If you missed it, the last Smarter Landlording Podcast featured longtime real estate investor Arnold Dormer discussing the Section 8 program. Arnold has been participating as a landlord in the Section 8 program for the past two decades and has done very well. “The rent is direct deposited in your account at the beginning of every month” said Arnold.
But Section 8 can be a controversial and unwanted program. Some homeowner associations in fact, like these around Boca Raton, Florida, are banning Section 8 recipients. Are these bans a result of discrimination or of communities simply trying to maintain their property values?
It could likely be argued either way, but these bans are likely to generate a storm of criticism to say the least.
The things to glean about the Section 8 program from the info posted above is that the program, while potentially profitable, is definitely complicated and may be controversial depending on the location.
Smarter Landlords should be fully aware of the pros and cons of the Section 8 program and proceed accordingly.
Stay tuned for the next episode of the Smarter Landlording Podcast, coming at you soon after a bit of a summer break.
Where I invest, many guys increase the rent when it is for section 8. They don’t advertise the rent, but when they know it is section 8, they jack it up. Your last guest made it seem like that was illegal. It seems shameless to me, and I think it ruins the market a bit. They do the absolute minimum to the houses, and they try to get the tenants with 80-100% subsidies.
I get the concept of the program, and I would not wish project housing on anyone. However, it seems like it attracts the least ethical investors among us.
I used to be a Section 8 Landlord. The program is fine, it;’s the tenants. If you can find decent tenants, as evidenced by credit scores in Section 8, they may be OK. Of if you have a downtrodden place, it may be the way to go.
As Arnold said in the podcast, you have to look for that stable tenant to make the program work well. Credit scores were a non issue to him as everyone of his applicants had bad credit. He looks for steady employment and a steady residence. I think a good lesson to be learned is that you have to adjust your screening criteria to your market.
Thanks for reading and sharing your experiences. As always it is appreciated,
Kevin