DC Housing Choice Voucher Program- any experience?

Question

Hi all,

First time poster. I'm not a real estate investor, but my husband and I bought our condo in DC (Capitol Hill) a couple years ago and then moved long-distance so we decided to keep it and rent it out. First year was great- found tenants within days and have had no issues, but they are leaving DC and so we're looking for new tenants. One prospective tenant is a housing choice program participant. We are aware of DC laws regarding source of income discrimination and have no problem with being paid by the voucher program, but there's a lot we don't understand about the program and the implications of being involved.  Most of the information on the web seems to be for tenants rather than landlords, and so I would love to connect with any other landlord participant in the program that might be willing to help me understand a bit more. Any takers? Thanks.

Joseph Asamoah · Answer

Hi All, great to join this conversation. I have been a DC landlord for the past 30 years and participated in the Section 8 (HCVP) program for over 25 years as a landlord. Overall, the section 8 program can be wonderful if you do the following:

1. Take the time to understand how it works (attend the landlord briefings and monthly housing provider meetings)

2. Try to develop relationships with DCHA staff - this can save you so much aggravation if you have questions or if you run into a problem that needs to be resolved relatively quickly

3. Understand how to screen tenants - failure to thoroughly complete this step will result in a train wreck waiting to happen

4. Learn DC landlord tenant laws - I suggest spending a day down at the DC L&T court where you will hear all types of horror stories and cases of failed landlord tenant relationships. With this crash course and education, hopefully, you will learn from the mistakes of others (the best way to learn) rather than others learning from your mistakes!!

5. Register your unit with DHCD/RAD and DCRA this will save you so much headache if you run into a "professional tenant" that knows how the laws work and is adept at gaming the system to their benefit.

5. Develop policies and procedures on how to manage your rental business.

Without going on forever, what I've just summarized is the tip of the iceberg. There is so much to learn.

The above suggestions are being made based on: (1) over 30 years experience, (2) after making many, many mistakes and, (3) learning from the school of hard knocks. In my humble opinion, It's completely unnecessary to recreate the wheel and repeat rookie mistakes. It's a waste of your time, energy, money, and sanity.

In short, I enjoy being a DC landlord (I'm not totally crazy!!) especially to voucher holders. I find it very rewarding that I can do good and do well. The demand is so great that I am always encouraging DC area investors to seriously consider this rental niche.

In closing, I've written a couple of Bigger Pockets article posts that describe my investing approach. Feel free to check them out. I am more than happy to help you if I can be of assistance.

Regards,

Joe

Zach Fischer · Answer

One additional factor you may screen for is to look for any previous landlord / tenant litigation. I choose not to accept tenants who have sued or been sued by a landlord. I usually check DC, Maryland and Virgina through free online searches.

Zach Fischer · Answer

I had a tenant in the program for the past year. I had several issues with them: smoking in the unit with the smell disturbing the neighbors, additional people (3) living in the unit that were not on the lease, not communicating with me when there were water leaks or repairs needed, and they left it filthy when they moved out. I am allocating part of the security deposit for cleaning and trash removal.

Looking ahead, I will be much more rigorous about screening the tenants and enforcing my lease.

Shadonna N. · Answer

Hi Sarah,

I currently have tenants through the program.  Send me a PM so we can talk.

Account Closed · Answer

This discussion is stale, but I wanted to add in this useful resource. The DC Office of Human Rights has a guide on anti-discrimination laws related to housing and commercial space (as Russell Brazil said, source of income is a protected trait). https://ohr.dc.gov/sites/default/files/dc/sites/ohr/publication/attachments/OHR%20Enforcement%20Guidance%20-%20Housing_92517.pdfThere are exemptions in the law for small landlords (ownership interest in 3 or less SFHs), but they do not apply if the landlord uses a real estate agent to rent the property OR if he or she makes discriminatory statements in writing. Furthermore, just because these exemptions are legal does not make them ethical or advisable.

Russell Brazil · Answer

Same exact screening that you use for any other tenant. Nothing about the screening should be different at all.  And you are using a PM company so Im sure they screen every exactly the same.

Russell Brazil · Answer

Whether it is a mistake or not really is beside the point. Source of income is a protected class in the District, so it is not something you can consider when placing a tenant.

Kevin Leahy · Answer

@Joseph Asamoah  may have something to say here

Shadonna N. · Answer

@James Nelson so far so good.  Tenant selection is everything.  Talk to their current landlords.

Zach Fischer · Answer

I had an inspection in April and it was virtual given COVID-19. I used an app similar to FaceTime with the inspector to show various parts of the property. Having been through in-person inspections before, the virtual inspection isn't nearly as thorough given the format. You'll need an electrical outlet tester to prove that each outlet works. I also needed to install carbon monoxide detectors on all levels since I have a gas furnace. The inspection usually takes place within 1-2 weeks after it is requested, so be sure you're property is ready for inspection when you request it. If your property passes inspection, the inspector will usually tell you on the spot after the inspection is over.

DC Housing Choice Voucher Program- any experience?

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