Need Help with New Section 8 Contract in California

[Daniel B.]

First time RE investor, long time BP reader.

We recently acquired a rental property (4 beds, 3 bath) in California with a section 8 tenant (family of 3). The tenant has been living at the property for 10 years, with a 2 bedroom voucher in our 4 bedroom house. The existing contract (resigned with rent increase in May 1st, 2019) has requirements stating that the owner pays for utilities and has a low security deposit. 

Obviously, we want to update the contract to increase the rent, increase security deposit, and charge the tenant for utilities. But since this is a family of 3, we are not sure if the tenant will qualify for a 3 bedroom voucher instead of their existing 2 bedroom voucher. 

Does anyone have experience with the Section 8 administration? What will be the best strategy to approach this?