Hey guys what are your thoughts on section 8?

[Bryan Templin]

So I'm hunting for a property yesterday and I found a property that has a tenant who is section 8 they have lived in the unit for 14 years. I see great potential for cash flow the property looks great I'm just not too knowledgeable about section 8? Have any of you dealt with section 8? Pros/cons?

[Shane Avila]

We accepted the program during the recession to guarantee a portion of the rent.  The regulations lately have led us to stop accepting it.  I can only speak specifically about dealing with them in my county.  

The quality of tenant is mid to low.  We do have some that are good and have had some that are extremely awful.  Our market is at a point where we are getting 5-10 applicants per property, so we don't have to accept.  

These are just a few off the top of my head.

Pro's:

Guaranteed portion of the rent.

You can get a tenant to cooperate with issues usually by reminding them that if evicted they will lose their voucher.

Cons:

Higher chance of low-quality tenant

Stricter rules regarding notices and terms

Section 8 can cancel the tenant's assistance at any time without warning

Often request unreasonable repairs be done 

Sometimes require you to repair something and back bill the tenant or they hold payment