
Quote from @Gene Paniccia:

I recently purchased a property in Cleveland. I found a tenant with a Section 8 voucher. Yesterday, I got my rental offer from CMHA. The offer is for $1,442.00. The tenant is responsible for $87.00. I'm being told, from someone with Section 8 tenants, that I can ask the tenant to pay me more than the $87.00. This would be in a separate agreement from the lease.

Is this true? Is this legal? 

I'm erring on the side of caution that this wouldn't be allowed. 


 100% NO! You canNOT  take more than the approved amount 

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