Inheriting Tenants With Columbus Metropolitan HA Vouchers

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Inheriting Tenants With Columbus Metropolitan HA Vouchers

Abdoulaye DialloPro Member
Rental Property Investor · Houston, TX · Member since 2020 · 5 posts · 7 votes

I am trying to close my first ever investment deal on a duplex in Columbus, OH pretty soon. The property is occupied, with tenants rent fully covered by CMHA vouchers. One tenant is on Month-2-Month and the other just started a short term lease. Both with the current owner.

I plan to close 5/1. Unfortunately I am not getting much useful information about the process to passover tenants contracts and Housing Authority payments from the seller or my agent.

Can i ask the seller to collect the May rent and entirely credit it to me on closure? 

I intend to keep my tenants and sign long term leases, but is CHMA going to need a new inspection because the title change?

I have not spoken to any tenant yet, but how do you suggest I do this? Speak to them and figure out if they are committed to stay in the first place?...

Anything else I should watch out for?

Any advice is appreciated. Many greetings!

Abdoul.

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Remington LymanBusiness Member
Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
6y
Originally posted by @Abdoulaye Diallo:

I am trying to close my first ever investment deal on a duplex in Columbus, OH pretty soon. The property is occupied, with tenants rent fully covered by CMHA vouchers. One tenant is on Month-2-Month and the other just started a short term lease. Both with the current owner.

I plan to close 5/1. Unfortunately I am not getting much useful information about the process to passover tenants contracts and Housing Authority payments from the seller or my agent.

Can i ask the seller to collect the May rent and entirely credit it to me on closure? 

I intend to keep my tenants and sign long term leases, but is CHMA going to need a new inspection because the title change?

I have not spoken to any tenant yet, but how do you suggest I do this? Speak to them and figure out if they are committed to stay in the first place?...

Anything else I should watch out for?

Any advice is appreciated. Many greetings!

Abdoul.

Congrats on your first purchase in Columbus, Ohio!

 I would reach out to CMHA. They are not doing any new inspections right now. One of my clients just closed on a 10 unit in Driving Park and CMHA transferred the rent payments over to him. Are you using a property manager? They should be able to help facilitate this for you. Make sure you request to bump the rents!

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  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    6y
    Originally posted by @Abdoulaye Diallo:

    I am trying to close my first ever investment deal on a duplex in Columbus, OH pretty soon. The property is occupied, with tenants rent fully covered by CMHA vouchers. One tenant is on Month-2-Month and the other just started a short term lease. Both with the current owner.

    I plan to close 5/1. Unfortunately I am not getting much useful information about the process to passover tenants contracts and Housing Authority payments from the seller or my agent.

    Can i ask the seller to collect the May rent and entirely credit it to me on closure? 

    I intend to keep my tenants and sign long term leases, but is CHMA going to need a new inspection because the title change?

    I have not spoken to any tenant yet, but how do you suggest I do this? Speak to them and figure out if they are committed to stay in the first place?...

    Anything else I should watch out for?

    Any advice is appreciated. Many greetings!

    Abdoul.

    Congrats on your first purchase in Columbus, Ohio!

     I would reach out to CMHA. They are not doing any new inspections right now. One of my clients just closed on a 10 unit in Driving Park and CMHA transferred the rent payments over to him. Are you using a property manager? They should be able to help facilitate this for you. Make sure you request to bump the rents!

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
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    WebsiteView Page
    4Reply
  • Robert EllisBusiness Member
    Developer · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
    6y
    Originally posted by @Abdoulaye Diallo:

    I am trying to close my first ever investment deal on a duplex in Columbus, OH pretty soon. The property is occupied, with tenants rent fully covered by CMHA vouchers. One tenant is on Month-2-Month and the other just started a short term lease. Both with the current owner.

    I plan to close 5/1. Unfortunately I am not getting much useful information about the process to passover tenants contracts and Housing Authority payments from the seller or my agent.

    Can i ask the seller to collect the May rent and entirely credit it to me on closure? 

    I intend to keep my tenants and sign long term leases, but is CHMA going to need a new inspection because the title change?

    I have not spoken to any tenant yet, but how do you suggest I do this? Speak to them and figure out if they are committed to stay in the first place?...

    Anything else I should watch out for?

    Any advice is appreciated. Many greetings!

    Abdoul.

    You have the power right now, so make sure your agent requests a rent for may as a credit and security deposits. if they didn't you need to get an addendum to do that. if i was a seller in columbus i wouldn't let you talk to a tenant until after you closed, so i'd handle it prior to closing 

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  • Art Mimnaugh
    San Ramon, CA · Member since 2017 · 78 posts · 97 votes
    6y

    @Abdoulaye Diallo shoot me a PM and can give you the forms and contact to get these transferred over.   In the event you sent in system there is a little work just ensure you have seller commitment that any CMHA payments received post closing will be sent over to you.   To be honest in current clients 100% voucher is gold as they are still paying each month where tenets may not.

    Cheers,

    Art

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  • Zeke Liston
    Real Estate Agent · Columbus, OH · Member since 2018 · 1k+ posts · 1k+ votes
    6y

    Yeah, I would suggest reaching out to CMHA and be sure to be proactive about things, as you do have the power right now. Congrats on the duplex @Abdoulaye Diallo!

    2Reply
  • Peter Lohmann
    Property Manager · Columbus, OH · Member since 2012 · 309 posts · 275 votes
    6y

    Facts below:

    One tenant is on Month-2-Month and the other just started a short term lease. Both with the current owner.

    Are you sure it's a short term lease? I was pretty sure CMHA requires 1-year leases but I could be wrong about that. See if you can get all the CMHA paperwork from the seller to confirm.

    Can i ask the seller to collect the May rent and entirely credit it to me on closure?

    Probably not the best way to handle. What should happen is the seller should contact CMHA - email Shay Mock (you can look up her email or phone on their website) and request the May payment to be held due to an upcoming sale. That way they won't release it the seller, and you should be able to collect it directly once you get set up.

    I intend to keep my tenants and sign long term leases, but is CHMA going to need a new inspection because the title change?

    No they will not. However they do still do annual inspections (though they are on hold right now due to coronavirus and they're allow self-inspections).

    I have not spoken to any tenant yet, but how do you suggest I do this? Speak to them and figure out if they are committed to stay in the first place?...

    I don't think you really need to speak to the tenants just yet. You're going to need to get set up with CMHA regardless to collect May and June rents. I would wait until that's all done before discussing the tenant's future plans with them.

    Anything else I should watch out for?

    Section 8 is no golden ticket, even now. Section 8 tenants beat up on properties badly, and their financial situation can change at any time so that they start to become responsible for a portion of the rent. 

    2Reply
  • Abdoulaye DialloPro Member
    OP
    Rental Property Investor · Houston, TX · Member since 2020 · 5 posts · 7 votes
    6y

    Hi @Remington Lyman, @Robert Ellis, @Art Mimnaugh, @Zeke Liston and @Peter Lohmann,

    You guys are simply amazing. Thank you so very much for taking your valuable time to write down those precious advices. You guys make the BP community rock!

    My appraisal came out way lower than the offer. So i might have to wait for another property :( Anyways, I appreciate your help and will reach out privately if I need more help.

    Many greetings,
    Abdoulaye

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