Pros and Cons of Section 8 for Landlords

Pros and Cons of Section 8 for Landlords
Antoine Martel

After owning more than 20 Section 8 properties across the country, I can confidently say that there is no better way to make money in this economy than having Section 8 rentals. In this video, I'm going to give you the low-down on all the potential issues with Section 8 as well as debunk some of the popular misconceptions about the program.

My goals to give you all of the info you need to make an educated decision about whether Section 8 rentals are the right choice for you.

So forget everything you've heard about Section 8 because I have a feeling some of these will surprise you.

[eddie-xils]

I agree with most of what you're saying. I've had rentals with Section 8 for some 25 presently have three. I differ from what you say concerning Section 8 paying more than
market rate. Through the years on an initial rental I've had the Section 8 representative ask me to LOWER my asking rent. Recently though I have a tenant who acts like she owns the place
and will let me see the property on her own terms. Instead of evicting her I requested a $1000 a month increase in rent and it was approved. You mention property managers. I've had some
over the years and the ones I've had were worthless, all they want is to collect the rent, collect their share and send you the rest. One of my rentals rents for $2500 a should I pay a
property manager $200 a month (standard percentage of 8%. What I recommend is to have a good handyman who will do any repair for you. You can even give your tenant(s) his phone number.
Have an agreement with the handyman to do repairs up to a certain over that amount he must contact you. One more thing have your rentals within a certain geographical area
of where you reside.

[thejeremymateo]

Great video! I've been searching for some really straight forward videos on Section 8! Thanks Antoine!

[confusedcynic]

"Guranteed money" until its not, vocher holders can lose their sec 8 for violations or it can be reduced if their income grows or part of their family moves out, ages out. Then your stuck with a tenant that can't afford the rent. Sec 8 don't pay deposits, non profits will sometimes pay for deposits, but then you have a tenant with no skin in game. They have no money, so they are judgement proof, if they damage the place. When you rent to people who have money challenges, every money problem becomes the landlords problem. If you play with fire your eventually going to get burned.

[Ncka]

Questions:
-if I buy a home and get it into the Section 8 program, am I obligated to keep it in the program for a certain amount of time?
-Am I obligated to renew a tenant if they wish to renew their lease?

[harijotkhalsa]

Pros: best long term rental for many reasons
Cons: You'll have to keep it in shape to last you even longer.

[brandonjaime]

Thank you for this info bro ! Looking into section 8 !

[suzque]

I am in THE weirdest situation that I’ve ever been in my life… I have been in the apartment for 12 years on section 8 and my contract ends every year on April 30. On 4/14/23 my landlord handed me a slip of paper saying that she was not renewing my lease and that I had to be out by the end of May… but then she came to my door on 04/17/23 and handed me the updated Section 8 contract addendum that is valid until 4/30/24 and we had all previously signed it so it was all legitimate. I went ahead and turned in the new contract to Housing and then I started realizing that this was really confusing because the landlord first gave me notice to move and then signed another contract with section 8, (until 4/24) so I called my local Housing Authority and they told me that if I do not move that I will get an eviction notice and if I get an eviction notice that I lose my voucher… everything I read in my original section 8 contract has stated that the landlord is to notify Housing Authority in writing that THEY are ending the lease but then when she turned around and signed another contract, it’s my assumption that I would be good for another year? My head is spinning and I’m going to end up homeless because Housing tells me that it’s up to me to sign a notice to vacate and I refuse to do it because then if I can’t be out in time I have no way to defend myself and landlord has given NO reason for wanting to break this new contract… I believe this is retaliation because I had to report them to Housing for disgusting mold that was growing when the maintenance man broke a water pipe. I don’t know what my rights are but this program has so many holes in it and this is why people end up homeless because the local Housing Authority even put in my contract that the landlord has to give notice but now they’re telling me she doesn’t have to and I will be evicted. Wth nonsense is this and what kind of game are they playing that’s going to put people in the streets? Seems to me that everything favors the landlord and the tenants have no rights whatsoever…hopefully you treat your tenants fairly 😅

[sharons.]

I ran a sober living home, one of my reasons for closing was tenants had a hard time affording full rent as they were on SSi. Are you familiar with co -iving units and using Section 8? What kind of restrictions are on tenants so you do not get left high and dry should they relapse or not pay? Do they have any boundaries that can be placed on them such as No Drugs or Alcohol on premises? If violated what can be done?

[peterburstyn]

SO what happens if a tenant loses their voucher? Do you have to evict, or what?

[robinberry]

In Massachusetts and I had to wait 16 1/2 years to get my voucher. They give you 60 days eight days into having an expiration. It’s totally unfair. I am LIVID!!!

[ashrpblond]

wow i wish that was all i had to wait i applied when my son was born in 1999 and didnt make it to the top to get a voucher until 2009 it took 10 years

[dalemelton]

What about deposit first and last month rent do they pay for that also

[morningcalmrisingsun]

Section 8 is good for cashflow but you won't be able to sell at market price unless there are other investors willing to buy and they'll only buy at a huge discount. Or you can unethically kick out the tenant and then sell to regular buyers, but it's easier said than done.

[MattH]

Great video. I like the last thing you mentioned about talking to other landlords/investors in section 8, how to you find them? Lol

[jamesprada]

You said most section 8 tenants stay in one place for about 7 years due to the 1.5-2 year waiting list to get back on, but did you also mean to say that it's too hard to for them to find another place?

I have future concerns as a new voucher recipient and don't see myself staying in my future unit I found for more than 1-2 years.

I took it based on the land lord having an eviction coming up, as the wait was only a convenience for them, and thought hmm?? Who else will I call that accepts the voucher, without the competition of cash customers??

And I realize the eviction coming up wasn't the only factor. They prefer section 8, but voucher holders mostly assume they're speaking with someone who just accepts it opposed to prefers it.

That's the hardest detail to overcome.

And if anyone has tips for targeting landlords that prefer section 8, please LMK.

Edit: ah, I just noticed you were being specific about tentants staying for 7 years, when it's a desirable enough place so that gives me hope that I won't feel stuck at the place I found. So the only advice I want is how to target land lords that prefer section 8 in order to avoid cash customer competition.

PS: What a joke how they require the property is empty for the first inspection when it doesn't need to be for the annual ones. If you're lucky enough to find a landlord that lets you secure a place with a full rent payment, until the Section 8 kicks in, they have to also empty the unit prior to the inspection.

Next time I search, so long as they are a private landlord, I'll be suggesting a contract to pay the full amount until the inspection date and who knows if they'll be willing, but I can't see why not, as I'll be targeting duplex homes where I can move my stuff out into the garage/back yard for the inspection

Totally worth it to get in a place that you could accept being at close to 7 years.

[WilliamPrudden]

Antonie
Thanks for the info. Looking at HUD's rents in my area they show the rents they paid in 2023 and then show the 2024 rent. Do they increase that amount yearly to the landlord. Also the amout they show is that what they will pay without the tenant paying anything? Or is that the totlal rent you can charge with HUD paying something and the tenant paying the rest?
Thanks
Bill

[brittanymitchell]

How do you apply for a loan to qualify for a Section 8 property? Business loan or FHA/Conventional?

[michaelgraham]

Infinite games at its finest and you’re helping people while you’re at it

[poeticpisces]

What happens if the landlord goes up on the rent and the housing doesn't approve the increase? Or if the payment standard goes up and back down according to market?

[heykaykay_hd]

I wonder if people just go buy another property when they rent out their house? And do you have to include any utilities in the section 8 agreement?