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raising rent on section 8
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halds
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 Posted: Thu Mar 15th, 2007 03:00 pm
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I am also uncertain whether it is a good time to buy in my area also.  I see many for rent signs out.  More than usual.  There also seems to be an increase in multiunit apartments/duplex buildings on the for sale market, suggesting that investors are bailing out. However, the increase in foreclosures and anticipated increase in mortgage rates should help to drive up demand for rentals in the future, just a question of how long to wait. The slump is also turning it into a buyers market so one should be able to leverage good deals on purchase prices. it is much like the futures market with stocks.






Spidergirl
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 Posted: Thu Mar 15th, 2007 02:37 pm
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Wow!  See, Section 8 isn't too bad!  Instead, they are sometimes even better than a regular tenants!  I am glad for you Vicky! 

PS:  I am still debating if I should purchase another pre-construction in the loop of Chicago.  Just don't know if it is a good time to buy as the economy is slow and is predicted to be slower for the next year or so....

vic
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 Posted: Thu Mar 15th, 2007 12:33 am
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Whoa. What a breeze. Checked two boxed on some government form and got a letter in the mail in less than two weeks that section 8 has increased the rent payment from $600 to $750. Try that with a regular tenant....

Vicky

Spidergirl
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 Posted: Thu Mar 1st, 2007 02:14 pm
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In your case, I am not sure if they will qualify for a 2 bedroom.  If they are, they might need to share a bigger portion of it.  As far as I know, it is not only limited to the initial lease. 

vic
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 Posted: Wed Feb 28th, 2007 05:06 pm
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Thanks for the advice. I will talk to their caseworkers tomorrow after closing (ggrrrr, I guess I also have a government caseworker assigned to me....). I know I can get $750-$800 from a market tenant without any problem.

I would like to keep the one long term tenant since she is very neat and conscientious and has a little daughter going to the school across the street. Although I am not exactly mother Teresa, if that cost me $25/month, that is ok. I will request the government to give me $800.

I had some initial consultation with section 8 to get some idea about what type of adjustment I could make. They were not very forthcoming on volunteering how they could pay me more. They also had some thing about voucher with a maximum amount depending on e.g. family size. Would a mom+6 y/odaughter qualify for at least a 2 bedroom or only a one bedroom? Are they still limited by their voucher check amount when I increase rent or is that only for the initial lease?

Vicky

Spidergirl
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 Posted: Wed Feb 28th, 2007 02:39 pm
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Vic, I used to work for a real estate company for 5 years as an Accountant.  20% of their tenants is Section 8.  When it came to rent adjustment,  the property manager will raise the rent for section 8 for at least 20%.  I know it sounded crazy but guess what, often times section 8 approved for the rent increase.  It might not increase 100% of what the landlord requested, but they often approved 80-90%.  Say instead of $600/month, you as a landlord requested rent increase to $720.  Section 8 will compare the requested rent to other buildings in the neighborhood.  It sometimes take them 2-3 months to approve the rent increase to $700, not $720.  Once they approved, the payment was often on time. 

So Section 8 isn't too bad and as a matter of fact, my previous boss is actually making a lot more money on rent than on the regular tenants. 

halds
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 Posted: Tue Feb 27th, 2007 08:51 pm
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Wish I could offer advice Vicky, I have never dealt with section 8.


vic
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 Posted: Tue Feb 27th, 2007 03:22 am
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I am about to experience section 8 for the first time. I will be closing on a duplex with section 8 on both sides. One of them is about to go month-to-month. These renters rent at far below market rent in a very popular university area. 

Rent is currently $600 per 2/1 side but I know I can easily get $750-$800+ if I get young professionals or grad students. I may consider keeping one of the current renters if I can get market rent from section 8. I met with section 8 today but they are very mysterious about what they are willing to pay if I increase the rent or what the voucher limit is. I can already see them start balking at a $200 increase.

I am less than thrilled about dealing this type of government hooplala. Does anybody have any experience on how to deal with rent adjustments involving section 8?

Vicky

Last edited on Tue Feb 27th, 2007 03:23 am by vic


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