Section 8 Housing OKC: Is it a Good Deal for Landlords?

If you own a rental property in Oklahoma state, you will probably have to determine whether or not you want to become a property owner in section 8. There are mixed reviews of the experience of the landlords of Section 8 Housing OKC. So, in this article, we will be discussing what actually is the section 8 housing program in Oklahoma City and a little about whether it may be appropriate for you to become a Section 8 Landlord. You will also get to know whether it may be appropriate for the landlord to get a property management company involved in managing the OKC Section 8 rental property.

Section 8 housing program is a rental assistance program where low-income tenants are assisted by the local housing authority or Public housing authority for a certain amount of the rent. The Affordable housing program for Section 8 is administered and subsidized by the Public Local Housing Authority. Property Management OKC Section 8 serves affordable housing options with section 8 rentals in Oklahoma City OK and nearby cities.

What is the Advantage of OKC Section 8 Housing?

The advantage of the section 8 program is that the money provided to the section 8 landlord is given a guarantee by the government. But, there are limits to what the units can rent for.

So if you have a 2 bedroom house that could rent for $900 per month on the open market, you may not want to rent out Section 8 rental knowing that you are topped out at $700 or so per month. Or, if you have a 2 bedroom home that you are going to have to spend $15,000 to bring up to minimum standards, you may not want to lease it Section 8.

The Oklahoma Section 8 Program Can Be Very Good for Owners

Yes, you heard it right. The OKC Section 8 housing program can be very lucrative for landlords. Let me give the example of “Linda”, an elderly Section 8 tenant who has been in a client’s property ever since we took over management of the property more than ten years ago.

If there is drama in her life, we don’t see it. She’s like the aunt you wish you had. I can’t remember even one time when she’s been the least bit disagreeable.

It almost goes without saying that she takes excellent care of the property. And correspondingly, we take good care of her.

She doesn’t create maintenance problems by doing things like pouring grease down the sink. And when there is a maintenance issue, we hop right on it!

We’ve never had to charge her with one single maintenance call because she doesn’t create problems. And when we’ve maintenance to do at her property, she’s been patient with us when we’ve had to do repairs to her unit.

So what we have is a tenant who has been on the property for more than ten years, and shows no sign of leaving anytime soon.

That is a staggering amount of rent!

And, that the money comes straight from the government, so Linda has never presented us with a collections challenge.

It’s actually pretty simple.

As long Linda and the property stay within the guidelines of the affordable housing program, the landlord is going to get paid by the government. Linda also has a portion to pay, and she’s going to pay that portion so that she doesn’t screw up her housing.

It’s a pretty effective incentive. As you can see, this is very beneficial from the landlord’s point of view.

Oklahoma Property Management guides landlords with section 8 housing rules and regulations. Get to know about the Section 8 Housing Landlord Responsibilities

Here are the Cons of Section 8 Housing in OKC

You can’t just accept every single housing voucher that comes in the door. My company, OKC home realty service screens every section 8 recipient’s application just like any other applicant.

Every once in a while you’ll wind up with a housing voucher we have to turn down because of the person’s rental or credit history. These are the people whose bad habits overwhelm the fear they have over losing their housing voucher.

It’s the tenant who moves in three pit bulls when their lease says no pets.

Or, it’s the one who never bothers to pay their $13 portion, and therefore accumulates month after month of late fees. After three months, they suddenly owe close to $200 because they failed to pay $39 in rent.

It’s the resident who doesn’t report leaks resulting in $500 damage rather than a $25 repair.

But even when you move in with a section 8 tenant who is difficult, there are some things that can be done.

Landlords need to be prepared for every section 8 guideline. Get to know the Pros and cons of Section 8 in detail.

Section 8 Houses in Oklahoma City Requires the Tenants to Take Responsibility for Problems

I haven’t found a tenant yet who wants to pay for repairs, but when you don’t put your foot down that tenant will walk all over you. Yes, there will be wailing and gnashing of teeth. There will be cries of how unfair…and why it wasn’t really their fault. There are section 8 rules for tenants and they need to follow each and every rule.

And, you may not get paid for those repairs. But sometimes you have to choose between making repairs or moving the tenant out. Because this is for sure: If the housing inspection doesn’t pass because repairs are done, the payments from housing to the owner will stop.

For example, I had an OKC section 8 tenant who flushed a bunch of turkey bones down the toilet during Thanksgiving.

That’s right, BONES down the drain. It caused all sorts of problems beyond just the fact that the tenant couldn’t use her toilet. Five adjacent units couldn’t use theirs, either. And, the flooding in ALL the units was a definite drawback.

Guess what? 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.

If you are wondering if Section 8 is right for you, here are a few items to consider

For section 8 approved properties in OKC, rents are supposed to be in line with market rents. There are allowable ranges. That means every OKC metro area neighborhood may not be amenable to Section 8.

How about section 8 houses for rent OKC?

For example, a typical nice 1-bed apartment in many parts of the Oklahoma City metro area rents for $500-$600. The typical rent for a 2-bed house in the Oklahoma City metro is $600-$750, and rent for a 3-bed house is $750-$950. A 4-bed house is typically in the $850 to $1,100 per month. A tenant with a voucher for a property in those rental ranges should be able to get rental housing assistance.

The tenant’s income sometimes puts a cap on the rent which is lower than the allowable section 8 rent. Allowable rents are based on rental comps for the neighborhood.

In that case, the landlord can decide if she will accept the rent or not.

So it should go without saying that not every property can go to section 8. There are some more expensive units, for example, a $1,400 per month 3-bedroom home, that’s not going to qualify for the program. Simply, not every property can be a section 8 approved property OKC.

Take a look at How to Apply for Section 8 Housing In Oklahoma.

There is an inspection process

The unit has to pass a HUD inspection. The basic premise is that everything in the unit must be in working order.

For example, your property cannot have peeling paint, air coming in at doors and windows, cracks, or openings in the house. The property must have operating appliances. In short, it must be move-in ready.

There is 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.

These are items that would need to be done anyway to keep the home in good repair. That’s where realtor OKC can guide you.

Section 8 is not everyone’s cup of tea

Section 8 is not for every landlord. There are section 8 rules for landlords which need to be followed. Read it here to know why.

Our Property Management OKC Section 8 Success Program

If it seems like I know a thing or two about the Oklahoma City Section 8, there’s a reason for that.

About 1/3 of the properties our agency leases are currently on Section 8. And, we have a program called Property Management OKC Section 8 Success that helps our owners to make money through the program.

Note: Find Section 8 Approved OKC Properties.

Many OKC property management companies flat refuse to deal with section 8 in Oklahoma City because of all the hassles.

The Property Management OKC Section 8 Success program includes the accounting, leasing, and management aspects.

If it’s a property that is 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. If you’d like to find out more about that, you can contact a member of our Property Management OKC Section 8 team.

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 these items will be fixed.

The Section 8 Realtors OKC team can give you an idea of how much repair expense you might potentially be looking at. Call us today at 14052325800.

Frequently Asked Questions about Property Management OKC Section 8