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Updated almost 4 years ago,
Section 8 Tenant !!!!!!
I just purchased a townhome with a section 8 tenant in place. The housing authority pays $535 and she pays $190 for a total payment of $725. Prior to purchase, I reviewed the lease and all receipts. She has been on-time for the past 14 months. The lease expires 11/30/21.
I own an identical townhome just a few doors down that rents for $950/mo so I knew it was rented way below market. I bought the property at a great price with plans to increase rents in November. The Housing Authority case manager just mailed me their tenant agreement which shows them paying $535/mo and the tenant paying $60/mo for a total contract rent of $595/mo. Confused was an usnderstatement.
I called the case manager to ask why it’s so low and she said the max that they’re allowed to pay for a 2 bed 2 bath home is a total of $610 and that the previous landlord must’ve been taking additional payments. She also said a landlord could be terminated from renting to the housing authority if they take additional payments.
I enrolled the tenant on direct deposit from day 1 so she’s set up to pay $725.
Does anyone have any experience like this?What are my options from here? Any wisdom or guidance would be greatly appreciated!