| Section 8 is a Housing and Urban Development | | | | property "passes" inspection. Thus, you should |
| (HUD) assistance program for low income families | | | | work that into your tenant's move in time-line, |
| that grants housing payment assistance to | | | | and it is STRONGLY suggested that you Do Not |
| families based on their ability to pay for housing | | | | let your tenant move in until you have passed |
| expenses. | | | | inspection and have a signed Housing Assistance |
| Section 8 programs are administered by a Public | | | | Program (HAP) contract from the PHA. |
| Housing Authority (PHA); either the State, the | | | | DOs |
| local city housing authority, or the county housing | | | | - Do screen the tenants; they are responsible for |
| commission. The Landlord gets paid directly by the | | | | the terms of the lease not the Agency. |
| PHA for the major portion of the rent each | | | | - Do review the inspection guidelines and be |
| month. The assistance program contracts are | | | | familiar with all requirements. |
| administered in one year terms. So to avoid | | | | - Do get a security deposit for as much as your |
| mid-term moves for Section 8 tenants, my | | | | state will allow. Many times this is one or one and |
| advice is to make your lease agreements with | | | | a half times the amount of the monthly rent. |
| annual renewals rather than converting to | | | | - Do make your rental contracts one year long |
| month-to-month. This will help reduce your turn | | | | with one year renewal extensions rather than |
| over rates, and keep your properties fuller longer. | | | | converting to a month-to-month. Thus, you will be |
| In order to be approved and accept a Section 8 | | | | less likely to have to deal with mid-term |
| tenant, your rental property must meet HUD | | | | move-outs. |
| inspection guidelines which will verify that the | | | | DON'Ts |
| property is in livable condition and that all utilities | | | | - Don't let the tenant move in until you have a |
| are in working order. You should get a copy of | | | | signed HAP contract. |
| these requirements from your local PHA and | | | | - Don't wait until the last minute to get your |
| make sure you are familiar with all areas included | | | | property ready for inspection. |
| in the inspection. It makes a good impression if | | | | - Don't assume that since you have a contract |
| your property passes inspection the first time. | | | | with HUD that they will pay for damages caused |
| However, don't be discouraged if an issue arises | | | | by the tenant. They Won't! |
| that requires extra work before it gets a final | | | | - Don't include the tenant's utilities in the rental |
| approval. The agency will give you 30 days to | | | | amount, the PHA will not pay you dollar for dollar |
| correct any issue. Keep in mind, however, that | | | | for utilities and you will lose money. |
| the PHA will not pay for any rent days until the | | | | |