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Real Estate Investing – Housing (Section Annual Review

Real Estate investing is a lot easier when you don’t need to run around the first of each month collection rent checks. Housing (Section allows you the ease of either receiving you rental check on the first of each month or having your check electronically deposited into your bank account.  As I’m noted for as cashflow Cindy; Housing provides cashflow to my rental units.    I bought my rental units to cashflow and cashflow they do!

However, by no means is this easy. Taking on a Section 8 tenant does require work on your part or your property management company from a landlord perspective.

Each year Housing (Section does require the tenant to have an annual review. The following is a list of items the tenant must present to their Housing Specialist. If the tenant does not provide the following information by a specified date then Section 8 will STOP payment of Section 8 tenants rent check. They instruct the Section 8 tenant the rent responsibility falls back on them.

Being a landlord; it is your responsibility to stay in contact with the tenant to confirm and instruct them if the following information is not provided by a specified date then their Housing Stops paying rent!

Assets – Current bank or investments statement

Income – Earned income, six to eight weeks of current check stubs; other income – a benefit noticed, bank statement or other available proof.

Expenses – Day Care – Receipt or statement from provider

Medical – 12 month printout from pharmacy or other medical provider, insurance premium notice

Copy of Federal 1040 Tax Return and Schedules

Housing (Section is a government funded program to assist people with their rent. In order to be approved for the program they are required to show a NEED to be on the program.

Section 8 Housing is work for the tenant and the landlord. However, if both parties work together it is a good program to assist families while they improved their financial situation.

Cashflow Cindy

P.S. John Dessauer has excellent program to purchase for you to learn Property Management Skills.

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knowhowknowhow@gmail.com

Real Estate Investing – Can Section 8 Abate Rent?

Your Second Second 8 Inspection Fails!

Section 8 mails you a letter stating your next month rent check will be abated even though your lease expires in 2 months. (this means loss of rent; no money to pay your mortgage payment!)

It’s critical to follow all of housing rules and guidelines on inspection dates, times and repairs needed. Section 8 has strict rules and procedures and they must be followed. If they are not followed according to their specifications; Section 8 will abate your rent check!

Example) Lease expires Feb. 28, 2010

2^nd Section 8 Inspection failed; Reasons Listed Below:

1. Tenant didn’t clean the stove ( dangerous with too much grease; fire could start)

2. Smoke Alarm was not on Wall; (tenant took smoke alarm down and didn’t put it back up!) As a matter of fact she showed the smoke alarm to the inspector while he inspected the unit. However when she showed the inspector the smoke detector she flipped it over and noticed the batter was out of it because one of her children took the battery.

In this situation; Housing had the authority to abate the following months rent check. Even if it was the tenant’s responsibility to clean the stove and put the smoke detector back up on the wall.

Housing’s position is to verify that the regulations are abided by and not to decipher who is going to handle the repair. (That agreement is between the tenant and landlord.) So when housing does the re-inspection all they need to see is the repairs are made, and in this case they were not.

As far as the rental lease, that is a separate document and issue. The participation of the Section 8 program requires that units be kept to HQS standards at all times while assistance is being paid on the unit. Therefore the lease agreement for tenancy is a separate issue and does not prevent stoppage of payment for programs violations, and a failed re-inspection is a program violation.

Cashflow Cindy

P.S.  Property Management is a learned Skill.  This is the area where real estate investors fail.   They spend all kinds of time buying property but when they get it they lose!  You MUST invest in yourself to become an excellent property manager if you are building your portfolio.   If you don’t; I’ll see you on the DON’T WANTER list!

John Dessauer offers a Property Management program Find Your Life’s Freedom’s! Take Action Now!! is well worth the price.  John made his fortune buying Multi-Units and understands Property Management Skill is important to maintaining and building your real estate empire.

Real Estate Investing - Section 8 Housing

Yearly Inspections

Be prepared for annual inspections once your Housing Inspection passes. Depending upon when your year lease is expired; housing usually mails out the landlord or management company a letter 2 months prior to the inspection date. The letter gives a date and a four hour window timeframe of when the housing inspection will occur.

Housing does require either the tenant or the landlord be present at the time of inspection. Normally my tenants are present at time of inspection.

Repairs

Once the inspection is completed then housing will mail the landlord a list of repairs needed to comply with Section 8 Housing Rules. If the landlord is unwilling to comply to meet Housing requirements then the Housing payments will stop at the end of the lease.

If you do decide to comply then the landlord needs to fix all items listed on the repair sheet by a deadline date. Housing supplies a date and time re-inspection will transpire.

2^nd Inspection Fails

Depending upon where you live and how busy the inspectors are working for Section 8 if the 2^nd inspection fails you may lose one month’s rent. It depends upon how busy the inspectors are and if they are willing or have time to swing by and re-inspect the items that did not meet housing’s guidelines.

It’s critical to get your unit to pass housing’s 2^nd inspection. As I mentioned above; the inspectors are extremely busy and have many other inspections scheduled. If the inspection fails then a re-inspection date is scheduled in 3-4 weeks. In some cases, they may charge you for a 3^rd inspection if the 2^nd inspection fails or you may lose the next month’s rent.

If your name is not on the list to issue a check during the time they cut the checks then you need to wait until the following month to receive a rent check. Housing WILL NOT issue you a check if the unit failed the inspection!

Communication

Communication is extremely important during the inspection time period with both the contractor and the housing inspector. My partner contracted our handyman to make the needed repairs per the housing letter. However, instead of communicating with the contractor she mailed the list of repairs needed. The contractor missed 5 items on the repair list and our 2^nd inspection failed. This was the first time our 2^nd inspection ever failed on our units and I was not happy. (I find the inspection time to be extremely stressful for various reasons)

II contacted the housing inspector and she communicated to me WHY the 5 items failed. I immediately contacted our contractor and instructed him on how to make the repairs. We were extremely fortunate to have an inspector who took the time to re-inspect the unit the next day once the repairs were completed. This time the unit passed!

Cashflow Cindy

P.S. Real Estate Investing is all about overcoming adversity. In order for you to become a successful landlord or wholesaler it will require overcoming many obstacles. A great book to read is ‘Three Feet From Gold ‘ to learn how to overcome adversity in your business.