Hi Baltimore Folks,
I have a property that looks great. It is a 4 unit building I might be able to live in and renovate with an FHA 203K loan. I would like to find Section 8 tenants for the other 3 units. I have never managed a Section 8 rental home before, but understand from people that oftentimes if you go onto gosection8.com or craigslist and price rents accordingly for your neighborhood (I used comparable rents from gosection8.com), that you should be able to find tenants with ease.
I have had listings posted for about a week, since I started diligencing this asset, just to get certainty on how easy it will be to rent this place out, if I were to assume a $2,000 mortgage on the property. I have not gotten many bites.
Is it worth the expense to pay someone who professionally screens and places tenants? Will the increased rent amount they get you and the decreased vacancy make up for the fee they are likely to charge you?
Any insights on slow uptake from tenants? I know it is November - so slow time of year. Would love to buy this property but without assurance of rental income at a certain rate and low vacancy, this investment starts to look dangerous.
@Sam Frank My partner handles new tenants but generally our main source is Go section 8.. We also sometime work with tenant placement services. Expect them to charge 1 months rent.
Some of it has to do with the marketing - do you have good pictures and an enticing description? Is your unit updated and really good looking? Is it in a desirable location? If the answer is yes then maybe it is your price. Sometimes I have offered incentives like low security deposit or free flat screen TV.
Maybe, every tenants circumstances can change no matter the screening. no such thing as a guarantee in this game...HOWEVER, if you put something nice toghether in a decent area thats reasonably priced, youll rent it. If youre willing to do the legwork to get the voucher in place and screen it yourself, youll be fine. Tenant screening isnt rocket science. The Vouchers existence already takes care of the income component, largely.
@Sam Frank , I use Gosection8.com as well as Craigslist to advertise. I NEVER put a sign on the property because I don't want to alert the bad guys that there is a vacant unit. I have used tenant placement companies in the past with mixed results. They will typically charge a month's rent.
If you are managing the property yourself you shouldn't have any trouble finding section 8 tenants. I advertise on gosection8.com as well as all the normal sites like Zillo and craigslist. The local housing authority also has a list of available properties that is updated every 60 days or so that I'll add an available property to. Just screen like you would any other tenant.
Not sure what you mean about 2,000 mortgage, this has nothing to do with what you will charge for rent. Just run comps and talk to the local housing authority. Some even have a 2 hour training session which I highly recommend.
Do you guys pay for the premium membership on gosection8.com , so that you can reach out to folks directly? If so, is it worth it?
In the beginning I didn't pay for the premium. However, I do now since I am renting approx 1 or 2 a month. With the premium it allows me to do mass emails to prospects that have viewed my listings and I generally always get calls from them.
Hope this helps. Good luck!
Pay for tge premium if youre using it enough. Not such a massive outlay that its worth cutting corners. If youre going to use go section8, give it its best possible chance. However, i have always found that using the website to search and mass email people on that website that fit your criteria is the best way to do it. That way, you know theyve seen it and have a chance to consider your places