Existing Tenant wants to switch to Section 8

[Mike Groseth]

A tenant that has been with me for 3+ years (who always paid rent on time) has told me that she has been approved for section 8 assistant.   I have never accepted section 8 and don’t know if accepting it with her now is opening a can of worms or not?   Is there any drawback to it?  I know her and she has been a good renter but I just don’t know if I should & if this will be an issue that I need to be concerned about.

Thanks!

[James Mc Ree]

There is a difference between a tenant "accepted into Section 8" and one having a voucher. Think of being accepted as having received a welcome kit. The voucher is what pays the rent. In my area, last I heard there was a 7 year wait from "accepted" to "voucher". Ask you tenant if they have a voucher.

Next, if they have a voucher, ask how many bedrooms the voucher covers. You might have a 3 BR home and a tenant who only qualifies for a 2 BR voucher. That will still work, but you will probably find yourself constrained on rents because Section 8 will evaluate your 3 BR property as a 2 BR property which limits your income. Your tenant's needs should be matched to the property.

Once you have a tenant with a voucher, you can choose to accept it and get your property inspected. Inspection is not a big deal as you may already have a municipal inspection that covers most, if not all, of the items. The downside of the annual inspection is it is one more thing to do and a fail can lead to no Section 8 payment until you pass. It's just a delayed payment, but a hassle nonetheless. You get some time to correct the defect, but some of the defects you need to quickly correct are not urgent defects.

I have 2 Section 8 tenants and they are fine. I made the mistake with both of accepting a 2 BR voucher for a 3 BR house, which is how I know all about it.