Section8 tenant breaking the lease, what next?

Question

Don't know what's the next step is. Any input will be greatly appreciated!

A little bit of background here:

In July of 2020, my previous tenant was financially affected by the pandemic and couldn't afford the rent. The rental property went back to the market. My agent suggested that I take section 8 tenant because of the stable rent deposit.

So I had my first section 8 tenant since August 2020. The lease was one year. She paid her portion of the rent but never on time. She knows that she has to pay otherwise she'll lose her voucher.

Two weeks ago, she sent email to me and the Housing caseworker that she will vacate by the end of January. That means she is breaking her lease. I checked the law, seems that Texas requires landlords to take reasonable steps to keep their losses to a minimum—or to “mitigate damages” in legal terms. I'll definitely start to look for the next tenant and minimize the loss.

I contacted the water company and there's about $1000 balance on the account. The water company's rule is that the tenant's unpaid balance will be put on the property. And the landlord needs to pay for it when the landlord takes over the water account after the tenant left.

I have reported the money owned and the early termination of lease to the Housing office.

I talked to my agent and she thinks that it's up to the Housing. Only thing I can do is hoping the tenant didn't damage the property and putting the rental on the market.

My question is that:

1. Will the Housing allow the tenant continue to use the voucher for the next property? Or will the tenant be put off the voucher?

I emailed the Housing caseworker but the answer was ambiguous. The case worker replied "we typically do not allow moves the first year of a lease". I tried to call but never got a person on the phone.

Is there a way to find out if the tenant can still be on voucher in the future after unpaid balance and early termination of lease? Can I file complaint to the Housing Authority about this?

2. Should I pursue a judgement on the tenant for the money owned? If so, where should I start?

Thank you!

Patti Robertson · Answer

Hi there. Here's what you need to do TODAY. 1) Send the tenant notification that her request for an early lease termination is denied. Remind her of her lease ending date and when the notification is due if she wants to non-renew. 2) Send her a lease violation letter for the past due utility bill. This should not only be a violation of your lease, but is a definite violation of her contact with HUD. Follow your state law for the format of delivery for both and the number of days for the cure period for the unpaid utilities. 3) Provide the tenant with any resources you are aware of to help get her utilities current. I found this link below, but am not familiar with Texas landlord tenant laws. 4) Copy both of these notices to the SEC 8 case worker and the compliance officer if they have one. This SHOULD put her move to a stop or cause her to lose her voucher if she moves out anyway.5) Hire a professional property manager or put a landlord tenant lawyer on retainer. Your agent may be great at helping you buy and sell, but he/she is not proficient on landlord/tenant law based on the terrible guidance being given. Real estate agents are not unlike any other profession. There are specialties and some are better than others. The best are those who spend all their time at their craft, which in this case are professional property managers. Taking a SEC 8 tenant during the pandemic was a great idea, IMO. You or your property manager need to be using the rules to your advantage in order to make that strategy beneficial. At this point that is not happening.https://texaslawhelp.org/artic...Good luck! Be firm! You've got this!

Lisa L. · Answer

Good to know! I'll see how the local Housing office handles this. it'll be a learning experience for me. Thank you!

Lisa L. · Answer

@Patti Robertson Thank you! I'll follow your advice. it's so sad to see the secton8 tenant not following the rules, while so many people on the waiting list to get into the voucher system. I'll definitely follow through with the caseworker and the Housing office.

Dena Puliatti · Answer

From my experience with Section 8, past due balances are on the tenant. Here in Huntsville, the only way to revoke a voucher that I know if is to go in front of the Housing Authority Judiciary Board. They can revoke vouchers with proof of tenant breaking the rules.

Lisa L. · Answer

@Jennifer DonleyThank you!I’ll keep trying. Tenant like this should not be on the program while the section8 waitlist is so long!

Jennifer Donley · Answer

@Lisa L., I'm sorry to hear this happened. You've gotten really good advice here so I won't duplicate any of that but agree with most or all of it.If it were me, I would hound that caseworker like a crazy person. If you don't get any response from her, go up the flagpole. Our HA is pretty adamant that people who can't pay or damage property shouldn't be on the program. I know every HA is operated differently so this may not be the case there.

Paresh Jain · Answer

Yeah, Department of Community AffairsThanks

Lisa L. · Answer

@Adam Martin Thank you for your suggestion about including water in the rent!

Lisa L. · Answer

Hi Paresh, did you mean Department of Community Affairs? Thanks!

Gabriel Aponte · Answer

I cant speak much on the Section 8 situation because Although I have a section 8 certification I have yet to sign any section 8 tenants to any of my units.I will say that I never allow any of my tenants to pay the water bill on their own. I pay the water bill, and have the tenants reimburse me. Being in a digital world makes everything so much easier. I download and send the tenants the water bill a week before the first of the month and collect what is due on the first along with the rent. I put these terms in the lease, so all tenants know ahead of time and if they want to move in to the property they will agree. And til this day it has worked out well.Hope things end up working out for you.