5 Reasons I Switched to Section 8

Eyes roll.  Jaws drop. Chests heave.  When I mention Section 8, it's always a big deal.

Section 8 has a bad reputation for being problematic.  With some research, I decided it was the route for me.  I started with live/work niche, then moved on to Airbnb niche, and finally landed on buy/hold with Section 8.  

Even the government is making it easier for Section 8 landlords to make more money.  Everything is pointing up. 

I also realized that I was an ideal tenant on paper, but I have missed rent payments, and I had an over 700 credit score at the time. So what makes someone with a high credit score a better tenant?  I have been through it all with my apartments, and noticed that no credit score, high earning salary, or other income is going to make anyone immune from life's pit falls.  So why not get a guarantee?  

Here are my 5 reasons for choosing Section 8:

1.  Yup, it's guaranteed:

These days Section 8 tenants may have to pay a portion of their rent, the government pays the rest on time every month.  With the landlords I've worked with no one ever complained of the government being late, unless there was some documented issue.  So in plain English: When tenant A in your luxury hi rise has a death in the family or can't make the rent because they lost their job, your Section 8 tenant rent is paid - no matter what emotional or financial smack down they receive.  

2. Tenant Pays a Portion:

So back to what I said before.  When a tenant pays a portion of the rent, it gives them some ownership of the property.  They also have a job and a routine. They give the portion directly to you every month. If they miss, you call Section 8, and their case is closed.  Start eviction. Section 8 is very strict about this, and no tenant wants to lose their Section 8.  Sometimes, they pay in cash and some landlords even forget to pick up the cash.  One tenant told me she had 3 months of cash on her dresser (800/3=2400) for her landlord. Her landlord receives $2000/mo direct deposit.  She texts, he promises to come, but he doesn't always make it.  Yeah, that's how good the landlord has it. He forgets to pick up the rent.  Hmmph.

3.  Get BackUp

The Housing Authority is not there to make your life hell.  They have standards.  They want to makes sure your apt/house meets regulations.  The inspections achieve that. You will get them regularly. When you pass, the tenant moves in.  (This part is important.  Get rid of the fancy stuff, Section 8 apartments should be functional and minimal to pass) 

The tenant may destroy stuff - don't they all?  Section 8 or not.  Light bulbs break. Walls get holes from unsuccessful picture hanging attempts, toilets get backed up, and a few other matters.  If Section 8 finds out these are tenant damages the tenant must fix.  If not - yup, their case may be closed. 

The landlord is only responsible for the inspection, and fixing anything that is unfixable (no hot water, etc).  Just like with normal tenants.  

Note: Whether you have Section 8 or not, always take pics and videos of your apt and make them sign the pics.

4.  Market Rate Rent

Section 8 pays market or higher than market rate.  It is competitive rent in most major cities.  Landlords automatically think they have to cut down rents.  Wrong.  You go to Section 8.  They don't come to you.  So, you set your rent.  The tenants will see your ad. They will see their voucher, and see what they can afford.  There are Section 8 tenants living in 2K apartments in Brooklyn, right now.

5.  You Help People

One landlord helps his tenants become homebuyers.  And you get to pick your tenants.  Just like you would hand pick your normal tenants, you can screen Section 8.  You can say no, and on to the next tenant.  Nobody is forcing you to take the tenant.  Relax.  There will always be another Section 8 tenant.

If you still have questions or think "low income people" are bad maybe Section 8 is not for you because you will attract trouble. 

If this niche interests you, it can be a great business model. Don't give up.

Section 8 is not perfect, because nothing is. So why not get a guarantee?