Participating in Section 8

[Casey Crotty]

Hello all!  I have 13 units, mostly duplexes, and my goal is to increase by another 10 units in 2021.  It appears the COVID pandemic has hit some landlords pretty hard, and I am no exception.  With that in mind, and after reading Dr. Joe's post regarding Section 8, I'm considering two routes: first, applying for some of my units to be Section 8 approved, and second, looking at the commercial space.  For this post I'd like to focus on the Sect. 8 subject.  I've done a bit of reading on it, and there are pros and cons, but frankly it doesn't look like the "cons" are a whole lot different than if you're not accepting Sect. 8.  For example: risk of damage because tenants don't care since they don't own it; "problem" tenants; potential issues selling a building due to the stigma of Sect. 8 tenants.  So, after studying the materials, I'm now turning to the forum for practical advice and experience.  What has your experience been with Sect. 8 tenants?  If you have one piece of advice regarding this path, what would it be?  Any other takeaways?  Many thanks in advance for your time and expertise!

[Jennifer Donley]

@Casey CrottyI have a portfolio of Section 8 rental properties in the Section 8 niche and teach other landlords to be successful in it.  

I love Section 8 - I believe that in the right areas, done right, it is the most stable and profitable rental niche out there.   I echo what others have said and the one thing I would add is this - become a NINJA at the Section 8 processes in your area.  There is more paperwork and red tape but it follows the same process every time so if you learn those things, you can be highly successful.

And the added layer of leverage & accountability more than make up for it.

I see landlords hating Section 8 for 2 main reasons - bad tenants (which you've mentioned, can be dramatically reduced through meticulous screening) and bureaucratic headaches (see my advice above).

Good luck, I've written a few blogs here on BP about succeeding in the niche, in case they're helpful to you!