All Forum Posts by: Jennifer Donley

Hey @Lauren Hay-Lavitt - I only do Section 8.  I love it for a lot of reasons.  

To do it well, there is a learning curve.  Absolute key number one is - screen, screen, screen those tenants.  If you're inheriting tenants, then you'll just have to deal with who you're getting.

I answer a lot of questions here on BP about Section 8 - you can go to my profile and look through the responses.  I suspect there will be things there that you didn't think ask yet so it should be helpful.

This is something that is concerning to you only if it's new.  Here in the St Louis area, we have probably 100 municipalities and almost all of them require a rental license & an occupancy inspection (paid by the landlord, usually under $100) and an occupancy permit (completed & paid for by the tenant, usually around $40).  Every municipality is different in what they care about in their inspections and every municipality's process is different.  And if you take Section 8 like I do, you still also have to do the Section 8 inspection. 

These things are a pain in the *** but here, we don't think twice about it because it's been this way for a very long time.  We all build these extras into our processes & budgets and deal with it.  And it's not driving anyone away because OOS investors are still coming into the area in droves and paying prices no local person would.

When I was just a wee baby landlord, I thought these things were normal until I started talking to other investors from other parts of the state/country.  I'd love to not have the inspections/permits but it is what it is and we deal with it and still make money.

@Christian Canavarro, Ugh.  I'm sorry to hear this.  It is frustrating to me that Housing Authority offices don't have a better way to notify landlords and tenants of this potential issue before you go through the Section 8 process.  Some offices do, others don't.

If you sign the HAP agreement (Section 8 agreement), you have to accept the rent amount listed on the HAP and no more than that.  Period full stop.  Yes some landlords around the country take money "under the table" from Section 8 tenants but it's fraudulent and will cause a host of issues if you're caught so not worth it in my opinion.  The HAP will also dictate who can live in teh house and since the brother isn't on it, you can't sign another lease with him.

The only option as I see it is to not take Section 8 at all there and the tenant will be left to pay the full rent.  I suspect this may also put her Section 8 voucher at risk (she would likely lose it) so this probably isn't an option.

If she wants to keep her voucher and you want the full rent you're getting now, you're going to need a new tenant.

@Elizabeth Njuguna, it shouldn't be difficult to insure a rental property, and how the tenants pay the rent (through subsidies or not) shouldn't matter at all.

I use Shelter Insurance for all of my rentals.  I've heard good things about State Farm as well.

Nope to the applicant wanting you to keep the husband off the lease.  

If I were in your shoes, I would keep my process the same so if you require deposit, first month and last month, then you can continue to do that.

We have an attorney here that recommends doing a double deposit instead though - easier from an accounting standpoint.  Check with a local attorney of course to make sure it's legal.

Hey Jacob - I love that you're so motivtaed as your age.  Check out the folks at FasterHouse - they have a program where they'll teach you to wholesale and provide back office support and somehow split the deals with you.  They're one of the best real estate investment groups in town and just a great bunch of people.  Phil Blackwood is the guy to talk to.  Message me if you want more info or contact details for them.

Hey Christopher, Section 8 is all I do, but I'm not in Baltimore.

There's really a lot to learn to do it well, in my opinion, more than I could put in a BP post.  I answer a lot of questions on here about Section 8 so if you want to go to my profile and head to the Forum answer section, you'll get a ton of info and answers to questions you didn't even know to ask yet!  I also have a YouTube channel where I talk about all things Section 8, you can find it by searching YT for Section 8 Educate.

After all that, feel free to message me if I can help further.

@Sunny S., I'm in St Louis and own 1 property in Berkeley.  I know the area well.  I actually just had an appraisal done on my Berkeley property and it appraised for $57K.  And I'm only collecting $910 in rent.

Berkely's tough value-wise - property values are depressed compared to much of the surrounding area and I believe it's in part due to the rental rules the muni has set.  

Anyway, when I have a property under appraise, I will try to find comps that support the higher price and send them to the bank/adjuster to see if we can get any movement.

 If you want to pm me with the address, I will run comps and see if I can find anything that I think would justify the purchase price. 

@Eric McCarty, I would be cautious with some of the advice here.

First - your screening criteria needs to be the same for all applicants, regardless of their income source.  Otherwise, you run the risk of Fair Housing violations, as Charlie mentioned.  

Second, I think your risk of eviction issues is actually less with Section 8 tenants since some portion of the rent, maybe all, is coming from the government

I only take Section 8 tenants and have great tenants - I'm not owed a dime of rent from any of my Section 8 tenants and they take good care of my properties, so good S8 tenants are out there, I promise.  

I have a meticulous screening process (and would if I took market tenants too).  

For Section 8 tenants, you will want to get a copy of their voucher or some sort of proof that they are qualified for Section 8, able to move at this time and qualified for the number of bedrooms in your property.

I require $1,750 per month in income from my Section 8 tenants (I would require 3x the rent in net income if I took market tenants).

Otherwise, my requirements are the same.

One thing regarding screening that most people don't' do but is a screening must in my opinion - do a home visit at their current residence as the last part of the screening process.  

Feel free to reach out if I can help further.

This is gonna be a good one!