COVERING THE BASICS
Simple, not easy.
That’s how we’d describe our experience working with housing assistance agencies. In theory, it’s simple to schedule an inspection, review some paperwork, and process a tenant move in. In reality, it’s not quite that smooth. Before you dive in to working with an agency, consider some pros and cons.
PROS
- Guaranteed on-time rent payments
- Lower than average vacancy rate.
CONS
- Regular inspections by housing assistance agency
- 6-8 week processing times for ownership transfers, new leases, inspections, and lease renewals
- Above average makeready cost
- Required repairs are non-negotiable
- Background check is owner expense (VA Only)
- Insurance can be more expensive
- Management fees can be more expensive (check out our fees here)
- Tenants can order a home inspection any time and force repairs
ACCEPTED AGENCIES
- Oklahoma Housing Finance Agency
- Oklahoma City Housing Authority
- Veterans Affairs
- Homeless Alliance
- Independent Opportunities
PROCESS AND TIMELINE
Housing assistance is complicated and time consuming.
Okay, okay, okay. Maybe that’s a bit generalizing. Sometimes we work with a housing assistance agency and the process is great. Most of the time, it involves juggling contacts, rescheduled appointments, fax machines, and sitting on hold. Each agency is different but here’s a general overview of what to expect for the leasing process, lease renewal process, and annual inspection process.
Leasing
Phase 1: Leasing
4 weeks
- The tenant submits a rental application
- We screen the tenant.
- When the tenant is approved we schedule a time for the applicant to sign initial paperwork for the agency.
- Our team completes paperwork and sends it to the housing assistance agency to initiates the move in process.
Phase 2: Move In Inspection
2-8 weeks
- The housing assistance agency performs a property inspection. All utilities must be on and the stove and fridge also must be installed for inspection.
Phase 3: Failed Inspection
2-8 weeks
- Almost all properties fail their first inspection.
- If we fail the inspection the agency submits a list of defects to be repaired before a tenant can move in.
- Our team completes repairs and orders a reinspection.
- Inspections are conducted until all deficiencies are corrected. Inspectors can add new repairs to the list at the reinspection.
Phase 4: Passed Inspection
2-8 weeks
- When all inspections are passed the housing assistance agency confirms the portion they will pay toward the rent rate. The lease is executed, deposit is collected, and keys are given to the tenant upon passing the inspection.
Phase 5: Move In Processing
2-4 weeks
- The housing assistance agency processes the paperwork and initiates monthly payments
- Housing assistance deposits payment on the tenant’s behalf by the 5th of each month after processing is complete.
- Rent payment begins on the lease start date.
- Often, the agency is delayed in their processing so they back pay when the first payment is processed.
Lease Renewal
Phase 1: Market Assessment
< 1 week
- Our team reviews rental comparables to determine if the property is leased at market rate.
- If the rent rate is below market we apply for a rent rate increase with the housing assistance agency.
- This process begins ~90 days before the lease expires
Phase 2: Processing
4-6 weeks
- The housing assistance agency processes the application
- Housing assistance notifies our office of their decision to increase rent or not.
- Housing assistance adjusts the rent rate after processing is complete.
- When the rent rate has increased we execute an updated lease with the tenant. This lease can be an annual renewal or a month to month renewal.
Annual Inspection
Phase 1: Annual Inspection
4-10 weeks
- The housing assistance agency performs a property inspection.
- At the time of the annual inspection the tenant provides new proof of income to the agency to recalculate their rent amount.
Phase 2: Failed Inspection
2-8 weeks
- If we fail the inspection the agency submits a list of defects to be repaired before a tenant can move in.
- Our team completes repairs and orders a reinspection.
- Inspections are conducted until all deficiencies are corrected. Inspectors can add new repairs to the list at the reinspection.
- If a property fails an inspection two times the property enters “abatement.” Section 8 discontinues payment until all repairs are made.
Phase 3: Passed Inspection
2-4 weeks
- When all inspections are passed the housing assistance agency confirms the portion they will pay toward the rent rate.
One Comment