I have a potential renter that called and asked if I accept Section 8. This is my first rental property and I have not decided yet to accept or not. If I do accept it and start the paperwork and another renter comes along that is eligible and has the funds to rent from me…Can I accept them over the Section 8 person? Is Section 8 a good source for rental or would you not accept it? Thanks for all the great advice I have received on this forum…I am new here and when I do post on this forum the advice has been excellent!!
If you want to accept sect 8, you have to have your property in compliance with their standards. You need to figure out what the criteria are so you can determine if you want to put the work into making your property comply.
It’s entirely up to you whether you accept sect 8 or not. You don’t have to. If you want to rent to a normal paying renter, fine.
One of the benefits of renting to sect 8 is getting your rent at the first of the month with no problems/stories/lies. That’s assuming the sect 8 renter has their whole rent amount covered by the program. Some people have sect 8 pay some while they pay the rest.
I have dealt with investors that accept Section 8. They buy properties in areas that are in transition! Couldn’t think of a more PC way to say it. They love it. Here is what I have learned:
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If a tenant damages the property the judgement you get will be registered to HUD against them and they will not be allowed another house until they pay it! Who wants to lose a years free rent over some damages.
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The inspection is fairly easy to pass but may tkae a few trys if you have no experience. If you do decide to do it I can share some of the major things, think I’ll just put them in a thread later. Look for it. Feel free to contact me for assistance.
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HUD will inspect the property to ensure yours and their compliance.
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They do credit and criminal looking for drug related offenses and evictions. Auto No Rent.
Oh yeah here’s the link for Section 8 Housing Standards.
http://www.healthyhomestraining.org/ipm/IPM_MFH_Ref_2_HUD_HQS_9-11-08.pdf
I take section 8 and love it. However my properties are in the lower income areas. Having section 8 tenants gives me an excuse to check up on the property. I tell them I have to make sure we are still within section 8 code compliance. This helps weed out bad tenants/problems early. Look for a single mother that appears to be trying to better herself (some sort of employment history). They tend to stay the longest and keep the house clean.
I second that. Section 8 is great.
I have one section 8 tennant: wanted to try it out, I will do it again.
For me it meant an extra month of vacancy to deal with Sec 8 inspections, approval process and general red tape.
In addition to what has been said about (partial in most new cases) guaranteed rent money, Section 8 tennants tend to stay put. And why not, they are getting free or reduced rent, and moving to another sec 8 approved place is difficult.
The main complaint I’ve heard is you get Sec 8 type people, but if you’re like me and own in areas where that is standard, then it’s no big deal.