Real Estate Lender · Napa, CA · Member since 2012 · 27 posts · 4 votes
Hi All,
Just wanted to through this out there, get discussion going and hopefully we all learn something new.
So please share your take on Section 8 renters; do you rent to Sec 8 and why or if you don't rent to Sec 8 tell us why not.
I'll share my experience and take on Section 8 along the way.
Investor · Fort Worth, TX · Member since 2011 · 1k+ posts · 450 votes
13y
All my research indicates that Section 8 is only as successful as your screening and operatoin practices, which is true for non-Section 8. If that is the case, why add another layer of administration and bureaucracy to your life?
Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
13y
Section 8 is administered locally so the administration of the programs vary around the country or even state.
I like Section 8 in Baltimore City. They pay higher than market rates right now. My philosophy is to have both market and section 8 so that in the event section 8 program gets cut we are not totally dependent on them.
I just heard a large baltimore landlord speak and they had done a study showing that their market tenants moved sooner than section 8 tenants. Their calculations showed that they were not making money on market tenants and have switched from almost all market tenants to almost all section 8
Investor · Madison, WI · Member since 2012 · 242 posts · 61 votes
13y
I think Section 8 is a great program, I have had very high quality tenants that have been no problems. The biggest issue I have had is the Section 8 inspection, where even the smallest things will get pointed out. However as long as the rental property is a quality one and you care about maintenance, its usually less than $100 to fix everything on their list. I should point out I sometimes get the feeling they want to find something basic wrong to just more than anything make sure the landlords are responsive to tenant requests. The other great benefit to Section 8 is usually the government will ACH the Section 8 portion right into your bank account - so no dealing with checks.
Homeowner · San Leandro, CA · Member since 2013 · 29 posts · 5 votes
13y
I'm a hit and miss to the section 8. I was doing some research on this and it seems to be different in each state and county. In some states Section 8 is very strong and will help the landloards out while in other they are week and just takes the tenants word. From what I was looking in CA, section 8 pays about 70% of the rent and the tenants are still responsible for the other 30%.
Great discussion though, I wonder what other people are thinking about this especially because I'm still on the fence if i want to allow section 8 or not.
Investor · Edmond, OK · Member since 2011 · 166 posts · 31 votes
13y
Deborah, I only have section 8 properties right now, and it has actually worked out quite well. The tenants have been pretty decent, and the organizations have done well keeping me informed of inspection dates and so on. OCHA seems to be a bit more lenient and gets things done a bit faster than OHFA. I can't really think of a complaint I have right now for them. I'll try to think of some more details to give you tomorrow.
Real Estate Investor · Hampton, VA · Member since 2012 · 562 posts · 109 votes
13y
I think Section 8 is a good program. From the landlord perspective, you just have to choose your tenant carefully. In my area, the initial part may take a little longer than normal ( documents that need to be filled out and submitted to the prospective tenants case worker, inspections and approval for the unit) however, once the actual ball start to roll, it rolls fairly quick and the check is deposited every month like clockwork.
My section 8 tenant has been with me for about 2 years now and no problem with her. We are informed as to the annual inspections in a timely manner.
Residential Real Estate Broker · Oklahoma City, OK · Member since 2011 · 114 posts · 38 votes
13y
Originally posted by Deborah B.:
anyone in Oklahoma doing Sect 8? Would love to hear if it's a good program locally.
I have one Section 8 house in Oklahoma City. It's worked out well for me so far. Section 8 pays my tenant's entire rent, so all she has to do is not destroy the house. The inspection and approval process took several weeks, so I did have a longer-than-usual vacancy before she moved in.
Real Estate Lender · Napa, CA · Member since 2012 · 27 posts · 4 votes
13y
Ned Carey interesting study, have they published the study? would love to read it.I have noticed the same thing buy looking at my own records and my Section 8 tenants don't move as often if they move at all.
John K. I have Section 8 tenants in WI and CA and I have to agree with you that inspectors in WI will always find somthing to be fixed.
Timothy Leong Section 8 in CA pays very well, if you have a solid tenant screening in place, Sec 8 tenants tend to stick around longer.
Investor · Fort Worth, TX · Member since 2011 · 1k+ posts · 450 votes
13y
All my research indicates that Section 8 is only as successful as your screening and operatoin practices, which is true for non-Section 8. If that is the case, why add another layer of administration and bureaucracy to your life?
West, MI · Member since 2012 · 674 posts · 182 votes
13y
After playing the section 8 game, I realized there was to many eggs in the federal government basket. And overall I was dealing with too much crap.
They bounce around like ping pong balls, once a unit is to dirty they move along. Which is the definition of insanity. For me anyway thinking the next one would be different.
I got off that ride and finished with section 8 and my blood pressure is better :)
Real Estate Investor · Hampton, VA · Member since 2012 · 562 posts · 109 votes
13y
As a landlord you I suggest you use the same criteria for Section 8 applicant as you would for a non Section 8 applicant. Screen and choose your tenant wisely. I don't think Section 8 tenants move as much as non Section 8 tenant because they have to go through move paperwork and get approvals to move. Not to mention, not everyone on Section 8 is train wreck. I would also suggest some kind of inspection outside of the annual Section 8 inspection.
Residential Real Estate Broker · Oklahoma City, OK · Member since 2011 · 114 posts · 38 votes
13y
"Jon P. - do you think the longer wait is worth it? And... do those tenants seem to stay longer?"
In my case the wait was worth it because I was having a hard time finding a good tenant for that property. The neighborhood is a little rough.
I don't know if Section 8 tenants stay longer in general. My Section 8 tenant has been there 1 year, and I suspect she'll stay for a while because my house is in much better condition than most Sec 8 properties.
Wholesaler · Brooklandville, MD · Member since 2013 · 149 posts · 29 votes
13y
Andrea M.
Actually they move pretty often. Unless the tenant is one of the retired indiviudals whom is collecting their pension and SSI they are moving alot.
As long as you screen your tenants then you’re good. When it comes to section 8 it can be tricky. But as long as you do your due diligence; by contacting the prior landlord to see if they are making their payments on time per month. If that person can’t even pay $50/mo on time why do you think it is a good idea to have them as a tenant? Seriously think about that.
Also pay attention to see if that tenant has paid their water bill on time. In many circumstances that is their highest bill. Baltimore can typically be $120 quarterly sometimes more. If they can’t pay that on time why do you think they should be a tenant in your property? Save your headache and screen them like you would anyone else and stop focusing so much on the money you may get.
Investor · Southeast, MI · Member since 2012 · 2k+ posts · 1k+ votes
13y
I take Section 8 in class C neighborhoods, but not in class B. I don't like the paperwork or inspections, but I like receiving the payments like clockwork.
While I would like to see the program come to an end and have the tenants actually seek emplyment and be productive, I will take the easy money while it is there.
Property Manager · Livonia, MI · Member since 2011 · 4k+ posts · 1k+ votes
13y
every time a house takes a little longer to rent, i pitch the idea to the wife and the agent that's showing the house. they turn me down and remind me about all the problems.
then i remember it takes 45 days or so (after i have been having difficulties to this point anyway) to pass insp, etc. so we have never done it.
Investor · Southeast, MI · Member since 2012 · 2k+ posts · 1k+ votes
13y
Originally posted by George P.:
then i remember it takes 45 days or so (after i have been having difficulties to this point anyway) to pass insp, etc. so we have never done it.
I've never had it take anywhere near that long. It depends on the office you're dealing with. Most will do inspections one day per week. Once you have your paperwork in, they will send the inspector out on the next inspection day. If it passes (almost always does), your tenant can move in that day.
I have had it take 45 days (or longer) to get the first payment, but so what? After that, the checks come like clockwork. Keep in mind that you will be dealing with people who are basically helpless. They rely on the government for food, housing, healthcare, transportation, etc. They will call you a lot more often. If you ever saw the movie Idiocracy, those are the types of geniuses you will be getting calls from. There's always a tradeoff.