Here a some pictures from the meeting at the Elk Grove Real Estate Investment Clubmeeting on January 14th.
We had Chuck Cozort from the Sacramento Housing and Redevelopment Agency(SHRA) teach us how to provide housing for Section 8 Housing tenants.
We realy appreciate the time he took to spend a couple hours with local Sacramento landlords to discuss the ins-and-outs of the Section 8 Program.
Here are a couple notes that I took:
- How do I get started?
Start with the tenant! Advertise your available rental as you normally would to locate a tenant. Folks in the room shared that they had great success with Craigslist(an online free/cheap classified ad website). Chuck said you could also list your property online at the SHRA's website.
Once you have found a tenant that you want to rent to, the tenant will have all of the paperwork you will need to get started and get your inspection ordered. Inspections can take up to 3 weeks to occur. - Do I have to sign a lease with the Section 8 tenant?
YES! You will be required to sign a 1 year lease and then the agreement can go month to month. - How much is the maximum rent per bedroom size for 2009?
BEDROOM RENT
Studio $737
One $838
Two $1022
Three $1475
Four $1690
Five $1943
Six $2197
Seven $2451 - What do you consider a bedroom?
A bedroom is any room has to be a room that is a minimum of 7ft by 7ft. It does not have to have a closet to be considered a bedroom. - How often do I have to have my unit inspected?
Once the initial inspection is completed you will be required to have an annual inspection. Also you will need to have a reinspection if you change tenants. - Can I collect more than the SHRA approved rent (based on the income of the tenant)?
NO! That is a big no-no and could get you in trouble with the Feds. - What is the likelihood that you will see a reduction in your funding with all of the budget issues (this money does NOT come from the State of California)?
Chuck did not seem concerned about this. He did mention that in the past they had seen rents freeze (landlords could ot raise rent) but that is about it.
We had a great turn out for the meeting and learned a lot! Sometimes SHRA can be a real pain to get on the phone! Have you ever tried! I think most landlords give up after a couple attempts. It was a great treat to have an employee of SHRA all to ourselves.
If you are interested ... Join us next month at the Elk Grove Real Estate Group meeting!
This Blog written by:
Team Newington at First Priority Financial
Sacramento Mortgage Planners
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Hi Erin: Hey, $1475 for a 3-bedroom is nothing to sneeze at. That's good income!
Elizabeth: Great income but the tricky part is the tenant has to qualify for that rental amount based on their income. The feedback I got from area landlords who are currently servicing Section 8 tenants is that they rarely get the maximum allowable rent.