HUD SECTION 8

HUD program advantages and disadvantages:
As a current owner of ours you may be asking yourself if you should get involved with the Section 8 program should your rental become vacant? That's a hard question to answer. The Section 8 program has changed quite a bit since the Clinton administration. Of course change, usually has both it's good and bad points.

The biggest advantage HUD has to offer is regular rent payments. You have to take the word "regular" to mean, the governments meaning of regular. In the beginning of a new tenancy, the accounting office is 2-4 weeks behind. Eventually, HUD catches up and the rent usually flows very regularly. But, if you're expecting IMMEDIATE payment from the government after your HUD tenant has moved in, think again. It can be slow on the other end as well. If a HUD tenant gives notice to move, then the accounting office immediately puts a hold on the payment of rent until it is determined exactly when the tenant has vacated. Consequently, it can be 2-4 weeks after a tenant has moved before you receive the final HUD rent check.

Resolving issues through HUD is usually pretty straight forward. However, getting in touch with anyone by phone to do this is something else again. We believe that HUD is actually the founder and inventor of the constant and perpetual phone tree. Usually, problems are more quickly resolved with a trip to their office.

HUD tenants:
Over the years, for the most part, HUD has "upgraded" so to speak, it's client list of tenants. The "rules" have changed dramatically regarding tenant responsibilities, and for the most part, HUD recipients do their best to take care of the property. Of course there is always the problem tenant that somehow manages to stay in/on the program even when they violate a number of restrictions that HUD imposes on them.

For the most part, if you take on a HUD tenant, you probably will not have any out of the ordinary repairs to make and your rent will come in like clock work once the initial period is over and everything is in their system.

HUD inspections:
HUD requires that the property be re-inspected every year. We feel this is a good thing. It can require the owner to make some additional small repairs, but at the same time the owner is fairly well assured that the property is remaining in reasonable condition. Again, on the flip side, some owners despise any government agency dictating to them what they do and don't have to do with their real estate.