RENTING TO SECTION 8 TENS... PROS & CONS<REEDITED POST>

You dont know everything Property Manager…lol…Its ok for other people to know some things you dont. I work with section 8 alot as well, things are not the same across the board,if thats the case all rents will be the same,everyone will need to go to landlord classes like its done in philly. I have properties in Atlanta,Philly and New Orleans and they all require different info…

Its ok for other people to know some things you dont.

True, but in this case, you’re wrong. Section 8 is a Federal Program and the requirements are supposed to be the same across the country. As I said earlier, some official in lefto land may have added a requirement because socialists like to control everything and everyone.

For the purposes of this discussion (buying a property on lease-option and then leasing it to a Section 8 tenant), requiring the deed doesn’t even make sense. As I said before, producing the deed doesn’t prove that you have the permission of the owner to sub-lease the property. In fact, it doesn’t prove anything. You can print a copy of the deed off the internet without ever talking to the owner. So, your claim that Section 8 requires the deed to somehow prove the owner is allowing you to sub-lease the property is ridiculous.

Mike

True, but in this case, you’re wrong. Section 8 is a Federal Program and the requirements are supposed to be the same across the country. As I said earlier, some official in lefto land may have added a requirement because socialists like to control everything and everyone.

So are you saying im wrong or right?..lol…just in case im in lefto land

The Section 8 voucher program is a federally subsidized HUD program that is administered locally. The local housing authority (HA) administering the program is a county agency. So, no, they are not lying when they say they are not HUD.

If you let a bunch of welfare bums tear up a house that belongs to someone else, you run the risk that you are going to end up getting yourself sued for the cost of the damages.

Tatertot brings up a good point about liability for damages. If you put yourself in the position of master tenant, you are ultimately responsible for any damage beyond normal wear and tear that may be caused by your sub-tenants.

On the other hand, all the Section 8 tenants I have had in my properties have been fairly responsible. I have not had any Section 8 tenant cause more damage than my mainstream tenants. In this respect, the HA is your partner. If the Section 8 tenant damages the property (tenant abuse, not normal wear and tear), then the HA holds the tenant liable. The tenant is required to reimburse the landlord for the cost of repairs. You may have to work out an installment payment plan, but you will get paid if the tenant wants to stay in the Section 8 program.

I have several Section 8 tenants and I have never been asked for proof of ownership, nor have I been asked to provide my SSN. My properties are professionally managed. My ownership is a matter of public record, so maybe the local HA just checks the public record. Maybe the HA simply takes my property manager’s agreement with me as sufficient evidence that the property is legitimate. I don’t know what has happened behind the scenes, I only know that I have never been asked for proof of ownership.

On the other hand, I have never applied to have my property approved for Section 8 tenancy. My property manager did all that. The HA does issue a 1099 at the end of the year for rents paid and they require a tax id so a 1099 can be issued. The HA issues the 1099 to my property manager, who in turn issues their own 1099 to me. I have offered to submit a W-9 so I can get the 1099 directly from the HA. They have refused, saying that they issue the 1099 to the person or entity actually receiving the rent checks.

The issue has never been a problem for myself nor for my property manager. It seems that Mike’s (propertymanager) suggestion to enroll in the Section 8 program as the manager of the property will work in your situation as the master renter in a sandwich lease option.

If the Section 8 tenant damages the property (tenant abuse, not normal wear and tear), then the HA holds the tenant liable. The tenant is required to reimburse the landlord for the cost of repairs. You may have to work out an installment payment plan, but you will get paid if the tenant wants to stay in the Section 8 program.

That’s true, but at least here in Ohio, you must have a court judgement for the damages before the housing authority can force the tenant to repay or lose their benefits. Moreover, low income tenants are often not rational or smart. I have had them lose their benefits because they wouldn’t pay their $50 portion of the rent. Low income tenants often don’t think farther than 1 hour from now (maybe 15 minutes).

Having said all that, I completely agree with Dave T. Section 8 tenants are absolutely no different than other low income tenants. No better, no worse.

Mike

I guess I have been extremely lucky. All my S8 tenants are in MD. So my experience with Section 8 is limited to this one state/county. A couple of years ago, my property was obviously damaged through tenant abuse. My property manager reported the condition to the HA, and their own housing inspector took a look at the property. He agreed that the damage went beyond normal wear and tear. When questioned, the tenant admitted to causing the damage and agreed to reimburse us for the repair. We did not have to go to court, no judgement required. We made the repairs immediately and had the HA housing inspector back out to verify the work. We worked out a five month installment repayment plan which was approved by the HA.

We kept that tenant another year as a S8 tenant. When she got married, her household income disqualified her from S8. She also wanted to move to a larger home so she did not renew her lease.

You guys have certainly given me insight on the matter… I will see what I can do on this matter. I will be checking with section 8 tomorrow. Hands down this is one of the most useful realestate forums ever…I am so happy to be apart of this community