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Updated over 4 years ago on . Most recent reply
![Allen Tracy's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/656105/1621494813-avatar-allent11.jpg?twic=v1/output=image/crop=445x445@57x37/cover=128x128&v=2)
Section8 Payment to Owner or PM?
How do you typically receive your section8 payments?
My property management company is having section8 payments go directly to me rather than through them. This is going to create so much more bookkeeping for me. Now when I generate a rent roll or any other documents from my property management's online software it won't show the section8 payments. My property manager pays me at the end of the month rents minus any fees/repairs/maintenance. Now with the renters paying very little to the property manager and the majority of the rent payment going directly to me, I'll end up owing the property manager money at the end of the month from time to time. So not only will I have to keep track of the money coming in, I'll have to keep track of it going out.
Their reasoning is that since they don't do payouts until the end of the month, some investors prefer to get their payments from section8 at the beginning of the month to cover expenses. I'm really not a fan of doing it that way though since that's what reserves are for.
Trying to get a feel of how everyone deals with this.
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@Allen Tracy I'm a Texas Broker and Property Manager. We manage Section 8 units in DFW and Houston. We always have the payments go directly to us specifically for the reasons you listed. It's easier that way. I wonder if your PM is concerned about 1099 or something. It doesn't really make sense since they 1099 you and if it's a corporation, corporations generally don't get 1099's. It seems like them sending the payments to you adds quite a few more steps in the process on your end and on theirs.
Maybe research the housing program that you receive payments from and see how easy it is to change and then have a zoom call with the broker/owner of the PM company to come up with a win-win.