All Forum Posts by: Ken Chud

What standard do you put in your leasing agreement to set a cleanliness standad for tenants?

The voucher rules.  Affordability is determined and confirmed by the caseworker - not the landlord - and the voucher is issued from it.  When you get the Voucher, it is confirmation to the Landlord that the tenant has been qualified for the voucher amount. 

The rent can be deemed to be less than the max voucher amount based on the condition and amenities of the property determined by a Housing Inspector. If that's the case, then you can negotiate the rent price...but that has nothing to do with the affordability of the tenant.  

Two things we look at...there is a utility worksheet per occupant of the property so we can determine what that cost will be and deduct it from that rent price amount. It's part of the HUD paperwork and is posted with other landlord documents. But the issue for us is with the maximum rent amount as that is determined by the Housing Authorities based on the property itself. I have challenged the housing directors over the price before and they have accommodated the max amount less the utility allowance. (How to do this: introduce yourself to the Housing Director (not the caseworker) - and verbally provide evidence of their rent price being below market rent. Most landlords don't know that the housing directors can override the assigned rent price. It's worth doing - they need the housing and I always remind them about the increased cost of taxes/insurance).

We (frustratingly) deal with multiple agencies - as you do - and have chosen to not be certified (do business) with those that prove to be 'unappreciative' of the landlords' investment in providing quality housing to their clients.  Best I not name names...you can probably guess this one.  

Hope this helps...get that utility worksheet - it's a greater expense than I had anticipated.

In Baltimore for section 8 they process it which takes atleast a few weeks.  After that they give you 1 day once they hit you with the voucher amount to accept it or reject it.  Try to get a general idea from the tenants and ask about their employment status.  If they don't know consider that.

We will not show a property to a Section 8 prospect without first receiving (in our state) the front cover of the voucher - which shows their name, payment eligibility from a specific Housing agency by zip code, and rent price allowance.  It's the 'no ticky, no laundry' requirement. If they're not qualified for the rent price, nothing good comes from showing them the property.  There have been times when a propect has refused to send their voucher citing fraud warnings from Housing. We simply advise them to verify that the landlord is certified with the agency and then submit the voucher for a showing.  

Hope this helps...

With credit score I screen which is legal in most places including Maryland.  I would double check where you live for that.  I usually manage a higher asset quality that I can screen like that and not waste much time.  If you are in an area where getting 700 plus credit score applicants is hard don't know another way for you to pre-screen them for a showing.  Be careful with anything else.  You can get in trouble for income discrimination in the state of Maryland keep in mind.  If you are in this sort of predicament why not just let them see the place then if they want to follow through start processing the voucher.

Just my 2 cents, but I think the opportunity is still there. I did a deal in Dundalk in 2021 and got all capital out plus an extra 30k on top of that. It was an estate sale though, so got a great deal. Bought for 75 and it appraised for 200 after only about 30k of work. Haven't seen any deals like that on the MLS though. You need an estate sale or need to get lucky at an auction.