Does anyone have any experience owning a section 8 rental?

jmt476 · Feb 1, 2017

Hey all,

I'm really considering buying a rental property, and from the research that I've done, it seems that a house that could utilize the section 8 program would suit my scenario best. That said, this is all theoretical, in that I have no experience with the program. I'd love the opportunity to pick the brain of some people who is currently, or has in the past rented their home using section 8.

Thought from all are welcome.

Thanks guys

Eng · Feb 1, 2017

many yrs experience with residential rentals. PM me.

Nobody · Feb 1, 2017

I have a few rentals and could get more money section 8, I WILL NOT rent section 8. I do not believe in the program and am doing my part not to support it. You may do as you choose and I harbor no ill will to you, just practicing what I preach.

Nobody

Mini14tac · Feb 1, 2017

Not sure about section 8 but a friend had some rental properties in the city and got hit up with the lead paint deal (Peter T. Nicholl's). The suit was finally dropped but cost him about $50K in attorney fees. Be careful.

traveller · Feb 1, 2017

Good luck!

You will get a very pessimistic view of humanity as a section 8 landlord.

K31 · Feb 1, 2017

Are you really good at replacing dry wall on a routine basis?

Blaster229 · Feb 1, 2017

My buddy has three. He cannot keep up chasing down the money and keeping up repairs.
Another two other friends have two and pretty sure they want to slice their wrists as well.

Rich1911 · Feb 1, 2017

K31 said:
Are you really good at replacing dry wall on a routine basis?

not to mention kitchen cabinets, appliances, carpet, doors - you name it.... and then there is the filth and cockroaches...

good guy 176 · Feb 1, 2017

Blaster229 said:
My buddy has three. He cannot keep up chasing down the money and keeping up repairs.
Another two other friends have two and pretty sure they want to slice their wrists as well.

These comments best sum up my feelings. I owned investment properties from 1987 to 1999 and would not recommended that you enter the local rental market in any form.

If, however, you have time on your hands, are good at chasing down the rent and fixing the place up after a tenant has moved out or torn it up, then being a landlord is for you.

There are a ton of deadbeats in the Corridor and they prey on individual property owners. Don't subject yourself to the rental game.

My properties were in LaurHell, Merriland. I was a licensed Realtor at the time and still got taken. I ended up making a profit on the sale of each property, but it was not worth anywhere near the time, energy or expense I had invested. And I sold in 1999 and before the huge jump in prices that everyone saw up until the crash in '07-'08.

Lew--Ranger63

Not_an_outlaw · Feb 1, 2017

I have 6 units. It is very difficult to get a return in a non-appreciating economy. Regardless, I believe it is impossible to turn a profit if you buy a rental at market price and repair using licensed and bonded maintenance personal. You have to be willing to essentially pay yourself. Rarely do you get even a minimum wage equivalent. And the court won't pay you when calculating damages, So, you fix it yourself, or run the risk of not getting paid if you outsource. I should also state that laws for landlord tenant relationships favor the tenant. A simple screw up from the landlord like failing to provide a receipt, or failing to give a damage letter at the conclusion of the rental period will result in treble damages. Three times the deposit back to the tenant. As for Section 8, I have had one. She always paid on time, but the section 8 housing vouchers were often late. Even though the housing office had late fees in their contract with the landlord, they don't pay them. People say, just get a lawyer and go to court to get them, you have a contract. Maryland courts don't seem to recognize leases as valid contracts and it's not worth the effort. I used to enjoy being a landlord. I had good tenants and they paid in time. Only recently has this exercise changed to being a PITA.

Minuteman · Feb 1, 2017

Nobody said:
I have a few rentals and could get more money section 8, I WILL NOT rent section 8. I do not believe in the program and am doing my part not to support it. You may do as you choose and I harbor no ill will to you, just practicing what I preach.

Nobody

+1

Not_an_outlaw · Feb 1, 2017

Rich1911 said:
not to mention kitchen cabinets, appliances, carpet, doors - you name it.... and then there is the filth and cockroaches...

I just had a tenant completely trash a unit. Ruined the carpet, then pulled it up. Then ruined the hardwood floor. Let the kitchen sink leak and it destroyed the cabinet and ruined the subfloor. She repainted the upstairs bedrooms in dark colors that needed multiple coats to cover. Same with the kitchen cabinets. I am now doing the whole kitchen. Probably 10K min to fix. Court with just say normal wear and tear.

Not_an_outlaw · Feb 1, 2017

good guy 176 said:
These comments best sum up my feelings. I owned investment properties from 1987 to 1999 and would not recommended that you enter the local rental market in any form.

If, however, you have time on your hands, are good at chasing down the rent and fixing the place up after a tenant has moved out or torn it up, then being a landlord is for you.

There are a ton of deadbeats in the Corridor and they prey on individual property owners. Don't subject yourself to the rental game.

My properties were in LaurHell, Merriland. I was a licensed Realtor at the time and still got taken. I ended up making a profit on the sale of each property, but it was not worth anywhere near the time, energy or expense I had invested. And I sold in 1999 and before the huge jump in prices that everyone saw up until the crash in '07-'08.

Lew--Ranger63

Concur 100%

traveller · Feb 1, 2017

My experience with section 8 is having rented a market rate unit in a building of mostly voucher clientele. I am sure there are two or three people nationwide who are good folks and have to rely on section 8 due to external circumstances. I would like to meet them one day.

That said, a relative of mine has several multi-unit buildings in Louisiana that are mostly section 8. He has a full-time manager, a full-time handyman and a security guard on his payroll to keep up with the ********. At this point he just cashes the checks once a week, none of his renters know that he is their landlord. At that size, it starts to become attractive, but that's because he has the manpower to do things like monthly compliance inspections and a legal system that gives him tools to put folks out in a few days (no drywall to worry about, buildings are concrete block and steel).

If you have some money to invest into this, consider just taking it out in cash and lighting it on fire.

travistheone · Feb 1, 2017

if you can do everything in house- go for it.

davsco · Feb 1, 2017

similar to stocks, you don't want to put all your eggs in one basket (eg one house, one apt or even one apt bldg). if you want to invest in real estate, check out REIT's where you can buy shares and get some diversity.

Rich1911 · Feb 1, 2017

Not_an_outlaw said:
I just had a tenant completely trash a unit. Ruined the carpet, then pulled it up. Then ruined the hardwood floor. Let the kitchen sink leak and it destroyed the cabinet and ruined the subfloor. She repainted the upstairs bedrooms in dark colors that needed multiple coats to cover. Same with the kitchen cabinets. I am now doing the whole kitchen. Probably 10K min to fix. Court with just say normal wear and tear.

You got off easy. I worked in a duplex this past summer and the next door neighbor hoarded cats - they found sixty something dead cats and I forget how many live ones in the 2 feet of cat poop throughout the place. It cost them over 40 grand just to get that cleaned up / house gutted. It wasn't section 8 either - lady works / worked for the state. They hauled her off to the hospital to get evaluated - may still be there.

rseymorejr · Feb 1, 2017

Rich1911 said:
You got off easy. I worked in a duplex this past summer and the next door neighbor hoarded cats - they found sixty something dead cats and I forget how many live ones in the 2 feet of cat poop throughout the place. It cost them over 40 grand just to get that cleaned up / house gutted. It wasn't section 8 either - lady works / worked for the state. They hauled her off to the hospital to get evaluated - may still be there.

That house could have used a good fire

JPG · Feb 1, 2017

As with most things communication is key - expectations between owner and tenant and vice a versa. If you set expectations up,front things go well 95+% of the time.

I own management company and have managed thousands of single family properties over the last 12+ years. In that time I have had three (3) evictions (when sheriff is involved to make sure tenant leaves per the court) and have managed a couple hundred section 8 (aka housing choice voucher program) properties.

Here is a good starting point.
http://www.marylandattorneygeneral.gov/Pages/CPD/landlords.aspx

If you have questions PM me.

j_h_smith · Feb 1, 2017

I don't care for them, but I have a friend who has nothing but Section homes. I think he's up to 8 or 9 of them now. All in Dundalk.

Does anyone have any experience owning a section 8 rental?

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