To begin with, many landlords don’t accept Section 8 vouchers, which leaves these tenants with fewer options. However for many, there are certain hardships of being a Section 8 landlord that outweigh the potential rewards. Renting to tenants with housing vouchers is a great option for many landlords. What are the advantages to signing a lease agreement with Section 8 tenants? In addition to qualifying a tenants income, the housing authority also performs criminal background checks and drug testing for all household members that are 18 years of age and older. This Section 8 benefit goes hand in hand with the one above. If you’re looking to become a Section 8 landlord, here’s a quick overview of what you need to know, and how to get started. In other cities, accepting Section 8 is optional for landlords. We donate 10% of all profits earned through real estate transactions. on: function(evt, cb) { If you do not have the financial ability to wait a couple of months to receive the first month’s rent, then you might want to reconsider renting to Section 8 tenants. Remember, Section 8 no longer pays all or even most of the rent for the tenant. HUD-owned property is still available and now may be a great time to invest in section 8 housing! } HUD will subsidize for this particular family on a two-bedroom rental, paying the rest after what the tenant is required to pay, which is 30% of the household’s income. by Julia McMullan. 1. A foreclosure and eviction moratorium was declared by the President for the COVID-19 National Emergency. The Section 8 process is fairly straightforward. You’ll have to replace the carpets often, but not the padding. If you are consistently doing your own inspections and fixing issues as needed, these inspections can go smoothly. Also known as HUD housing, this program grants vouchers to tenants that act as a guarantee that … In practice, the voucher program will pay the balance of a rent payment that exceeds 30% of a renters monthly income. The Section 8 program is an amazing opportunity that allows landlords to make a real difference in the lives of low-income families, while providing financial security for the landlord. The government portion of the rent is sent directly to the landlord and the tenant, in turn, only pays 30% of their income on … Because Section 8 guarantees rental assistance for individuals who qualify (as long as there isn’t a big change in income or family size), most of these tenants stay longer. Kate has a diverse background in marketing and education, with a bachelors degree in Communications and a Masters in Education. Funds are distributed first by the … Does this first rent check cover back rent or do you really lose 2 months worth of rental income? This means that higher income areas are included with the lower ones when calculating fair market rent. Schedule inspections and throw in a “I am doing a smoke detector check” surprise. This is very far from Trump’s assertion that the AFFH rule was requiring rezoning of suburbs or even to build affordable housing.”. This is intended to help increase housing options to Section 8 recipients other than just low-income areas. Comment below: Have you ever worked with Section 8 renters? They may assume the worst of these tenants and not want to be their neighbor. As such, by participating in the program, your property becomes marketable to a wider pool of tenants which gives you a better chance of getting it rented quickly. This could be an issue because the tenant has already shown to have income problems. As a landlord this can help you avoid rental payment issues that could arise from a full-paying tenant facing a similar financial dilemma. Rental Application Step 1. callback: cb You advertise your rental home for new tenants and you get approached by a prospective tenant on the Section 8 housing program. Under Section 8 Housing, there are two different ways that vouchers are given out. Eligible individuals and families are granted housing vouchers that will cover 70 percent of their rent and utilities. I might try it for my next property, see how it goes! Several local housing authorities also maintain websites or a separate lists of landlords who accept housing vouchers in their areas. It’s important to note that the demand for Section 8 housing far exceeds the supply. Are there any adverse effects from being a Section 8 landlord in the past? As of April 1, 2018 the Small Area Fair Market Rent rule has been enacted by HUD. Great points Jenny, thanks for adding them! Here are some tips for success, when starting out with Section 8 vouchers! However, the opposite could be said because tenants have more incentive to stay in good status with the landlord’s policies to avoid losing their voucher. I am interested in Alligators in the bathtub? This voucher allows the tenant to look for housing within a certain price range. I’ve has renters who actually repaired items with my approval and installed ceiling fans again w my ok. But if you buy rental properties in low-income housing markets, your local laws may require you to accept Section 8 vouchers. Make your rental “strong like bull”! Hi Pam, unfortunately you’ll have to wait until the CARES Act expires in late July to non-renew your Section 8 renter. When you accept Section 8 tenants, you can fill your vacancies faster. The purpose of this program is to grant housing choice vouchers to individuals who meet certain criteria. What: A form that landlords in the HCV program complete and return to the PHA to request a rent increase after the initial lease term. People are people. In addition, it would be wise to only accept vouchers from tenants with a good standing rent history. Many landlords are wary of Section 8 tenants. Always, no matter what you think you can tell about a person run a background check. The vouchers cover a portion of the rent based on how much rent you can afford. Chief Ben Carson of the Department of Housing and Urban Development (HUD) is known to oppose aspects of the housing assistance program. In order to operate a Section 8 rental, the local housing authority must approve both the landlord and the property itself. Oh, you will get it eventually, but count on covering your expenses out-of-pocket for the first few months. These include insufficient income, poor credit, eviction history, and bad landlord references, among others. It’s easier to rub scuffs away on glossier finishes rather than flat paint. Most cities allow landlords to raise the rent in the 5-8% range per annum. Just imagine telling your mortgage company “I’ll get it to you eventually!”. It has been something I have been interested in. Required fields are marked *. That you’d be reimbursed for any damage caused? If you decide to work with a section 8 administrator in Erie county they will tell you this directly. , select your state and then your county. When I broached the subject of a rent increase in 2020, the PHA outright refused to explain their calculations, told me that under no circumstances would they increase the Section 8 contribution, and that 100% of any increase in the rent would have to be born by the tenant.