How To Change Property Management Companies When I Have A Section 8 Tenant
I talk to many investors that are reluctant to change their Property Management firm when they have a section 8 tenant because they are not sure how the process will work or they are afraid they will lose money from section 8 in the transaction. I am talking to them at the point where they know the relationship is over with this Property Manager but the fear of the unknown keeps them from leaving.
The short answer to that concern is it is not a problem at all or there is little to no change to lose money for the investor especially if you are moving to a property management company that has experience with section 8. I tell my investor buddies across the country that section 8 process for management is really different then market tenant process so when you have a section 8 tenanted property you want to make sure you are working 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. With section 8 comes the ins and outs of each individual housing authority, inspection experience, and just knowing how to process paperwork so it gets done right the first time.
When an investor switches Property Management companies a “Change of Management” packet needs to be submitted as soon as possible.. This process can take 30–60 days so you want to get started the day you start with the new company. In order to submit the Change of Management packet there is information like the lease, the tenant’s voucher number, and tenants contact information that you want to make sure you get from your current Property Manager and in the hands of the new Property Manager so they can get this filled out. Prior to submitting the packet to the housing authority you as the owner will sign off on this Change of Management form as well.
In the meantime the old Property Manager will continue to get the rent so it is important that prior to ending your relationship you arrange with them a way to transfer you over the next month’s rent after the change to the new manager. If you submit the Change of Management packet as soon as you start with your new Property Manager then this should only be a one time issue the first month after you make the move.
Submitting paperwork incorrectly causes major delays with section 8. Remember you are dealing with the government so get it right the first time to control your destiny.
You may also enjoy these great resources: For More Section 8 Resources Click Here! #chicagolandpropertymanagement #chicagopropertymanagement #chicagopropertymanagers #responsivepropertymanager #chicagorealestateinvesting #realestateinvesting #propertymanagement