All Forum Posts by: Tom Raddatz

Originally posted by @Jennifer Donley:

@Tom Raddatz, I have a portfolio of Section 8 properties in the St. Louis area.  I love the niche, it's all I do.  

I'm assuming the verbiage is coming from the HAP contract, which should be the same for all HA's but I can't find that phrase in mine.

In any case, I've never had a problem getting rent from the HA.  I have had an instance where the tenant didn't send in the required paperwork at renewal (the tenants have to do a re-certification each year where they send in house occupant info and updated income info) and the HA held up payment until it was received.  In that time, the Housing Authority told me that the tenant was responsible for the payments until the tenant sent in the paperwork).  I helped the tenant get the required paperwork sent in and the HA made up all the back rent.

The biggest opportunities for issues arise around changes, in my experience.  New tenants, rent increases and tenant/HAP portion changes at renewal are when things get missed and the payments can be wrong, delayed, etc.  But they're always fixed in the end, it just requires systems & diligence on my part to make sure everything is being paid as it should be.

Regarding the MtM lease, Section 8 requires that the initial lease term must be for 1 year. It can go to MtM after the first year but I just keep mine on annual leases that correspond with the tenant's annual recertification/renewal.  I do this because I think it stabilizes my portfolio to some degree &  we can submit rent increases 90 days prior to renewal to the Housing Authority.  By keeping the leases annual, my PM software reminds me when to submit those increases.  I might go with MtM if I didn't have Section 8 tenants and I was worried about payment.  But I'm not (I'm currently owed $0 in past due rent - the HA and my tenants are all paying).

Section 8 is a great way to go if you screen thoroughly and learn/master the processes of your local PHA.  Good luck and let me know if I can help further!

@Jennifer Donley, Thank you so much for the response! I addressed my question to the HA, and she told me that verbiage was required in case the governmental program was defunded. She said, in that case the tenant would be responsible. I decided that would be worth the slight risk. The issue regarding MtM was due to Covid, and potential job & income loss (on the advice of my attorney). The HA said that in the event the client lost their income they could notify the HA and they would then cover 100%, instead of the partial. That definitely works for me! So, I am moving forward with my first Section 8! Thanks again for your input!

This property is in Lancaster, OH, so this is Fairfield Metropolitan Housing Authority (FMHA). But they are using HUD forms. I don't have any idea if they are the same or what may be different with them and Columbus. Hope this helps.

Originally posted by @Greg Scott:

In my experience each Section 8 housing authority operates a bit differently, so yours may not be exactly the same...



@Greg Scott, Thanks for all that good info!

This is question is for those of you with The Section 8 experience. If there is a post or article already addressing this, please be so kind as to share the link.

The agreement I'm looking at says: "failure to pay the housing assistance payment to the owner is not a violation of the lease".

How do you deal with this? How does it work out in reality? This is my first Section 8 application (I'm a landlord with 2 duplexes). In my mind the lease is a contract and part of the contract is for the tenant to pay the rent. The application releases the tenant from responsibility for public housing authority's (PHA) portion of the rent money.

Could someone please explain the intent behind this clause and if you have had problems or not with getting rent from the PHA?

Also, in these Covid times, my attorney has recommended month-to-month rather than annual terms. Does Section 8 even allow for MTM terms? What is your experience with this? Perhaps with Section 8 it isn't an issue as with someone who may be at risk losing their primary income from a job.

Thanks in advance!

-Tom

Thanks to everyone for their responses! I'm going to wait for the money to come in.

Does anyone here have experience on the receiving end of these? Is it reasonable, customary, advised, or none of the above to allow a tenant to move-in based on the promise letter alone? Or should I wait for the check?

Situation is, I have a family who I've vetted and approved for my rental. He is working, and she is pregnant, on maternity leave, but otherwise, she works. They needed assistance to get a bigger place. The case worker tells me her landlords often allow move-in based on the letter alone, but, it's new to me, so I'm wary and cautious.

LSS= Lutheran Social Services Network of Care.

Thank you!!

Wow! Thank you all for your kind greetings! I'm still a bit overwhelmed with (and wading through) the vastness of the resources here at BP!

My hope is to get into rehabbing, as I have lots of construction and remodeling experience. One of my first (of many) concerns will be to not overdo improvements, being as I tend toward, but am not a full blown perfectionist.

I'm sure I'll have more specific questions as I go, but for now I'm just schooling myself on the basics here at BP! Very glad I found this site!

Greetings! I live in Lancaster. Looking to learn real estate investing. I'm interested primarily in rehabbing and/or flipping and accumulating rental properties. Looking forward to meeting new friends! -Tom