Buying duplex with Section 8 tenants? Am i "stuck" with them?

Question

Hi , I am considering buying a duplex with section 8 tenants,  I none of my other properties are section 8 and I don't want to have more inspections that I already have from the city .

one tenant is month to month one has couple months until their lease is over , can I stop offering section 8 after their lease is up or because the property is approved I have to keep offering it?

Patti Robertson · Answer

Just like with a non-SEC 8 tenant, your lease is with the tenant, not the housing authority.  Your lease will dictate your termination options.  That said, you may want to check with the housing office if inspection is the only thing giving you heartburn. In my area, we have 7 different housing offices.  Only 1 out of 7 requires an add'l inspection for SEC 8. In all the others, the SEC 8 inspection replaces any other inspection we would have to have. The obvious benefit to the tenants staying is you avoiding the cost of turning two units.

Thomas S. · Answer

If you can not terminate their lease, probably can though, you may be better off just failing the inspection. Refuse to bring the unit to standard and have the handlers pull the tenants. Raising the rent above welfare level will probably do the trick then just set screening standards to disqualify welfare recipients. It is usually very easy as the vast majority have terrible credit, criminal records etc.

The major problem with them being a protected species is that your government business partner may force you to bring the unit to their standards. Nothing worse than involving government in your business.

Christopher Malone · Answer

I always chuckle when someone post to not just make repairs and fail an Inspection intentionally. The inspection requirements are very minimal. In fact, you can have cracked tiles and loose floors that do not pose a tripping hazard and do not even have to have closet doors! I would argue that anything under these minimal expectations probably isn't even habitable and wouldn't attract a non section 8 tenant. Just my 2 cents on the matter.

Kevin Hunter · Answer

@Domin Car, just call the housing authority and speak with them about it.  They are all normal folks and will answer your questions.  Be honest, tell them you are new to Section 8 tenants and just want to make sure you are doing everything right, etc....

I will say, however, that I am working with section 8 tenants right now for the first time and it is not as bad as you might think.  I charge the same amount of rent to them as all the other non-section 8 eligible apartments and they treat the unit very well.  One nice thing about the "additional" inspection is that you can accompany the inspectors and get an additional look at the unit.  A second nice thing about the section 8 is that the subsidy arrives every month on time.  If for some reason they move out unexpected, the housing authority still pays you their portion until the relationship is terminated.

Domin Car · Answer

thank you Christopher.

Christopher Malone · Answer

In Cook County, you cannot simply "stop offering" section 8. You will have to be certain that the reason you are choosing not to continue renting to a Section 8 Tenants is based on your minimum qualifications which must comply with the Fair Housing Laws in Cook County. Currently Section 8 is a protected class in Cook County, and you cannot legally refuse someone due to being a voucher holder. I attached a Section 8 Fact Sheet that applies for Cook County. I hope this helps.

https://www.dropbox.com/s/c161e9r0edzwx60/Sec-8%20...

Domin Car · Answer

Thank you Patti for your info , very helpful  .

Domin Car · Answer

I know my state regulations but since I have never worked with Section 8 tenants I am trying to find out if there is additional regulations when exiting the voucher program.

Thomas S. · Answer

Surprising since you are already a landlord that you do not know your state landlord tenant regulations.

You need to look up your state landlord tenant codes regarding non renewal and evictions as well as contact the local welfare office to get the answers. The information is all available for you on line in most states or a phone call away.

Buying duplex with Section 8 tenants? Am i "stuck" with them?

Most Popular Reply