Section 8?
How thorough is a section 8 inspection?
What are the pros and cons to accepting Section 8? What is different about getting started with a section 8 tenant lease? This is my first rental prop. How does the security dep work with section 8? Do you charge more per month when taking sect. 8?
thanks
Nick
I find that a sec8 inspection is similar to other rental housing inspections. The property needs to be safe and not in great disrepair.
Sec8 is a great program in my opinion. You do not charge more but rather know when signing the lease that the rent is guaranteed by the government. You collect a security deposit as your normally would.
As a first rental I think this would be great because your income is guaranteed and you have the time to deal with property management and learn the business.
GOOD LUCK
What department/office handles the Section 8's in an area?
You would have to go to the housing authority in you area. It is a great program like he sd. It is best to go your local Housing Authority (HA) and find out what is the maximum that they would give a tenant. They base it off the amt of bedrooms reguardless of location. If your house is more than the amount that allowed for the tenant, they would have to pay the difference. Where I am located we are able to post the houses up at the HA .
The inspections that I've had have been under 10 minutes for the townhouse that I rent. Be sure all the doors latch and lock, the windows open and lock, smoke detectors work, toilets and sink are in good shape, and that the place is clean. Also be sure to replace any cracked outlet ot switch covers.
I asked the inspector what she had seen and she had failed houses due to rodent infestations, NASTY ratty carperting, an evidence of leaks - mostly general disrepair.
Brian
Also though keep in mind that section 8 renters are more likely to trash the place.
Here, inspections are VERY thorough, and are almost impossible to pass the first time. It seems they've gotten VERY nit-picky about their houses because they've had so many cuts in their budgets they look for ANY reason to give you less money. Usually what it takes to pass the inspection is listed on the Housing Authority's website, but it inevitably is determined by how thorough the inspector is. I've had one inspector pass something, then, 6 months later, another inspector fail it for the same thing.
Anyone here ever use (or know of) a property manager who would handle section 8 tenants?
Quote: Here, inspections are VERY thorough, and are almost impossible to pass the first time. It seems they've gotten VERY nit-picky about their houses because they've had so many cuts in their budgets they look for ANY reason to give you less money.
Let me second this. Here in Atlanta, the inspection is generally thorough. I failed an inspection 2 months ago because one stove burner failed to turn on. I fixed it in 1 minute with a needle and cleaning solution, BUT in Atlanta where rents are extremely depressed, Section 8 can be a boon.
Depending on the department, 3 Bd garners more than $1100\mo while I usually setting for $900 with non-Sec8 tenants. You have to keep in mind though that you will most likely have extra people living there, you will also have to paint the entire house, and replace the carpet.
The agreement that you have with the Housing Authority becomes an addendum to your lease agreement with the tenant. You hang on to the security deposit as you would without a section 8 tenant. The Housing Authority will give you leverage over your tenant since they will cancel the contract if the tenant does not pay their portion. My section 8 tenants are keenly aware of their need to perform. With regard to rents, it may depend on area. In one area where I have property, section 8 pays above market rents. In another there has just been a cutback and the support for a 2 bd 1 bth unit has dropped $75/mo for new people signing up for section 8.
I hope this helps.
Regards,
Ed
Ok. This weekend I was at a property and was pre-paring it for inspection. Here is the rule I used.
"If it comes with the house, it has to work"
Regardless of whether or not it is required, everything that is in the rental needs to work. If there is an unneccesary light in the laundry room with a burned out bulb, replace it. If there is a window unit A/C that doesn't work, take it out. Basically anthing that doesn't work should be removed unless it is necessary.
[addsig]
Oh, and on a good note, most Housing Authority websites have a listing of what it takes to pass the inspection. On a bad note, I've seen stuff that passed an inspection with one inspector fail with another one from the same Housing Authority. It's a crap shoot, but in general, don't look to pass the first time, if you've spent time on the website, gone to the landlord's briefing most of them hold, and prep to that level, then they're gonna find small crap to fail you on. lol
You can probably locate the Section 8 in your community by doing an internet search for "Section 8" plus the name of the county the property is located in.
Many of these sites will list in detail what their expectations are in inspections.