Should You Invest in Section 8? (What NOBODY Tells You!)

[@Evernest1]

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[@timeforachange-i3s]

Interesting topic. My niece is on section 8 and with her first home she came to me to pay all of deposits required to rent the home because section 8 does not pay security deposits for the home or utilities. She said this was going to "change her life." At first section 8 paid 100% of her $2,400 per month rental home. She destroyed the home and the landlord refused to renew the lease. He had $30K in repairs she left him. Even though she lived with her grandfather for 8 months, which means she should have lost the right to a maintaining her section 8 status, but no they gave her another home only this time it is a $3,400 per month home in a highly rated school district. She needs to pay $400 per month and steals from her grandfather, and calls her oldest son in the Marines asking for the $400 rent payment each month. The security deposits were paid for by a charitable organization to get her in the second home. The new home is being destroyed and is inundated with bugs. They refuse to wash dishes or clean. The HOA is always fining the landlord because she will not cut the grass. Be very careful of the crocodile tears because my niece is very good at crying and telling you that she is going to change. Now she is over 40 with six kids from five different father (last set was twins) and she will NEVER CHANGE. She will always destroy your property and the HOA will fine you each month she lives in your home for failure to follow the rules.

[@Evernest1]

There are definitely people who take advantage of the system and the landlord! I actually had a section 8 resident once who signed up, moved in, and we never heard from her but found out later that she was living somewhere else and so our house was vacant for months at a time 😶

[@MarkCharlton-h3x]

Not surprised in the least.

[@cynthiaaiken2424]

Thanks for the warning, what’s her name again?

[@אתהברטון]

@@Evernest1 You're a liar. THere's no way you "didn't hear from her" after she moved in. GTFOH

[@אתהברטון]

@@cynthiaaiken2424 The entire story is made up.

[@HobbsHeartHome]

As a Realtor I work with an investor going on 4 years who rents to Section 8 tenants and regular paying citizens. Her worst tenants have been regular paying people that she found either on her own or w/another Realtor. The people I've brought to her are doing great😅. I went to court on her behalf to evict a tenant who was behind on rent and giving her a hard time leaving the property. Another family stayed 2 months without paying rent after the lease was up and they were to be out. Another family tore up her house. As far as the condition of the property here in Texas I've seen some shitty bad looking places on and off the program. The main necessity systems in your home MUST work. Most on the program aren't going to do much damage out of fear of loosing the benefits. Choosing wisely and doing background checks is what it boils down to. At times credit scores provide insight on people.

[@BJ-fu4zy]

Im renting to section 8 only! I love the guaranteed rent and leverage I have as a landlord. Just screen best you can

[@Evernest1]

I have friends that have done that before!

[@sjconley52]

From the perspective of the tenant, the contract that is signed in order to receive the voucher very clearly states that the tenant will be kicked out of the program if they intentionally damage the property. Most of the stuff they are inspecting for is aimed at safety and is common sense (i.e., GFICs near water).

[@Evernest1]

Yes, correct. The resident doesn't want to be kicked out of the property and so the inspection items are usually not damage from the resident that would be considered something outside of normal wear and tear.

[@954janusz]

So if section 8 pays 70% of someone's rent do not take those tenants because they don't have to pay that 30% of the rent if they don't want to ? Only take those wich section 8 will cover 100% ?

[@Evernest1]

No, Section 8 will require them to pay the 70% of what the total voucher will be. What you want to avoid is allowing them to pay more than the voucher because the lease will only be for the voucher amount. To summarize, what you're marketing the property for rent and what the voucher from Section 8 is could be two different numbers.

[@bonniej0]

Yep that's true because you know what it takes a year or year and a half to get them out especially Section 8 I mean I have a fetish that pay and they're working but they won't leave and I'll give it a proper notice through the court and everything in the court keeps putting it off and saying I'll make the decision we need to make a decision I gave him a notice that they gave my property that's the decision and the judge is supposed to honor that the judge is just a bank all the judges in the prosecutors their bankers and they're all trustees to our account that we have the news about which pays our court fees will we say we're indigent

[@bonniej0]

How is it against the law? If you're charging a certain rent and they don't pay the whole thing.

[@rodrain2]

​@bonniej0 first he said he isn't sure if it's against the law. However, he is talking about if you want more than what the voucher allowance is. For instance, if you want to rent the property for $2000 but the section 8 voucher is only $1400 then don't cut a side deal with the resident for the other $600 because 1. You can't evict them if they don't pay because the lease is can only be for the voucher amount and 2. It may be illegal to cut that side deal because when you enter into a section 8 agreement you are saying that you will accept the voucher amount as rent not one penny more

[@BruceLee-zw5ue]

I think what you are asking is is the rent is $1400 and Sec8's payment portion is only $1000, the difference is suppose to be paid by the tenant. This is all legal. But what Evernest1 is saying is do not make a side deal and make $2000 rent and expect the tenant to pay $400 + $600 (side deal part of rent). That $600 is illegal no matter which state you are in.

[@nsteventin949]

They destroy your house 🏠 I learned a lesson already😢😢😢

[@Evernest1]

I learned some lessons and then began screening a bit better!

[@bonniej0]

Yeah that section 8 people moving in and they ruin everything I've had the banister to my stairs broker and I've had the stairs to the porch broken I've had all my storm doors broken I've had my kitchen light doesn't work the strings in there and it's not pulling I've had them ruin all my blinds they broke I had cabinets in the kitchen and they're all old and it was one that had glasses you can see you can put like wine glasses behind it or whatever that was broken the microwave was broken and the snow is broken in the fridge is broken and all the parts inside and everything that's what happened to me just since last year. I've had people come here rent rooms and leave. I'm sorry but people that don't have money they don't want anything or never have they totally take advantage of you the landlord and the property. They don't care cuz they don't have to fix it. I've had people leave everything here and and then I would have to pick up dirty urinating clothes off the floor with you know I had a roommate that was high and I was watching the toilet overflow and it went right down the hallway and the two bedrooms and it went through the floor to my bathroom in the basement it was disgusting

[@Yazan.Jayusi]

Thanks for the Good advice, setting 15% aside for maintenance seems reasonable. Btw I didn’t 100% get the part about marketing the property so does the housing authority play a part in finding a tenant or is it purely on the landlord to find a tenant just like a none sec8 rental

[@Evernest1]

Glad this video helped you! For Section 8, the housing authority doesn’t find residents for you-you still have to market the property just like a regular rental. Some housing authorities have lists where residents can find available rentals, but it’s still on you to fill the unit.

[@Yazan.Jayusi]

@@Evernest1 gotcha that was too good to be true ig but now I’m curious on which platforms you would advertise a sec8 like these affordable housing websites or a regular properties softwares like Zillow works just as effective for sec 8.

[@Evernest1]

Yes, you would go about it the same way you would for private pay. You will get the most traffic from Zillow because it will syndicate to other rental listing sites as well.

[@Yazan.Jayusi]

@@Evernest1 awesome, thanks for clarifying & keep the good content coming👍

[@bonniej0]

I don't know why people aren't getting the IRS statements and getting all the money back in the rent paid before the 1099-b or 4:40 ES

[@EliteClinicalResearch]

If a tenant wants to make up the difference on the rent, would I have done in the past, is rented them a storage shed for the difference. Or give them a pet fee for the difference.

[@Evernest1]

Interesting...not heard of that strategy before.

[@kayesperspective104]

You have to be discerning and that is with everyone.

[@Evernest1]

Agree...just screen everyone the same.

[@renearellano6978]

Good lanlords with nice properties should stay away from sec 8 tenants,Landlords beware.

[@Evernest1]

In most places it's not a requirement to let Section 8 residents apply.

[@206remyboyz7]

Section 8 tenants will destroy your property, Don’t Do it!!!

[@eliot5220]

Regular folks are worse. My worst tenants were regular tenants. My best tenant was section 8.

[@bobcaygeon975]

So true. For the small investor, stay away.

[@bonniej0]

Oh yeah repairs and maintenance is ridiculous and then the utilities go up really high and because they raised everything in this past couple years it's been unbelievable I can't even keep up they won't pay the increased rent. I had taken me since last March to get them out and I only got two out and I have two left to go and they're still supposed to go by the end of this month today. The courts are ridiculous they make you come to court for like they added the first year when you go there and and see a counselor with the with the landlord or whatever and then that's not necessary if you're losing your house you should have to go through that or if you're selling your house. And I still have them here and they're still destroying the place and I took the basement apartment that I put into the house that I feel rebuilt and finish the basement. I'm just so depressed you know and full of stress and trying to get them out and it's been like a year that I've been trying actually since I gave one of them a notice for January 6th of 2023 and he's still here.

[@bradbradshaw-i4n]

i worked in the law enforcement-criminal justice field for 30 years. a large percentage of the people i dealt with lived in section 8 housing. you are just asking for trouble.

[@Evernest1]

I've had some great Section 8 residents before. I had one that actually got to the point where she was paying 95% of the rent and Section 8 just 5%.

[@darrylloo4080]

No, you gotta be crazy.

[@cbbcbb6803]

Please elaborate.

[@bonniej0]

Did you go to that place and see how they live and really do investigation and then before you let a man cuz I never do. I don't do it for real search or anything like that I can go on the court documents and any City and look if there's anything under their name.

[@Evernest1]

I actually haven't done that but it's a good idea.

[@cynthiathompson3344]

Section 8 is a godsend for seniors on fixed incomes. Seniors don't trash residences and pay their portion of rent on time because they want a roof over their heads. Don't' paint everyone with a broad brush.

[@Evernest1]

I agree. I had a senior Section 8 resident once and she was great and we had a great relationship.

[@lucyyoung8400]

I would like to rent my property to section 8. Section 8 rent rate is higher than the market rent rate of about 30%. I'll get rent 1st day of the rent.

[@Evernest1]

It really depends on the local housing authority.

[@eliot5220]

Usually takes month and half to get the first check.

[@eliot5220]

The pandemic was brutal for private pay in low income areas. They just stopped paying. Section 8 didn’t miss payments.

[@buggsmcgee9270]

In theory...

[@allyvyne3002]

Trump will DEFUND HUD & the section 8 program will go away.

[@Evernest1]

🤔 Not sure about that

[@vincentwilliam8121]

Is Trump due to cut Section 8 along with Ebt?

[@ynot9736]

Yep

[@Evernest1]

With the affordable housing issue in our country, I don't think that Section 8 will be cut. It would not look good for his presidency to have millions suddenly without the ability to afford a rental property.

[@MarkCharlton-h3x]

Hopefully!!

[@MarkCharlton-h3x]

@@Evernest1 Maybe they could get a job? Just sayin'.

[@eliot5220]

@@MarkCharlton-h3xSome people have different circumstances. I had a tenant with a mentally disabled child. She had section 8 and was the best tenant I ever had.

[@cbbcbb6803]

Does Trump really care about the uneducated and does he really care about the poor? I think he doesn't. I think he will cancel the Section 8 programs. For that, I'm not so sure it is a good investment.

[@MarkCharlton-h3x]

Keeping people in poverty is sinful. The government's policies are paying for generations of freeloaders. Generational welfare is horrible.

[@bonniej0]

They need to raise the poverty levels ridiculously 800.00 a month that is broke that is in poverty this ridiculous they don't give you any any leeway and if you get a raise I got a call to raise and food stamps just caught me the same one I got a raise on and I sent them a letter and about it so I'm waiting to hear back. I said listen you try to keep me down you know I got a raise for poverty level you know it's really bad it's really freaking bad

[@NgubuMaficki]

Section a-pe. Don't do it.

[@bobcaygeon975]

😊

[@bonniej0]

Feel embarrassed if they had to get welfare or a Section 8 or any kind of help which is ridiculous because the money comes right out of your account that you have in Social Security

[@MarkCharlton-h3x]

I have experienced the people freeloading off the government NEVER feel shame or embarrassment - only indignation they aren't getting MORE!

[@CharlieStormslll]

But what if there's rats?

[@matthewferraro4329]

I’m out.

[@SilverBackELTorro]

I won’t deal with sec 8 garbage tenants.

[@אתהברטון]

B/c you're a garbage person.

[@BruceLee-zw5ue]

Warning: Do not REPEAT do not rent to Sec8. In my best words - the tenants are trash. I theory yes you can evict the Sec8 tenant but the Judge always rules in favor of Sec8 tenant and you can not get them out. So once you rent to Sec8 tenant, you handed your property to them and they will leave only when they go 6 feet under.

[@Evernest1]

Not all Section 8 residents are bad ones. You just need to make sure you screen carefully like you would with everyone.

[@bobcaygeon975]

NY State enacted the Tenants Bill of Rights, which is an absurd piece of legislation which ensures that destructive, non paying leeches will be in your property indefinitely.

[@bonniej0]

Oh yeah repairs and maintenance is ridiculous and then the utilities go up really high and because they raised everything in this past couple years it's been unbelievable I can't even keep up they won't pay the increased rent. I had taken me since last March to get them out and I only got two out and I have two left to go and they're still supposed to go by the end of this month today. The courts are ridiculous they make you come to court for like they added the first year when you go there and and see a counselor with the with the landlord or whatever and then that's not necessary if you're losing your house you should have to go through that or if you're selling your house. And I still have them here and they're still destroying the place and I took the basement apartment that I put into the house that I feel rebuilt and finish the basement. I'm just so depressed you know and full of stress and trying to get them out and it's been like a year that I've been trying actually since I gave one of them a notice for January 6th of 2023 and he's still here.

[@nsteventin949]

They destroy your house 🏠 I learned a lesson already😢😢😢

[@Evernest1]

I've had great Section 8 residents and some not so great 🤷🏻‍♂️