Hello all. I have a client that wants to list his six unit complex. 4 of them are section 8. I was wondering if having section 8 tenants will help(or not) the saleability of the property.

I would say it depends. Some buyers will not want Section 8, some will not care, and others will be excited. I suspect it also depends upon the reputation that Section 8 tenants have in your area.

Generally, it would not bother me if it was appropriate to have Section 8 tenants in that type of building, at that price point, and in that area.

what do you mean by appropriate?

Appropriate. Did the seller fill the property with section 8 tenants just to get it filled, but really they are paying lower than market rents for the property.

If the Section 8 tenants are paying the typical market rent for that apartment in that area, then it is appropriate.

thanks Scott!
one more quesition, if the rent is listed as $1200 per month and the section 8 voucher is $1080, can the tenant pay the difference, or is this not allowed?

It is not allowed. With that said, I know that it happens, but I have never gone there.

Scott,
Actually that is allowed. If their voucher is X and they want to live in XX then they must pay the difference.

Usually that is not an issue as the voucher is often for more than you could get out of the property from a non-section 8 tenant.

Paul-
I disagree. If you read the section 8 paperwork, you are specifying (and signing for) what the actual rent is. Additionally, I have places that I rent to Section 8 tenants and have had their coordinators call me and tell me that my rent was too high for the tenant to pay (I was at $1095 and the limit was $1080).

Scott,
If you have the rent set at $1095 and have it as accepting Section 8 your are entitled to the $1095 a month rent regardless of the voucher approval amount if the potential tenant wants to lease the property.

Having several Section 8 properties I am very familiar with the paperwork. In your case the actual rent is $1095 and that is what you are signing and the remain amount unpaid by the voucher is the responsibility of the tenant if he or she wishes to occupy the property. The coordinator is just trying to get a rent concession for her section 8 client unless the rent is above what the max allowable for the number of bedrooms in your area. Each area is different in rent amounts.

Huh....Now you have me thinking.....

Let me think about that.

Coming from Australia guys im a little unsure of what a Section 8 tenant is. Can someone enlighten me Thanks!

I had a section 8 tenant, by my understanding they are not allowed to pay the difference. I am in South Florida & Section 8 tenants don't have a very good rep. Mine was a great tenant except when I sold the property, even though I gave her enough notice of the closing date she did not want to leave. I even gave her some cash to help her with the movers & guess what she did w/it, keep it & the new owners had to move her themselves! Everyone that had dealt w/section 8 tenants warned me that it's a nightmare to get them out. I learned that the hard way.

Someone who has their rent subsidized by public welfare / housing assistance.

Are you all saying the Section 8 is bad or the tenants are bad? Doesn't Section 8 pay for repairs, go after the tenant if they don't pay and if they don't do they lose their voudcher?

I would definitely not say they are bad. Section 8 just pays the rent. They do not do repairs or go after the tenant.

Section 8 tenants are just like any other tenant. You need to screen them correctly.