Posted by Jennifer Minge on January 30, 2006 at 08:02:45:
I have Section 8 property in 2 different counties in Atlanta. In one county that have a stated rent amount for houses of each bedroom size. They will not approve rent above stated rent amount. In the other county there is actually a formula you compute that determines the maximum rent the tenant is qualified to pay. This is based on their voucher, who pays what utilities etc. If you set the initial rent at their max rent allowed then you probably cannot increase the rent in the next year because it would not pass. In the county with the stated rent, we have in our lease that the rent will increase by xxx dollars in year 2. In the other county we calculate whether or not we can increase the rent.
As for the neighborhood it goes back to the old saying … Location, Location, Location. My 2 rental properties in the county where you calculate rent is in a neighborhood that probably will not increase much at all at any time. My quad in the other county has increased in value at a 5%+ rate for the past several years. Hope this helps.
Section 8 Question in atlanta - Posted by Jef (Atlanta)
Posted by Jef (Atlanta) on May 29, 2005 at 23:24:49:
I have new to the section 8 renting business. My question is what are the pitfalls
of having a section 8 tenant? Also what are the requirements of the home for
section 8 tenants. Is there a manual/guidlines i can download online or a
website i can go to for the rules and regulations?
I am about to purchase a house and i am interested in putting it on section 8.
Once i fill out the appropriate paperwork how long does it take to get a tenant in
the place on average?
I have a house on the Section 8 program and a house that is not on the Section 8 program. I would much rather rent to a Section 8 tennant. You have to ask yourself how ironic is that people who don’t rent to a Section 8 tennant blast the program.
Dekalb and Fulton have meetings for landlords that you can attend twice a month. Dekalb gives you the booklet and info on calculating rent passed on their voucher, utilities, rent burden etc. Fulton will sell you a @ 200 page book for their program for $30. Fulton determines rent based on house rating and neighborhood rating. The book will tell you in detail what they look for during an inspection of the house.
The only negative is that it takes 6 weeks to get my first payment for the goverment. Payment is direct deposited in my checking account on the first of each month. Never have to worry about late payments like you would with non section 8 tennants.
Section 8 tennants have a incentive to keep your house in good condition and pay their portion of the rent on time. If they don’t and get evicted then they loose their voucher.
Talk to Sec 8 owners that have property in the program now, I think you will change your mind about becoming a Sec 8 landlord. It used to be a good program for investors.
Re: Section 8 Question in atlanta - Posted by Barbara
Posted by Barbara on January 30, 2006 at 07:26:03:
Hi Jennifer;
A search on “Section 8” in the archives turned up your old posting. Could you answer two questions for me please? First, are annual section 8 increases similar to the 3-5% increases that are standard in non-section 8 housing? And also, since I assume there are section 8 neighborhoods, do you think these areas generally appreciate at the same rate as other areas. I’m not an Atlanta investor and I know each city is different but I’d welcome your input.
Thanks very much,
Barbara