Hi Guys,
I’ve been searching for posts on Section 8 tenants to find out a bit more about the ins and outs of letting one through the door so to speak. General vibe appears negative overall.
I have been offered a property that is being repainted, freshened etc, in preparation for a Section 8 tenant in August. The agent is quoting a rent that is about somewhat higher than what I would expect on the open market, in NW Cape Coral (I have just returned from a 2 week trip in the area in question, looking a heaps of properties and getting a great education.. ha ha!)
I understand a Section 8 tenant may not necessarily qualify for a %100 rent subsidy/whatever it is? The landlord / PM has to obtain the rest from the tenant, and there can be problems with that.Just wondering what peoples experiences have been with these types of tenants, and if there really are any advantages at all taking one on, or is it just a downward spiral from the get go..?
Cheers
TonyTony,
Why did you buy in NW Cape Coral? Cheap? Section 8 is fine, but is delicate. In NW Cape, Section 8 is rare but will get you higher rent in subsidy with tenants balance of payment. But why you would buy in NW Cape is beyond me unless you just want cheap. You get what you pay for and Section 8 comes with that.CheevesFinancial | Cushman & Wakefield - Commercial Property SW FL
http://www.CommercialRealEstateVoice.com
Email Me | Phone MeHi Cheeves
Good to hear from you, sorry I didn't get time to drop by before I left. No I didn't buy in the NW! This is a cheap property being offered post-trip but I'm not convinced its a great deal because of where it is… and I'd be purchasing sight unseen which is really not the way I want to go in that area. Cheap or not!
I'm thinking the downsides are more than any upside when I put them all together with this one. I just didn't want to dismiss a section 8 type tenant out of hand..Cheers
TonyTony,
I don't do much Section 8 in Florida although I know quite a bit about it. I've heard good and bad, but more on the good side. Section 8 has come a long way with newer regulations and Housing Authority rules.I wrote an article on Section 8 about a year or more ago for my New Jersey business. It's all similar but could shed some light on what is involved. I believe the cap for a 3 bedroom in NW Cape Coral is $1,080 but don't quote me. This amount would be the combined tenant payment + government subsidy.
http://www.newjerseyrealestateguys.com/blog/nj-section-8-investing/
CheevesFinancial | Cushman & Wakefield - Commercial Property SW FL
http://www.CommercialRealEstateVoice.com
Email Me | Phone MeFrom my perspecitve and I probably have more Sec 8 tenants than most 50 plus.
One needs to qualify them like any other tenant… Just because they are section 8 does not give them a free pass into one of our homes…
Just like any tenant they can be great or terrible. Our goal is to retain our sec 8 tenants.. However to do that you can take all of the proforma running costs and toss them out of the window… YOu trade regular rent for annual upkeep.
Jay,
Sorry, I don't understand your post. What is 50 plus? Your age? I'm being serious. So you are saying that in lieu of taking Section 8, you are throwing away your profits in upkeep? I have to disagree there. Not sure if you read my article I posted above. My friend has a really good track record of Section 8. Also, I am a principal in a building in Jersey City, NJ which is 9 units. 4 of them are Section 8. We've owned about a year and so far so good…Not a shred of issues.Wanna know my secret? Lift weights. Act nasty. Think I'm joking? I'm not. I think I mentioened this to Tony when he visited me. I can't say I do this for my investors because I'm not a property manager, but for my units, I meet my tenants personally. My Section 8 tenants as well. I tell them straight up that I will make their life a living hell if they mess with me. I tell them this after I nice them to death by telling them I am the most lenient landlord around…just don't abuse my priveleges. If they want a nice place, I give it to them. If they don't treat my place like a military barracks, I will go over and beyond to make sure they lose their vouchers for life. I know I know…I'm a tough guy…but it works.
CheevesFinancial | Cushman & Wakefield - Commercial Property SW FL
http://www.CommercialRealEstateVoice.com
Email Me | Phone Meright on the age,
And sorry I was not more clear…. We have 50 plus units with Section 8 in them…
My point is some landlords will rent to anyone with section 8… without screening them.
We cream the top of the section 8 tenants… We give them a great house, and really take care of them… Same day response to maintenance calls whenever possible… This leads to tenant longevity..
And just like any slice of humanity some sec 8 folks keep their places as nice as anyone completely clean and picked up some are really bad.
Just have to weed through them. So I think we are of like minds on this matter.
You and Alex should team up on the weights and martial arts. YOu could be the Landlord tag team of wrestling lore.
Hope your having a great summer
JLH
Hi guys
Although I have a Section 8 tenant in one of my properties, my Property Manager has tried to steer me away from future Section 8 tenants, mainly because of the administration involved in setting it up with the government.
From a landlords point of view, I’m with Jay – if you have a solid tenant in and take care of the property,they will look after your rental knowing they are on a good thing.
The better your Property Manager is at weeding out the bad ones, the less headaches you’ll have.
CL
I'm with Jay – a GREAT Section 8 tenant is amazing (have one for what?? 4 years now)…. they worship your house and are fabulous. Look for those with 7 plus rental years in their current place, go visit them and if they give you cookies (and I am NOT biased), they are wonderful….
I have ALWAYS been an advocate in any other state than Alaska….- the inspections are no more or less than you would want for your property anyway but tenants are tenants of any socio economic demographic.
Eyeball your tenant. Section 8 or not. Period. Full Stop etc.
The only thing I will say is that for a non resident you will need a Property Manager willing to go the extra hog. You must present the HUD statement, the Deed, the property management agreement, 2 forms of your identification, fill in the W8 ECI and the W9, have your property manager fill in the Lead paint disclosure, your ACH agreement, get all the utilities on and etc etc……
A process but no more or less than anything else that can potentially be worth that…
Section 8 inspections are to preclude the slum lord from collecting rent from the US government.
Sec 8 standards are really not that tough….. My rehabs far exceed section 8 standards…
Although we do not participate in the section 8 program in all of our markets… And in Oregon there is very little section 8.
About a third of our units in Japan are tenanted to government supported tenants (eq. of section
– these are mostly old, sick or disabled folk, and are no different than any other tenant – it's the neighbours who don't like them, more than anyone else. From what I read above, it's very similar in the US.Ziv Nakajima-Magen | Nippon Tradings International (NTI)
http://www.nippontradings.com
Email Me | Phone MeZiv Nakajima-Magen - Partner & Executive Manager, Asia-Pacific @ NTI - Japan Real-Estate Investment Property
– these are mostly old, sick or disabled folk, and are no different than any other tenant – it's the neighbours who don't like them, more than anyone else. From what I read above, it's very similar in the US.You must be logged in to reply to this topic. If you don't have an account, you can register here.
