Norfolk, VA Section 8 Rental Property

[Weis Sherdel]

Dear BP community - 

Does anyone have a Section 8 rental property in Norfolk, VA or know of the general Section 8 rental market there? I am looking into acquiring a property which promise (at least on paper) positive cash flow with cash-on-cash ROE of 17%. However, I live in DC suburbs and don't know the Norfolk, VA rental community. In particular, I don't know if the Section 8 community is large and vibrant enough to sustain continous occupancy. Any guidance and observations are much appreciated, friends.

[Lisa Doud]

Well the debate on section 8 or not is very heated.  I have both excellent and down right awful experiences with section 8, but I have learned some tips and tricks that I will pass on to you guys.  

If someone wants to rent a property from me that is section 8 regardless of what city, I am blunt and straight to the point.  

• I tell them I have had a very bad experience with section 8 tenants destroying my properties, and let them know right away there will be monthly inspections.  I also ask for personal references.  
• I am looking for a personal reference that is not related to them, typically a minister, pastor, someone like that that usually wouldn't lie about their character.  
• When the drive up to my office I look to see what kind of vehicle they are driving (are the living within their means, or they trying to scam the section 8 program),  look to see if they have kids are they buckled in, and do they seem to have control of their kids. 
•  I also call the former landlords, and also request any tenancy reference from past landlords.  As part of my actually screening process, I look for any evictions, and if there was outstanding balances. 

After your tenant is already in the property I do the following.  

•  Inspect the property the first month they have lived there.  Make sure you remind them that you will be back every month ( you don't have to you just need them to think you are going to do an inspection so they keep the property neat and clean). I usually taper off to every 3 months after the 1st month....
• Before your annual section 8 inspection (typically  3 months in advance), do your own inspection.  Make sure if you see anything that is a tenant repair (light bulbs, holes in back of door knobs, light or outlet covers missing, missing shelving in refrigerators, etc,) you send a written letter to the tenant and also the section 8 case manager detailing what the tenant is responsible to do within 30 days of compliance. 
•  Also if you see water leaks, or any kind of major safety issues not reported to you by the tenant, you need to give notice for the tenant to vacate at the end of the lease.  This tenant will end up causing you more damage in the long run.  
• If you have any sort of catastrophic event in the property and you get a notice that the you have x amount of days to correct the deficiency prior to the HAP payment (section 8 payment) being stopped for non compliance, make sure you as the owner/agent are the one that is there to meet the inspector for the inspection, do not rely on the tenant because they will ALWAYS LET YOU DOWN... THEY HAVE NO INTEREST IN THE PROPERTY and if the property  is non compliant yo can't event for non payment.....
• Also if you have a re-inspection scheduled do not under any circumstances let a tenant move out thinking you will get back pay. Section 8 believes if the tenant moves out(even after their lease has expired) you are not entitled to the back rent because the property was in habitable.

Even through my little process, I still find the nicest "professional tenant" that knows how to play the game and I still get burned....  

All I am saying that section 8 is not the greatest, if you can avoid section 8 I would do it.  Right now I am currently managing 6 section 8 units out of 200.