In CA, the Fed Govt. differes the administration of Sect. 8 housing to a local entity, so ea. county typically has a site that list the rates, how to get approved, tenants looking for properties, etc.
There is likely a local agency in your area that is administering the section 8 program. Where I invest there is a county-run Public Housing Authority. There is a contract between the owner and the Housing Authority that is essentially an ammendment to the lease. You might get a copy of the one the current owner has. They will likely have you sign a new one.
In our area they assign case workers to each tenant family and as Eric and Rosa pointed out they will do an annual inspection. This usually occurs right before the renewal anniversary. In CA a letter is sent out that allows me to request rent raises. In another area where I invest, I was told that there is an automatic 5% rent raise.
Having a section 8 tenant in place should not alter the purchase mechanics in any way.
One other point. There has been a section 8 cutback that I am told is nation wide. I have received letters indicating an increase in the tenant's share of the rent. This has been modest (typically $10-$25). However, they have also changed the allowance level for new people coming on the program. The maximum previously allowed (locally) was $800 for a 2/1 and now it is $725. This also applies to anyone who moves. I lost a potential tenant because she would have significantly reduced support if she moved into my unit.
My point is that depending upon how strong the rental market is in your area, this may influence rents. I had a discussion with a property manager on this and she said that some of her section 8 program owners will likely give notice to vacate if the Housing Authority denies rent raises. The rental market where my CA properties are is fairly strong.[ Edited by edmeyer on Date 06/24/2004 ]
The procedure for buying with a tenant in the property?
Or the rules for being a Section 8 landlord after the deal closes?
John
[addsig]
I guess the rules for being a section 8 landlord.
i would try going to your states website and then doing a search for section 8
The property must be inspected and approved. Upon approval Section * Voucher holders can be screened by you as their landlord.
Remember to research the rent guidline for your area. Rents above the guidline must obtain an administrative approval.
Good luck,
Eric & Rosa
[addsig]
In CA, the Fed Govt. differes the administration of Sect. 8 housing to a local entity, so ea. county typically has a site that list the rates, how to get approved, tenants looking for properties, etc.
Younger,
There is likely a local agency in your area that is administering the section 8 program. Where I invest there is a county-run Public Housing Authority. There is a contract between the owner and the Housing Authority that is essentially an ammendment to the lease. You might get a copy of the one the current owner has. They will likely have you sign a new one.
In our area they assign case workers to each tenant family and as Eric and Rosa pointed out they will do an annual inspection. This usually occurs right before the renewal anniversary. In CA a letter is sent out that allows me to request rent raises. In another area where I invest, I was told that there is an automatic 5% rent raise.
Having a section 8 tenant in place should not alter the purchase mechanics in any way.
Regards,
Ed
One other point. There has been a section 8 cutback that I am told is nation wide. I have received letters indicating an increase in the tenant's share of the rent. This has been modest (typically $10-$25). However, they have also changed the allowance level for new people coming on the program. The maximum previously allowed (locally) was $800 for a 2/1 and now it is $725. This also applies to anyone who moves. I lost a potential tenant because she would have significantly reduced support if she moved into my unit.
My point is that depending upon how strong the rental market is in your area, this may influence rents. I had a discussion with a property manager on this and she said that some of her section 8 program owners will likely give notice to vacate if the Housing Authority denies rent raises. The rental market where my CA properties are is fairly strong.[ Edited by edmeyer on Date 06/24/2004 ]