Anyone with Section 8 experience in Pittsburgh area?

Question

Section 8 only does a one year lease, and after it runs out, the lease then automatically renews on a month to month basis. I am in the Pittsburgh area.

Does anyone know any way or loopholes to be able to do a full year lease (assuming the tenant is good and wants to stay) after the initial year is completed? Just want to be able to protect myself from a possible vacancy in the middle of the winter..

I tried adding an addendum to where the tenant can't end lease certain times of the year, as well as a minimum 60 day notice, but was told by Sec 8, thats not going to get approved.

Any help, advice is much appreciated!

Marc Steinberg · Answer

Artem,

Section 8 leases supersede your lease. Each section 8 lease is for 1 year. It will automatically renew for another year unless you let the tenant know you will not be renewing their lease. Once a year, section 8 will inspect you unit and make sure that it still passes so that the lease will renew. I don't believe that there are any month to month leases for section 8.

Marc

David Lee Hall, III · Answer

@Artem Kovalevskiy

I haven’t done Section 8, so not sure if this would fly. I changed my lease last year from rolling over into M2M to being a hard stop without written extension. You might try this and have them sign a 1 yr extension 69 days out from the termination. Rinse and repeat as many times as needed.

Marc Steinberg · Answer

Hi Chris,

My partners and I own and self manage section 8 properties as well as non-section 8 properties. For all properties you need to get a good management company. If you do not, all of your profits will magically vanish. As far as section 8 goes, you need to make sure all of your properties are up to "section 8" code. If your properties are well maintained, you should have no problem passing inspection. I am only posting about Pittsburgh since that is where all my experience is. I am sure in other areas this information will not be applicable.

Marc

Charles Fisher · Answer

Hello @Alex Deacon - does HACP pay the payment standard at the relevant tier by default, or is there any sort of negotiation with the inspector over whether the unit can be rented for that amount?

Alex Deacon · Answer

@Chris Nocera we manage about 50 section 8 units. One of the challenges is dealing with the housing authority. Some areas section 8 is the only way to make any money. If I had a choice I would buyer higher end rentals and make less ROI. There is a lot of headache and the section 8 process is management intensive. You can make a profit in any market high end or low end its a matter of knowing what you are getting into and managing expectations.

Chris Nocera · Answer

I should have mentioned that although I am located in SoCal, my properties are in Pittsburgh, PA, so I'm dealing with their housing authority and inspectors

Chris Nocera · Answer

@Alex Deacon.  I found this old thread as I am navigating my first section 8 lease/inspection.  Not sure if you are still managing section 8 properties in Pittsburgh, but I was wondering if you have any more insight than already provided in this thread.  The first inspection was flagged with largely minor things like weather stripping (which was already there, but I guess not good enough), caulking tub, interior doors that take too much force to close/latch, etc.  In your experience, if all of these issues are addressed, should I expect a pass on the next inspection or will he provide a list of new items (I've heard this can happen).  Any inspectors to be more weary of than others?  Any other handy advice regarding getting through these inspections?

I found it odd that the inspector will only mail the report...no email.  So, now I have to wait for the report to provide my contractor to ensure we've addressed everything.  Is that normal?  I've already reached out to HACP to see if they can provide a copy.

Robert D. · Answer

i am not following ..how a yearly lease would make them stay ? they will simply skip the lease get the moving papers and move out. in short..it does not matter if the lease is weekly or for a year ...they dont care..not does the S8 office

Alex Deacon · Answer

@Artem Kovalevskiy @Cameron Andrews Be very careful with section 8. Especially when just starting out. There are so many things you will need to know I dont know where to start. Make sure you meet all your deadlines with the section 8 inspector and that you do your best to hold your tenant accountable for any damages done each year for the future yearly inspections. You have to over communicate with section 8 in many cases just to keep them on track. We manage over 50 section 8 rentals and its not fun and is one hell of a learning experience for anyone new.

Cameron Andrews · Answer

@Artem KovalevskiyAlso interested in this. Closing on a JV with two other Canadian partners this week, Section 8 tenant in McKeesport, PA.

I am happy to share any info I gather on this. Good luck in the meantime!

Anyone with Section 8 experience in Pittsburgh area?

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