Should I Section 8 my property?

Question

Hello Everyone,

Wanted to get advise on if I should consider Section 8 for a triplex I have in Crystal City, TX. I read the pros and cons for each. But I would like to get real world advice from the BP community. Thank you everyone.

Rod Hanks · Answer

@Jody Sperling

I would definitely rent to section 8 clients without question.

Pros

1. Rent paid on time

2. Rent usually above market

3. Tenants stay a long time

4. Annual inspections from housing

Cons

1. The kids can be hard on your property

2. Boyfriends can move in

3. Some will call you for everything

Overall Section 8 is great as long as you screen the tenants the exact same way you would screen any other tenant. Call previous landlords and visit where they currently stay.

Good Luck!!!

Andrew Postell · Answer

@Aaron Lemoine I'm at least in Texas here but I have no problem with my Section 8 tenants that I currently have.  A non-section 8 tenant can be just as good/bad as a non-section 8 tenant.  Your screening of your tenants is critical to the success of any property really.  @Kyle Mccaw do you have any thoughts here?

Luciano A. · Answer

@Aaron Lemoine

I have had section 8 tenants over the years and have not had the horror stories you hear normally. The key is to screen the tenants well as you would do with any other application. Just because they are paying little to nothing doesn't mean you should ignore how they are getting their source of income. And make sure their voucher is for the number of bedrooms you have. Dont accept to take money under the table for the difference in rent.

Now the issues I have with the program are not tenant-related. The Housing Authority, in my opinion, wants to control the process by requiring inspection, a 30-day time frame to inspect thus you lose 1-month rent while you wait for them to approve your property. Here in Houston, you need to send 60-day before the lease expires for a rent increase, at which time they will research and then let you know if they approve. And as @Jody Sperling mentioned some residents with vouchers still have 30 plus days before their lease is up.

If your property is nicely updated in this market you can list for either voucher or non-voucher and choose the best candidate that meets your qualifications.

Best of luck

Kyle Mccaw · Answer

@Aaron Lemoine why are you wanting to rent via section 8?

The programs pay market rate but can be a lot of paperwork. Typically the "property inspectors" that verify your property meets standards are completely incompetent. Don't try to explain anything to them. Just go along with it. If a prospective tenants ask if you will take section 8, just be open to it if you are having a hard time leasing the property. The tenants are no different than other tenants. It's just that a portion of their rent is paid by section 8.

Bud Gaffney · Answer

@Aaron Lemoine yes you should. What are the max rents you can get from section 8?

John Teachout · Answer

We frequently get asked if we accept vouchers but we don't. It's highly unlikely that a section 8 tenant would meet our published rental criteria. I have no desire to partner with the government in our rental business. I'm not opposed to the voucher program, I just won't participate in it for a number of reasons. I think in some markets it's a very good strategy to get reliable rental income. In our market there's a shortage of rental properties and we have no problems finding tenants.

Jody Sperling · Answer

I'm always open to tenants with the Housing Authority. I've yet to rent to any. The issue that comes up for me is three-fold. Timing on vouchers can be finicky. A lot of people using the voucher are still a month or more out from moving, so your property would sit, not making money. The second hurdle has been attitude toward landlords. I don't know their situations, but it comes up almost always that when I ask why someone with a voucher is moving, they immediately badmouth their current landlord. Maybe their landlord is terrible, but it has me wondering if they might just be very challenging tenants. Life situation is the third thing. If I'm talking with a prospective tenant and they say they have a really aggressive pit bull and they just got out of an abusive relationship, those are red flags.

I've wanted to find a good section 8 tenant because I believe everyone deserves a safe, clean, nice place to live, but I also am running a business. So my experience with Housing Authority has led me not to rent yet to someone with a voucher. And I have a property on the market now, so we'll see. Best of luck to you!

Should I Section 8 my property?

Most Popular Reply