Anyone renting to section 8 tenants in Indy?

7 Replies

Interested in understanding the section 8 tenant pool and your experience either managing or renting to sectionn 8 tenants. Are you able to get higher rent with section 8? Have you found tenants keep good care of your property and stay longer? Is section 8 a viable option for Indianapolis? Feel free to DM if you are willing to connect and dicuss in more detail.

Hey @Noel R. Great thread to start, I'm interested and following this as well.  Sorry I don't have any personal experience to add :) 

I have many Section 8 participant tenants.  I have all B & B+ properties.  I don't get any rent premium by participating.  It may be different at lower quality properties.  My tenants seem to keep the take care of the property similarly to non-section 8 participants.  I also don't observe a significant difference in how long they stay. 

We find much less evictions on the lower end compared to retail rentals. Which is nice, thanks Uncle Sam. But the upfront time to get the paperwork (need tenant to do stuff which adds time/issues) and inspection issues adds to vacant time. Some inspectors are reasonable others call out tiny wall cracks and rough sidewalks which are absolutely in every C class rental. So the inconsistency can be frustrating. They seem to stay longer in my opinion. So pros and cons for sure.

@Josh C. said pretty much what I was going to say. Inspector inconsistencies and lead time for all the paper work is a pain, but less evictions/hassles is a bonus. One thing to also consider, because there is such a long waiting list for people waiting to get on to the S8 roles, the tenants will do most anything keep their vouchers. So (I've found) you will have much less issues with tenants and when you do, the issues are corrected almost immediately. I think I've been able to rent at a *slightly* higher rate with S8, but the biggest thing is that I usually get a much larger pool of tenants that are able to "afford" that higher rent.

Originally posted by @Noel R. :

Interested in understanding the section 8 tenant pool and your experience either managing or renting to sectionn 8 tenants. Are you able to get higher rent with section 8? Have you found tenants keep good care of your property and stay longer? Is section 8 a viable option for Indianapolis? Feel free to DM if you are willing to connect and dicuss in more detail.

I've had a bit of mixed bag of experience.  Hit me up if you want to chat.

 

@Noel R. I have been leasing to Section 8 tenants since 1985 as a landlord investor. HUD has asked me to speak at the 1st symposium in Indy on Dec 5 as our 3rd party management company has been the number 1 manager in Indiana of Section 8 houses since 2012 (according to HUD) with usually over 300 voucher holders in our portfolio at any time. There is a lot of paperwork and yes, there are annual inspections and lots of delays but a qualified PM can make it all worthwhile. We lease mostly C and B- areas to the voucher holders due to the amount rents approved and have found (if the property is maintained by the owner) that the tenants will stay longer than most in the C areas.

One thing to remember is that each Housing Authority operates differently and that does cause different experiences between different cities. As a representative of NARPM, I attended a meeting in Washington DC with HUD to discuss landlord issues and many cities have a lot of major issues that we do not have here in Indy. HUD is trying to make the Housing Authorities more landlord-friendly but local politics always come into play.

Making sure you do a great job screening your prospects will probably be the most important aspect of dealing with section 8. Besides the paperwork and inspectors, which has already been spoken about, screening appropriately will get you good tenants that will stay long. They will appreciate a beautiful property that accepts them and their family and you’ll have a long term, great tenant. 

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