I just put a SFH for rent asking 1400, and had someone asking if we do section 8, at first I said no but I asked her do you have move in package and she said yes and she said she is approved at 1590. So my question is, can I ask for all 1590 and how do I get my house approved for section 8?
There is an inspection and process you can call the city for the requirements.
Below, is a link to section 8 details that you need to review and bone up on its operation.
I would ask for $1590. The higher the subsidy the less risk for you. We had a section 8 tenant and she did not even pay her small responsibility of $300/mo to live in our big house. Not all of them would do that but something to consider just in case.
Thanks Brad that answer I was looking for, now I will look up the info from Linval. Thank you
Part of her voucher might be to pay for utilities.
I would just ask for the $1400.
You will need to fill out a little paperwork and the house needs to be inspected to make sure there are no major issues. Make sure you have working smoke detectors in your house.
I have 2 section 8 houses and they have been great. The government direct deposits most or all of the rent. My tenants don't want to loose the free government money so they have taken very good care of my houses.
Make sure your lease covers silly things like the tenant being responsible for stove drip pans and any damage the cause.
I don't know about laws in your area, but Here in Georgia, you cannot charge more for a section 8 tenant than you would for a "normal" tenant. If you are asking 1400 for rent, that is the amount you must ask for section8. The voucher just lets the tenant know what their budget is for locating rentals.
It would be the same as me saying my max budget is 1590, so you charge me 1590, even though you were asking 1400
Section 8 can work very well but don't let the guaranteed rent over shadow the importance of screening. Section 8 applicants should be screened just like everyone else to protect your investment.
Adding to Brad Greenes post: The Atlanta Housing Authority makes it very clear on "no side deals." If the voucher is for $1500 and the rental amount is for $1800, a side deal for the additional $300 for the tenant to pay is not enforceable. If the voucher doesn't cover the rental amount, I'd probably pass.
Section 8 can be just fine as long as you hold them to the same standards as other tenants. Treat them as if they are no different from other tenants because they are not... in fact they may be better; you always get a check on time.
I wouldn't dare increase the rental rate for section 8 over a regular tenant. That could be clear discrimination in the courts eyes.
Technically, you cannot discrimiate against sec 8. As a landlord you have to accept them as applicants if they apply.