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Updated over 4 years ago on . Most recent reply

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34
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7
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Joshua Boyce
  • Investor
  • Greenville, SC
7
Votes |
34
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Section 8 increases tenant portion by $500

Joshua Boyce
  • Investor
  • Greenville, SC
Posted

Hey Everyone,

I have a new problem I haven't dealt with before and I'm looking for advice. 

I have a section 8 tenant and we both were just informed that the tenant portion is going from $85/month to $585/month. Oh and the letter came one month before the increase. 

She is the best tenant I've ever had. Keeps the place nice, is never late, handles what she needs to on her end for the housing authority and we have a great working relationship. Her situation hasn't changed and she definitely can't afford $585/month. 

Does anyone have any ideas on how to correct this? I absolutely DO NOT want her to lose a roof over her head. She's going to the Pittsburgh Housing Authority in person tomorrow, but outside of that, I don't know what our options are. Hoping someone here has some quality advice.

I appreciate any helpful ideas!

Most Popular Reply

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228
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278
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Jennifer Donley
  • Rental Property Investor
  • Saint Louis, MO
278
Votes |
228
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Jennifer Donley
  • Rental Property Investor
  • Saint Louis, MO
Replied

@Joshua Boyce I have a portfolio of 26 Section 8 properties - I would recommend talking to the caseworker and the tenant at the same time via conference call to determine the reason for the increase.  

Section 8 requires a re-certification each year where the tenant's income is evaluated to determine how much they should pay.  And I've had them change substantially like this, both up or down.

If a person is working more hours and getting overtime, getting more from government benefits, had a kid move out, etc., that can throw off the calculation. But it should also allow them to pay more at the current moment. If/when their hours go back down or things change again, they just have to submit new paperwork and the amount will change again.

Also, did you submit a rent increase with the renewal? This can force the tenant to pay more but it's not usually by this much.  

My experience with these large increases is that they tend to work out.  I used to freak out but the tenants have always figured it out in the end. Sometimes with our assistance (sending in paperwork, talking to a caseworker, connecting them to a local agency that can assist, etc.) and sometimes on their own.  Just communicating with both the tenant and HA helped tremendously in these situations.

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