Current tenant approved for Section 8. What should I do?

Question

Last year I had a tenant apply for a two-year lease on one of my rentals. She had really good income. Single mother with three kids. One year into the lease, she informs me she's been approved for Section 8 with a voucher that is about $600 higher than the cost of her rent. I certainly don't mind HOC, however it will be the first time renting to someone on HOC. I'd like to get advice from folks on here the best way to handle the situation. Do I have to re-do her lease? What requirements and or things should I be aware of as I try to determine how to sign up with HOC to receive rent from them for her. Any advice?

Scott M. · Answer

Generally speaking, yes, you will have to redo her lease.  The Sec. 8 worker will let you know everything you have to do.  Tenant should have a packet of info for you and you need to fill it out.  Send it all in with a copy of the lease and then Sec. 8 will send you back approval.  They will also call for a move-in inspection and you are required to do everything.  They will reinspect and once you pass you are set.  At some point in the next year they will also do a yearly inspection and you need to make those corrections.

It is very simple, they provide forms, you fill them out, they inspect and tell you what to do and you do it.  Rinse, repeat.

Lynnette E. · Answer

Let them inspect your house first to see what changes they require before you make a commitment.

Robbie Young · Answer

@Scott M.

I haven’t done section 8 in years but don’t do it unless you are getting above market rent for your unit.  It’s not worth the hassle.  The forms and waiting.  The having to fix things the tenant broke.  I stopped when the local office where I am at went from annual inspections to quarterly inspection.  It was too much hassle for too little pay.  Some landlords plan on their unit being section 8 where they rent a C quality unit for an A or B quality price.  Also consider your property.  If you have an old house with wooden windows they are going to stick and HUD will list it for repair.  You can have a hole the floor but not a sticking window.  If your property is older then it may be more hassle than you expect and may want to avoid HUD.

Brandon Malone · Answer

@Kenny Dahill Thank you. I'm definitely going to lean towards closing out the current lease and draft a new lease. I'll have to research how to draft the lease to include county as an interested party. Thanks

Kenny Dahill · Answer

It definitely never hurts to raise her rent, if you can justify it.  Especially since she was covering all of rent on her own previously.

Regardless, you will need to modify your lease.  Whether that is amending to include City as an interested party.  Or, terminating the existing lease and creating a new one.  Either way you go, definitely use a lease amendment for proper documentation.

I would lean towards an early termination and creating a new lease agreement.

Brandon Malone · Answer

@Lynnette E. Thank you for the information. This is really helpful. I will ask her contact at what in the process am I truly committed, since right now I have a packet of information I need to complete.

Brandon Malone · Answer

@Robbie Young She's currently in the middle of her lease. I can re-do her lease and increase the rent with justification of market rents. Would you suggest going this route? Or do I have no justification to re-do her lease.

Scott M. · Answer

Tenant will have a packet of documents for you.  You collect that from her.  You fill out.  You send in to Sec. 8 contact person (Tenant has this too) directly.  Most Sec. 8 workers are overloaded with case files and they tend to be slow to respond.  If you are unsure if things are moving forward or they are not communicating with you you can have the tenant help.  And yes, the process can be confusing, the documents can be confusing etc....but you will get through it.

Brandon Malone · Answer

@Kenny Dahill That's exactly where I'm at right now. Confusion with the process.

Brandon Malone · Answer

@Scott M. Thank you for the detail information. I wanted to make sure I wasn't simply filling out paperwork to have her submit without doing some due diligence on my part. It it advised that I submit the paperwork directly to Section 8 or provide to her to send it in?

Current tenant approved for Section 8. What should I do?

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