Potential Section 8 Tenant

[Megan Thomson]

I just listed our first house for rent and I had a potential tenant contact me to ask if we take section 8 housing. My first thought is no, however I don't want to discriminate against anyone. We live in Michigan - I'm not sure if this matters or not. Has anyone come across this and how should I respond to this potential tenant? I tried to look at the HUD website for Michigan but couldn't find any information.

[Michael Noto]

@Megan Thomson Clearly outline for them all of your pre-screening requirements. The only one that you adjust for Section 8 is the take home income requirement which will be altered based on how much of the rent the tenant needs to come up with. 

Not all Section 8 tenants get all of their rent covered. So for instance if the tenant needs to come up with $200 per month in rent and your minimum income requirement is 3x the monthly rent than confirm they make $600 take home per month just like you would with any other applicant.

Lastly, you can have a minimum credit score requirement and a lack of criminal background minimum requirement just like you would with any other potential applicant. 

Where people get tripped up is they are not consistent with their pre-screening requirements. Tell everyone who inquires what the minimum screening requirements are the exact same way. Do not alter them based on your initial gut feeling about the type of person you are dealing with. The fact is you don't know anything about an applicant until their full application docs are in front of you.

I've had Section 8 tenants with 750 credit scores and corporate execs with evictions come across my desk. You never know.