Section 8 in Oklahoma City is Landlord Nirvana
Section 8 in oklahoma city can be landlord nirvana.
I’ll give you perfect example.
We have a section 8 tenant who has been in a client’s property ever since we took over management of the property seven years ago.
That tenant was in the property for a few years prior to us taking over the management.
The tenant is elderly and takes excellent care of the property.
We hear from her very infrequently.
So what we have is a tenant who has been in the property for about ten years, and shows no sign of leaving anytime soon.
Keep in mind that the money comes straight from the government.
As long as the tenant and you stay within the guidelines of the housing program, the landlord is going to get paid.
The lady also takes excellent care of the property.
The program requires that the tenants take responsibility for problems they cause.
It’s not always easy to get tenants to take this type of responsibility.
But you can sure do it with section 8 tenants.
For example, I had a section 8 tenant who flushed a bunch of turkey bones down the toilet during Thanksgiving.
It caused all sorts of problems, such as flooding in the unit (and the adjacent one).
That tenant got charged for all the plumber’s work and all the clean up.
It was more than $500, but they sure enough paid for it.
As a landlord, you can’t ask for much more.
About 1/3 of the properties we lease are currently on Section 8, so I’m very familiar with the program.
What exactly is Section 8? The Department of Housing and Urban Development (HUD) provides housing assistance to millions of people across the US. This assistance is called Section 8.
I hope to dispel a few of the misconceptions about the section 8 in Oklahoma City in this article.
Section 8 is a rental assistance program is administered by the a local housing authority. Their are two Section 8 offices in Oklahoma City, the Oklahoma City Housing Authority (OCHA) and the Oklahoma Housing Finance Agency (OHFA).
How about the rents? I think you will find the rents to very interesting.
Rents are on par or even slightly above what you could expect for a given neighborhood. For example, a typical nice 1 bed apartment in the Oklahoma City metro area rents for $450-$550. Typical rent for a 2 bed house in the Oklahoma City metro is $550-$650, and rent for a 3 bed house is $650-$850. A 4 bed house is typically in the $850 to $950 per month.
I know what you are thinking. Give me some specifics.
Here is the perfect example.
I bought a big 4-bedroom house in not the best neighborhood.
The fanciest upgrade was adding a 2nd bathroom.
It’s very plain. Hardwood flooring and peel and stick vinyl tile throughout.
It doesn’t even have central heat and air.
I think the total investment in this place was something like $35,000.
Yet it rents for $850 per month!!!
Let that sink in a minute.
My company takes on houses all the time that have been difficult to rent because of the neighborhood. Houses like the one I just mentioned.
We put them into our section 8 in oklahoma city program, and ended up with a good long-term rental tenants. These types of deals can be very profitable for the owners.
It also can work out well for apartments. It can help stabilize occupancy in an apartment building by adding some section 8 to the mix.
Sounds great, right? Well, there are some trade offs.
There is an inspection process. The unit has to pass a HUD inspection.
Your property cannot have pealing paint, air coming in at doors and windows, crack or openings in the house.
There are a whole list of do’s and don’ts when it comes to the condition of the property. For a property that has been newly rehabbed, it’s usually a cinch to get it through a section 8 inspection.
The thing is, all of the items on the inspection list are completely reasonable.
So what’s the problem?
I’m not sure, but there are those who have a problem with it.
Many OKC property management companies flat refuse to deal with section 8 in oklahoma city.
I embrace section 8 in oklahoma city. I think it’s great.
We’ve gotten really good at passing inspections.
In fact, my team and I are quite disappointed if we don’t pass the inspection the first time.
To find out how we are doing that, Click here to find out how.
If it’s a property that a little tired, you may end up with a very long list of repairs as a result of the inspection. On the one hand, the last thing you want to do is spend a fortune on the property. On the other hand, you may want to bring the property up with those repairs regardless because a property that doesn’t have issues tends to retain tenants longer term. You’ll also spend a lot less money on maintenance because stuff will be fixed.
A friend of mine who lives in Oklahoma City made the decision years ago to focus on putting most of his properties on the section 8 program when he had fewer than 100 properties. Now he has more than 400, most of which are on section 8. He gets more than $1,000,000 each year directly from the government. He’s one of the most successful real estate investors in the area, a part do to his commitment to the rental assistance program.
If you have other questions about how our section 8 property management okc program works, contact me directly.
Scott Nachatilo on Google+!