Hey everyone,
I understand the concept of section 8 housing. My question is, is this get your homes rented any faster? How would you go about making your house a sec. 8 house?
thanx
trwilliams
Here is some information I received from a friend who does section 8 rentals in Tampa FL. Things may be different in your area, but this may help some.
To become a Section 8 landlord, you need 1) PATIENCE, 2) fill out a form.
It’s actually such an easy process, but unfortuately their office is extremely unorganized. I found that it’s just easier to go down to the office and take care of business with them in person. It is free to register, but expect the process to take about 3 weeks after you find your tenant (at least that was what happened with me). Everything you need to know http://www.thafl.com/housing.html including the forms to send in.
1. Put a for rent sign up in your yard. You will get calls from people wanting to know if you take Section 8. Just say yes! This
neighborhood is “ideal” for section 8 renters b/c it’s close to public
transportation and other services. I had no trouble finding a tenant.
I
didn’t advertise at all…just a sign in the yard.
2. Register your property with the Section 8 office. Make fliers for the office as well.
3. Another good way to get section 8 tenants is to hang out down
at
the office in the morning before it opens and hand out fliers and talk to
the people. There is a shortage of Section 8 housing. People are
looking!
4. Ask SEction 8 tenants these very important questions:
a. Do you have a current & valid voucher?
b. How much is the voucher for?
c. Is the tenant able to supplement any difference from the voucher to their rent $ (in my case, the voucher pays 100%)
d. Who is the tenant’s representative down at the Section 8 office. Get their name & extension.
5. Once you and the Sec.8 tenant agree that you want to enter into a lease, the tenant needs to adivse their representative. An inspection will
be completed. Here’s a hint: leave some obvious things out that
would
need repair or they will find little tiny things. Take a door handle off,
remove an outlet cover, etc. Once you pass inspection, the tenant
can
move in.
6. Direct Deposit is the best thing to do with the Sec. 8 office.
The checks will appear in your account each month and it makes life so much
easier. I collect no money from my tenant. It all comes from Section 8, which is very rare, but very convenient and secure.
7. Every 6 months Sec. 8 will do another inspection with the tenant.
You’ll be given about 4 weeks to make any needed repairs. I just had
my 6
month and the following repairs were made: fixed ceiling fan, repaired leak under sink, repaired a broken tile, fixed closet door.
Cost
me $60 to pay my handyman to do it. It was no big deal.
Section 8 tenants have a bad rep for trashing property. Is it true that if that happens the Agency is on the hook for the repairs?
It is my understanding that section 8 covers repairs for damages. Understand that just like non-section 8 renters you can pick and choose your tenants so do your due diligance when screening section 8 tenants to hopefully minimize getting a tenant that will trash your house. I of course have heard horror stories but I have also talked to several landlords that have had great section 8 tenants. The majority of success stories I have heard are in situations with a single mother with one or two well behaved children.
flinvest,
Some of your friend’s info is incorrect.
-
It is illegal to have the tenant supplement any amount above the approved section 8 voucher amount.
-
Section 8 does not reimburse for damage caused by the tenant.
Section 8 tenants are no different than other tenants. Some are good and some are bad. Screen, Screen, Screen! I just evicted one last month for non-payment and I currently have another that I’m convinced is INSANE!
Good Luck,
Mike
Mike,
how does section 8 decide how much to pay for rent vouchers? Do you they go by average rents in that area for comparable homes?
trwilliams
TRWilliams,
Section 8 sets their rent reimbursement limit at the 40th percentile of average rents for each area. There is an entity that tells Section 8 what the average rents are for each area, but I don’t remember if that entity is a public or private entity. Theoretically, Section 8 will always pay less than the average rent for an area, but you will often hear investors in one area or another that think they are getting higher rents with Section 8 than with regular tenants.
The actual rent that an individual tenant qualifies for is determined by a formula. You can get a form from Section 8 that lists the standard rent reimbursements for your area and another form that has the utility figures for your area. Of course, the standard reimbursement goes up with the number of bedrooms that the tenant is authorized. The potential tenant’s income is also considered. All of these factors are considered in the formula and out comes the maximum rent for an individual tenant. I always look at this form and determine the maximum rent that the tenant will be allowed BEFORE I send the Request for Tenancy form in to Section 8. Obviously, there is no reason to send in the paperwork if the rent reimbursement is too low.
Hope this helps.
Mike
Regarding above statement: 1) It is illegal to have the tenant supplement any amount above the approved section 8 voucher amount.
According to the Florida Housing website
“All eligible afmilies are required to pay at least 30% of their monthly-adjusted income troward rent directly to the landlord. The housing authority pays the landlord the difference between the contract rent and the tenant’s portion.”
Mabye I’m misunderstanding, but it appears to me the section8 tenant pays a portion of the rent and then housing authority pays a portion. That said, the contracted rent amount does have to be withing specified guidelines.
propertymanager
How do you get a section 8 that does not pay?
I just evicted one last month for non-paymentIsn't that the whole idea behind section 8?
Section 8 isn’t a ‘live rent free’ arrangement. They do pay a portion of the rent. The section 8 rent portion is deposited directly into your account but the tenants may or may not pay.
Regarding above statement: 1) It is illegal to have the tenant supplement any amount above the approved section 8 voucher amount.According to the Florida Housing website
“All eligible families are required to pay at least 30% of their monthly-adjusted income troward rent directly to the landlord. The housing authority pays the landlord the difference between the contract rent and the tenant’s portion.”
When section 8 approves someone for a voucher, they set a maximum amount that the rent can be. The tenant almost always has to pay a portion of this amount but can not pay any amount above the approved rent. For example, section 8 approves a tenant to rent a 2 bedroom apartment for $450. Section 8 will pay $400 and the tenant must pay $50. If you wanted to charge $475 per month rent, the tenant can’t pay the extra $25 above the approved amount. I think that I just misunderstood what you were asking.
How do you get a section 8 that does not pay?
They didn’t pay their portion of the rent. In this case, the rent approved by Section 8 was $550 and the tenant’s portion was $410. When they didn’t pay the $410 when due, I evicted them. As DFWHoldings said, section 8 isn’t a live free arrangement (in most cases), but the tenant is REQUIRED to pay their part. If they don’t or if they violate other parts of the lease, I evict them.
Mike
thank you all for the info, it looks like section 8 can be a good deal as long as the #'s work and I screen, screen, screen!!!
trwilliams