Does Section 8 pays first and last month lease requirement?

Question

I am wondering if any of you can clarify how you manage renting to Section 8 tenants regarding the rental required when entering the lease? I was under the impression that Section 8 pays first, and last month while the tenant pays the deposit?

I appreciate any guidance, thank you!

Sochi

I appreciate any guidance, thank you!

Sochi

Xochitl Cadena · Answer

@Karen O.

Thank you! Your response is very thorough.

Karen O. · Answer

They pay the last, but at the end of the lease. So if you collect last up front, it becomes a double security deposit, instead, which can be a problem in some states.

On the other hand, there are charities set up to help people get that deposit and last month's rent if required, so you may be able to get it in your area.

Edit to add, I ALWAYS require full security deposit and utilities in their name (more deposits they pay) for all S8 tenants. And they always get it paid. In fact, I require that deposit when filling out their forms, with a contract to hold, so they don't flake off or forget to file. If S8 turns them down, we refund, but otherwise it becomes their security deposit or they forfeit if they flake off. It can take several weeks to get a S8 tenant thru the process, during which time I have to turn down numerous applications, so the holding fee is required for us to go thru the process.

Xochitl Cadena · Answer

@Bjorn Ahlblad Thank you!

Xochitl Cadena · Answer

@Patricia Steiner Thank you for the info, definitely helpful!

Bjorn Ahlblad · Answer

@Xochitl Cadena I do not have any section 8 tenants but I am familiar with the program. You will only get first months rent. No last month and no security deposit. Check the tenant out just like you would any other applicant and decide for yourself. All the best!

Evan Polaski · Answer

@Patricia Steiner, I wish my section 8 office was great at responding to emails or phone calls quickly.  But I agree they are your best place to get the info required.

Xochitl Cadena · Answer

@Evan Polaski thank you!!! So that’s the structure in MA as well; I thought they would pay “first” and “last” month but it turns out only “first”, and then structured as you already explained as well.

Much appreciated, stay healthy!

Sochi

Patricia Steiner · Answer

Not in my market...Security Deposits are not paid by Section 8 nor last month's rent. Here's more:

"In most states, the Housing Choice Voucher Section 8 Program will not pay the security deposit on a home or apartment selected by the family. This can present challenges for the potential tenant as coming up with the funds to pay that expense, as well as the first or last month's rent, is often difficult." (Source:   https://www.needhelppayingbill...)

The local Section 8 offices are great in taking email questions and responding quickly to landlords.  Hope this helps...

Evan Polaski · Answer

@Xochitl Cadena, it has been a while since I last signed a section 8 lease, but if I recall correctly for Cincinnati MHA, who oversees local Section 8, tenant pays security deposit and is required to pay their portion.  I am under a "housing choice voucher" system with single family rentals.  So every year on the lease anniversary, CMHA recalculates the piece that the tenant is required to pay, and that they pay, based on housing expense ratios relative to income.

For my one section 8 tenant I have left, total rent is $1030, she pay $702 and CMHA pays $328 each month.  When I signed the lease, I collected 1 month's deposit and her portion of the rent.