Section 8 Payments for February will pay but not for March

[David S.]

I just wanted to share that I received a letter from my local Housing Authority yesterday.  It stated that:

1. HUD is funded for February 1st payments so these will be received by Section 8 landlords.

2. HUD is not funded for March 1st payments unless the government shutdown ends.

3.  It urged landlords not to evict.  However, it reminded us that we need to give a 5 day notice to the Housing Authority if we choose to evict.

4.  It stated that most people (it did not specify tenants or landlords) do not have the means to pay late fees.  I am assuming that it is a soft plea to landlords to not slam tenants with late fees.

I hope this information holds true nationwide as that means landlords will have their money next month.  If you have a tight rental portfolio, it might be a good time to secure funding to either have a vacancy for March or be patient and go without rent.  Ideally, one should have an emergency fund/reserves to cover 6 months of no income.

I did receive a frantic phone call from one of my tenants about 7 days ago.  She had heard about the possibility of her rent not being paid.

[Brian Ploszay]

I suspect the government shutdown will be solved by that time. My opinion.