One of our properties in Round Rock is listed with Section 8. We received an inspection failure notice from the housing authority, citing a number of items that need to be “fixed.” None of them are really major, but they’re also not things that we would normally have to do if the property weren’t Section 8. That prompted me to reconsider the whole Section 8 arrangement. Is it worth it to us to do what amounts to upgrades? Should we simply let the “inspection failure” stand and drop out of the program entirely?
Most discussions among investors about Section 8 start with the frequent inspections. These inspections are performed annually by the Public Housing Authority, even if there has been no tenant turnover. There are 13 areas an inspector will look at to determine if the unit meets HUD’s safety and health standards, and it’s not uncommon to fail an inspection. Once you fix all items on the report, you have to schedule a re-inspection with the Section 8 office.