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Old 05-29-2009, 05:29 PM   #21
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In a non-college market I would be wary as rents in general will continue to go down as more and more foreclosures happen. The banks are resisting to foreclose on many, many individuals who have already stopped paying because as soon as the bank does in fact foreclose, they have to write down the mortgage on that property to the current value. The banks are sitting on these homes and thus are sitting on huge losses.

In a college town I worry about the supply of renters in the next few years as student loans and financial aid are becoming increasingly hard to get as not only are interest rates going up, but many states are looking to solve their budget worries with cuts in tuition assistance programs.
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Old 05-29-2009, 06:32 PM   #22
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Originally Posted by calmloki View Post
Usually section 8 pays a portion of the rent and the tenant the remainder - if they don't pay they don't stay, but it's more likely (IMO) that an eviction would be required - which is expensive and time consuming, though your state's laws may differ from mine. Some landlords like section 8, we don't care for the increased bureaucracy. I can normally fill a unit quicker with a tenant who pays their own way and signs my contract than waiting for a section 8 inspection, filling out the 1/2" of paperwork, etc.

Jim, section 8 may be ok for you - i betcha that our local agency has 600 "clients" and they cut 20. May be a harbinger of the future of government aid programs though.
I would definitely not take Section 8 tenants now, esp in California. The state is broke, and is a bleeding heart state, which means when the state and the tenant can no longer pay, you'll have a unit occupied by a deadbeat for a long time.

We had two section 8 tenants over 10 years ago. Had to sell the homes at the end of the Sec 8 contract in order to be able to get them out. We also found Sec 8 tenants to treat the property especially poorly (one had rebuilt his motorcycle on the living room floor - oil everywhere, another was too lazy to go to the bathroom itn the middle of the night and preferred whizzing in the corner of the room). We are not likely to ever become landlords again, and if we do, we will never ever work with Sec 8 tenants again.

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Old 05-29-2009, 06:38 PM   #23
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Originally Posted by calmloki View Post
It's the economy stupid! Just got a letter today regarding one of the few section 8 tenants we have:

MAY 28,2009
-I wonder why "Temporary" is in quotes? Maybe even the city doesn't believe their BS.
- The style is funny/typical. Don't put the bad news (the purpose of the letter) right up front, bury it 16 lines down. ("Therefore, we will also be terminating some families, including your tenant."). Only an idiot thinks this is "better"--it is worse.
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Old 05-29-2009, 07:11 PM   #24
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Got a similar "scare" during the last recession ... then HUD "found the $$". Don't panic yet. Obama's coming.

Heck I am putting thru a Section 8 stimulus rent increase this year.
FIRE'd since 2005
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