Section 8 in Cleveland D neighborhoods

[Stephon Richardson]

Hi fellow investors,

I just bought a multi unit in a D neighborhood and I think keeping section 8 tenants might be the best course of action. What are gotchas I should keep in mind? I saw other investors recommend looking at their current home before accepting to rent. Anything else that might be helpful? I would also love any recommendations on PMs that deal with the 44120 zip code and section 8.

Thank you.

Stephon

[Diego Hodge]

@Stephon Richardson Congrats on your purchase. I’m not sure if this is your first one or tenth one but great job on taking action. My suggestion is that if a PM makes finance sense for you then go for it. If it does not then I would suggest the following any applicant based on your location:

1. Verify everything on the application especially employment and interview as if the person you are renting to is taking care of your primary residence while you are away.

2. Run Background / Credit checks

3. Call references (email as last resort)

4. Call previous landlord

5. Accept ACH monthly deposits

6. Complete a documented initial walkthrough signed by tenant and you.

6. Set expectations on paper for maintenance and repair process. Also include upkeep.

7. Be clear and firm on rent payment dates, grace period and late fees. If ACH you shouldn’t have a big problem.

8. Conduct all correspondence via email. For verbal conversations and agreements follow up with an email recap.

9. Be prepared the do quarterly walkthroughs or drive throughs.

Believe it or not there are some great section 8 tenants that are looking for someone to give them an opportunity to prove themselves. When we were much younger my wife and I were one of those Section 8 tenants and we lived in that same zip code during that time (it was D neighborhood back then also). Our goal was to get into a position where we no longer had a need for Section 8. We treated the home that we lived in as if it was ours and we documented everything to make the landlords job simpler which in turn made are experience pleasant. We eventually worked our way off of government assistance and we are doing very well financially. I’m sure that you will find a great tenant as long as you interview and set expectations thoroughly.

Best of luck to you.