I am buying a property that has existing section 8 tenants that are month to month.Once I close I would like to raise the rents. The town does not have rent control. Is there certain guidelines I would need to follow in order to raise these rents Since they see section 8?
I have never experienced a month-to-month section 8 portable voucher. We've had dozens of section 8 tenants, and each local housing authority that administers the program gives a standard section 8 one-year lease.
So, there may be a month-to-month agreement underlying the sec 8 lease between owner and tenant: best to check with the housing authority in your municipality.
That being said, section 8 will inspect the unit on an annual basis, normally right around the end/start of new leasing term. We always give 60 day notice in writing to authority and tenant of new rent (increase). That must happen 60 days BEFORE sec 8 lease renewal.
BTW, I am not aware of any guidelines in how much of an increase you can ask for.
I'll be interested to learn how this works out for you!
You have to give 60 Days notice to increase the rents to Section 8 and also to the tenant. You can ask what ever you want but they go with the Fair Market Rent for each Zipcode. Also you cannot ask to increase the rent more than once a year here in Dallas and 6 months in certain areas. Once you submit the request they will notify you by email or mail that they have accepted or not and If they have accepted, how much.
I have many section 8 that are month to month. We sign a one year lease when the tenants move in then it turns in to a month to month after the one year is up. We don't bother renewing the lease each year since it doesn't matter. You must give 60 day notice to increase the rent and you can only raise it once a year. In San Diego and Honolulu section 8 will want you to give them comps of other rental in the area if you have them. If you ask for to much rent increase some workers will just write back not approved and other (The better ones) will tell you what the max they can approve and have you resend them a letter with the new amount.
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