Section 8, Occupancy & Roommate Tips for Landlords & Renters

Slideshow presentation on pros & cons of section 8 vouchers in your rental property, general rule of thumb regarding occupancy limits and tips for both landlords and renters to make roommate situations easier to negotiate. Presented by Blue Mountain Rentals at their free information workshop on 1/22/14.

Transcript

1. SECTION 8, OCCUPANCY LIMITS & ROOMMATES Presented by: Lori Hartjoy, Owner Wednesday January 22, 2014 DISCLAIMER: Any information presented or that you choose to use is at your own risk. All details and facts are informational only. You are strongly encouraged to seek legal or financial counsel before making decisions regarding your investment rental properties.
2. SECTION 8 – GENERAL INFORMATION • VOUCHER PROGRAM - "PROJECT-BASED“ OR "TENANT-BASED" • TENANTS PAY A PORTION OF THE RENT MOST PAY 30% AND ARE LIMITED TO A MAXIMUM (USUALLY 40% INCLUDING PRIMARY UTILITIES) • HUD PAYS THE DIFFERENCE UP TO A CAP REFERRED TO AS "FAIR MARKET RENT" (FMR) DIRECTLY TO THE LANDLORD • THE LANDLORD CANNOT CHARGE A SECTION 8 TENANT MORE THAN A REASONABLE RENT AND CANNOT ACCEPT PAYMENTS OUTSIDE THE CONTRACT. • RENTAL UNIT MUST PASS A HUD INSPECTION BEFORE APPROVAL BY HUD • LANDLORDS ARE NOT REQUIRED TO PARTICIPATE IN THE SECTION 8 PROGRAM • IN SOME AREAS REFUSING TO RENT TO A TENANT SOLELY FOR THE REASON THAT THEY HAVE SECTION 8 MAY BE ILLEGAL.
3. • Government involved in their business, such as inspections or knowledge of rental income • Extra HUD steps for initial approval and annual lease renewal • A desire to charge a rent for the unit above FMR – • Fear that tenant, children or guests will not properly maintain the premises • Additional notice requirements for lease violations & eviction. SECTION 8 –
4. • A large available pool of potential renters & it is growing • Free advertising options reach this market • Generally prompt, regular payments from HUD • Tenants incentive to take care of the property • Annual inspections – HUD inspector can be an advocate for clean & damage free • Annual recertification – eligibility checks based on household & income. • Tenants are required to report changes • Tenant may be removed from program if they owe a landlord money SECTION 8 – POSITIVES
5. • Landlords limit occupants for: • Wear and tear on the premises – Repair expense & damages • Health concerns – Cleanliness & fixture usage such as plumbing/sewer OCCUPANCY & LIMITATIONS • HUD and the Fair Housing Laws monitor occupancy limitations for • Housing discrimination • Ensure that assisted families do not live in overcrowded units
6. • General rules • One occupant for every 70 Sq. ft. and extra occupants for every additional 50 sq. ft. per room. • Living room, dining room or any other rooms available meeting a minimum of 50 sq. ft. may be used for a sleeping area. • Look at size of bedrooms, configuration, age of children, physical limitations of the housing unit Not every home is equal. There are NO set in stone rules only guidelines! OCCUPANCY RULE OF THUMB
7. • Local WWHA standards assume each bedroom will accommodate no more than two (2) persons. • Two adults will share a bedroom unless related by blood. • Bedroom size will be determined by the following guidelines: • Children of the same sex will share a bedroom • Children of opposite sex, under age of 2 will share a bedroom • Adults and children will not be required to share a bedroom • Foster-adults and children will not be required to share a bedroom with family members • Live-in aides will get a separate bedroom OCCUPANCY RULES – LOCAL WWHA
8. • College areas – there is a market for ‘student friendly’ housing • May be able to keep continuously filled by word of mouth • Lower advertising costs • Economy – More affordable for many if they can share the cost • All parties bear responsibility – if one fails or cannot pay others will have to foot the bill ROOMMATES – LANDLORD PLUSES
9. • Conflicts happen – stay neutral • Possibility of breaking leases • More people to hound unless set up right • Chance of co-signers is greater • Extra background checks • Additional notices to send if default • More traffic & noise • Extra vehicles/parking ROOMMATES – LANDLORD NEGATIVES
10. • Limit of Friendship: friends for years vs. living together in the same house month after month. • House Rules, Pets, Parking, Personality Differences & Lifestyles • Security Deposit: Early release? How will their portion be returned? Most landlords will not return a portion of the deposit. They will hold the whole amount until lease ends. • Legal Responsibilities: Joint Liability & Subletting • Conflict Management & The ‘Heavy’ • Your landlord doesn't care how roommates choose to split their rent. If a landlord doesn't get the full amount of rent due even if you paid your share, you could still face eviction or your co-signer. ROOMMATES –TENANT PERSPECTIVES
11. • Visitor vs Roommate and Subletting: Do you know who is in your rental? • Joint Liability: Broken lease, all legally responsible. Each is responsible for full rent. • Background Check Each Person, even new roommates • Tenant Liaison: Deal with just one of the roommates. • Require roommates to collect what is due and require one payment to cover the full rent • Post notices in all names for inspections, late rent, eviction etc. • Security Deposit held as a whole until the lease term is over – Return to tenant liaison to distribute • Expectations for maintaining and cleaning the property, as well as how to make a repair requests ROOMMATES – LANDLORD TIPS
12. BLUE MOUNTAIN RENTALS HELPING LANDLORDS & RENTERS CLICK 1. Make your pet landlord friendly– Service/Companion Animals January 29th at 6PM – Smith’s Family Restaurant Sign up today, call, email or use Eventbrite to reserve your seat February 2. Advertising - How and Where & Scam Listings 3. Possible Guest Speaker on Evictions Process 4. ROI—Incentives/Concessions - Are they good? 5. 3rd Party Resources—WWRPA, WW Crime Free Housing March - Renter Focused topics 6. Search Tips, Spotting Fraudulent Listings 7. Plan your move—Must have vs. wants—Budget 8. Prepare for the initial in person meeting Visit our website at: www.bluemtnrentals.com Or call us at: (509) 240-3325 For personalized assistance • UPCOMING WORKSHOPS: