How to section 8 rental property

Question

Is it difficult to set up your rental property under section 8?

Patti Robertson · Answer

If you search BP for SEC 8 you will find hundreds of thousands of posts. The topic comes up ALOT. My poor fingers got tired of typing the same thing over and over, so I put my tips and tricks in a blog post. Here’s a link if you want to check it out.

https://www.biggerpockets.com/...

Account Closed · Answer

Thanks guys, that was a lot of help

Rob B. · Answer

Great write-up, Patti! Thank you for that. @Patti Robertson

Kris L. · Answer

Pretty important to do what you can to stay on the good side of the HUD workers in your area if you want to section 8.  Those bureaucrats can make your life miserable if they feel like it.

Jeremy Taggart · Answer

Account Closed You have to get the unit inspected and it has to meet the criteria of section 8 in order for them to pay the rent. There is also more paperwork involved. They'll do yearly inspections that require you to fix anything they flag as needing fixed in order to keep getting rent coming in.

Rich Littlefield · Answer

very easy just google it, lots of information.

Russ B. · Answer

Disclaimer - I don't have any section 8 rentals myself.. I've just been doing a bunch of reading on it / may try it in the near future.

As I understand it, renting to a voucher holder is as simple as showing the unit, taking an app, and if they look good, filling out their packet and giving it back. From there, the local section 8 office will contact you to set up the inspection. If they find anything, you'll need to fix it before move in.

The government does not cover security deposits - so you still need to collect that from the tenant.

You can get a copy of the inspection form that will be used from whatever office handles S8 in your county.

Aside from the inspections, it's really not too different from a regular rental. Tenants range from good to horrible just like always, so you still need to screen (just with reduced income requirements).

The biggest complaints I hear are of tenants trashing the house (and causing failed inspections), running up high unpaid utility bills (especially lienable ones like water), complaining about many trivial "problems", or moving in unauthorized occupants.

Rob B. · Answer

Hi Otis, this a good question to think about as you're getting started. I know there are a lot of stigmas attached to renting to individuals who hold Section 8 housing vouchers; it is easier to think through the cons - however, some of the pros might be that you open up the property to a bigger pool of potential applicants. In many instances a large portion of the rent is almost guaranteed to hit your pocket each month - again, this may not cover the full amount but they are consistent payments coming in (paid by the government). Typically the tenants are already prescreened and you're much more likely to have a lower vacancy rate. However, there's always a certain level of risk that you take in accepting Section 8 vouchers and for you, you need to decide how you'd like to proceed - I know a portion of the rent is guaranteed, which is great, but I also wonder if the portion that the tenant is responsible for is considered riskier when compared to non-section 8 tenant candidates.

Additionally, there are a lot more regulations that you'll have to abide by as far as the level you can set the rent at, and I don't believe HUD covers Security Deposit either. Other downsides to going this route: the process to get the unit approved can be long and tedious; the apartment has to pass section 8 inspection - they are thorough, and go by the book. Section 8 doesn't manage the tenant, so if the tenant isn't paying their portion of the rent it's still your responsibility to evict them. All you can do is report it to Section 8 and there's a possibility they can lose their voucher. I'll defer to others though to keep the pros and cons coming! Still learning about this myself but happy to share what I've learned thus far.

How to section 8 rental property

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