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Updated 1 day ago on . Most recent reply
Section 8 Issue
Hello. I'm under contract on a house that has a section 8 tenant. Apparently, the tenant really wanted the house, and is paying above what she is supposed to pay for her portion of the rent (section 8 covers the rest). She doesn't want us to tell the section 8 manager, because she could get her coverage removed if they find out. Does anyone know if this could be an issue for me as the buyer/owner? Thanks!
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#1 General Landlording & Rental Properties Contributor
- Rental Property Investor
- Los Angeles, CA
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#1 General Landlording & Rental Properties Contributor
- Rental Property Investor
- Los Angeles, CA
Yes, it can be an issue. It's against the law.
I knew a guy who had a S8 tenant that was paying more than what their portion should be. He looked the other way when the tenant moved their mother in and let their ex-con boyfriend stay over in exchange for a few hundred extra a month. It'll be fine, no one will know, he said over and over again. Fast forward, S8 tenant uses this to coerce landlord into putting them up in a suite at a nice hotel while pest work is being done. Landlord now wants them gone. Tenant isn't stupid and complains she is paying too much to S8. Next thing you know, under threat of prosecution, landlord has to refund 100% of renters payments and 100% of S8 payments back to the beginning of the lease. It was something like $25K he had to pay back and I believe he was barred from the S8 program. Nothing happened to the tenant.