All Forum Posts by: Jennifer Donley

@Jennie Ballard I think that is a wonderful idea.  In general, I think tenant damage is pretty easy to identify - especially in the Section 8 space because the front end inspection is going to make sure that the house is in pretty good shape.

Broken windows, screens, drywall damage, holders torn off walls, etc - always due to tenant.

@Kevin Nolan, when I buy a property with tenants in it, I meet with them and give them a list of planned repairs with timeline.  I also give them a list of expectations of them and what they can expect from our relationship.  It is very black and white, I stick the lease terms and don't deviate.  It's common for new landlords to try to help and do too much/not stick to the lease but this usually creates a scenario like what you're dealing with.

I find that with a new owner, tenants are usually tired of the lack of response of the prior owner and hoping the new owner will be better.  They ask for a lot early on.  I do the repairs that are planned and the ones that are necessary for safety and maintaining the building.  The rest I put on a list to be done when time and budget allows.  I'm very transparent with the tenants on all of this.

With your situation, I would determine if the tenant has done damage to the property with these changes and if so, what it will cost to repair.  I'd charge that back to the tenant if any.

If the changes haven't actually done damage but are more just an annoyance because it shouldn't have been done, I would talk to the tenant and review the lease which states no changes to property without prior consent.

There should be an opportunity to request a rent increase from the housing authority. Check with your local HA, it's probably on their website.  It is likely only available to request annually and there may be specifics around when you can request it.

You may be able to evict over something like this but I wouldn't.  Evictions and turnovers are expensive and it's even more difficult right now. Issues like what you're dealing with will arise all the time with tenants - setting clear boundaries and following the lease will help you navigate it.  I have also found that the more I deal with these issues and the more tenants I get, the less these things bother me.  

@Mario Rosales that's awesome - congrats! I'm a local investor in St. Louis - it's a great market for BRRRR deals!

Jay's not wrong.  Kids are hard on houses.  Hell, my kids are hard on my house.  And sometimes you do get additional significant others.  That's the case in any segment but I think we tend to find it more offensive in Section 8 bc the government's paying.

In any segment, I recommend checking social media and the like of all applicants.  If there's clearly someone they hang out with a lot, check their social too.  

I don't generally have problems with significant others. They may be living there but as long as the rent is paid, the house is taken care and the lease is followed, I don't worry about it.

To answer a few other items that came up - some of my rents are higher than market, some are even with market and a couple are lower.  In general, I think I get about 6% more in total rents than I would if I were renting to market tenants in my area.  I've learned where I can get higher than market rents and maximize my buying to take advantage of this.

I am not driven to do Section 8 to give back.  I do it because it makes business sense. It's an added benefit that it helps people but not a motivator to me.

@James G., I screen meticulously and would for market tenants too.  The only things I change are that I require a copy of their housing voucher (which tells me which agency they're with, how many bedrooms they're qualified for and if their voucher is still active) and I require only 1 months rent in income instead of 3.

The rest is the same - I call every landlord they've had for the last 5 years, I check their background, credit, etc.  I require a $1,000 security deposit, no exceptions and I let them know they will be paying all utilities, mowing the lawn, keeping up the landscaping and cleaning the gutter.  I ask if BY TEXT during the screening if they can handle of that (the money and the maintenance).

And last and most important, I do a home visit at their current residence.

This isn't everything - my screening checklist is nearly 4 pages long - but it's the big stuff.

@Allen Moore -Hi - I'm surprised no one has responded.  People usually have very strong opinions about Section 8.

I only take Section 8 and have a portfolio of 27 doors.  I obviously really love the program.  I love it for the guaranteed rent, tenant stability, additional accountability with the housing authority and large demand for Section 8 housing without enough supply.

With strong screening, I'm able to find great tenants and Im not owed any rent.

Cons you will often hear is that the tenants are harder on your properties (doesnt have to be the case in my experience if you screen really well), the Housing Authority is a pain to deal with (this depends on a couple things - how well run your local PHA is and how good you are at handling process & details) and the extra inspections/red tape make the niche unprofitable (see what I said above about Housing Authorities).

Done right, I believe Section 8 is one of the most stable & profitable.  I especially think this is true if you're in C areas (and maybe D areas but I'm not in the those areas). But it's not for everyone.  

If you're thinking of going that route, there is a learning curve.  I answer a lot of uestions here on BP about Section 8 so check out my Forum responses if you want.  I suspect there will be a lot of answeres to questions you didn't know to ask yet!

Good luck.

@Lisa L., I'm sorry to hear this happened. You've gotten really good advice here so I won't duplicate any of that but agree with most or all of it.

If it were me, I would hound that caseworker like a crazy person.  If you don't get any response from her, go up the flagpole.  Our HA is pretty adamant that people who can't pay or damage property shouldn't be on the program.  I know every HA is operated differently so this may not be the case there.

I'm not in Baltimore but I only take Section 8 in St. Louis and I'm with Sam.  No deposit, no keys.  Security deposit is leverage to me.  

I don't have a problem with getting it though here.

@Campbell Agyei, I think I'm the woman Steve is referencing.  Maybe.

Anyway, I don't really think this has much to do specifically with Section 8, just tenant management in general.

I would look at the lease.  Does it specify who handles pests?  The mold could be on you or not, depending on the source and again your lease.  My lease specifies that tenants handle pests and any mold that arises due to their negligence is on them.

The trouble with both issues, but especially the pests is if they're actually there, is that they can spread to other units so you can't let it go on too long or you will have a much bigger issue.

After reviewing the lease and getting clarity on who handles what (if the lease doesn't specify that something is a tenant issue, then it's probably on you, but I'm not an attorney.  From a Section 8 perspective, if the tenant files a complaint against you for lack of maintenance and the lease doesn't specify, it's definitely on you), I would take a contractor to look at both issues & meet with the tenant.  I find that 8 out of 10 times, meeting with the tenant helps me understand their concern and come to an agreement that works for both of us.

If she's seeing roaches, have her send you photos and videos since your exterminator said they aren't there.

Lastly, not sure if you did this when you bought the property, but when I buy an occupied rental, I meet with the tenants and give them a list of planned repairs with anticipated dates.  Then I let them know what I expect from them (for instance, the yard needs to be cleaned up, the fenceline cleaned, etc.), per the lease.  I explain how maintenance requests get handled and review any issues, questions, etc.

Let me know if I can help further.

Good work!   As long as the cash flow stays strong, I'm willing to pull out 70 to 75% in these price ranges.  But I echo what the others have said - depends on your goals and situation.  

1 frequent flyer market tenant in active eviction.  All 25 others, mostly Section 8 tenants, paid.