Here's a great reason to hire a professional property management company.
We're asked on a monthly basis to accept payments directly from a tenant when their Section 8 voucher won't meet the rent amount. Even owners have asked us to do this, most because they are simply unaware of housing guidelines. Of course, these extra payments are forbidden, and must be done on the sly, without Section 8's knowledge. Without exception our answer has always been and always will be "NO".
From New York, here's a text book example of why you should follow the rules. Niagra Capital, a corporation whose president was a swindler in the 1st degree, accepted payments directly from Section 8 tenants without the housing authorities' knowledge, and now they're paying the price- big time.
FROM THE OFFICE OF THE NEW YORK ATTORNEY GENERAL:
"This week, Niagara Capital pled guilty in State Supreme Court to a single count of Rent Gouging in the First Degree, a class E felony. Under the law, the company faces a possible fine of $10,000 or double the amount of the corporation's gain from the offense.
Under federal law, the maximum rent that may be charged to those who receive Section 8 benefits is established by the federal Department of Housing and Urban Development. Landlords are not allowed to charge tenants any additional rent.
According to charges, the company and its employees required more than 30 Section 8 tenants to make additional payments of up to $265 per month for an "option" to purchase the rented properties. The purchase of this "option" was in fact mandatory and Niagara Capital employees made it clear that Section 8 tenants would not be allowed to rent the properties unless they also agreed to pay for this "option."
By its plea, Niagara Capital admitted that these additional payments were, in actuality, additional rent that it was not authorized to collect.
As part of its plea, Niagara Capital admitted that it collected approximately $70,000 in illegal rent payments from Section 8 tenants between 1996-2000. Palano has agreed to repay $70,000 to the Section 8 tenants, plus interest."