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Las Vegas Property Management Las Vegas Real Estate Rentals and Realty - Atlas Group
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HUD SECTION 8
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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.
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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.
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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.
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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. |
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