How to Get Started With Section 8 in Richmond, VA
I know this is a big topic of debate with people with different opinions on Section 8. I have done the research and decided that this is the way I want to go with the properties I'll be closing on soon. The only problem is I can't find anything on the actual process. I've checked out GoSection8.com, read countless articles, and can't figure out how you get started accepting vouchers and making sure that the property meets section 8 requirements. Can anyone give me an idea of where to start? Do I just list the property and THEN get it inspected? Will the local housing authority (Richmond City, VA) come out an inspect before I can list? Will they tell me what the rate of rent they will pay for my property would be? It's my understanding that it can sometimes vary compared to the market rate.
Ironically I just sat in a class on this at my local REIA. From what I remember you list the property and let it be known that you accept Section 8. If a Section 8 applicant applies to rent your property, that is when the application needs to be sent to the local housing authority who will process it and send out an inspector. I do not believe that you can be "pre-qualified", but it does vary from city to city. The lady who gave the class has about a hundred Section 8 properties and is a board member of the REIA. She is a huge advocate of Section 8 and can answer all of those questions. I know her but not personally. Still, I can see if she may be willing to answer your questions if you would like me to reach out to her.
From my own experience, I especially recommend Section 8 for lower-price point properties (ARVs under $100k). Otherwise you face a stronger possibility of not receiving payment, given the tenants those properties attract (not sure what you're about to close on).
There are several groups you can go to that provide housing/utilities assistance besides Richmond Redevelopment who is associated with the GoSection8 website. Central Virginia Resource Corporation is GREAT to work with (ask for Melissa Davis) and Virginia Supportive Housing is a lesser known group (ask for Jenna Weiner).
You can post within those groups. Rentometer is a good guide to make sure you're within market rents. Also on any other posts you make (Craigslist, etc), be sure to state you ACCEPT VOUCHERS.
The voucher holder will provide you with the paperwork you need to fill out once an agreement to rent has been made. You will have them sign your normal lease in addition to filling out their paperwork. From there, the group they are affiliated with will set up an inspection. If your house is SAFE and up to code, you should be fine. Make sure all smoke alarms are working, no windows painted shut, no exposed wires, etc.
I hope you find this useful.
Also, at Richmond Housing and Redevelopment they hold a monthly meeting for new recipients of vouchers. You can present your property at those meetings. You can also hang up flyers for your property at their office on the bulletin board dedicated for just that.
Dude @Daniel Harnsberger and @Edward B. you guys just gave me some killer answers. Thank you!
Have you rented properties to section 8 tenants before?
What type of life would you like to joy as an investor?
Starting out, I did rent to section 8 tenants a few times. The overwhelming majority of those experiences have been bad...(completely destroyed properties, put holes in walls, violated leases etc). I still probably made money, but it was not worth the hassle or stress. I'd prefer to rent quality housing to quality tenants who enjoy and take care of their homes.
If you own decent looking properties in good neighborhoods you likely have a preference and will not be forced into accepting section 8.
If you own in a bad neighborhood, you'll likely have little choice...you'll be forced to accept section 8.
Yes, I get it. Every has to live somewhere, but I'll choose not to be the slum lord renting out crappy homes, to crappy tenants in bad neighborhoods....There's money to be made, but I'd rather not inflict that type of pain on myself. I like to sleep peacefully at night.
@jon s I have heard the horror stories,but I've also heard that if you Screen section 8 tenants like other tenants, it generally works out. This property is in a class c neighborhood, but I don't keep it crappy just because section 8 folks live there. Maybe it's naivete, but in my neighborhood I think I'll get higher rent though section 8 than otherwise. I'll keep you posted if I lose my shirt!
@daniel harnsberger How long does the process with the housing authority take one the application is in?
Hey Matthew I'm just wondering how this situation worked out for you. Even if it is 3 years later..
Its worked out great so far. the two tenants I was getting at this time are no longer on section 8 and still live there. The other 2 section 8 tenants we've gotten since have been mostly good. Just a couple of issues with getting utilities in their name which has worked out.
The paperwork is kind of annoying but the process is relatively straight forward.
Hey @Matthew Maggy! I'm right down the road from ya in Hampton Roads. I do a lot of SEC 8. There is a TON written about it on BP. I got tired of typing the same thing over and over, so I put my tips and tricks in a blog. Here's the link.
https://www.biggerpockets.com/member-blogs/9232/55313-intro-to-section-8---your-perceptions-vs-my-realities
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Real Estate Agent VA (#0225186139)
- 7574722547
- http://www.pmivirginia.com
Hi Matthew, I just posted a new thread on this topic. Wondering if you are still working with Richmond Section 8 and how are they treating you?
Patrick Sears
Hi Patty, love your Section 8 tips on the link you provided!
Still loving Section 8 in Hampton Roads?
Patrick Sears