Investing in Rental Property

[chippewastud79]

Originally Posted by mosesbotbol

Section 8 is the easiest rental as long as the numbers work

Easiest for rent, most issues.

[awsmith4]

Originally Posted by chippewastud79

Easiest for rent, most issues.

At least here you are allowed to screen Section 8 just like a regular tenant. If the person has a history of abandoning leases or a criminal history you are not obligated to rent to them. Plus people are in the housing program, not properties so if Section 8 doesn't work you can always return to non assisted tenants. I've had more issues with college students than with Section 8.

[shilala]

Originally Posted by awsmith4

At least here you are allowed to screen Section 8 just like a regular tenant. If the person has a history of abandoning leases or a criminal history you are not obligated to rent to them. Plus people are in the housing program, not properties so if Section 8 doesn't work you can always return to non assisted tenants. I've had more issues with college students than with Section 8.

In PA, Section 8 tenants get one shot. If they fail their rent or are evicted for any cause, they lose their eligibility and can never get it again. In a way, it makes it seem like it'd be safe to rent to them because the tenants have something to lose.
It all sounds great, but there's one string...
If you rent to Section 8 tenants you have to agree to use a Section 8 lease. That's not a big deal if you're not a dick like me. I absolutely refused to use their lease, or be dictated the rules by which I'd rent my properties.
My lease was designed and modified to protect me and my interests. Section 8's lease was not, and didn't need to be because they had nothing to lose.

In my experience, background checks were a 100% waste of time, effort and money. In Albert's business they'd be necessary, it goes to culpability. The best way to root out a good tenant is when they have good rental references and you can talk to their prior landlords. Most won't have any because they're lying, but when they do, it's very important to verify that the references are real and speak to them at length.
Talking to brothers and sisters helps. They'll generally be honest enough for you to read between the lines.
If you're still not satisfied, and I never was, I'd swing by the place they were currently living and do a quick drop-in. They never imagine you'd be bold enough to do that. One 10 minute visit will show what kind of housekeepers they are, and verify most of the things they told you. 8 times out of 10 you'll find out the applicants lied about everything they spoke to you.
It's a lot of work finding good tenants, and when you get one, it's very important to bust your ass to keep them. Good tenants are what makes the wheels go. Lots of times I'd be too busy to do my due diligence screening renters and it'd bite me in the ass.

[awsmith4]

Originally Posted by shilala

In PA, Section 8 tenants get one shot. If they fail their rent or are evicted for any cause, they lose their eligibility and can never get it again. In a way, it makes it seem like it'd be safe to rent to them because the tenants have something to lose.
It all sounds great, but there's one string...
If you rent to Section 8 tenants you have to agree to use a Section 8 lease. That's not a big deal if you're not a dick like me. I absolutely refused to use their lease, or be dictated the rules by which I'd rent my properties.
My lease was designed and modified to protect me and my interests. Section 8's lease was not, and didn't need to be because they had nothing to lose.

In my experience, background checks were a 100% waste of time, effort and money. In Albert's business they'd be necessary, it goes to culpability. The best way to root out a good tenant is when they have good rental references and you can talk to their prior landlords. Most won't have any because they're lying, but when they do, it's very important to verify that the references are real and speak to them at length.
Talking to brothers and sisters helps. They'll generally be honest enough for you to read between the lines.
If you're still not satisfied, and I never was, I'd swing by the place they were currently living and do a quick drop-in. They never imagine you'd be bold enough to do that. One 10 minute visit will show what kind of housekeepers they are, and verify most of the things they told you. 8 times out of 10 you'll find out the applicants lied about everything they spoke to you.
It's a lot of work finding good tenants, and when you get one, it's very important to bust your ass to keep them. Good tenants are what makes the wheels go. Lots of times I'd be too busy to do my due diligence screening renters and it'd bite me in the ass.

The company that does my reports goes as far as to find prior landlords and references. They will also handle my evictions. I check credit, work history, criminal, and landlord references as well as rental and eviction history.

If I was doing this for myself exclusively, I love the idea of paying them a visit in their current residence

I have done some research and it appears the rules vary state to state on Section 8 even though its primarily federal funding. In GA we don't seem to have the issues you mention but I would not use any other lease than my own either!