I am closing on a duplex in Missouri that is currently rented out. I am assuming at closing that I will need to contact the existing renters for both sides ASAP and have them sign a new management agreement as I plan to manage them? I am also assuming that I will need to add an amendment to the current lease contracts that are in place with new owners information as well as contact the Kansas City Housing Authority and do a change of ownership form?
@Tyler Schell did you use a realtor?
Hi Logan! Yes, I am a real Estate agent!
Is it Kansas City Section 8 housing? It can take a while to transfer to the new owner, mine took 2 months. Make sure you have the contact info of the old owner and if not too late say that any rent coming from Section 8 belongs to you in the contract. You can sign new leases with the tenants if theirs are M2M, otherwise honor their old leases, then get them on new ones.
Hi Lee Ripma! Thank you for the reply! It is Kansas City Section 8 housing. I figured it may take some time for all the paperwork to go through and get the property switched over. Thank you for the tip! That is good idea to add to the contract before closing and to be able to communicate with current owners after the sale is completed as I am sure the rents will be going to them for atleast the first month.
When increasing rent for Section 8 tenants, does it have to be approved by Section 8 prior to the tenants signing the new lease?
Below is a website for rates in Kansas City. Any idea if this is the standard or more of a guide?
You do not need to add an amendment to the leases but you do need to inform the tenants as to who is now managing and what their contact info is. I can't recommend a good management company from experience, but I've heard Voepel isn't bad. They would at least be worth a call.
Hi Chase! From my understanding any rate increase does have to be approved by the Housing Authority before hand. I believe you can put in for a rate increase 1x per year.
Hi Andrew! Thank you very much for the info. As it turns out it sounds like it will be much easier to continue with current management company for a period of time until all the paperwork has been submitted and completed by the Housing Authority. At that time we could look at other management groups or take over the management on our own. I have heard good things about Voepel as well and have spoken with their group a few times which may be an option. Thank you again for the help! I really appreciate it!
That sounds right to me. Unless things we're horrible, I wouldn't recommend rocking the boat while they're completing things with the Housing Authority.
I talked with the Housing Authority of KC. To increase rent on Section 8 renters you must first have the renter sign the new contract that includes the new rent price.
You then send it to the Housing Authority for final approval. If the amount is too high they will send back what the max could be. I didn't get a straight answer on a max besides, "it depends on the renters income and other fair market rents."