Maybe you’re a new landlord just starting out and you’re wondering if you should rent one of your units to section 8 tenants. Some people feel like these tenants are going to be a major hassle and nothing but trouble. They fail to realize the benefits of having section 8 tenants living in their units.
Strictly speaking, section 8 is part of the Housing Choice Voucher Program that was founded in 1937. Ultimately, the voucher is capable of paying the balance of rent payments due that exceed 30% of the renter’s income on a monthly basis. It’s a federal program run by HUD and each state has their own office in the Public Housing Authority.
Before renting to section 8 tenants, you must be approved to become a landlord. The public Housing Authority will inspect your units and make sure they meet the right standards before you can get approved.
As you can see, it’s definitely worth it to consider renting to section 8 tenants. To help you better understand why this could be positive for you as a landlord, we’ll provide some more of these benefits below.
The Government Consistently Pays the Rent Each Month
Out of all of the potential benefits of renting to section 8 tenants, this is definitely going to be the biggest perk. You have an opportunity to collect subsidies that pay a large amount of the money that’s owed to you from the tenant. You’ll get it via direct deposit or a mailed check, so you don’t have to worry about losing out on rent money because the tenant didn’t pay.
Yes it’s true, because if your tenant fails to pay their part of the rent, they may end up losing their housing voucher. So not only are you going to get your money directly from the government exactly when you expect it, you’re going to get your rent money from the tenant on the first of every month because they do not want to lose their section 8 benefits.
The Tenant is Already Prescreened
The Housing Authority is going to take the time to prescreen the tenants to find out if they qualify. They are going to perform drug tests and background checks for all adults 18 years or older.
As a landlord, this additional screening process is going to give you extra protection. You’ll know that the tenant passed strict testing done by the Housing Authority, so you can feel comfortable knowing that you’re renting to a good and trustworthy occupant.
Lastly, because you’re renting to section 8 tenants who have the Housing Authority paying the majority of their rent every month, you’re going to have lower vacancy rates in your multifamily units. Plus, you’ll have the ability to get tenants from a bigger pool of people in need of housing, so it’s a win-win scenario no matter what way you look at it.
Clearly, renting to section 8 tenants is a good thing for a few different reasons. The big one is the Housing Authority pays the bulk of the rent every month. But having lower vacancy rates and prescreened tenants certainly doesn’t hurt either.
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