Hello
Here in Pa. its stated right in the landlord agreement youve signed with the Hud that to do that is against the law. Second Hud is a pain in the butt but they do have a highly complex formula for figureing out what the tenant can afford to pay anything over that is a risk to you.
ie: Tenant refuses to pay after a couple of months what are you going to do complain to Hud?
Huds financial determination is final thier is no negotiating unless tenants income changes.
Call, anonymously, the housing authority, or whoever is administering the program in your area and ask if you are allowed to take extra rent payment. Some situations allow you to do so.
If the tenant is working, income is included in the calculations, and the voucher MAY be calculated on the basis of some level of tenant contribution to rent.
All of my Section 8 tenants pay a portion of the rent and Section 8 authorities know this. They pay a percentage determined by the market rent, the tenants financial situation and probably other factors, and the tenant pays the balance.
Norrist is absolutely right. Section 8 should tell you if they agree that you are paying the appropriate rent. They also tell you how much of the agreed upon rent they are going to pay and what the tenant will pay (if any). But you should NOT take $ under the table. If you do and Section 8 finds out, that will be the last time you can rent to one of their tenants.
We have about 50% Section 8, and we always tell Section 8 upfront how much the rent is. Sometimes they will come back and barter and try to get us to come down. If we refuse to lower the rent, then their tenant cannot rent from us. But if we agree to a price, then they tell us how much they are going to pay and how much the tenant can afford to pay (again, if any).
Keep in mind that Section 8 has done a thorough analysis of what the tenant can afford so you would end up chasing the under-the-table rent anyway.
I couldnt help but to reply... here in florida my daughter works for the housing authority and extensively with section 8... if this tenant can afford to pay you under the table she is not being truthful with her income to the housing authority. If she is found out she will loose her voucher and best believe she will not lie to keep you out of trouble, you will therefore loose you option to rent to section 8. I suggest you rent to someone else for what you need to cover your mortage or agree to pay the utilites which will bring you up to 1400 and soemthing if I understood your post correctly. Best of luck to you
Me personely I wouldnt take the chance of giving up a garanteed monthly rent check for a year by making the mistke of commiting fraud against the federal govt.
Just the fact you said "under the table" implies not letting all parties involved in a real estate transaction, buying, selling or LEASING know all the material facts. It is a crime period. Misrepresentation and fraud have put many investors and REALTORS in deep trouble with the law. Money not reported breaks HUDs rules and also the IRS laws not to mention state laws. If you must eat it you have an alligator and for that you either have to make lemonade or get some other profit idea. Try working with theopen market instaed of section 8 or take the price with utilities and provide what you must till time for tenant to leave. Being aboveboard is foremost in real estate deals.
I thought this thread would be about controlling PETS!
As far as PESTS go, I tell new tenants that if they need an exterminator I am happy to pay for the first visit (and I give them the number of a guy I use all the time), but after that any visits are the responsibility of the tenant. They seem okay with this.
I impress upon them that keeping the place clean and neat will go far in keeping critters away, saving them money.
My gut tells me that this may be OK assuming that this is not government regulated housing. There are many services offered at discount to seniors. The first that comes to mind are tickets to the movies. There are senior discounts for airline tickets, hotel rooms, sporting events, etc.
The only possible prohibiting circumstance that comes to my mind is if this steps on the toes of some fair housing legislation and then mobile homes may not fall under the statutes. Interesting question.
There are communities for people 55 and older ... I, also, think it is not discrimination.
You just have to be careful to offer ALL senior citizen the same discount.
This is not discrimination. If you were to advertise "seniors do not apply" or Non whites not wanted, you may have your rental fire bombed. Most local papers will catch on to any discrimination issues and not run the add anyway. I think it is great that you are concerned with legal issues and it is my understanding that one should only be concerned if the dwelling is greater than four units. (this is only my understanding and not the golden rule, take with a grain of salt)
thanks for the referral. I called them and they sound like they know what they are doing. The agent I spoke with went out and looked at the house and gave me a fair market rent value. So good so far!
Hello
Here in Pa. its stated right in the landlord agreement youve signed with the Hud that to do that is against the law. Second Hud is a pain in the butt but they do have a highly complex formula for figureing out what the tenant can afford to pay anything over that is a risk to you.
ie: Tenant refuses to pay after a couple of months what are you going to do complain to Hud?
Huds financial determination is final thier is no negotiating unless tenants income changes.
Hope this helps
Ed
Call, anonymously, the housing authority, or whoever is administering the program in your area and ask if you are allowed to take extra rent payment. Some situations allow you to do so.
If the tenant is working, income is included in the calculations, and the voucher MAY be calculated on the basis of some level of tenant contribution to rent.
[addsig]
All of my Section 8 tenants pay a portion of the rent and Section 8 authorities know this. They pay a percentage determined by the market rent, the tenants financial situation and probably other factors, and the tenant pays the balance.
Norrist is absolutely right. Section 8 should tell you if they agree that you are paying the appropriate rent. They also tell you how much of the agreed upon rent they are going to pay and what the tenant will pay (if any). But you should NOT take $ under the table. If you do and Section 8 finds out, that will be the last time you can rent to one of their tenants.
We have about 50% Section 8, and we always tell Section 8 upfront how much the rent is. Sometimes they will come back and barter and try to get us to come down. If we refuse to lower the rent, then their tenant cannot rent from us. But if we agree to a price, then they tell us how much they are going to pay and how much the tenant can afford to pay (again, if any).
Keep in mind that Section 8 has done a thorough analysis of what the tenant can afford so you would end up chasing the under-the-table rent anyway.
Hope this helps
.
Hello,
I couldnt help but to reply... here in florida my daughter works for the housing authority and extensively with section 8... if this tenant can afford to pay you under the table she is not being truthful with her income to the housing authority. If she is found out she will loose her voucher and best believe she will not lie to keep you out of trouble, you will therefore loose you option to rent to section 8. I suggest you rent to someone else for what you need to cover your mortage or agree to pay the utilites which will bring you up to 1400 and soemthing if I understood your post correctly. Best of luck to you
Me personely I wouldnt take the chance of giving up a garanteed monthly rent check for a year by making the mistke of commiting fraud against the federal govt.
twice
Ed
Just the fact you said "under the table" implies not letting all parties involved in a real estate transaction, buying, selling or LEASING know all the material facts. It is a crime period. Misrepresentation and fraud have put many investors and REALTORS in deep trouble with the law. Money not reported breaks HUDs rules and also the IRS laws not to mention state laws. If you must eat it you have an alligator and for that you either have to make lemonade or get some other profit idea. Try working with theopen market instaed of section 8 or take the price with utilities and provide what you must till time for tenant to leave. Being aboveboard is foremost in real estate deals.
I have a question about sect 8. Can we increase rent and how we do it ?
Thank you,
I thought this thread would be about controlling PETS!
As far as PESTS go, I tell new tenants that if they need an exterminator I am happy to pay for the first visit (and I give them the number of a guy I use all the time), but after that any visits are the responsibility of the tenant. They seem okay with this.
I impress upon them that keeping the place clean and neat will go far in keeping critters away, saving them money.
MC
[addsig]
Thanks everyone, I appreciate the responses.
My gut tells me that this may be OK assuming that this is not government regulated housing. There are many services offered at discount to seniors. The first that comes to mind are tickets to the movies. There are senior discounts for airline tickets, hotel rooms, sporting events, etc.
The only possible prohibiting circumstance that comes to my mind is if this steps on the toes of some fair housing legislation and then mobile homes may not fall under the statutes. Interesting question.
There are communities for people 55 and older ... I, also, think it is not discrimination.
You just have to be careful to offer ALL senior citizen the same discount.
This is not discrimination. If you were to advertise "seniors do not apply" or Non whites not wanted, you may have your rental fire bombed. Most local papers will catch on to any discrimination issues and not run the add anyway. I think it is great that you are concerned with legal issues and it is my understanding that one should only be concerned if the dwelling is greater than four units. (this is only my understanding and not the golden rule, take with a grain of salt)
Try
www theholmescompany com
Ken Holmes is an experienced investor himself, though I have never used his company for rental property management.
thanks for the referral. I called them and they sound like they know what they are doing. The agent I spoke with went out and looked at the house and gave me a fair market rent value. So good so far!