Section 8 with lease options - Posted by chris

Posted by chris on December 18, 1999 at 14:55:54:

Thank you. I would not probably consider having my tenant do a lease option with me if they are Section 8 due to the risk. I would rent only without the option to purchase.

My reason for the Section 8 route is that you can get a tenant very quickly and the government will pay on time and cover damages from a bad tenant. They also can put pressure on the tenant if problems arise by revoking the Section 8 status. At least, this is what I’ve heard through the grapevine.

Section 8 with lease options - Posted by chris

Posted by chris on December 18, 1999 at 03:18:52:

Will the govt. allow me as a lease option tenant/buyer to turn around and bring a Section 8 tenant in to rent, or will they only do that if I already own the property? If as I suspect they want to only deal with the deed holder, would they go for some agreement between the seller and myself stating that I am in control as a “property manager” for renting the property out.

If anyone has experience with this I would appreciate feedback. I have not seen the paperwork the housing authority makes the landlord go through yet and when I called the local office I got someone on the phone who did not know what a lease option was.

Re: Section 8 with lease options - Posted by Bert G

Posted by Bert G on December 18, 1999 at 11:00:51:

Let’s see, you’re lease-optioning from the owner, and want to sublease to a sec 8, is that it?

There have been some recent changes in the Sec 8 program regarding how the landlord is paid, (Going all vouchers now instead of certificates)so you might want to consider how that might affect you. Looks like it will make it a little easier on the landlords as far as paperwork.

Just about nobody outside the RE business knows what a lease option is. “Rent to Own” is easier to understand. You might explain it as “I’m in the process of buying this property, and have an arrangement with the owner that allows me to rent it out to a third party.”

HUD deals with property managers all the time. When I worked for a large mgt co with over 1,000 units, about a quarter were sec 8. Didn’t matter who the owner is. You’ll have to provide your SSN and sign a contract, and will have to use HUD’s lease provisions.

One more thing. I haven’t done any lease-options yet, but my understanding is that the strategy is to find a subtenant who will eventually buy the house. How many section 8 recipients would be able to do that?