Section 8 Tenants?

Question

My question is for those of you that rent to section 8 tenants:

1) Are they reliable tenants?
2) Do you have to deal with more problems with lower income than with your higher end rentals?

I currently own a couple of rentals that are in good areas and I don't have any problems renting them or dealing with bad tenants, but I have been looking at lower income properties that have great cash flow. I just find it hard walking into these dumps and I am not sure if I am ready to deal with the lower income crowd. Maybe I am worrying for nothing?

Any experienced feedback is appreciated.

Chris

Tony D'Anzica. · Answer

Hi Chris,

I manage many properties with Section 8 tenants and I've had a very good experience with it.  Be ready for yearly HUD inspections and be ready to correct any violations right away or Section 8 will withhold rent.  As for the tenant, I've found they value their Section 8 benefits and will generally behave in order to continue receiving those benefits.  Lease violations can put their benefits at risk.  If you're interested in obtaining Section 8 benefits just mention in any of your ads "Section 8 OK" or contact your local housing agency and have them place you on a list of landlords accepting Section 8 and then you will be contacted by tenants.  It's not a bad program, and it forces to keep your property in good shape.

Account Closed · Answer

Tony,

Thanks for the info. I may explore this avenue in the future.

Chris

Account Closed · Answer

Thanks, this helps me get an idea of the process.

I will contact the Housing Authority for more information.

Chris

Account Closed · Answer

This is great info, but what are the exact steps that need to be taken to accept section 8 tenants.

I imagine that you have to file some paperwork with your local government office. Can someone go through the steps in order, so that I can get an idea of what needs to be done.

Thanks

Chris

Account Closed · Answer

What is the process that needs to be done to start accepting section 8 tenants?

Chris

Account Closed · Answer

That's what I am afraid of, but I have heard from other landlords in the area that it is not as easy for the tenants to get away with what they used to and the tenants are afraid of losing their section 8 status so they are having less problems.

Chris

Account Closed · Answer

Thanks BG. I am currently trying to learn about the section 8 process here in upstate NY.

What is the best source of information?

CHris

Ingrid Nagy · Answer

Where I am tenant completes my app and puts up security deposit.  I then complete a "tranfer request" that tenant supplies that she turns into the Housing Authority.  The Housing Authority then contacts me to inspect the apartment.  Once the apt passes inspection the HA sends landlord a letter saying apartment passed and approved the requested rental rate.  If they think your rent is too high or will not approve it, they will give you an approval letter of what they consider a "reasonable rent" based upon comps they have from the area.  If you accept, you sign a Lease with tenant.  There are more forms to be signed but these are supplied by the HA.  They normally request a Lead Disclosure form, a W-9 showing ss# or federal id no for corp or LLC and an addendum to the Lease showing the split monthly of their contribution and tenant's monthly responsibility.  They inspect annually.  It is a substantial amount of paperwork required by the federal government but pretty boilerplate and standard.

Jason Becher · Answer

I thought section 8 tenants could lose their assistance if they trash a place.  If that's the case they have massive incentive not to.

Ingrid Nagy · Answer

I have one bad apple in about 18 Sec 8 tenants.  I love them - as long as I do my part, keep up with repairs, they do their part.  In NJ Sec 8 tenants do not want to lose their subsidy which is transferrable to other places.  I do occasionally have to deal with a boyfriend, relative who suddenly moves in.  However, all it takes is a report to the housing authority and they start investigating and usually nip it in the bud.

I am working a newly constructed condo that did not fly because of the lack of availability of financing.  The owner had never heard of sec 8 when he had me start renting.  He was concerned because of the "caliber" of the tenant.  I told him with his rental rates we would be sitting for 6 months waiting to fill in the building if he chose not to accept.  It has been 6 weeks and we have 25 of the 36 units filled - only 3 non-Sec 8.  So far so good.

Section 8 Tenants?

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