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Section 8 tenants

What is your experience/feelings on Section 8 tenants?  I have heard a lot on both sides from Realtors and Property Managers but not much from the investors perspective.  What say you?

I can see both sides of the spectrum on this topic. Growing up, my mother was a single woman with 4 kids and no college education. Yes, we were on section 8 and food stamps - sometimes welfare (cash assistance) too. I remember how hard it was to find landlords that were willing to work with Section 8 tenants, although my mother worked very hard to make sure our home was safe and clean, and rent paid. However, I also know many situations where people abuse the system and have totally trashed their rental while being on Section 8.  This, naturally, makes landlords shy away from Section 8 tenants. I have to agree with sever of the posts that I have read here - SCREENING is the best way to select a tenant. I am new to being a landlord, but I an friends/relatives with people who have been landlords for a long time. They have instilled in me the importance of pre-screening tenants. I currently use a company called E-Renter (www.e-renter.com) and I'm happy with them. They offered me a good piece of advice as well. When calling previous landlords, don;t just call the landlord for the rental that the tenant is currently living in. Call the past 2-3 landlords. If you only call the current landlord for a reference, then you may get duped. If the tenant is giving the current landlord trouble, then that landlord may just giving a raving reference JUST to get the tenant out of their rental unit without the costs of eviction. I thought that was note worthy.
Section 8 also known as "Housing Choice Voucher" is a wonderful program that allows families who are struggling to help pay their rent in this hard economy.  I manage 425 units and over half are Section 8 participants.  Do I have my issues with some of the tenants? Sure I do, but I also have the same issues with those who do not receive Section 8.   Wish I had read more positive responses to this question.  Section 8 guarantees the rent should the tenant lose their income, they do an annual inspection to inform you of what they find, they also assist with referrals to lease your apartments.  Screening is the key!  Some of my best residents are on Section 8 rental assistance program.
I'm so happy I scrolled to the end to read some of the more positive responses to this post. Granted it is quite old but this is still a very relevant topic. I believe the biggest misconception about the program is that the owner/landlord is "not in control" when they are! You should treat applicants fortunate enought to have a housing choice voucher aka section 8 the same as any other applicant/tenant. It should also be noted that contrary to popular belief the recipients are not screened for suitability as a tenant as part of the determination process when receiving the voucher. That is totally up to the landlord. I would strongly encourage any owner/agent/investor interested in leasing to a voucher holder to request a briefing with the local housing authority prior to making a decision about becoming a landlord. Most Public Housing Authorities (PHA's) offer them on a regular basis and they are FREE. Being informed and understanding the process will make all the difference in the world. There are some great participants that will make great leaseholds. Don't rule this program out!
Landlords and Property Managers have very polarizing and diverse views on Section 8, as you can see above. I decided to offer one of my houses as a Section 8 rental to see for myself. You can see my experience here:  https://youtu.be/KYezPbVgjrU  Hope that helps!
Hey Melanie in MD - You must put these as 'terms of your lease' eg no occupants not on lease and must maintain yard etc and when they do not comply with the lease terms you EVICT for cause. The cool thing about section 8 is they keeep paying you during the eviction process. After you evict get another section 8 but be more dilligent in your interwview process before picking which section 8 tenant you want - after all you probably have hundreds on a list in your area to choose from -0 its NOT about the background check alone - its about you interviewing and selecting th RIGHT one - not the first one they send.,.,.
I don't like Section 8. You completely give up control over the amount of rent (they just lowered the rent on one of my rental units by $200/month), and they require an annual inspection. I can assure you, they WILL find violations to write up in every annual inspection, because that's how the inspectors show the bureaucracy that they're doing their job. It cost me about $1,000/year to repair the "violations" they would find, which was the entirety of my cash flow for the year on that property, and then you run the risk that they'll stop paying you rent while you do these frivolous repairs. Then there's the fact that the tenant may not be there to let the inspectors in... trust me, it's just not worth it.
I tried section 8 and got the tenants from hell.   They trashed the house, punched holes in the walls and doors, distroyed the carpeting, set fire to the house, ran the tank out of oil in the middle of the winter so that there was no heat.  The pipes froze, and when then thawed, shooting water everywhere, causing more thousands in damages.   25,000 in damages and the state would only stand good for one month rent to go towards damages.   I could go on, but you get the idea.  I will never use section 8 again.
First of all the phrase, "section 8 tenants" is a generalization and is the same as saying "Americans", "athletes", etc. Secondly, section eight rates are on the high end of competitive rental rates and if they lowered your payments, than you were charging to much. Also if an apartment is well kept, inspectors are normally pretty understanding and will pass the apartment with few update. Lastly, I would like to point out that if you do a proper backround check and regularly inspect properties, odds are the tenants that are approved will not do very much damage.   
I'm not really excited about the idea of inspections and additional paperwork to collect rent.   Is it legal to deny section 8 applicants?
It is illegal to discriminate against section8. However, you can explain to prospective tenants  that approval  just like with all your prospects, is contingent on the credit and background checks.
DONT DO IT!  Unless you are lucky, the people on Section 8 are on it for a reason.  It is ususally not because they are on hard times.  They are like welfare, on it and going to stay on it!  They do  not care about your property or the fact that they are destructive.  They do not teach their children respect and more times than not, you will have to make major repairs to your property when they move out.  About the inspections, the inspectors will make you repair items that the tenants have ruined, broke or removed even though it was in good condition when they made the last insepction.  The problem is the tenant is not cleaning or caring for the unit.  Their destruction is your problem and you financially have to correct it.  Section 8 tenants do not have to pay for any damage while they live there, you do.
I have three section 8 tenants and just added a fourth.  Some have been here over a decade and I never eve notice them. I honestly must admit I was seeing the disasters others have had with section 8 but we have been extremely happy with it. I admit one elderly lady is a nuisance but she has no family and just wants attention. The checks come like clockwork in my mailbox on the second of every month and pays MORE than some of my other tenants who have longevity ( and hence low rents) and even when you go to evict a section 8 person they keep paying you DURING the eviction process ( as long as the tenant is still in the unit)
know of ways or reasons to increase rent on section 8?  
The Check does come on time each month from the County. I have also received the Check from the Tenant on time so far.  The probably I have even after a background check, is the other people they let move it, after the fact. Which is NOT part of the Lease.  Not to mention even after the background check, never knew a person was actually approved to live with the tenant until i received approval from Section 8 they were good to go.  After waiting when I accepted the Application I had to do another background check pretty much start over.  After asking the tenant why the other person was not disclosed the anser was that they shouldn have to disclose since Section 8 was paying me most of the rent.  I explained that is NOT the case, its my property & section 8 doenst pay for damages, repairs, maintenance, etc.   The other issue Ive been having is that they do not like to take care of the yard maintence, even after I gave them the option , if they were not able to do the yard work I would have it done every 2 wks for only $50.00 SINCE Im not trying to over charge, which it really should be more for trimming, prunning, weeds, etc.  I guess its 50/50 in any situation., Back ground check, credit check, references is the best way for any tenant.  Its not so much with the Section 8, its everyone.  
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