Accountant · Woodland Park, CO · Member since 2012 · 40 posts · 10 votes
I noticed a lot of my fellow landlords in my area are not requiring a deposit for section 8. What is the thinking behind that? Do these tenants treat your property better? Is it because section 8 people don't have cash? Anyone here do that?
Well, for one thing, the section 8 program does not pay security deposits - the tenant must come up with that. Section 8 just pays rent to the landlord. So maybe these landlords realize that the section 8 tenants can't save up enough for a deposit, so why bother trying to get that which isn't there.
Most of them are probably just happy they are getting most of the rent direct deposited. Section 8 tenants DO NOT treat your property any better, in fact often times much worse. Deposit. They at least need to have some skin in the game.
The thinking is that you're getting paid by the government for rents, you can have a security deposit for damages.
If your Sec 8 tenants tear your place up, you have more recourse as they can lose the voucher. The other side is that maybe you're not the best judge of character in selecting tenants! You're the one that picked them.....
Well, for one thing, the section 8 program does not pay security deposits - the tenant must come up with that. Section 8 just pays rent to the landlord. So maybe these landlords realize that the section 8 tenants can't save up enough for a deposit, so why bother trying to get that which isn't there.
What? Are you kidding? Always get a deposit! Section 8 = more wear & tear. I have never had a problem getting a deposit from our Section 8 tenants. Frankly I think going Section 8 is a wash.
I never am able to get a full deposit up front. Usually Ill ask for half, then an additional $50 a month. I tell them it like a savings account because when they move out they will get a nice deposit back if they leave the place in good condition.
Reminds me of the time I saw a house around the corner from one of my rentals with a huge (probably 3' x 15') sign/banner posted on the front of the house that said "For rent. Section 8 Welcome. No deposit."
I see people advertising houses in the war zone for Section 8 with no deposit. Usually it states that they have to already have been on the program and in a house. They don't want tenants who are new to the program.
I think it's the landlords that are buying houses for $500 and renting them out for $600-700 per month. They want them occupied and raking in the cash. I suppose with those numbers, it's worth the risk and you're getting a lot of guaranteed rent.
Most landlords waive deposits for section 8 holders to try and gain a competitive edge in certain markets. Also because the neighborhood may not be the most desireable so they do what they need to to get it rented. I always charge a security deposit. Most section 8 tenants can afford the deposit and should be treated like a market rate renter just like your housing authority requests you to do.
I agree with David Barlow - many section 8 tenants can afford the security deposit and I believe a landlord should require it. Contrary to many believe, many section 8 voucher holders do not live in the less desireable neighborhoods. The HUD FMR limits are, at least in my area, generous enough for voucher holders to rent modest homes in decent neighborhoods - either fully subsidized or with an affordable co-pay.
I have two section 8 tenants and they fully expected to pay a deposit when they moved in. They are wonderful tenants and I enjoy having them in the units.
I only rent out my houses to section 8 tenants, and always ask for two months for deposit. Average rent is $950 so I collect $1,900 at lease signing from the tenant