owner/occupant in duplex - rent to section 8?

Question

Hey BPers,

I just recently closed my first deal: a duplex in Oakland, CA where I am living in one unit and will rent the other. I also just put up a listing advertising the other unit, and got a quick response from someone who wants to know if I will accept Section 8?

Interested in hearing about the pros and cons from those who have experience in this. In particular, anyone who has both owned and lived in the same building to Section 8 tenants.

Account Closed · Answer

I lived in my own 4-plex and rented 2 of the other units to Section 8.  I wouldn't do it again. They were nearly always late on their tiny share of the rent. One had to pay $8/month out of her pocket, and I often got quarters and nickels in a baggie.  The other one had to pay about $105/month and she was always late and only paid it once I put a Notice to Quit and Vacate. I finally did evict her, but even though it was about 8 years ago I still feel bad because she had two little kids that she screamed at all the time. I wonder how they are doing.

Both tenants left their apartments a mess.  My theory is that because they don't pay much for the place that they don't take much pride in it. Easy come, easy go. Plus the demographic is often young, single moms.  Drama seems to follow that age group, if I were to generalize.

In all, I much preferred renting to regular tenants.

Mel Selvidge · Answer

My biggest worry with a Section 8 housemate is that the individuals reason for needing assistance would be something that would make them a challenging neighbor, and you are not allowed to ask if a prospective tenant has a mental illness.  I don't have experience as a landlord, but I have one as a housemate and one as a friend to someone with Section 8 assistance:

• In the last apt. that I rented briefly before we moved into our "forever home" the downstairs neighbor was a beautiful young woman with a tragic psychotic disorder.  She would scream and fight and throw things at her imaginary tormentors all night long.  It was excruciating.  She was ill and needed a place to live, but it was not sustainable for us to live above her either.  I could be wrong on my recollection/knowledge of the set up, but I believe her very physically handicapped aunt was the official section 8 tenant, and the niece was a "guest" who was not supposed to be staying there.  Since the niece wasn't the tenant, and I'm guessing that evicting someone as painfully and extremely debilitated as the aunt (extreme arthritis?) challenged his morality and charity, nothing happened.

• A friend of mine (a close friend's brother) is mentally ill and receives Section 8 assistance.  He's a super sweet and intelligent guy, but he does make some questionable hygiene choices, and about once a year he has a melt down that ends with cops and/or EMS coming.  He also has two registered service cats that pee on everything but help keep him calm.  I love this guy, and I love cats, and I'm glad he has nice housing, but it would be a tall order to live with him.

I've known several people less well through my friends in the itinerate rock climbing community and my work in community colleges who received section 8 assistance because their social and emotional disabilities were significant enough to make full-time, ongoing employment untenable.  Again, mainly these are likable folks who just need help achieving a decent standard of living, but it could be challenging proposition to share a home space with them.

Account Closed · Answer

@Sam McClellan

I have a feeling that the pickiness of the inspection probably depends somewhat on the inspector. The inspectors I had were similar to J. Martin .  They were exceptionally picky to the point of being ridiculous.

Curtis Bidwell · Answer

I have 8 out of a 24 unit apartment as sec-8.  I have never found inspections to be out of line.  If it is there, it should work - they make sure of that.  I have had good and terrible tenants - just like other folk.  I treat them like every other resident.  The difference is, sec-8 is hard to get now days.  There is a huge waiting line.  So if I have a problem I let them know that every notice they get also gets sent to the sec8 office as well.  I have a fellow that I will give a termination notice to next week. It is no different than getting rid of any other tenant, but they know if they get evicted for cause they will likely lose there benefit.

Yes, there can be an entitlement mentality with many of them.  Don't let it play with your mind, you're in this for business not social management. Hold them accountable for taking care of things with periodic inspections of your own and late fees like anyone else.  I had a gal that only paid $8/mo.  When she was late it cost her $50!  She was only late twice in 3 years!

Dick Rosen · Answer

@Sam McClellan

The Pro's... you get your place inspected once a year which keeps you and your tenant on top off things and most if not all of the rent is paid consistently by the government.

The Con's... most landlords think they don't need to properly screen Section 8 tenants, for some reason they think the government has already screened them and this is far from correct.

Screening is highly, highly important, with or without Section 8... that's the key!

Mark Gallagher · Answer

@Sam McClellan just screen the tenant like you would anyone else. There are certain people that aren't abusing the system and actually need a helping hand. I've rented section 8 and had no issue. Screen screen screen + check references. It's easy to get them in, hard to get them out.

Account Closed · Answer

Also, if you don't have experience with Section 8, just be aware that their inspection can be a pain.  We usually had to wait a couple weeks for an inspector to even be available, and then they were very picky about certain things. I can't remember anymore what it was, but there was one item that we were just like "what the hell?" It was something really silly...nothing like a true safety issue.

J. Martin · Answer

Sam,

When I had an inspection by FHA on my 4plex in E Oakland, they pointed out every little thing. Then denied Section 8 because there was older "cement paint" on the driveway that had partially been stripped away. They said it all had to be stripped off, which would have required lots of sandblasting on a  big lot.. They were also only approving $1,250, whereas I got $1,400 at market rate with several tenants that pay their rent on time.

I have a Sec 8 tenant I inherited in Richmond, but haven't lived next to her. My other tenants in the house next door complain that one of her relatives, who works on cars in the street, draws a crowd of other car guys who sometimes drive recklessly, leave trash, etc on the street. The tenant is quiet and low-key though. Just her relative's crowd (who doesn't/isn't supposed to live there) That is the only personal experience I have.

Sam McClellan · Answer

Thanks @Mark Gallagher

does it take a long time to get a Section 8 tenant in? Kelly M. mentioned an inspector. Is there a lot of back and forth typically? Bureaucracy?

Sam McClellan · Answer

Thanks Kelly M.

I think I will take your advice. I don't see a huge problem if the tenants were ok, but it seems I'd be taking a big risk, especially being that I have zero experience as a landlord.

owner/occupant in duplex - rent to section 8?

Most Popular Reply