Investor · Philadelphia, PA · Member since 2018 · 61 posts · 62 votes
For all the Section 8 rental investors out there, I would love to hear about your experience. What are the pros and cons you have found from being a Section 8 landlord? And for those that avoid Section 8 rentals, why do you?
Real Estate Broker · Rochester Hills, MI · Member since 2009 · 2k+ posts · 2k+ votes
5y
@Kevin Uzelac across our portfolio that has spanned over 20 years we have found no measurable difference in key metrics locally between Sec 8 and market rent tenants. Late %, evictions, cost on tenant turns and so on. We have had both good and bad experiences about the same rate. We have had wonderful and not so wonderful tenants on both sides of the coin.
For us, it isn't who is paying that makes the ultimate difference between the two.
The only consistent difference is Sec. 8 does a yearly inspection and they require the owner to make repairs. They infrequently hold the tenant responsible even for things that are clearly tenant caused. Beyond that, no difference for us.
Rental Property Investor · Saint Louis, MO · Member since 2018 · 228 posts · 279 votes
5y
I'm with Scott on this one. I just answered another poster on this topic. There are TONS of discussion threads about this here on BP, just put Section 8 into the search query.
Very high level:
I love it for the guaranteed rent, higher rents (sometimes), long tenancies, added accountability for tenants through the housing authority and enormous supply/demand gap (there is a lot more demand than supply in most places for s8 housing).
People often dislike it because the housing authority can be tough to deal with (this varies widely from one county to the next because it's administered locally), rents can be too low in certain areas (usually A areas) and there is a perception that the tenants are awful.
I've found that extremely thorough screening negates the last issue. The first 2 can be problematic depending on your area.
Also, people who are not detail oriented and try to to self manage can struggle with S8 because there is more red tape and paperwork. If you're process oriented and good with details this isn't usually an issue.
In regard to the inspections, they can add cost to your maintenance expenses. Anything that the tenant is responsible for, we typically fix and then bill back to the tenant. Our Housing Authority is very supportive of us on this, which is helpful. Plus, I know that even if they go to move out down the road but still owe us money, we will notify the S8 caseworker which can put their abilty to move in jeopardy.