Below is a link from our newspaper in Cincinnati about a greater number of properties are not qualifying for section 8 vouchers and landlords are not make repairs to pass inspections. To me the piece lacked the landlords voice. I'm not in section 8 rentals but I would like to hear opinions on why landlords drop out, perhaps any solutions and what opportunities present themselves when other landlords drop out? Thanks all.
I've never done section 8 and I never will. The program tends to be abused (not in all cases) and I won't support that.
@Brad Davis I can only speak to my experiences. About 2 or 3 years ago our section 8 started to cut funding. One used to get above market rent (which was justified for the extra work) for a section 8 rental. They then cut funding at the same time that rents started to increase. We have very nice homes, that we completely remodel (gut to the studs,all properly done and inspected) I was actually told by a sec 8 inspector not to take it personally but they had to find something wrong with my units, or it would appear they were favoring me, and that the justification for the inspection wasn't there. Since most of these were recently inspected by the building department, they had a hard time finding issues and the follow were some examples. I was forced to replace a brand new fridge that wasn't yet plugged in, the door had shut and it needed cleaned, but I had to show them a receipt for a new one. In another case we added a dishwasher and garbage disposal during a turnover and they refused to pay extra for it. The one that broke the camels back was we had a w/d hookup and I was told to provide a w/d (for no extra money) or completely remove it, I offered to install a cap on it, but we had just paid good money to install a w/d hookup on the first floor., it wasn't getting removed. On my favorite in the mix was my doorbell button didnt light up. So it appears if you have a crappy unit they will let it slide, but if you have great units they pick on you, for that and the increased rent I quit the program. I refuse to have any unit I wouldn't personally live in.
Thanks for sharing the info, Brad. Although we are not in Cincinnati, we chose to not face the dilemma or participating in the Section 8 Program on purpose. First off, in the County we do business, it is not mandatory to consider Section 8. Second, when it does become mandatory, we hope to be not compliant with the program as we currently rent units for no less than 24 month periods. Their program does not allow that. So, it pretty much keeps us out without having to say we choose not to participate.
That being said, why would we choose to opt out? It's simple, I would fancy to say that more than 90% of participants do not have a good credit history. I have seen the less than 5% who actually had a decent history and I would be OK to renting to those folks, but, the fact is, the chances of getting that family is slim. I would much rather set my criteria high and get the folks that I want to rent to instead of jeopardizing the integrity of my units. I feel that most people take Section 8 because they are sold on the fact that "it's guaranteed income." Although that is true, why should I jump through more hoops to rent my product when a perfectly well off family who can afford my unit without government assistance, and has a track record of performing, can rent my unit without having to jump through hoops to tie the unit up, submit funds, and get the ball rolling? Just another business decision...
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