Should You Charge Your Section 8 Tenants for Repairs?
/We do not charge Section 8 tenants or any tenants the first $50-$300 in repairs and we have good reasons!
I shouldn't make a moral judgment whether or not it's actually gouging a tenant. Part of me thinks it is, especially if it's a repair that the house needs that is not even a tenant-caused damage. But if a tenant agrees up front to pay the first $50-$300 in repairs, then how is that wrong? I don't know.
We just don't charge the tenants any part of the repairs because we find that the damage they do in making the repairs isn't the least bit worth it. And trying to collect repair costs in court is not worth the legal fees and all the tracking we would have to do. But I only know DETROIT.
I'm curious how it is for you in other cities. What are your thoughts?
This video was inspired by a post someone made on Facebook about someone else’s Section 8 course. Part of the reason he claims really high ROIs is that he charges tenants the first $300 in repairs. I don’t see this working even if it’s in the lease. From my experience, our tenants have priorities and fixing our house would never be on that list. It’s wonderful when we find tenants who prioritize rent. That’s a win!
If they have to pay for the repair, I don’t see them ever calling the person we tell them to call to do the repair. I could see them calling their handyman uncle to do the repair and then the handyman uncle doing it all wrong. It’s amazing once a tenant has moved out, the “repair” work we’ve seen tenants do on their own. It’s never right. They think it’s right, but it’s simply not right. And we don’t even ask them to pay for the repairs. But they will repair things when they don’t want us in the house for whatever reason, usually because they’re not paying rent.