Regarding section 8 tenants ..did you have better experience with working or non-working tenants ?

If you want government meddlers involved with your business and tenants who will trash your property, Section 8 could work.

To me, it comes down to WHY they are on Sec-8 -- regardless of if they are working or not.

For example, I have two Sec-8 right now (but hadn't had any for years before this). One is an older man with no health insurance that had a triple-bypass recently along with some other medical issues. He needs long-term care that his son is doing. So, they are together in a unit under Sec-8. Neither is working right now, and I am fine with that because of the REASON for it.

The other is a man being treated for cancer where his treatments make him unable to work at this time. Again, no problem with this.

Years ago, I had a woman who was working part-time and trying to raise two children, but just couldn't afford it all. Sec-8 was helping her and it worked out great -- until she quit her job. It all went downhill from there. Mainly because there was no good REASON why she was not working.

So, again, working or non-working -- both can be good or bad choices -- but I want to know WHY they are not working if that is the case. Makes a HUGE difference.

- John...

I take section 8 in a few places and have found the medically disabled older tenant to be ideal.

The working family doesn't last because their income fluctuates. If their income goes up then the section 8 contribution drops.The utility subsidy a tenant gets decreases if the Section 8 rent payment increases. The tenant sees this as me getting their subsidy instead of them. It is a double whammy because the section 8 rent payment is increasing because the tenant has less income.

They have less income and have to pay more of their utilities.

I don't have the income cutoff threshold in front of me, but memory tells me it is generous enough that these families suffer from money management issues. Of course with all tenants I tell myself, if they can afford cigarettes, weed and cable boxes in multiple rooms then there is no excuse for not paying rent.

As for Section 8 in my area, I am known as one of the LL w/ better properties and I find inspections a breeze. It is all about the program knowing I as a LL take care of my property.

The downside is that section 8 in my area will not allow/ pay the rental rates as per the county income guidelines. This was ok in the past, but rents are increasing and if section 8 doesn't keep up I won't take it.

Almost forgot, section 8 is helpful w/ tenants who damage the apt. It is against their rules and the tenant can lose their golden ticket, so it helps keep them in check.

I no longer accept Sec 8 and haven't for years primarily because they can't keep up with rent increases and my properties do not fall within their FMR pricing.

NC: Indeed -- it varies a lot by area. In MY area, I actually get more for Sec-8 than I can. Sec-8 here pays well above Market for 2-BR units.

Heck, if I include the utilities, I can make an extra $100 month profit even if they keep the heat at 80F all winter! It's insane! :)

- John...

As I've said other times ... I have 1 SF with a S8 tenant which is pushing close to 20 year anniversary.

I've never had a Section 8 tenant get anywhere close to meeting my written ctiteria.

I just looked at the rentdata site.

Wow!

I do not have even one place that I rent for their 40% criteria! Not one!

I have a couple of two bedroom places that are close, but all of mine are still above the FMR 40% mark. Heck, most of my places are above the FMR 50% mark!

I have some older 1 bedroom places that I rent for $475 per month. Once they include utilities, they need to budget about $625 per month. Sec 8 would only allow $531 for rent and utilities combines. Now, do they all end up spending $625? No, but it is entirely possible if they keep the AC low and the heat high. Just one more reason I don't include electric and gas in the rent.

My new construction will have lower utilities, but would not at all qualify, since I am getting $650 and $675 for those one-bedroom homes.

Almost all I do is Sec 8. Rents had been above market until our local market took off about 2 years ago.

To add more context to what I said above... This only works for my apartment units, in general. My SFHs get more at Market Rents than Section-8 would pay.

However, in my multi-unit buildings, I have 2-BR units where Market Rent is ~$500/month (and the tenant pays electric for lights/heat/cooking). Sec-8 will pay around $625 for those. You can't just jack it up for that one unit though. However, if you include all utilities, they will pay up to $840/month. Doing that adds around $150/month to my expenses. So, I can get $840/month minus $150/month is $690/month -- for a place that, again, I'd otherwise get ~$500/month for.

- John...

Tony,

Fortunately for me the damages did not exceed the security deposit. Tenant was going into 2nd lease renewal period and I discovered damages during the annual inspection prep. I notified S8 that I would not renew the lease, they asked why and then wrote the tenant a letter that S8 would not renew their lease if they were in violation of their current lease. I went to small claims uncontested, and got judgement for the damages. I fixed the required things as there were toddlers in residence and waited for them to move. They however milked the move to the max. S8 gave them too many extensions (8 mo). I chose to let them stay, as opposed to going through the eviction process (I got good rent). As a precaution I did serve them papers during the last month S8 would pay their rent. During this time I made frequent visits to 'fix' things and keep them in line. In the end I billed for more expenses (roaches, cleaning) and they did not get the security back.

After a few years of dealing with section 8, I decided no more. Could I get higher rents if I participated, yes.

I was too disgusted by the program and how my tax dollars were being spent. I decided I'd rather provide affordable housing to honest, hard working people who needed the help just as much but who were not receiving government aid.

Like any groups there are good and bad section 8 administrators as well as participants. The single working Mom I had left her kids home alone unsupervised. I had iron burn marks in the carpeting and the walls about three feet high were left covered in buggars/snot. The other single working mom rotated boyfriends and they and her teenager smoked heavily causing tremendous smoke damage and took my appliances when they left. They could all smoke heavily and saved to buy a home all while on section 8. The deaf couple I had was fine.

Bingo Lisa. That is exactly why I no longer consider them. I too would much rather provide housing to hard working people who pay their own way.

I've been completely disgusted by the entitlement mentality of most of the S8 crowd and decided I would not support it any longer. I also had nasty, smoking, bringing in unauthorized pets and people, etc, etc.

If you have properties in Class A B hood, then you are not allowed to comment on S8. Cos you are the lucky ones.

For those of you who have properties in hood and have to evict for nonpayment every month, the only jobs are the service industry ones, think S8.

Yes, it is a hassle to deal with the drama.. Yes, they take government handouts like many people on SSI, SSDI or other forms. so what? Your rental is an asset to generate revenue, generate profit. If credit card company only takes the ones who can pay the balance every month, where is the profit? (apple vs orange, but some idea)