All Forum Posts by: Alan G.

Michael,

Very well said. I've found that most of the people who speak negatively about the section 8 program are speaking "speculatively" from what they " have heard" and not from their own experiences. Although I understand that some housing authorities are harder to deal with than others, overall, I find they are just looking to make sure the homes are safe. Those yearly inspections that some landlords hate, I tend to like for the exact same reason you stated. 

Approx. 30% of my tenants have vouchers and I would gladly take more.

Mike, Simply ask. I find that working with small local companies you are normally dealing direct with the owners. Pick up the phone and just have an honest conversation. Tell them that if they can help you out with lower basic rates you will reward them with a lot more business. It’s a 2 way street that I find most people are open to. Also, I try to use my handyman as much as possible. Easy plumbing and electrical issues, basic heating issues. His rates are much lower and I save the complicated items for the pros. Really does safe a ton of money.

Jay, No, the “escrow” account is held in my management companies name. (Which I own) Interest on monies in the account is paid in monthly by my bank. At the end of the year my management company gets a 1099 from the bank. My company would then pay any tax due on the interest. I’m basically letting that interest accrue but keep in mind it’s only paying around 1 percent.

Jay, You absolutely do not need individual accounts. I have 1 escrow account that all tenants security deposits go into. (I have over 40 units). I use quick books to track it just like all of my other accounts. In the state of Pennsylvania, by law , we are supposed to give back the tenant interest earned on there money, minus a fee for us to track it. However, banks are paying such a minimum interest rate that that fee could be more that the interest earned. So we never pay it. You are overthinking this. Just keep all security deposits separate from operating account and keep track of how much each tenant has given you and you will be fine. If a tenant moves and of course there are no charges for damage, we write a check directly from that escrow account back to the tenant. If a tenant moves and there are charges , some money may go to tenant from that account and the balance would go to our operating account for that unit and treated as income. Hope this helps.

Zach, I can't answer your question regarding multi-family compared to singles since I only have 3 and 4 bedroom singles. I can only tell you that the local housing authority i deal with needs larger units. I could rent 4 bedroom homes as fast as I can buy them at premium rents. Also, and maybe it's because I only have 3 and 4 bedroom homes and generally rent to families with children, is that my tenants never move. Yes, I have great properties and really do take care of everything but generally once a section 8 tenant moves in they don't want to go anywhere. Alan

Zach, The key to section 8 tenants, just like private pay is screening. There are good and bad but I can tell you from experience that there are many good ones out there. 30 percent of my tenants are section 8 and i will increase that percentage as I continue to acquire more. Make sure you get advice from the investors on this forum that actually are experienced in this and not the ones that just presume. The process definetly requires additional work dealing with the local housing authorities but once you learn the ins and outs it's very profitable.

We have been using payyourrent.com for 5 months now and love it. $2.00 per transaction and money goes in within 24 hours. We did a blind link through our website so it looks incredibly professional. What's best is there customer service is amazing.

Yes, happens all the time. For this reason, I never hold a property for someone until my holding fee (security deposit) is paid in full. I will keep showing a property until someone BOTH passes the screening AND gives deposit.

Sam, In the beginning I didn't pay for the premium. However, I do now since I am renting approx 1 or 2 a month. With the premium it allows me to do mass emails to prospects that have viewed my listings and I generally always get calls from them. Hope this helps. Good luck!

Sam,

If you are managing the property yourself you shouldn't have any trouble finding section 8 tenants. I advertise on gosection8.com as well as all the normal sites like Zillo and craigslist. The local housing authority also has a list of available properties that is updated every 60 days or so that I'll add an available property to. Just screen like you would any other tenant. 

Not sure what you mean about 2,000 mortgage, this has nothing to do with what you will charge for rent. Just run comps and talk to the local housing authority. Some even have a 2 hour training session which I highly recommend.