Section 8: the good, the bad, and the ugly

There are a sub group of investors who mandate only going Sec 8 for their properties.  I get it...it's guaranteed income every month.  No excuses of why it's paid late.  No chasing down tenants for rent money that never showes up.

There are others who refuse to deal with Sec 8 given their initial inspections and their annual inspections.  The thought being there will always be maintenance work to be done.

As a property manager, if an owner tells me they want to go Sec 8, I will comply.  But can I illustrate perhaps reasons why you might be better off using private pay tenants?

1)  Section 8 tenants put a lot more wear and tear on their units than private pay.  Sec 8 tenants are home a greater amount of time than a private payer who has to work to keep a roof over their head and put food on the table.  Starting as early as month 4 of occupancy, I've seen significant more wear & tear with a Sec 8 tenant than a private pay.  Every.  Single.  Time.

2)  Private pay tenants tend to be more responsible and less likely to create additional maintenance repairs.  Not just financially...but that's a part of it.  Sec 8 mandates the owner is responsible for ALL repairs, regardless of any reason.

I had a Sec 8 tenant constantly lock herself out to where she broke 2 different windows as a means to get in the property.  There was no way I could turn around & charge the cost of the window replacements to her (and it was!! a full window replacement for both windows)...per Sec 8.  Yes, we had the opportunity to terminate the lease but the owner didn't want to because of the guaranteed income.

That same tenant had a Super Bowl party.  She (not even a guest) got so drunk that as she was throwing up.  While she was doing so, she head butted the toilet bowl, broke it, & caused a leak.  By the time the water was shut off, there was significant work to be done...flooring in the bathroom & in the hall, vanity, personal items, drywall repair (and painting once the drywall was set...and that's in addition to replacing the toilet.  All at the owner's expense.

3)  CMHA last year (late 2024) gave investors a HUGE incentive to start housing those on a Sec 8 wait list.  CMHA was willing to pay in the suburbs a higher than market rent as an inducement to get folks off the wait list.  It worked great.  Until early summer 2025.  CMHA sent out communication asking investors with sec 8 tenants to NOT increase rent for the forseeable future to NOT ask for any increases.

4)  I had an owner insist we go Sec 8 only on his vacant in his duplex.  There was a significant interest in the unit by private pay individuals.  And I'm pretty sure I could have quickly filled it with a qualified tenant.  Instead, it took 2 months longer for me to find a qualified Sec 8 tenant.  I billed for my time for the initial Sec 8 inspection, the follow up inspection and again for the last inspection (an expense that wouldn't exist for a private pay tenant).  That's AFTER giving up 2 months of income...2 months longer that it took for me to find the Sec 8 tenant.  Financially, the owner would have been better off going private pay.


D & K Property Management Services
Karen Bostwick

(440) 590-5925

KarenMBostwick@yahoo.com

https://dkpropertymgmtsvcs.blogspot.com/

Broker License 2018002999

 

Bostwick Environmental Services

(216) 325-8505

BostwickLeadSafe@gmail.com


Metro Pest Control

(216) 312-7702

MetroPestControlOH@yahoo.com

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