Inheriting section 8 tenants

[Steffen Beck]

I was wondering if I could get some advice regarding a situation I am in. I recently put my first investment property under contract and with it comes a section 8 lease. These tenants seem like quality people, and keep the house in relatively good shape. Unfortunately, there is only a mother and two children on the lease, and much more than that staying in the home currently. I believe there are at least 5 people living in the home, if not more like 6-7. In addition, there are two dogs which are not included in the lease or any security deposit to my knowledge. 

I understand that I really have no other option than to uphold the terms of the contract as they are written, especially since I am dealing with the govt. I know these people don't want to lose their voucher, so what do you think would be my best course of action? Do you think that if I went to the tenant with something in writing as well and a friendly conversation, the risk of her losing her voucher for herself and her two kids would be enough to comply? I have a few ideas about how I'd like to go about this, but I would really value other's opinions. Thank You!

[Account Closed]

Originally posted by @Steffen Beck:

I was wondering if I could get some advice regarding a situation I am in. I recently put my first investment property under contract and with it comes a section 8 lease. These tenants seem like quality people, and keep the house in relatively good shape. Unfortunately, there is only a mother and two children on the lease, and much more than that staying in the home currently. I believe there are at least 5 people living in the home, if not more like 6-7. In addition, there are two dogs which are not included in the lease or any security deposit to my knowledge. 

I understand that I really have no other option than to uphold the terms of the contract as they are written, especially since I am dealing with the govt. I know these people don't want to lose their voucher, so what do you think would be my best course of action? Do you think that if I went to the tenant with something in writing as well and a friendly conversation, the risk of her losing her voucher for herself and her two kids would be enough to comply? I have a few ideas about how I'd like to go about this, but I would really value other's opinions. Thank You!

 Since you have already contracted for this property, then getting the seller to deal with them is not an option.

Personally, I'd start with the Housing Authority.  Go talk to them.  Tell them you bought the property and need to let them know (which you do anyway), and tell them of your concerns and ask them what you should do.

They will probably schedule an inspection with the tenant and do the tough-guy stuff for you.

I'm now on Section 8 myself, in a subsidized senior apt bldg.  I used to be an apt manager.  So, I see how the whole Section 8 deal works between tenant, landlord/manager and HA.  Where I live, anyway, the Housing Authority is very approachable, as well as being no-nonsense.

So, in your shoes, I'd start with the Housing Authority.  Let them be the bad guy.  If the HA where you live is worthless, then you'll have to start giving your tenants comply or quit notices for all violations.

But, I really think if you tell the HA what's up and ask them what to do, they'll help you.  At any rate, to evict these tenants, if that's what you think you might have to do, you'll have to do it through the HA, as you can only evict Section 8 tenants "for cause."  And that's not easy or quick.