Will Section 8 Tenants Destroy My Property? What 820 Units Taught Me

This is the number one fear for everyone starting out. They think they are going to buy a house, put a Section 8 tenant in it, and three months later the copper pipes will be gone and the walls will be full of holes. Look, I have 820 units. If they were all being destroyed, I would be bankrupt, not making 1.3 million dollars a month. The reality is that property damage is a management failure, not a tenant failure. If you let a property sit for two years without ever checking on it, yeah, it might be in rough shape. But if you follow my system, your houses will stay in great condition. Here is the reality of what happens when you own this many units.

The Magic of the Annual Inspection

Section 8 is the only rental program that comes with a free professional inspector. Every year, the housing authority sends a guy to your house to make sure it is safe and habitable. They check the plumbing, the roof, the windows, and the electrical. If the tenant has caused damage, the inspector will see it and tell them they have to fix it or they will lose their voucher. high stakes help.

This is a huge advantage over traditional rentals. In a normal rental, a tenant could hide a leak under the sink for three years and you would never know until the floor rotted out. With Section 8, that leak gets found during the annual inspection. It forces the landlord and the tenant to keep the property up to a high standard. It is built-in preventative maintenance.

Normal Wear and Tear vs. Malicious Damage

You have to understand the difference between wear and tear and damage. If the carpet needs replacing after five years, that is wear and tear. That is just the cost of doing business. If there is a hole in the door, that is damage. In my experience, malicious damage is extremely rare. Most of the costs people complain about are just things they should have been saving for anyway.

I budget about 10 percent of my gross rent for maintenance. Some years I spend less, some years I spend more if a roof needs replacing. But as far as tenants 'destroying' houses, it happens in less than 1 percent of my portfolio. The stories you hear on the internet are the exceptions, not the rule. No one goes on Facebook to post about their tenant who paid on time and kept the house clean for ten years.

Pre-Inspections and Keeping Control

My property managers do their own inspections every six months. They don't just wait for the housing authority. They walk through, check the filters, and look for any unauthorized pets or people. This shows the tenant that we are present and that we care about the property. People are much less likely to neglect a house when they know the owner is paying attention.

We also take hundreds of photos before a tenant moves in. If there is damage when they leave, we have the evidence to back it up. We use the security deposit for what it was intended for. This professional approach keeps everyone honest. If you act like a professional, your tenants will usually act like professionals too. It is all about setting the tone early.

The High Value of the Voucher Reward

I say this all the time: the voucher is the tenant's most prized possession. In many cities, the waitlist for Section 8 is ten years long. If they get kicked out of the program for damaging a house, they will never get back on it. Most of my tenants are terrified of losing that support. They will do everything in their power to keep the house in good standing.

This is actually the best 'security deposit' you could ever ask for. It is better than a thousand dollars in a bank account. It is the peace of mind that comes from knowing the tenant's entire lifestyle depends on them following the rules of the lease. This level of accountability just doesn't exist in the 'C' class cash market. It is why I love this niche.

Screening for the 'Pride of Choice'

I don't just put anyone in my houses. I want the tenant who chose my house because it was the nicest one on the block. When a tenant is proud of where they live, they take care of it. That is why I spend a little extra on the renovation. I put in nice flooring and clean appliances. I want my house to be the one they are afraid to lose.

If you give someone a dump, they will treat it like a dump. If you give them a home, they will treat it like a home. Most of the 'destroyed property' stories come from landlords who were renting out sub-standard housing to start with. You get what you put in. I put in quality, and I get quality tenants and well-maintained properties in return. It's a simple formula that works.