I just recently purchased a home, began fixing it up, put a sign in the yard advertising either for rent or lease/purchase. I have received 2 calls asking if I accept section 8 housing payments.
My questions:
Would it be a wise move to accept these types of payments?
How do section 8 payments work?
Are there extra hoops to jump thru since this is a gov’t program?
Generally I know nothing about this program and I am looking for information.
Thanks,
dlb
.
Contact your local housing authority department and tell them you like to get your house section 8 quailfied. Once its done, you can advertise Section 8 welcomed. Its is a good thing since in some markets you can actually get better rent from section 8 then from individuals. Now section 8 pays rent based on bedrooms. They will let you know what the most they will pay, you can always ask for more rent and the tennant will have to pay the difference each month. If they do not pay there share, can be as little as $100 a month or $350 a month, you will have to evict them for non-payment, section 8 will not.
Now in many markets, section 8 will do 1 or 2 inspections a yr, so you actually need to keep your place in decent order. Appliances working, heat, etc. If the tennant does destroy things thru negligence, your responsible, but can call section 8 and tell them your evicting them for damages and they can take them off the program and make them wait to get back on. I know inSoFL its about a 2 or 3yr waiting period i think, so they hate getting kicked out.
Section 8 can be a landlords favorite thing and its worst nightmare. Just remember to check out the tennant throughly. Its nice getting a check on the 1st of each month, but if they destory the house it isnt. But if your home is in the same neighborhood where many section 8 tennants are, then take the chance maybe…
Section 8 gets a bad rap. Everybody on welfare does not get section 8. They have to qualify also. The tenant has to take orientation classes on how to live on section 8. In these classes they are told by the housing authority employees that if they piss off the landlord, they will find their butts back in public housing so fast their heads will spin. Now you have to put yourself in the shoes of the single mom who has to hope her kids are safe as they walk home from a crappy school past the drug dealers and broken glass. She finally gets approved to be on section 8. She drives over to your house. She passes the neighborhood pool, the playground and the fine schools. She knows that if her daughter can get into that school she might even be able to go to college someday. She wants that lifestyle for her kids so bad she can taste it. She is not about to tear up that house.
There are people on section 8 that are bad tenants. Look for the entitlement mentality. If you see it don’t let them in. If the kids are respectful of their mom, that is good. They will be excited and running around, but when mom says come here, do they snap to? If they do, that is good. If they come in eating Oreos and dropping crumbs all through your house, don’t let them in.
But if you want to help society while you make some money off your real estate section 8 is the way to go. Also remember the government pays for bedrooms not square feet. If you have several properties put the small 4 bedroom in the program not the large 3 bedroom.
I currently have a Section 8 property and the program is not that bad. But it really depends on your local HUD office because they all act independently. Like my property is in the city of St. Louis but that program is ran differently than St. Louis county.
The only drawback I have is that they have to approve rent increases. In our program the landlord has to accept the rent amount set by the Sec 8 dept (you can’t have the tenant pay anything above the contracted amount). So when budgets are tight…they can deny your rent increases and you have to live with it.
Patti Porter
Patti you can’t raise the section 8 rents but you can charge the cohabiter $150 to $200 per month to stay there. (they all have a boyfriend living there)
Under the City of St. Louis Sec 8 program, you can’t charge anymore than the contracted rent amount. And other people not listed on the Sec 8 contract can’t live in the house or the tenant risks being kicked out of the program permanently.
other people not listed on the Sec 8 contract can't live in the house or the tenant risks being kicked out of the program permanently.And that is the beauty of it. They can't complain because he is not supposed to be there. But he is there and since he is there he may as well pay. Everybody winns. He gets to stay ther for $200 she gets her man, and you get your price.