Duplex With 2 Different Rents/ Section 8
I have a duplex. One side is rented for 1100 to a Section 8 tenant. She's been a decent tenant but I've also kissed her butt big time. I have had a BIG problem renting the other side to a decent tenant (2 in less than a year). I've advertised thru Section 8 for the last 2 months, with no luck (there are suddenly TONS more rental properties out there, including some new townhouses in the area, which is tough competition for an older duplex). Out of desperation, I finally had to drop the rent...to 975....I suppose it's inevitable that tenant #1 will find out about the rent difference....ugh. I feel like I'm held hostage now by section 8 and will be forced to drop the rent for the other side.....anybody care to comment, good, bad or anything!
~D~ :-(
is the sect 8 side, a lease or mon-to-mon?
She's on a year lease and just up for renewal too.
The answer, practiced by many is to do some improvements into the empty apartment which of course makes it more costly and thus entitled to a higher rent.
Paint is fun, try to do a good job no fair painting the pipes. and do take the little electric platforms off. Do not paint the switches. I know I know it is a challenge.
I usualy if possible do a minor plumbing correction. Such as a new seat, god I hate splinters it is so unsettling. This is also a good time to replace all the washers and if necessary worn out stems and stuff. You might open one of the drain lines under the sink or lavatory. peer in, if something peers out. Make the universal sign for peace and tape and turn quickly in a clock wise direction. If there is lots of goo and stuff this might be an occasion to take the ever popular Top Snake and bend the lead spring and turn it on and clean out a bit. This does qualify as a plumbing improvement.
Now the place is worth more and you can ask more. Try to look appreciative when the checks arrive.
Lucius
check out what the new sect 8 rents are going to be.
As lufos, maybe some cosmetic fix-ups.
What is the problem with the vacant unit? Are you implying that the tenant that is on Section 8 scaring people away?
You should be able to rent the vacant side for the market rent. The market rent might be lower then the rented unit as market conditions do change.
If the unit had defects or is somehow less desirable then the opposite then you have two choices. Different rents or improve the unit.
To recap...
If the problem is the Section 8 tenant consider getting rid of the tenant when the lease is up. If the problem is the unit itself then deal with it. If the market rents have gone down because of supply/demand changes then accept the lower rent and revisit the Section 8 rent when the lease comes due.
John
[addsig]
Thank you all for the advice. I think this is an important lesson also for other landlords. Just because Section 8 ALLOWS up to 1250 (in FL) for a 3 br, doesn't mean you are going to get it. I never thought I'd have to drop the rent so drastically to get a tenant, but it seems that way.
Also, Section 8 has a freeze on rent increases and they increased the tenant's portion by almost 100 bucks. I think the people who have Section 8 are VERY lucky these days and as a result, they are very particular about what they are renting (and my place is NICE too!)
OH WELL!