Thoughts on Section 8?

[Blake Bailey]

My wife and I purchased a SFR rental for $200k. We put 20% down, only had some minor repairs before listing. PITI will be $1247/mo and will rent for $1700/mo. (I realize this is more down than most recommend, we just felt more comfortable on this first one giving ourselves some room for error). We have had quite a few section 8 applicants that are willing to sign 2-year leases at full $1700/mo, due to there being almost no multi-fam housing in our county. What should we know about Section 8 from a landlord perspective? What are everyone's experiences?

[Chris Anderson]

@Blake Bailey

Hey Blake,  My wife and I have had multiple section 8 tenants in our different properties.  We no longer are doing it for the time being......  It truly comes down to one thing.......picking the right tenant. You want the tenant who is grateful for the opportunity they have of having rent paid when there are many families who are in the same situations that are struggling to pay their rent from their own funds.  We are not doing it right now because we had some good tenants, but then we had some tenants who duped us.  I personally don't want anyone living in any of our properties that do not have more skin in the game.  I too signed up to do it because of all the perks like direct deposit, etc.  In fact, we are still very close to some of the supervisors and case workers and still go spend time in their office with them.  I don't want to discourage you because there are great perks and some people who can really use the help in life to be in a great apt. or house.  We have met some amazing people through the program. However I do have advice... I DO recommend calling their last two landlords (not just the most recent one who will tell you anything great because he is happy they are leaving his house). I DO recommend looking inside their car to see how it is kept.  Chances are your house might look the inside of the car after living in there awhile. One thing people don't know is that the tenant with the voucher is supposed to be actively looking for work. Once hired, that income gets reported to the Housing Authority and all of a sudden the Housing Authority instead of paying $1400 for rent is now paying 1150 and the tenant is paying the difference of that 1400. You can report if they are not paying and they can get kicked out of the program.  We have learned that since they might have to pay different amounts depending on their income, that you want to find the best tenant that if they do end up having to pay an amount like $700, you know they can handle it no problem. I know I wrote a lot, but please reach out if you have any questions. I am always available.  Be a wonderful, but firm landlord always and be a blessing to others!!  Have a great night! Signing off from Las Vegas