Should I allow Section 8?

Question

I have a unit that is a tiny studio, it rents for $300/mo right now. This is in a building I bought only a few months ago, but a new tenant moved in and about 2 months later they were approved (and had my unit approved) for Section 8. So the property manager wants to go with the program, since its $450/mo and she has trouble renting this smaller unit. I've heard lots of bad things about section 8, but mostly about the tenants.

My question is, should I go for it? I was thinking of just letting the tenant move out and break the lease without a fee or anything. I didn't ask the landlord to go through the Section 8 process, she just did it. Since the tenant is already there in a way it isn't much worse. Thoughts/Questions?

Michael Rossi · Answer

I also take Section 8 and have found Section 8 tenants to be EXACTLY like other tenants. There is absolutely no difference. You've already had this tenant in place for at least a couple of months. How's the tenant doing? If you're happy with the tenant, then I would definitely accept Section 8.

Dale Osborn · Answer

After you have a few bad ones - you will decide to take the NO Section 8 stance.

Eddie Ziv · Answer

I do also take Section 8. There are pros and cons. Pros: Money on time and in full amount - You don't have to worry whether or not you'll see the rent next month, or whether your tenant would be employed. Your rent is courtesy of Uncle Sam Every Section 8 is subject to inspection. After the inspection you or your PM will be handed a list of things that are needed fixing. It could be few $ but it can be much more than that. It is also depends on who is the inspector and what kind of relationship he/ she has with your PM. Everything else is as said before. People are people and there are great Section 8 tenants and there some pain in the butt...

Michael S. · Answer

most investors in jersey only want S8 tenants and will put on craigslist"section 8 only" i recently had a S8 move out after 5 years, and she left house looking like the day she moved in!

Tracey B. · Answer

Section 8 is just payment methods, tenants are people and must be screened. Here are the big issues with section 8, you must talk to these people in addition to your regular standards and see why they want to move. A lot of them have issues with previous landlords and they will have issues with you. I make it a point not to rent to people who are bad mouthing their landlord because they will be a problem. If they dont have any previous rental issues and they pass my other screening requirements then great. Just never accept someone just because they are section 8. Make sure you screen heavily.

Bill Gulley · Answer

Mike OH is right, they are like all other tenants in that income bracket, no difference. I'd suggest you get your building approved. I didn't follow your 300 and 450 rents but if you rent at 300, you can't jump the rents 50% because Sec. 8 was approved! Ask the PHA what the market rate rents are and lease at that level, then if you have a non section 8 applicant, you can do a deal for that tenant. As to jumping rents, you can increase them in reasonable amounts after the lease expires. IMO, Sec. 8 is a plus! Good luck, Bill

Steve Smithy · Answer

Just to provide an update, I agreed and the tenant somehow failed Section 8, and didn't get the voucher after all, and is paying the rent themselves now. I didn't ask the property manager what they meant by failing to pass section 8. So no Section 8 in this building, however I might have one going into another one of my buildings in another state this month, so I'll see how that one goes.

Ingrid Nagy · Answer

I like Section 8 and I accept these tenants frequently. If your tenant is already in place at $300 a month Section 8 will not make much difference other than two parties paying the rent instead of one. HOWEVER, I question the rental rate and your property manager. First question on the section 8 application is how much is the rent? Was your apartment initially rented below market at 300? How did it become $450? If you have a written lease in place at 300 I cannot see how Section 8 can justify a $150 jump to $450. I may be wrong but something is going on.

Ingrid Nagy · Answer

Your tenant and the PM know each other or had this change planned. The Section 8 application process takes 2 months. It could be that this was the plan all along and there is nothing wrong with it. I am just wondering how the tenant has justified his rental at $300 a month now being increased to $450 a month to Section 8 or if they lied on the application about the rental rate from the start saying it was $450.