Weve gotten really good at it because its all we do. But discrimination hasnt disappeared. But after months of searching, she told me, Its been really, really hard and so stressful, calling all these brokers and landlords, and it was a big load on me, on top of the load that Im already dragging. Hers isnt the only such story I heard. Do Landlords Have To Accept Section 8? (Rules and Benefits) Whats the old adage? What are the advantages to signing a lease agreement with Section 8 tenants? Renting From a Landlord vs Property Manager. can even be done cheaply and by you, thus saving money but still maintaining the property in a good strong condition. We have never missed rent or fell behind, we keep the place clean and we take care of anything or contact our landlord right away if there are any repairs needed. You may miss out on the perfect renter. What Does Equal Housing Opportunity Mean? In cases where utilities are not included in rent, the program may pay a larger portion of the rent so that the tenant is able to afford utility payments. A landlord should always conduct the same background and credit checkon Section 8 tenants that they conduct on non-Section 8 tenants. I will be lucky to find another GREAT place as the one I now have to leave, but with the housing prices being what they are and MOST places stating NO SECTION 8, my chances are slim. Countless voicemails, emails and certified letters without any response. * Example of rent at 30% of income: Household with one . I have a portfolio (25 doors currently) of Section 8 rentals in the St. Louis, MO area. On Wed. 3/23/22 at 2pm & 8pm EST, Deni & Brian are hosting Fund&Grow for a free webinar to show you how to open up to $250,000 in unsecured business credit lines for real estate investing. But thats not enough to provide vouchers to all who need them. Get a quote or see how it works: How to Buy a Rental Property with No Money Down, Clever Ways to Get a Down Payment for an Investment Property, How to Avoid Capital Gains Tax on Real Estate, Minimum Down Payment for Investment Properties. Shed joined the waiting list five years prior, when she became unable to work full-time due to serious health issues (she received both kidney and pancreas transplants, and is also legally blind). But wait one moment does the government pay for all of the tenants rent? If you're thinking about becoming a Section 8 landlord, here are the steps to get started and a few pros and cons to consider. You are still welcome to leave comments and we hope that other readers will come by to reply. Also, I had a bad tenant who took all the appliances with him when he movedI got a judgement but was never able to collect.would I have the same problem with a Section 8 tenant? If youre looking to become a Section 8 landlord, heres a quick overview of what you need to know, and how to get started. Landlords reluctance stems in part from stereotypes of voucher recipients as lazy, says A. Fulton Meachem Jr., who heads Charlottes public-housing agency. Warning: Some buildings on this map already have their own HUD funding, so they cant accept vouchers. Brian is telling you to treat her as all others. Im so sorry youre going through this though, $21K is no small sum! So, one question I have is that how having Section 8 tenant may effect selling a property and its price? But not all of them bring that attitude of entitlement the trick, for landlords renting to Section 8 tenants, is to separate out the ones with an adversarial, anti-landlord, entitled attitude from those who are genuinely grateful for the government assistance and the landlord for providing subsidized housing. I might try it for my next property, see how it goes! You may now contact your local PHA to find apartments and rentals operated by private landlords who accept Section 8 vouchers. But landlords often wont accept them. The only thing I have going for me as I sadly have to look for a new home is my current landlords, and past love(D) me and have hated seeing me go. If you decide to work with a section 8 administrator in Erie county they will tell you this directly. But advocates argue that housing agencies requirements are often less onerous than municipal ones. If these stories perked up your ears, youre not alone. AffordableHousingOnline - Great site with a lot of options. Write to Abby Vesoulis at abby.vesoulis@time.com. However, there are some regions and states where there are some limitations about when landlords can and cannot deny an application by a Section 8 voucher holder. The researchers suggest that making the process more efficient could help address landlord concerns. Ive known landlords who have had good experiences with Section 8 renters. This is the top reason many landlords do not accept Section 8 vouchers. But there are also extra websites and newsletters specifically for Section 8 rental listings. I would treat her just like any other applicant, and screen her credit and eviction history, talk to her current and prior landlords about what she was like as a tenant, and visit her current home to see how she treats it. Weve got you covered. Rents are steadily climbing and people look out for friends and relatives,. This complex used to one of the better ones in the area. She was recently hospitalized for a thoracic aneurysm, which her physicians said was stress-related. Check your states landlord-tenant laws (we have summaries of all 50 states laws) to see exactly how long the notice period is in your state. Tenants particularly Section 8 tenants end up breaking them, and if you include them when tenants move in, theyll expect you to repair or replace them when. Properties in: Atlanta Carolinas Chicago Dallas Denver Houston Jacksonville Las Vegas Minneapolis Northern California Orlando Phoenix South Florida Southern California Seattle Tampa. Each zip code may give you a different list. This is to account for the change in a familys housing needs over time. pay higher rents than the housing market average. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Compare landlord lenders and fix-n-flip lenders on our simple Loans chart. Check out GoSection8 and WeTakeSection8 as two examples where Section 8 landlords can market their vacant rentals. These laws are not applicable in all areas, and the program remains voluntary in most places. But no luck. Though originally conceived as a way to help low-income households (disproportionately comprised of people of color) access higher-opportunity neighborhoods, that has proven to be the exception rather than the rule. If you insist on installing carpets, use a thick, higher-grade padding, and lower-grade carpets with darker colors. As Dylan Matthews recently reported for Vox, a randomized study of the program found big results: 54 percent of families in the treatment group that received counseling moved to a high-opportunity area, compared with 14 percent of families in the control group (which had received vouchers only). HUD's Housing Choice Voucher Program, generally known as Section 8, assists low-income people in obtaining rental housing, whether an apartment, a single-family home, or a townhouse. However, it is up to low-income families to find rental properties and private landlords who accept vouchers. A Section 8 voucher can be used to rent homes and apartments that are owned by a private landlord or property manager. Since then, she has spent nearly $500 in application fees applying to at least 10 places, hoping someone would accept her voucher, which used to be known as Section 8 funding. Are there any unauthorized occupants? Also, my rentals are 4-bedrooms and what I have to look at for is tenants renting rooms out. For example, if the rent is $1000 a month, the tenant may be responsible for paying $50. Rachel, get familiar with Discrimination laws please. I did no favors to her, I rented to her as I would anyone else and to be honest we have never really seen eye to eye but because she was seeking a place I had a unit available and offered it up to her. Housing Choice Voucher Program Section 8 | HUD.gov / U.S. Department of In Fort Worth, 78% of landlords contacted by the Urban Institute wouldnt take vouchers. Nor does Section 8 pay higher-than-market rents anymore, for the most part. The Poverty and Race Research Action Council estimates that as of November 2019, only about half of voucher holders are covered by source-of-income laws. Section 8 definitely adds another wrinkle. But families of color were denied access; appraisers were warned to consider how socially or racially inharmonious groups in predominantly white neighborhoods would affect neighborhood appeal. Income qualifications are different if you have a voucher. Shanna Lee, 34, has been living in this Charlotte hotel room since November; she has a housing voucher that is supposed to help her secure an affordable apartment, but she cant find a landlord willing to accept it. I hear you Ed! That they dont have to fix anything when they need fixing. Type in the name of your city or county and the word rental., Everything you need to know while looking for a landlord (Housing vouchers), HUD and Section 8 for People with Disabilities (and family members (Facebook group ), Way more than you ever wanted to know about vouchers:The Sleepy Girl Affordable Housing Survival Guide, Your email address will not be published. Those two have compromised immune systems, she says, pointing to two of her children, who were born prematurely. I really enjoy all of your content! Because from what I have seen, those who are not on section 8 leave their places a mess. Very informative. . Could I get away with writing the PHA a letter acknowledging all the above and let them know that if the landlord is not being paid the minimum amount from Section 8, they should (have the decency) to adjust Section 8s contribution accordingly? A 2018 Urban Institute study found that landlords nationwide often refuse to accept vouchers. Oh, you will get it eventually, but count on covering your expenses out-of-pocket for the first few months. Now I have been graciously given this gift of section 8 after a almost 15 year waiting list. The initial rent payment delay will almost always be related to the failure of the initial inspection and the rescheduling of the follow up inspection. Applying for a housing voucher is just one step in the process toward an affordable home. it becomes increasingly difficult to find landlords who will take Section 8," Lott said. These Americans Share Their Struggles to Vote, What America's Richest Ski Town's Handling of COVID-19 Shows, 2023 TIME USA, LLC. I hope others find the joy in knowing you are helping others and having payments paid on time with non-destructive renters. "Getting a Section 8 voucher can be incredibly difficult - waiting lists are often years long," said DCR Director Rachel Wainer Apter. To begin with, many landlords dont accept Section 8 vouchers, which leaves these tenants with fewer options. We compare several buy-and-rehab lenders and several long-term landlord loans on LTV, interest rates, closing costs, income requirements and more. I have worked previously in at a rental company and have seen how people without Section 8 vouchers leave apartments and learned that bad tenants come in all forms. "This . These benefits tied to the property owner, who partnered with the government to provide affordable housing for low-income families. A separate HUD-funded study, called the Moving to Opportunity project, found significant benefits for families that relocated to lower-poverty neighborhoods with the help of vouchers, including better health, higher incomes, and increased rates of college attendance for children whose families moved before they were 13. The problem is with the PHA . Recipients of the voucher are required to pay their rent to stay in the program and keep receiving benefits. A sample form can be viewed on the HUD website. Thanks for your perspective. Can you sell a house to a private buyer that is currently being rented out to section 8 tenants so that they become his or her tenents? If a declined applicant sues you for discrimination, you need to prove to a judge that you chose one tenant over another for a legitimate business reason. . However, private landlords are not required to accept Section 8 vouchers and participate in the program, under . But there are also extra websites and newsletters specifically for Section 8 rental listings. But since the government pays much of their monthly rent, Section 8 tenants tend not to complain as much about rent hikes. Sometimes Housing Authorities will have a list of landlords. Many advocates in New York City, including those working to address rising homelessness, agree. In some cases, the lack of housing choice may be caused in part by voucher amounts that are not properly calibrated to local rents. Its misleading. Many of the common repairs can even be done cheaply and by you, thus saving money but still maintaining the property in a good strong condition. Last year, Tiana Martin, a federal employee, experienced this disconnect. A pro is that, if tenants do get evicted, they lose their Section 8 voucher. The federal government plans to release $5 billion in new housing vouchers to help those at risk of homelessness. In my state, Erie County NY, there are about 5000 people on the waiting list. They know upfront that I WILL call the police if any illegal activity takes place on my property. Landlords who go a step further and tie their Section 8 policy to a protected class risk discrimination complaints. What a moron. Harris County Housing Authority. Believe me, when I had to look for a new place, I saw some really nasty places that were left from tenants NOT on section 8 and it floored me. Ive been on a Section 8 waiting list since I had my first daughter, says Lees sister, Shneila Lee, who relies on a temporary local housing subsidy resembling the federal Housing Choice Voucher program. I am a landlord who takes section 8. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); We are sorry that we are unable to respond to comments at this time. The bureaucracy can cost time and money, and delay new Section 8 tenants moving in. 7 Landlord Responsibilities Under Section 8 Evil offered us $1 million :-), LIVE masterclass on Tues. 10/25 @ 8pm EST. Dont be a lazy ass and just run the reports and screen them. A HUD study published in 2001, for example, found that roughly 70 percent of voucher holders had succeeded in renting an apartment, though the average was closer to 50 percent in cities like New York and Los Angeles. People riding motorcycles around the parking lot at all hours. Credit, criminal, eviction reports also available. After inquiring about a unit in Latrobe Apartments near Washingtons Dupont Circle, she received a text message from an employee of the firm that owns the building. Now that you are armed with the info, the good, the bad and the truth, go forth and choose well! I honestly dont think that I will be jumping into section 8 again. As both Lee sisters have discovered, thats harder than it seems. The Coalition is pushing the city to dedicate 10 percent of new affordable apartments (out of the 300,000 planned by 2026) to currently homeless people, many of whom have vouchers they havent been able to use. But Section 8 tenants come with other risks as well. At a time when one-quarter of American renters are spending more than half their incomes on housing, even the working families lucky enough to receive federal housing assistance often still end up without a roof over their heads. Therefore, the new buyer would naturally be informed. How to Find Landlords That Accept Housing Vouchers The first step in this approval process is to submit a Request for Approval of the Tenancy Form. Without further ado, here are the most common Section 8 housing landlord problems and upsides! Any insight I would appreciate thank you. By law, 75 percent of the vouchers must go to applicants who earn 30 percent of the area median income or less. We'll email you the "recipe," plus a free mini-course on passive income over the next week, so enter your best email! I agree with what you just said, Section 8 is a gift. Start the eviction process as soon as possible; it takes several months (or longer, for Section 8 tenants) from the initial eviction notice until the eventual lockout. In most areas, landlords are not required to accept Section 8 tenants. We have been turned down and completely avoided as if we were a plague. I have security cameras outside and in all common areas that I can access at anytime. But in some states and municipalities, you have to give the tenants the right of first refusal, to buy the property themselves if theyre interested. In Los Angeles, it was 76%; in Philadelphia, 67%. They confiscated $21,200 from my account from the rent payments for my other rental houses. Here are some tips for success, when starting out with Section 8 vouchers! It was 22 yrs old!! She has more than 16 years of experience in real estate. Make Your Kids Rich by 18 with Real Estate in Tax-Sheltered Accounts. Dont do it unless your property is in a bad area and its your most reliable option! In some areas, it takes years for the local public housing agency to even review their application! I have put in 3 ceiling fans, changed out the electrical plugs, switched to window a/c because none of the owners wanted to actually fix the central unit and only did patches on it. Not all Sec. Many landlords are under the impression that a Section 8 tenant will not pay his or her rent on time. Its a problem that leads to homelessness or lack of choice for the [voucher] recipient, he adds. Here are a few pros of accepting Section 8 tenants. Can I Apply for Section 8 if I Live in Another State. In some places, discrimination against voucher holders remains common, even with source-of-income laws on the books. The address of the apartments or other rental properties, the projected lease start date, the tenants rent, and any associated utilities will all be included in the tenancy request that the landlord must submit to HUD to be eligible to accept Section 8 tenants. Often tenants who break their lease agreements will be bounced from the Section 8 program; they have much to lose by not following the rules. Hi Mark, we obviously love real estate as an asset class and rentals as a source of semi-passive income, although were equally big on making sure new investors know what theyre getting into. Illegal Section 8 housing discrimination is rampant - Los Angeles Times No one forces you to pick one. "Chapter 5 Rents," Pages 1-2. First of all, they dont get help from the government.they get help from the taxpayers that the government forces on the taxpayers. For . Anyone can misconstrue this. California L.A. to reopen Section 8 housing. But I think Section 8 might disagree that you dont count as family. Step Into History: Learn how to experience the 1963 March on Washington in virtual reality. Dont provide screen doors. HousingLink - Section 8 Housing Choice Voucher Program The last two places that took her voucher failed routine inspections, which meant the local housing agency could no longer pay its portion of the rent. Very true that there are a good and bad tenants out there who pay with cash and who pay with Section 8 vouchers. Higher-risk tenants arent just a risk for rent defaults. The voucher program, known as Section 8, pays a portion of a low-income household's rent. Meanwhile, both Texas and Indiana have passed legislation to prevent jurisdictions in their states from creating their own source-of-income laws. Print Friendly. Also, Section 8 renters have to follow the lease rules, which include paying their rent on time. What kind of questions am I allowed to ask? These are determined by the federal governments findings of fair market rents; more on this below. Thanks for adding a Section 8 renters perspective Lorrie Lee! Advertisement Unlike public housing, the subsidy under Section 8 can move with tenants so that they can find housing with private landlords. No reason to include garbage disposals (they break easily), ceiling fans, window air conditioning units, or anything that is not a required addition. Lower Vacancy . But my personal experiences with Section 8 tenants has not been positive. Federally supported vouchers were introduced with the Section 8 program in 1974. Though funded by HUD, Section 8 is administered on the local level. Last year, Guthrie joined advocacy groups pushing for a source-of-income law in Baltimore, testifying about her experience and writing an op-ed. Note that you may not be able to evict non-paying tenants. Thats what happened to Shanna and Lavi Lee in November. To determine eligibility for federally funded vouchers, the Department of Housing and Urban Development (HUD) sets income limits, which are based on estimates of median incomes and fair market rents in the area. Section 8 can prove to be great or not so great. Regular Rent Payments. Use of this site constitutes acceptance of our, Digital Required fields are marked *. Please beware of the power the PHA has over your livelihood! Shes about to be 12 this year.. You shouldnt see any adverse effects from being an ex Section 8 landlord.