Buying with existing section 8 tenants
I am considering purchacing a duplex in St. Louis, and one unit has a 100% section 8 tenant on a lease through January 2020 (at about $200/mo less than what rentometer shows for the area average). I will be moving into the other vacant unit. My plan would be to update the kitchen of the vacant unit before January, then not renew the tenant's lease so I can move into the other unit and rent out the nicer unit.
In general is it a good or bad sign that the existing tenant is section 8? I know its garunteed income, but I have also heard they are less likely to care about the property and it may be in bad shape (I have only seen the vacant unit at this time).
Is there anything I need to know about inheriting a section 8 tenant? do I need to get approved to be a section 8 landlord?
Thanks in advance!
Most Popular Reply
From what I've seen, heard, and read a Section 8 tenant is no different than a tenant paying with their own money. Meaning you have good ones, bad ones, and really bad ones :)
Regarding being a vendor for the Section 8 voucher, if you are not going to use a PM, or if there is an existing one in place, then all you will need to do is update the owner of record with the HUD office once you have the deed signed over to you to prove the new ownership.