Michigan Real Estate

In my market area, I have seen an increase in the leasing property and requests for property owners to accept Section 8 tenants. I have personally dealt with Section 8 rentals for over 15 years and know how Section 8 rentals work.

There are a few things that you need to know when you are considering leasing a property with the Section 8 program.The term, “Section 8″ refers to a number of federal subsidy programs that allow a people of limited means to rent housing. The “tenant” pays a part of the rent, while the federal government pays the difference. The section 8 program is under control of the United States Department of Housing and Urban Development, or HUD, administered locally through community housing centers. (Some tenants qualify to have their entire rent paid by Section 8.)Renting section 8 can have the same success rates as expected with private rentals once you understand the legal and practical differences.

Rule #1 – DO NOT ENTER INTO A ‘SIDE DEAL’ WITH THE TENANT FOR ADDITIONAL RENT! I have heard Section 8 tenants are asking property owners and agents to do this so they can lease properties that are over their approved rental vouchers.

For example, the landlord wants $1,200 per month; the HUD lease states the rent is $1,000 per month, the landlord signs the HUD lease with the tenant, then they draw up an addendum they do not include back to HUD that states the tenant will pay the landlord an extra $200.00 per month to make the $1,200 rent the landlord wanted. THIS IS ILLEGAL! The penalties are severe!! Try and collect the $200.00 in court or try to evict the tenant for not paying – The landlord will lose all the way around!

There are more requirements that a landlord needs to know about to comply with Section 8 guidelines when leasing property to a prospective section 8 recipient.

* A housing inspection required to meet HUD’s quality housing standards.
* You will be signing a HUD lease with the tenant.
* Time limits for repairs and complaints
* Lead-paint inspections on target housing built before 1978. Unit owners have responsibilities to:

* Disclose known lead-based paint hazards to all potential residents before the execution of a lease.
* Provide all prospective tenants with a copy of “Protect Your Family From Lead in Your Home”
* When necessary, perform paint stabilization to correct deteriorated paint.
* Each time an activity performed, you must tell tenants about the conduct of lead hazard reduction activity, in advance, give a Renovate Right Brochure, and signed
Pre-Renovation Disclosure
* Provide a Clearance Test, if required
* Conduct lead hazard reduction activities when required by the PHA (The Public Housing Authority)
* Perform all work by required HUD prescribed safe work practices & conduct clearance activities, when required, and
* Perform ongoing maintenance. As part of ongoing maintenance, the owner must give written notice to each assisted family asking occupants to report deteriorated paint. The notice must include the name, address, and phone number of the person responsible for accepting the occupant’s complaint.

The booklet can copied by clicking on the following link: http://www.epa.gov/lead/pubs/renovaterightbrochure.pdf

Recently, here, there has been an increase in Section 8 rental applicants on property due to our economy.

As a property owner, you can offer a valuable community service to people who are less fortunate by providing clean, descent, housing to folks who otherwise could not afford it. You simply need to understand the requirements and processes involved!

*** SOME STATES/COMMUNITIES REQUIRE THAT A LANDLORD or PROPERTY OWNER ACCEPT SECTION 8 TENANTS – CHECK AND MAKE SURE WHAT YOUR MUNICIPALITY REQUIRES.