Finallly Feel the Pain of Section 8 Inspections

Finallly Feel the Pain of Section 8 Inspections

Investor · Laurel, MD · Member since 2014 · 251 posts · 140 votes

Hello All!

I write this post to hopefully give someone the strength to not give up and keep on going, even if you fail sometimes it's not the end you just need to look on the bright side of things and keep on pushing. Failing an inspection may not be a huge deal to some people but to me it is a huge deal because I do all the work myself, when a property fails, I feel as if I have failed. This post can be applied to all aspects of getting shot down and getting back up on your feet. Even if it helps just one person, then writing this was worth my time.

In my time as an investor I always run into people who solely will not do section 8 or stopped doing section 8 not because of the tenants, but because of the dreaded inspections. I always felt that was quite a silly reason not to take up the advantages of the program, until recently.

At the beginning of working with the program I had no problems passing, passed the first time every time. Lately however, I have failed 2 initials and 1 annual. It really started to grind on me. Failing an annual in my opinion is not nearly as bad as failing an initial, reason being is TIME. Some places do it different but in Baltimore you have to get the inspection done AFTER you have found a tenant not before and to boot it takes about two weeks for the inspector to come out once the voucher is turned in. For example: I had my future tenant turn in her voucher on the 22nd of June, I called up to see when they had scheduled it, they kicked back "looks like the inspection will be on July 8th".....uhhhh what??? Thankfully, I pressed on them and they magically appeared to pull an open date out of thing air, so they moved it to June 28th...much better. However, If you so happen to fail the inspection, it is again most likely going to be another two weeks. So as you can see that is over a whole months rent you may have had if you had not gone the section 8 route having to jump through the loops of the inspections. So I get where people can get frustrated.

Failing for things that are dangerous in nature I understand, but when there are things on the list like needs to replace toilet seat....needs to paint exterior door two different shades....needs to install CO detector on second floor (which there was) cut grass in back yard (he was referring to the grass outside my property line...) Bathroom door drags when opening (the wood expanded due to the heat)...I can again understand the frustration.

But I like to look on the bright side of things, and while the inspection process can be a PITA I do find that with every inspection I add more and more things to keep and eye on to pass the next one. 

Also I have found that the re-inspections are a joke. They only come in to look at the stuff they got you for in the initial, in and out in less then 3 minutes and some of the things they do not even check. I wonder sometimes if they write down petty stuff just so they have another inspection to come and get paid for.

Needless to say I did just pass the re-inspection, granted my scheduled time was from 9am to 11am the inspector did not show up to 11:47am which added salt to the wound but was subsided with the news of passing. 

Putting all the negativity aside (as I try to stay positive) I find that there can be pros to the inspections. It keeps me on my toes, it doesn't let me slip as far as standards go. I not only have to please a tenant I also have to please an inspector who knows some of the codes more or less. It keeps my values in check and helps me stay on track of not turning into a slum lord, because after doing a few of these low income proprieties I can see how it is a very easy pit to fall into. Why the inspections are annoying sometimes they are challenging and I never turn down a good challenge.

So the moral of this story is, that even if you are feeling down and at the moment you may feel like you have failed, you need to keep your head up and keep pressing on. No matter what happens in life there is always a positive to pull from a negative situation.

Now to wait for the housing authority to tell me what they are going to give me for rent!

Tariq

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Real Estate Investor · Littleton, CO · Member since 2013 · 197 posts · 77 votes
10y

I have a Sec. 8, in AZ, It has been a great rental.  They have been there 5 years., place looks great.  I have Mgt. i place, so I don't have to deal with much, but I know I have not failed an inspection, but it is a newer house that I remodeled.

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  • Real Estate Investor · Littleton, CO · Member since 2013 · 197 posts · 77 votes
    10y

    I have a Sec. 8, in AZ, It has been a great rental.  They have been there 5 years., place looks great.  I have Mgt. i place, so I don't have to deal with much, but I know I have not failed an inspection, but it is a newer house that I remodeled.

  • Entreprenuer/Investor · Rochester, NH · Member since 2015 · 32 posts · 3 votes
    10y

    I'm thinking about picking up a 4 unit and thinking of going the Section 8 route. Any tips for what I should look out for or be leary of? Besides guaranteed % of rent any other benefits?

  • Investor · Laurel, MD · Member since 2014 · 251 posts · 140 votes
    10y

    @Tony SanFilippo From talking to other investors in other areas it would appear that all section 8 locations are different. Some follow the HUD guidelines to the T. Others go above and beyond and make up their own rules. I have had decent luck with the tenants so far..other then later water bills and random things getting broken pretty smooth.

    @Bill Paesano the only thing I have heard about mulit's with section 8, and this came from the housing authority is that it is hard to determine what the rent should be. So I wouldn't be much help there as I stay away from multi's. What I can tell you is get in touch with your local authority and they should be be able to get you a standard list of what they are going to look for, it will help but won't give you all the answers. Benefits are the money being on time and the fact you can leverage that if they don't keep up on the place you will have their voucher taken away, other then that not much different then any other rental.

  • Rental Property Investor · Douglas County, MO · Member since 2014 · 1k+ posts · 1k+ votes
    10y

    "needs to paint exterior door two different shades..."

    Why????

  • Investor · Laurel, MD · Member since 2014 · 251 posts · 140 votes
    10y

    @Sylvia B. lol my point exactly!

  • Real Estate Investment Attorney · Kingsville, MD · Member since 2016 · 643 posts · 408 votes
    10y

    @Tariq B.

    You have learned an important lesson. The less contact you have with Baltimore City the better. I have many rentals in the City. Section 8 is one headache you don't need. As time goes on, you will learn as I have, that it is worth paying more for houses in Baltimore County. I wish you good fortune.

  • Rental Property Investor · Northern, CA · Member since 2012 · 5k+ posts · 5k+ votes
    10y

    @Tariq B.

    Although Section 8 is a federal program, it's administered at the county level.  So you can have a lot of variables in how certain aspects of the program (like inspections) are carried out in different areas.

    I've also had a couple failed inspections for minor things.  However, I've been lucky in that the inspectors have been very willing to work with me on getting the properties to pass and didn't even make me schedule a re-inspection.  

    The first time I had a failed inspection (i.e. exterior door didn't close tight enough so it wasn't completely weather-tight) the inspector allowed me to just fix the problem, take photos of the repair, and then email him the photos showing that I had fixed it.  He then changed the inspection from "fail" to "pass" and it was a done deal.  

    The other time I failed an inspection (i.e. overgrown grass), the inspector just sent me a form to "self-certify" that the problem had been corrected after the tenant took care of it (since yard maintenance was the tenant's responsibility per the lease).  

    So you might try asking your inspectors if either of those are options because it will save you the time/hassle of having to schedule a formal re-inspection.

    For things like "needs to paint exterior door two different shades", which isn't even an actual Section 8 requirement, I would just politely say to the inspector something like "Oh, I didn't even realize that was a requirement. Would you mind giving me a copy of the inspection checklist you use and showing me where that's on there so I can make sure to have it, and anything else I wasn't aware of, done prior to your visit next time?"  He won't be able to show you where it says that because there is no such requirement, so that should take care of that checklist item right there.  But be polite about it because you want to keep these guys on your side so they are more willing to work with you (i.e. like in my previous two examples where they didn't make me go through the re-inspection process, which they could have).  

    Lastly, if Section 8 is your business model, I'd suggest reading the books The Section 8 Bible (Volumes 1 & 2) because they're entertaining and actually give some good advice for Section 8 landlords.  In Volume 2, there's actually a chapter on "Knowing the Rulebook" which talks about inspectors trying to fail landlords for items that aren't even required (something like an exterior door being painted two different shades) and how important it is to know the rules of the program so you can deal with these sorts of issues as they arise.

    Anyway, best of luck to you and keep up the good attitude.

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