Posted by Robert (NC) on February 13, 2002 at 13:53:43:
Tom,
As with any tenant, SCREEN, SCREEN, SCREEN…
Section 8 has it’s plus’s and minus’s…
I’m getting involved with Section 8 in a small town in NC. They pay full market rent, Section 8 sends me a check for part or most of the rent and the tenant sends the rest. Section 8 is never late…
Over on Mr. Landlord.com some people love it and some hate it… Some county’s adminstor the program better than others, but if you screen your tenants you shouldn’t have any more probles than with any other type of rental…
My realtor, who has Section 8 tentants in his properties, advise me NOT to rent to anyone that hasn’t had a steady job for at least 2 years. He says he advoids LOTS of problems that way…
Posted by Tom_MI on February 13, 2002 at 13:20:48:
What have your experiences been with section 8 properties? I have an opportunity to get involved in this area of rei. I would purchase these homes, rehab them and then rent them to section 8 tenants. I happen to be a builder so the rehab wouldn’t be a problem. Thank you for your time.
Like any other program, section 8 is only as good as the local office that administers it. I have dealt with a section 8 office in a big city which had many problems(several directors were replaced in a short period of time), and a section 8 office in a suburban county which was a little better. Checks can be late, and sometime they may not come at all. Several phone calls MAY get them moving again.
Inspections can be rigourous and sometimes ridiculous. Overall, I have found section 8 inspectors to be very fair and honest. I could never say that about other big city housing inspectors and officials.
As for tenants, you must screen well because section 8 does not, nor do they any longer pay for damages done by a tenant. Around here it would be next to impossible to find a section 8 tenant that has been on the same job for at least 2 years. In this day and age, I would not expect a Silicon Valley yuppie or a Wall Street banker to have been on the job for at least 2 years, so I certainly would not expect that of a section 8 tenant. I have found that it is possible to get good section 8 tenants that are unemployed, though they are probably few and far between. When you screen you should ask how long the tenants plan to stay and why, or why not. Try to find tenants that want to plant roots. Section 8 allows a tenant to move once a year, but not more often. Some tenants will want to move to a better neighborhood, some will even move for more amenities. I had one section 8 tenant who moved to my property because it had central air and a dishwasher, even though she was living in a very nice property in a nice neighborhood, had a great landlord and was more convient to her job and school than my property was. She kept the place in excellent condition, but she only stayed a year.
Some landlords around here do not want to sign a contract with section 8 because there is a clause in the contract that allows section 8 to stop paying the landlord at any time. They do not have to give you a reason; they do not even have to have a reason. That is something you might want to consider.
You might want to start with one or two section 8 rentals to try it out, then expand if it works out to your satisfaction.