Denver, CO · Member since 2017 · 23 posts · 4 votes
Hi there, I'm just starting to get into small multi family. Should I do section 8? Sure, the state does autopay $1200 per month. My concern is what if the tenant trashes the property, I have no recourse. I wouldn't be able to get money from the tenant for repairs as they are section 8 and don't have the monetary to begin with. Thank you for sharing your opinion...Tracie
Fort Collins, CO · Member since 2019 · 158 posts · 117 votes
6y
Hi Tracie, You're assuming Section 8 tenants are low lifes. My research shows Section 8 tenants can be great tenants. There are lots of people who find themselves in a situation where they qualify for Section 8 assistance. This doesn't mean they won't be great tenants. Most will be great! It takes time to make it through the Section 8 process and those who qualify won't want to do anything that would jeopardize their assistance. Just be sure they meet all your standards; background checks, can afford 3x their portion of the rent, etc.
Fort Collins, CO · Member since 2019 · 158 posts · 117 votes
6y
Hi Tracie, You're assuming Section 8 tenants are low lifes. My research shows Section 8 tenants can be great tenants. There are lots of people who find themselves in a situation where they qualify for Section 8 assistance. This doesn't mean they won't be great tenants. Most will be great! It takes time to make it through the Section 8 process and those who qualify won't want to do anything that would jeopardize their assistance. Just be sure they meet all your standards; background checks, can afford 3x their portion of the rent, etc.
Investor · Topeka, KS · Member since 2015 · 1k+ posts · 1k+ votes
6y
I think you should research section 8. For example, why do you think you have no recourse if they trash your property? The source of the rent payment doesn't really change any aspect of the process. You are still responsible to do background checks and approve the tenant based on your requirements and you are still responsible to hold them accountable to your lease requirements.
I actually think there are advantages to having section 8 tenants. For example, if they are evicted they are kicked off of section 8 for 5 years. That is quite an incentive to not break the lease.
Investor · Topeka, KS · Member since 2015 · 1k+ posts · 1k+ votes
6y
Additionally, Section 8 tenants are not the only ones you won't be able to get cash from beyond the deposit. Most tenants don't have excess cash and won't be able to cover additional damages. Its just part of the game.
Real Estate Agent · Naples, FL · Member since 2016 · 298 posts · 268 votes
6y
You should screen the tenant just like you would any other tenant. I prefer section 8 tenants. Too many people have a misperception and or confuse it with other subsidies. On top of it there is check and connect. If they trash the place you can report them and they can lose their free ride
Rental Property Investor · Cincinnati, OH · Member since 2019 · 14 posts · 9 votes
6y
Whoever you rent to you have a chance of a tenant trashing the place. Nowadays most states do a voucher program for section 8, which pays the tenants rent. If the tenant trashes your place they will lose that voucher. None of them want to lose that voucher, Section 8 Tenants can be great and have worked for me.
I think it's notable that you are trying to get into the affordable housing game, but Sec 8 is a little risky for many of the reasons you listed. If you want something that is stable and fits your mission you may want to consider the HUD-V.A.S.H program, its a housing program for veterans and they have more recourse and resources than Sec 8. I'd be happy yo set you up with my contacts in each area.
Yuma, AZ · Member since 2015 · 140 posts · 137 votes
6y
@Tracie Janoska dont get emotional it's a tax deduction. I have section 8 and they are better than self paying tenants I have had. You will never know until it happens. Call their last landlord.
Investor · Manteca, CA · Member since 2017 · 1k+ posts · 2k+ votes
6y
I have considered it for the reasons listed above...... its a near guaranteed payment and many don't want to do anything to lose their "meal ticket", so they tow the line...
My only concern has been the hassle to get it set up....what's involved to get your unit section 8 approved, the paperwork etc.
For those who did it, how long did it take? Did you get it approved during a vacancy or when someone applied that was section 8?
I can very quickly turn my units, so don't want it sitting vacant while I deal with all the red tape and waiting on approval and then getting a tenant etc...... that's a lot of vacant time
Rental Property Investor · Hollis, NH · Member since 2018 · 108 posts · 36 votes
6y
We have a few section 8 tenants in our place in NH. The process to make changes regarding their rent can take some time, but the payments are processed in a timely manner and they have been compliant so far. In general I think they want to make their apartment their "home" as the process to move is difficult and vacancy in our state is about 2%. The list to get on section 8 assistance is long as well.
Rental Property Investor · Hawaii & Maryland · Member since 2019 · 31 posts · 24 votes
6y
hello all, from what I've learned my property manager loves working with section 8 because it helps him keep the property "in check." they do require home inspections and are pretty meticulous in details which upkeeps the property. my duplex just got approved over a 4-5 week period and we have a tenant screened and moving in soon. overall section 8 tenants typically - stay longer, have less vacancy due to the sec 8 demand, rents higher, and your able to screen them just as you would screen a normal tenant. it's a nice niche to get into.
Investor · New York City, NY · Member since 2012 · 332 posts · 385 votes
6y
I have had a generally positive experience with section 8 tenants and in most cases they have been better tenants than the non-section 8 renters. There is a little more overhead when dealing with the local housing authorities but it's worth it.
Rental Property Investor · n/a · Member since 2019 · 143 posts · 117 votes
6y
Do your regular screening due diligence and decide for yourself. Call their employer and previous employer (if they have one), call their past landlords, get references, find out why they are moving, take a peek inside their car to see how it's kept. Do they have kids that will be in the school system? Could be a good incentive to stay in one place.
When I was renting my property I probably had about 20 section 8 families ask about the property. Not one of them followed through with an application. Whether it was because of my renting requirements or the application fee, I am not sure. Your screening process should weed out the bad ones.
Rental Property Investor · New York City · Member since 2019 · 703 posts · 538 votes
6y
If the neighborhood calls for section 8 then go for it. You still need to screen the tenant and do a background check. The tenants don't want to lose their gov't ride so hopefully you get a tenant that's not rough on the place. If they have Other issues other than a low paying job they will always get a free gov't ride whether they wreck your place or not. Screen, screen, screen!
If the neighborhood calls for section 8 then go for it. You still need to screen the tenant and do a background check. The tenants don't want to lose their gov't ride so hopefully you get a tenant that's not rough on the place. If they have Other issues other than a low paying job they will always get a free gov't ride whether they wreck your place or not. Screen, screen, screen!
This is spot on! The main criteria for whether or not you use Section 8 should be the location of your property and the economic characteristics of the surrounding area. as an example, I wouldn't think of ever using Section 8 for some of my properties located in prime Los Angeles areas. However for my multiplex in South Los Angeles, I use Section 8 only.
The turnaround in getting a unit rented does take a little bit more time, however, the turnover rate once you do get a good Section 8 tenant in place is extremely low.
Also, for lower income areas, Section 8 is actually a good hedge against getting a tenant that will completely trash your place because of the annual inspections.
Burbank, CA · Member since 2018 · 27 posts · 6 votes
6y
I have heard great things about section 8 tenants because the units get inspected and if they aren’t taking care of the property then they lose their voucher.
My understanding is that in the state of California you can’t decline someone because of section 8.
I know the original poster is from Colorado but I thought it was I Interesting when they passed that legislation here in California.
Rental Property Investor · Erie, PA · Member since 2015 · 1k+ posts · 2k+ votes
6y
My Section 8 tenants have been the biggest headaches. Also, dealing with the Section 8 office can be a pain. The housing office in my hometown is inept.
The only nice thing is if you sue a Section 8 tenant and get a judgement the Section 8 office doesn't let the tenant move into a new unit (as long as you let them know about the judgement prior to them moving into a new Section 8-approved apartment - their voucher is frozen until you get your money).
Realtor · Boulder, CO · Member since 2016 · 3k+ posts · 5k+ votes
6y
@Ned J. We have a few sec. 8 tenants in multifamily buildings in Denver. It took a few weeks to get set up with HUD, and the first months rent was delayed by a few weeks until the paperwork was cleared, but no big deal at all. Once it's set up the rent is as consistent as it gets for a class C asset. @Tracie Janoska we have had only good experiences renting to Sec. 8 tenants here in Denver and Lakewood/Edgewater. IME They're mostly single mothers with young children. Just make sure the deadbeat dad is completely out of the picture, the few times we've had minor issues is when the ex gets out of prison and moves in, or sometimes a son or cousin, but generally those on Sec. 8 are very careful not to do anything that would cause them to lose their rental assistance.
Rental Property Investor · Lawrence, MA · Member since 2020 · 252 posts · 153 votes
6y
So there are Pro's and there are Con's to this subject. Hope that you can decide on who you want in your property. You can get tenants that will live in your unit, and won't work at all. They can put your water bill high to the sky or maybe not. Maybe not, but at the end of the day, you make the final decision. Good luck!
I have a few section 8 tenants. Some are fantastic and some are terrible, but I could say the same with non section 8 tenants. You can still require a security deposit and background and credit check. It’s up to you. If your building is not approved you need a tenant who is a section 8 voucher holder that wants to rent your property and then the process can begin. Lots of paper and an inspection must be conducted. Go to www.hud.gov/sites/documents/52... They will also review your lease. They will conduct an evaluation and calculate how much the tenant is responsible for their portion of the rent.