Transitioning Out of Section 8 Tenants

[Gilbert Hsu]

I'm considering buying a 3-family rental property in which the entire building is currently leased to Section 8 tenants. In this area of Boston, MA, the Section 8 rental subsidies are significantly lower (15-20%) than market rate. That said, I'm looking for insight on how to legally and strategically transition the building back to standard, non-section 8 tenants.

If purchased, I fully intend on honoring the balance of the leases (about 9 more months). I hope to avoid any conflicts and make the transition as smooth as possible.

Thanks in advance for the help!

[Ann Bellamy]

In MA you cannot discriminate against section 8, it is a protected class.  And MA vigorously seeks out and prosecutes offenders.  So while you can set your requirements, and stick to them, they cannot include "no section 8".  Check the Ma Commission Against Discrimination.  

You can also set rents at market, and require the tenant to pay the difference between rent and subsidy.  But I'd check with a MA attorney to make sure you scrupulously comply with MA law.  I recommend Inessa Shur.