Removing a Section 8 tenant the right way?

Question

I am closing on a property next week that is tenant occupied by a section 8 tenant that I will be inheriting.

My plan is to either flip this property or to do some work on it and rent it out for much more than what section 8 is paying with the current tenant. I'm concerned about the current tenant however. She has lived there for 9 years and has 4 kids with 2 infant twins coming home from the hospital shortly.... 6 kids and her living there!

I have met this woman and she is a lunatic. Explosive and even potentially violent. She has expressed to me that she would like to stay and pitched the idea of turning the basement into a 4th bedroom to get more rent from section 8.

I don't want any of that. The rent I would get for a 4 bedroom is still nothing and it wouldn't be smart to turn the basement into a 4th any way. I want her out, point blank and I have the ability to put her out with 60 days notice to section 8. I'm just concerned that when I tell her she needs to leave she is going to go off and during that 60 days trash the house.

With the income I'll be receiving from section 8 once I take possession I will still be cash flowing a bit so my current plan is to just let her know that she needs to leave but give her a few months to gracefully do it. I just don't know exactly the right way to go about doing that.

Any ideas?

John Underwood · Answer

Section 8 in my area pays 110% of market rents. If your not getting close to this ask for a rent increase. I have had no problem getting rent increases approved.

Then you don't have to spend major money rehabbing the place.

Patti Robertson · Answer

@Vincent Plant - Wow. That’s low for a 4 bedroom.  I am getting $1700 for 4 bedrooms from SEC 8 in Norfolk, VA.  The tenant has to have income and the house can’t have any gas utility, but as long as those are in place, we have no problem getting this rent.

I think your strategy is a good one.  You may even want to offer a cash for keys move out option like the banks do.  Offer her more money than her deposit the earlier she moves out.  Maybe and extra $250 if the move is within 60 days, or $200 for 90 days.  Make a condition that she leave the house in clean condition.  Inspect a week or so before to point out anything she may miss so she is clear on what she needs to do to get her deposit back.  Most SEC 8 tenants will do what they can because they want/need as much as possible back from the deposit.

Thomas S. · Answer

I assume then that you did not have a vacant occupancy condition on your purchase.

Under the circumstances, from a business perspective, the right way to get her out is to do it as quickly as possible. The only way to deal with crazy is swiftly. Contact her handlers and inform them first, relay your concerns regarding damage (which there is no way to control) and put her a** the street asap.

Think of it in the terms of a company firing a employee, security usually escorts them to the door immediately for obvious reasons. Same goes for terminating tenants. The more time you give them the more problems they are likely to cause.

Step one is to issue the paper to do a inspection, go in and take pictures of every square inch of the property, hand her the notice to vacate (shortest possible time frame) and tell her if there is any damage or non payment of rent you will have her cut off of her S8. Intimidation by threatening to jeopardise their free lunch is the best tool for dealing with these tenants.

Being graceful and allowing her one minute more than legally required will back fire on you.

Thomas S. · Answer

If her handlers say it is OK then give her 60 days notice the day you take ownership. You are doing her kids a favour getting her out if the place needs work but regardless that is secondary to your business needs.

Vincent Plant · Answer

@Dennis M.

How do you know it sounds high when you have no basis on my market?

Vincent Plant · Answer

@Mary Mitchell

I’ve spoken directly to the handler at the housing authority (section 8) and they claim all that is needed is 60 days notice regardless of reasoning. I have that in writing I’m not sure how I could be held liable for anything when I am within my right to terminate the contract with the program right?

I know she is wrecking the place because I walked through it multiple times and observed the condition it is in and the way they are living. It’s completely trashed and neglected.

Mary M. · Answer

Also, not sure about your state, but in Oregon there can be 2 per bedroom +1 so a 3bdrm can hold 7. So she might be fine occupants wise.

Mary M. · Answer

First, how do you know she is “wrecking” the place? Did you see it prior to her moving in?

Second, get thee to an attorney asap. You are opening yourself up to being sued. the fact that she has infants only makes the situation worse.

I would also explore the most amount section 8 will pay given the current lay out of apartment.

And look at it from her POV ; i am sure she isnt stupid - she knows you are going to boot her out so of course she is upset. You are directly threatening her childrens well being.

Again, find an attorney to help you. And i would not interact with her until you do.

Thomas S. · Answer

If your business plan is to have her out do it as quickly as possible. You do not want to make it any more difficult that is necessary. If you gave her 6 months to leave she will do nothing till the last minute regardless. Give her as short of notice as legally possible and let her handler take over the responsibility of getting her out.  If you can do 30 days notice do it.

She is going to do what ever she is going to do regardless of how much norticve you give her. No point in giving her more time to think about how much damage she can do.

Dennis M. · Answer

Are you positive you can get get 1400 . That sounds high

Removing a Section 8 tenant the right way?

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