I alluded to this earlier and I want to reiterate it so there’s no misunderstanding.
DO NOT RENT TO SECTION 8 TENANTS!
I’m sorry to have to say this, because when I got started I was a big fan of the program, and I routinely had around 10% of my tenants in the program.
Over the last 18 months or so however, the program has changed. And not for the better.
The problem is that tenants are no longer being held accountable for their actions.
Over the last 18 months I’ve had Section 8 tenants leave without paying huge water bills, leave after they’ve done damage to the house, leave after having pets, which I don’t allow because they destroy the inside, and leave owing back rent.
All of which are against the rules of the program. And each of these violations, according to the Section 8 rules, is cause for a tenant to be removed permanently and immediately from the Section 8 program.
But in each case the tenants were allowed to move to another rental and stay in the program.
And it’s not just me who’s having these issues with the program. Most of my colleagues who own rentals in this area have also stopped renting to Section 8 renters as well.
I recommend you google it yourself and read some of the horror stories about the program.
So Section 8 is not the greatest thing on earth like others are pitching. In concept is sounds great. But in practice it sucks.
Section 8 is a prescription for disaster. Don’t turn your beautiful rental houses over one of these renters. The risk is FAR too great to take a chance.
Especially when you’re investing from a distance. It’s just not a headache you want to take on.
Take it from someone that has actually dealt extensively with the program.
Tune in tomorrow for Step 5: Property Management is KEY