Rental Property Investor · St Louis, MO · Member since 2010 · 317 posts · 72 votes
I have a remote property handled by a property manager, rented by Section 8 tenant. Rent is $973, and section 8 pays $936 of that, the tenant paying $37.
Assuming they are otherwise a decent tenant and not tearing up the place and are staying long-term, and considering re-renting costs, vacancies, unknown nature of the next section 8 tenant, etc, do many of you hands-on Section 8 landlords with tenants having rent 95% paid just opt to do nothing and let it ride?
Echoing what others have said, always strictly hold the tenant to the terms of the lease and collect rent from them. There are two main reasons for this:
1. You must treat all tenants equally. If you let one slide and not another, it doesn’t matter what different circumstances there might be, you are opening yourself up to a fair housing complaint.
2. $37 isn’t a big deal, but like others have said the tenants will start to take advantage. What happens when they damage the property and you try to collect? If they don’t pay their rent, they certainly won’t pay for damages.
@Paul Winka if you give people an inch, they will take a mile. It’s not so much about the $37, as much as it is about the tenant not taking advantage of you or the property manager.
Echoing what others have said, always strictly hold the tenant to the terms of the lease and collect rent from them. There are two main reasons for this:
1. You must treat all tenants equally. If you let one slide and not another, it doesn’t matter what different circumstances there might be, you are opening yourself up to a fair housing complaint.
2. $37 isn’t a big deal, but like others have said the tenants will start to take advantage. What happens when they damage the property and you try to collect? If they don’t pay their rent, they certainly won’t pay for damages.
@Paul Winka, I had a S8 and had a bad experience. It was tiered in my case as with each year the tenant was expected to pay more. Ie- year 1 10%, year 2- 25%, year 3 50%, at which point I had to evict. She was still late even with the state help but the PM let her late payments ride. She completely trashed the place to the point where I asked for legal advice but you can’t sue someone who has nothing. Some people love S8 but I stay clear of them.