I often speak with investors who hesitate to change their Property Management firm when they have a Section 8 tenant. They're unsure about the process to follow or are worried about losing money in the transition. I typically have these conversations when they've reached the point of knowing it's time to part ways with their current Property Manager, but the fear of the unknown holds them back.
Let me address this concern directly: switching Property Management firms when you have a Section 8 tenant is not a problem at all, and the chances of losing money are minimal, especially if you choose a Property Management company that has experience with Section 8.
I always advise my fellow investors across the country that managing Section 8 properties is quite different from managing properties with market tenants. Therefore, it's crucial to work with a management company that has at least 5% of their units under management with one of the local Housing Authority Section 8 Housing Voucher Programs. Dealing with Section 8 entails navigating the specific rules of each Housing Authority, having inspection experience, and understanding the proper paperwork procedures to ensure everything is done right the first time.
When you switch Property Management companies, you'll need to submit a "Change of Management" packet as soon as possible. This process typically takes 30-60 days, so it's best to initiate it right away upon starting with the new company. To complete the packet, you'll need to provide important information such as the lease, the tenant's voucher number, and the tenant's contact details. Make sure to obtain these from your current Property Manager and provide them to the new Property Manager so they can fill out the necessary forms. The best way to do this is to request the current Contract Rent Notice or Housing Assistance Payment (HAP) forms. These forms detail the participant’s name, voucher number, authorized occupants within the household, and the payment portions, so you can know how much Section 8 is covering and how much of the current rent is the tenant’s responsibility. As the owner, you'll also need to sign off on the Change of Management form before submitting it to the Housing Authority.
Meanwhile, your previous Property Manager may continue to receive rent payments. It's crucial that, prior to ending your relationship, you arrange a way to transfer the next month's rent from them to the new manager. By submitting the Change of Management packet promptly after starting with your new Property Manager, this should only be a one-time issue in the first month following the transition.
Keep in mind that submitting paperwork incorrectly can cause significant delays with Section 8. Remember, you're dealing with the government, so it's essential to get it right the first time to control your own destiny.
Are you unhappy with your current property management company? Now is the time for a change. As an owner of Section 8 housing, you have options. Contact us to explore what options we have for you. We have years of experience assisting owners through the transition process to ensure minimal disruption for your tenants. Our dedicated staff will handle the details so you can have peace of mind. Make the switch today and experience the difference of working with a company that shares your commitment to providing safe, high-quality affordable housing. Your tenants and your bottom line will thank you!
Chicago Investor Resources Shared
Need More Info?
Should I Rent or Sell