All Forum Posts by: Sam W.

Sergiu Spinu,

While procedures will vary by area, you should receive a check from the local housing authority for the amount of the voucher. The tenant must make up the difference in rent.

It is fairly common since the voucher is based on family size, assets and income.

I have one tenant who rents a $550 apartment from me. He has a voucher for $524 dollars. I get a check from the housing authority for $524 and he pays me $26 every month.

You should screen Section 8 tenants just like you screen any other tenent. The individual you are talking about is probably transfering his/her voucher. Call the last landlord and ask how much the rent was and if the tenant had any problems paying their share (if rent exceeded their voucher).

I have mixed feelings about getting a tenant with a full-rent voucher. Sometimes (usually) this means they don't have employment so there might be other problems down the road.

Kelly N.

Here is the letter I use.

Dear Resident,

The purpose of this letter is to inform you that we have purchased the property that you currently lease.

If you have a current and valid lease, it will remain in effect through its normal expiration. If your lease has expired, you may continue to live in your apartment on a month-to-month basis until October 31st. Beginning November 1, 20XX, you must have a current signed lease or vacate the apartment. We will give you a copy of the new lease for your review and signature by October 1, 20XX. If you do not intend to renew your lease you are reminded of the requirement to provide a 30 day notice to this effect.

Please note the new address and phone number of your contact for rent payment, repairs and any other questions or concerns you have with your home:

XXXX XXXXXXXXXX
XXX XXXXXX
XXXX, XX XXXXX
(XXX) XXX-XXXX

Effective immediately, this is the new address and contact information for your monthly rent payments.

Over the next month there will be quite a bit of activity around the property as some repairs and improvements are made. It may be a little inconvenient but in the long run it will make things much better. We will work hard to make sure there is as little disruption to you as possible. Along these lines, if any of the items behind the house and garage belong to you, please move them inside your garage or basement storage room by August 1st 20XX. After that time the items will be disposed of.

We look forward to getting to know you and hope that you will choose to continue to live at XXXX XXXXXX Street. We are committed to ensuring that the building is a safe and comfortable home for all residents. Thank you for your cooperation in this regard.

Respectfully,

Absolutely agree with Joel Owens.

While I'm not a BP veteran by any measure, in the short time I've been a part of the community I've been astounded by the number of folks who blow into a forum only when it benefits them...."call me, I have properties in that area"....."hit me up, this is right up my alley"...."you're in luck, I'll email you the numbers right now". The rest of the time it's like listening to a seashell.

I understand it's a business, but the way to succeed is not to always take, take, take. Share your good ideas (without giving away the secret recipe (Dawn A.). Theory is good, but specifics are better.

I'm so impressed by the men and women on BP who are tremendously successful but take the time to share what they know, provide specific examples from their own dealings, and take a genuine interest in everyone's questions - with no thought to, "what can I get out of this". Success will continue to follow them because they are the true professionals.

George P.

Great topic...can't wait to read (and learn from) all of the responses.

Off the top of my head...some things we do:

- 20% off December's rent for tenants who paid on-time the previous 12 months.

- Quarterly preventive maintenance walk-through. Stagger all of the properties throughout the quarter. Allows us to take care of all the annoying "ankle-biters" for the tenants and get a feel for the condition of the property. New tenants were suspicious at first, but love it now (it's their opportunity to get the sticking drawers fixed, wobbly ceiling fan adjusted, etc)

- Have a few gravel driveways. Once a year or so get fresh gravel spread. Very cheap in my town and saves tenants from walking through mud, etc from their car to the house.

- Keep the little things on the outside of the properties painted and in good repair...mailboxes, porch lights, railings. Inexpensive and makes their home a little nicer.

- Biggest thing is treating everyone with respect.

It may well depend on the area. I am in a smaller county and the local housing authority is very good. I know the staff and administrators by name and work very well with them...so one facet of the difficulty that Patrick L. describes isn't the case here (though I can very, very easily see how it could be an issue somewhere else).

I would recommend visiting the servicing housing authority to get a feel for the staff and how they deal with landlords. If they turn you off on your visit you may well have answered the question for yourself.

Regarding the tenants themselves. I only have 2 at the moment and both are good tenants. In fact, I have only had good experiences with Sec. 8 voucher tenants. Again, I know landlords who have had bad experiences as well...but we have all had bad experiences with non-Sec 8 tenants too.

Bottom line, the paperwork requirements are greater than a regular non-voucher tenant and you are responding to a housing authority for repairs and maintenance issues. In return, you get a steady hassle-free check every month.

Aaron C.,

I feel your pain. The monthly ritual of checking off who's paid, who's late, and who's avoiding me.

Can you explain the direct deposit method you referenced? I still use the old fashioned tenant mails or drops off their rent. The one thing I like about that is that we can see most of the tenants every month. I'm not looking to be friends with them (and they don't want to be friends with me) but, like you said, I treat them with respect and like to interact with them.

Thanks for the clarification Mark Ferguson

I think it will affect the loan. The appraiser will be obliged to note the mold because it is a health issue.

I believe you can establish an escrow holdback that will allow you to get the loan and close and then the money will be taken out of escrow to pay for the repairs.

Adam Craig,

I think the mold may well likely hold up financing until it is taken care of.

Is this an REO or other 'as is' purchase? If it is not "as-is", would certainly go back to seller and negotiate remediation.

If it is as-is or REO, you can still go back and negotiate. Most banks won't make repairs but might reduce price or put a portion of proceeds into an escrow holdback for repairs. This would allow you to get financing and close.

As General Patton said, "A good plan violently executed today is better than a perfect plan executed next week".