Inherited Section 8 Tenant- First Investment Property!

[Brad Jordan]

Good Evening!

I just closed on my first investment property. I purchased an REO. There is currently a tenant that is section 8. I met the tenant last night at the property. She is currently on a month to month lease. The house needs a bit of work. A few things were caused by her and her kids(two busted windows, a couple holes in dry wall, and disposal leaking). A few things are just in need of replacing which is paint and carpet. She has been in the house for 10+ years and it looks like original carpet and paint. She would like to stay and rent is paid 100% by the housing authority. Since she is month to month with a few kids I don't want to replace the carpet and paint for them to trash it and in two months give 30 day notice to move out! If I replace the carpet and paint should I have her sign a year lease or not replace the carpet and paint, leaving her on month to month? Any suggestions or advice??

Brad

[Kristopher Hanks]

@Brad Jordan If your tenant is in fact a section 8 recipient, there should be a HAP agreement in place with the local county housing authority. Section 8 will only do 12 month leases. When the lease expires a new 12 month HAP lease is required to be signed by the housing authority and the owner. You will need to contact the local county housing authority and notify them that you bought the property and you will be required to submit the change in ownership paper work. You will receive nothing from them until this is done. They will automatically put a stop payment on the property until they paper work is processed and approved. I just went through this process with Cuyahoga Metro Housing Authority. It will take approximately 2 weeks maybe three for them to process the paper work. Payments from the HCVP program are paid out on 2 dates per month, usually, like the 3rd and 16th of the month. You must submit a voided check with your paper work so they can set up the direct deposit into your account. That is the only way they will pay new landlords. If you have any questions you can send me a message.