I am buying a multi-unit complex. One of the current tenants is on HUD. I have never dealt with HUD/Section 8 with my other rentals. She is currently paying way under fair market value. How do I go about getting this tenant's hud certificate moved over to me and how do I go about raising rent to fair market value?
Congrats on the new purchase. Not sure what city you are in but just google Housing Authority and your city name to get to their website. They should have a section for landlords. Fill out the form for the landlord and they can update it. You might have to send proof like a HUD statement or recorded deed to show you are the owner. Depending on when the tenant's lease is up you can send the tenant and Section 8 agency a notice of rent increase. Here in Houston, it is 60 days before the lease expires. They will check the local market and if they agree to the increase they will send a new contract.
Rental Property Investor · Saint Louis, MO · Member since 2018 · 228 posts · 279 votes
5y
Luciano's given you good advice. Every Housing Authority operates differently (silly) so yours will have their own process and timeline for rent increases. Hopefully it's published on their website but if not, you can call and request the info.
Get that ownership transfer paperwork in ASAP - it takes our HAs here longer than it should (in my opinion) to get that task completed. I always request confirmation of receipt when I send the paperwork and request that the HA stop payment to the prior owner. I keep emailing until I get these 2 confirmations in writing so that I have something to go on if it doesn't get done correctly.
But if they end up paying the prior owner again, they should fix their mistake and pay back rent once you're set up.