1st time renting out to section 8

[Gulshan D.]

Hey guys, I need some advice on my first rental.

 My agent said it might be worth renting out to section 8  tenant and he was able to convince me. Do you guys have experience on section 8 tenants? What were your experiences like? Are there any additional clauses i need to put on the lease agreement, eg. taking care of the  property, timely payment of their portion of the rent etc.
 
i also need some input on whether forming an LLC would be a good idea. I have the property under my name and was thinking of getting an LLC down the road. Would it be a good idea or having a personal umbrella policy should be good enough? Any advice is greatly appreciated. Thanks!

[Nathan Gesner]

Let me guess. Your agent said, "Section 8 is guaranteed rent income!"

Section 8 has good and bad. I personally feel it's more bad than good, but others will have a different opinion and it probably depends on your market and skills as a manager. One thing I can tell you for sure: Section 8 renters are more likely to be entitled, difficult, non-communicative, problematic, evicted, trashy, etc.

@James Wise from Holton-Wise Property Group has a TV show on his website labeled "Tenants from Hell" and I believe they are mostly Section 8 tenants. Check it out and compare that to the "guaranteed" rent everyone raves about before making a decision.