So I just saw this post about Section 8 HUD tenants, and this post stated something along the lines of section 8 tenants being more likely to damage properties because they're section 8 low income tenants, and also something about investors not wanting to put money needed into Section 8 properties because they think they're just going to be ruined by these Section 8 tenants, and as someone who knows the entire process with investors, owners, contractors, tenants, and prospective tenants, this is what I have to say about it:
In my experience, Section 8 HUD tenants are actually better custodians of the property because of many factors, but 3 of the main reasons being, there is an annual HUD inspection that is performed on each property, so this gives the owner an extra 'protection vector' against damages, also, the initial placement of a Section 8 HUD tenant requires a passing HUD inspection, therefore there's a record of the property's initial state prior to move in, and additionally, they want to have an easy renewal voucher process annually, and their unit remaining in good condition is an incentive for those reasons, therefore they are LESS likely to damage a property - their future depends on it! Not only this, but, they have to wait for "the HUD process" before being placed into a section 8 property, and it can take weeks, sometimes even months, and if something goes wrong on their end their RTA packet can be voided, and they would have to start the process all over again. Rarely, does anyone want to repeat this process annually. Not the property manager, the owner, not the tenant. Section 8 HUD tenants are usually families, or the elderly, or single parents that need these vouchers and properties to survive, they're not going to risk their livelihood so recklessly.
Furthermore, I do agree that owners will all too often invest pennies on the dollar into a property and expect it to suffice. If you're purchasing in a low income area, you're already getting a discount on the purchase, BUT it's ridiculous to think that a property purchased at 30k> is going to be "turn key" and rent ready, it NEVER IS! That property will still require 10, 15, sometimes even 30k ON TOP of the purchase price to be rent ready, especially if they intend on passing a Section 8 HUD inspection!! The other frustrating piece to that pie is that folks assume because properties are going for cheap in an area that contractor rehab work is going to be 'discounted' as well, and it is NOT discounted, it's the same going rate, if not MORE in less expensive neighborhoods because it is MORE COMPETITIVE in those areas for licensed contractors. They'll expect to get a "good deal" on everything and they're surprised when they end up with a trash rehab, but only wanted to spend 5k on it, when the property itself was only 15-20k... GET REAL INVESTORS! Folks need to wake up and MAKE the coffee, in order to get to smell the coffee, not just simply wake up and poor, magically the coffee is made, and that's the truth!
Reach out if you're interested, I know a LOT about Section 8 HUD!
