Section 8 tenant thoughts

[Chris Berry]

How do people feel about section 8 tenants??

[James Mc Ree]

I have 3 SFR properties in Section 8 with no real issues. Vetting tenants is essentially the same as regular tenants, but expect lower credit scrores, bankruptcies, etc. People who qualify for S8 are poor. There is no getting around that. Try to get a feel for the stability of the tenant's current situation and recent past.

You will probably find a lower standard of care than you might apply to the property.  I encourage my tenants to actively report everything that needs maintenance.  Some folks have gotten used to low quality landlords that don't fix things and think that is normal.  I had a tenant (not S8) that thought it was OK to let the faucet leak and run across the basement floor.  Education is a wonderful thing - make sure your prospective tenants have some and motivation.  Try to get a look at how they are living in their current home.  That is what yours will probably look like.

You will probably experience more drama in rent payments, but that isn't guaranteed. Regular tenants have drama too. In my case, the 3 properties are paid for by HUD at 33%, 75% and 85%. That makes late payments less impactful on e, but still emotionally draining. It is not at all uncommon for 1 of my 3 properties to be late as the tenants are trying to stretch their checks to meet the end of the month. This month, all 3 were late.

HUD does have a maintenance standard that is higher than the local government where my properties are. It is not at all unreasonable and I like it. You get a month to fix whatever they find. For example, the local government rental inspection walks through and finds no issues. The HUD inspection the next day finds a water stain on the ceiling and fails the property. I have to fix the leak and stain. That doesn't bother me because it wasn't there when the tenant moved in. I want to fix it and appreciate the extra set of eyes. Others may see that differently.

There is no additional paperwork except the initial rental contract. HUD will only approve market rent and rent the tenant can afford which can be a limiting factor for you. The direct deposit on the 1st of every month is a wonderful thing!

Those are some quick notes.  Good luck!