4.8 million households in the U.S. receive housing assistance, and 2.1 million of them receive housing vouchers. This is the section 8 program that helps people with low incomes find housing.
Are you considering participating in the section 8 program by turning your property into a section 8 property? What does that mean anyway?
We're here to talk about it. Read on to learn all about section 8 housing and the benefits of accepting section 8 tenants.
What Is Section 8 Housing?
Section 8 housing is affordable housing. Section 8 gives people in need under a certain income limit a voucher that covers about 70% of their rent and utilities. This allows people who otherwise would not have been able to find apartments to have secure housing for their families.
Section 8 is incredibly competitive. There are long waitlists not only for the program itself but also for section 8 housing. Not all apartments and rental homes are section 8 homes.
Tenants are responsible for finding their own housing once they have section 8 vouchers.
Pros and Cons of Section 8 Tenants
So why would you, as a landlord, want to consider leasing to section 8 tenants?
Let's talk about the downsides first. Many landlords don't want to lease to section 8 tenants because they won't be able to set a higher rent. They think that they'll always have more profit if they rent to "standard" tenants.
Many people also worry that section 8 tenants are too unreliable. They may read into stereotypes and misconceptions about low-income tenants.
However, renting to section 8 tenants is fantastic for several reasons.
First, you won't have to deal with as many long vacancies (if any). You also don't have to advertise your own property. Your property will be put on a list of section 8 housing options as soon as it's vacant, and because these housing options are so few and far between, you should have no problem finding someone to rent your space in no time.
While you may collect less money per month, you know that you're getting at least 70% of the rent every single month. Because the rent money is coming from the government, you don't have to rely as heavily on the tenant.
Overall, landlords should not underestimate the value of renting to section 8 tenants.
How to Rent to Section 8 Tenants
So how do you rent to section 8 tenants?
Contact your local PHA to see their requirements for section 8 housing. Make sure your property meets those requirements. If it doesn't make changes before moving on to the next step.
You'll then have a home inspection. The inspector will make sure that you've done everything necessary to meet section 8 requirements.
The PHA will provide you with a series of documents to sign that will allow you to receive section 8 payments. Then, you can start finding your tenants! The PHA will advertise your home to help out.
Are You Going to Rent to Section 8 Tenants?
Renting to section 8 tenants guarantees you consistent rental income and it allows you to help someone in need. What's not to love? Turn your property into section 8 housing with the help of your local PHA.
Are you looking for help managing your southwest Florida rental property in Bradenton, Lakewood Ranch, Sarasota, Venice, or the surrounding area? We want to help you! Contact us to learn more about our property management services today.
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