PLEASE HELP!!!! What are the advantages and disadvantages to leasing to a Section 8 renter?

Question

I have a very nice town home in a Chicagoland suburb. I have been leasing to someone who was not section 8 and had absolutely NO problems with her. She is now moving out. I have found someone interested in leasing the unit however their financing will come from SECTION 8. Section 8 is a government housing assistance program. Would this be a good idea? Do Section 8 renters typically take good care of the place? Is it easy to evict them if need be? Is the rent money guaranteed? Has anyone here rented to section 8 tenants and if so what was your experience like? I have a no pets, no smoking clause built into the lease (not that that will help) and the person interested is a single mother of 2 ages 9 and 5.

Answer 1

I have clients and friends that are landlords, and they will not touch Section 8 renters because they are very hard on properties.   I had a landlord tell me recently that a Section 8 family he had in one of his homes was flushing garbage down the toilet, he had $1,000 of plumbing bills and he had to go through alot of finally get them evicted.  It took 2 big dumpsters to get rid of all the stuff they left behind too.  

Your property has to be qualified for Section 8 before you can start accepting Section 8 renters.

Answer 2

"Would this be a good idea?"   -Usually not even close to a good idea.

" Do Section 8 renters typically take good care of the place?"-     Typically no, they trash the place, since they do not work for what tehy have rthey have no respect for property.

"Is it easy to evict them if need be? "  Harder then h**l, the judges know they loose their voucher if they are evicted and tend to baby them,

"Is the rent money guaranteed?"  Yes, but section 8 tells you what to charge.   The tenant pays 1/3 of their income, taxpayers the rest.   Only tax payer money is guaranteed.

" Has anyone here rented to section 8 tenants and if so what was your experience like?"    I have lost my shirt as the druggie dismandled my house.   I also rent to 2 disabled families, and those are good, they appreicate a decent house, low income does not.

I have a no pets, no smoking clause built into the lease (not that that will help) and the person interested is a single mother of 2 ages 9 and 5.  - You can only determine the no pets thing....it is hard to enforce smoking and don't ask any questions about the kids.

I personally would not risk my "very nice town home", but it is your call.

Go by the house she lives in now, check it out, does it look like you want yours to look?  Clean?  Neat?   Does she take care of her car?   These things will give you some insight on how she will treat your house.

Do follow up with previous landlords as well, I even verify that the person they say is the owner really is and I am not calling their druggie friends for referances.

Answer 3

I often was asked to take Section 8. After looking at the requirements, AND the rents they would guarantee I decided that it was not a good deal for me.

Get the paperwork and see if it's what you want to dealwith.

Answer 4

Hi to answer some of your questions.............Section 8 does not guarantee the full rent only partial, if it is the same from state to state,as I am in PA and I know here it is only paritally covered. From my experience section 8 renters do NOT typlcally take good care of the place, again just my experience here. I am sure not all section 8 renters are the same. The eviciton process is the same as if they were non section 8, again may vary from state to state not sure. I have a no pet policy in all of my leases, however I have caught tenants with pets they were not supposed to have that is why I have pet fees written in my leases as well, should I catch a pet there is a $150 pet deposit plus additional rent of $25 per pet per month.Hope these answers help you out somewhat, I realize they are not very precise. Good Luck!

Answer 5

Hi section renters are just like any other renters =)

You get a bad apple in every bunch....

Section 8 is great for the fact you get the money deposited every 1st ot the month or check mailed to you however you request. Without any problems! the other portion comes from the tenant... JUST BE SURE TO GET REFERENCES!!!!!

Answer 6

I owned a small house in San Diego several years ago and the next door neighbors were Section 8 renters. It was a very nice single mother with a delightful young daughter who was the same age as mine (about 5 at the time). They were actually my favorite neighbors in the neighborhood.

I was disappointed when they moved a year later, because they were replaced by a non-Section 8 couple in their 30s who had two large, loud, and potentially vicious dogs (one tried to lunge over the fence at me one day while I was out gardening). They were probably the worst neighbors I ever had.

Answer 7

++ fast access to tenants, with gov subsidy

-- quality of tenants

Answer 8

Bad

It happens more times than not that they will trash the place.  If you have a premium place you can only charge what the government wants to pay.

Good

Government pays most of rent.  They will usually stay in your place for several years since there is paperwork invovled.

Answer 9

You have the right to interview and meet the people before they rent.  That's about the same right you have for any other renter.  But once they have occupied the home, that's a whole other story.  I've had sect. 8 renters, and have had both good and bad.  The benefit to S/8's is that you generally get your rent w/o a lot of hassle.  The home is inspected be Soc. Svcs at least 2 a year to make sure you aren't a slum lord, but will work in your favor if the occupiers are pigs.  Over all, most of the s/8 people I've dealt with have been decent people, and working with them to maintain the home, and helping them maintain their dignity had worked well for me.  Mind you, I said had.  Although I don't do rentals any more, I didn't stop because of the s/8's, but because of two doctors and two attorneys who could well afford to pay rent, or buy their own homes cost me big time to repair all the damage they caused.  I'd give it a try.  If it's obvious that they are druggies, don't rent.  If they just need a place to live and need some help to do so, you will probably be pleasantly surprised.  Good luck.

Answer 10

If the rent is $875 per month, the renter pays $75 and HUD (the government) pays you $800.  For a lot of landlords, that is attractive.  $800 guaranteed for the length of the lease.  The other positive is that you are doing something good for someone who is not rich and needs help.

THe downside is that the Section 8 tenants all know that you are never going to kick them out if they don't pay the $75.  But it's important that you do. they aren't supposed to be getting free housing.   The other downside was learning the hard way that HUD doesn't do any screening at all.  I thought they did.  it was up to me to do all the screening and i didn't do enuf.    I should have kept my high high standard for excellent credit and not relaxed.

I hope you make a $Million in real estate.