The Section 8 program has several advantages. The good thing about the first unit is it is duplex down to the basement. Below is a listing of the most … We have different inspectors, each with their own personal pet peeve. We have it stated clearly in our lease five times about this type of lease violation, but I guess some folks still think they can get one by us. Potential buyers who are not interested in accepting housing vouchers may not want to deal with the hassle of ending leases to be able to rent to the free market again. I also have found that a big problem with subsidy is that even though the rules are that they will loose their subsidy if they do not pay and get evicted it is far too easy for them to contest and just get reinstated. The Project-Based voucher is attached to a specific property. When you couple this fact with the consistent and timely rent payments you’ll receive from government and the willingness of Section 8 tenants to pay their rent, many landlords enjoy (and some even prefer) Section 8. Family, friends, usually a boyfriend. A property manager’s job is to have a plan in place ahead of issues arising. Below, is list of the top 5 benefits of renting to tenants with housing vouchers. Additionally, Section 8 requires that properties be held to certain HUD-approved standards, and all Section 8 rentals must be inspected before the landlord can receive money from the Section 8 program. Participants find their own housing to rent in the open market, and pay a portion of their income towards rent. While there are many benefits of renting to Section 8 tenants, there are also some potential disadvantages. As such, plans to expand affordable housing may be stymied. The Housing Choice Voucher Program, which was founded in 1937, is an affordable housing initiative that allows landlords to rent homes at lower market rates to qualified low income tenants. In perverse government logic, I can push my renter out, she can go to another landlord and Section 8 will pay current market value. The local Public Housing Authority will directly pay the subsidy amount to the qualifying property/landlord. Renting to tenants with housing vouchers is a great option for many landlords. Although most of the six other tenants are more recent, historically very few of our neighbors are or have been transients. Related: 8 Myths About Section 8, Corrected: Here’s the Profitable Truth. Finally, we have a third guy who insists on making sure bathroom sinks have stoppers, or if there is an old water stain on a ceiling tile that it get painted. I have 2 section 8 properties in Greenville, SC. This includes copies of notices sent to the tenant explaining the violation(s) and when corrections need to be made to avoid eviction. It may be difficult to sell your property with Section 8 tenants later down the road. Inspections here are also strange. Grant Cardone Is Both Very Right and Very Wrong: Let’s Pick Apart His Advice, You Can Avoid After-Hours Phone Calls From Tenants—Here’s How. As a landlord this can help you avoid rental payment issues that could arise from a full-paying tenant facing a similar financial dilemma. One of Biden’s affordable housing proposals includes more funding for Section 8 housing vouchers. And it’s on your dime. I can put another Section 8 renter in the unit at fair market value. Otherwise, the occasional “bad apple” tenant here has been more of a nuisance with an attitude who, in spite of their bluster, quiety took their ball and went home at the end of their lease. While the rent portion coming from the government is virtually guaranteed, many landlords fear that the tenants may be to poor to … Create an account today to get BiggerPocket's best blog articles delivered to your inbox. There are never any guarantees with real estate or government assistance, such as in the housing program. When tenants move into a property that participates in the Project-Based Section 8 Program, they receive the same type of financial assistance as tenants with a voucher. Something else to keep in mind is that if the tenant is dropped from the program, *you’ll* need to evict them, not the agency. Both of these services are provided free of charge to tenants and landlords. If you are buying a property with current voucher tenants, you may keep this status with those tenants by both the seller and you, the buyer, signing a landlord exchange on a W-9 form. 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. I know how to change fuses and reset circuit breakers. – Should I finish the basement and add a bedroom so that the first unit becomes 3 bed/1Bath for more money? When the tenant moves, the assistance can move with them. This is intended to help increase housing options to Section 8 recipients other than just low-income areas. In order to accept housing vouchers, your local housing authority must approve both you, the landlord, and your property. These are tenants I call the “Inviter;” they get an apartment paid for by Uncle Sam, you approve and accept them, give them the keys, and soon-oh, so soon afterwards-some one has moved in with them. The government has been releasing plans to help those who are now out of a job, but who knows how long some people won’t be able to work. Home » Learning » Is Section 8 Good For Landlords or Not? We screen them thoroughly and non-renew or early-terminate (in agreement with the local authority) if there are problems. Half my renters are S8. Cory, the agency does NOT pay the security deposit; the renter does. It is very discouraging to see our tax dollars at work like this. He is currently proposing an increase of the percentage that low-income tenants contribute toward housing, from the current 30% to 35%. That said, if a Section 8 tenant is delinquent on their rent you can evict them as you would a normal tenants. In Some areas, there is a shortage of Section 8 housing so landlords can also count on a decent rental rate from HUD. Section 8 of the Housing Act of 1937 (42 U.S.C. We just need a few details to get you set up and ready to go! We recently had a webinar featuring Section 8 properties in Baltimore. In many places, there’s up to a two year wait for housing assistance because the program is so underfunded. Nov 26, 2020. However, these recent and upcoming changes create uncertainty in both the minds of recipients and landlords. There is one small piece of leverage we do use with tenants getting out of line: we place them on Probation, letting them know how they have defaulted on their lease, and telling them-in writing-that if there are any further issues we will proceed to evict, which will cause them to loose their S8 voucher for 5 years. From there, the landlord will determine whether the violation is severe enough to evict the tenant. I get a direct deposit from the Government for all or most of the rent on each house. This may be from complications with old age, disabilities, or other health issues. Biden’s overarching plans include expanding affordable housing, particularly for low-income American’s. Just because a tenant is on Section 8 doesn’t automatically make them a good or bad tenant. These must be different types of units? Section 8 is part of the housing choice voucher program, in which qualifying individuals receive vouchers to find their own housing. In NYC, landlords accept Section 8 tenants because, at a minimum, they will receive the rent from the voucher. She’s worked in digital marketing for 9 years and is knowledgeable in a wide range of real estate related topics. I am in the process of closing on a Multi-Family Home in Austin, IL. According to HUD, about 75% of households that are eligible for Section 8 vouchers do not receive them. Many landlords think the better aspects of the program outweigh the bad, but it is up to you to decide. 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. Become a member of RealWealth® to watch the replay and to View Sample Section 8 Properties in Baltimore and other markets. Since these tenants are not paying much for the rental, they have less incentive to keep the property in great shape. Hi Schumway, While there are a variety of benefits of becoming a Section 8 landlord, one of the biggest is being able to help someone in need. Another key factor is that, even if the tenant loses their job or receives lower wages than before (like during a Global Pandemic like COVID-19), the government will continue to make up the rest of rent that the tenant is unable to pay, after their 30% of income amount. Typically, you will not be paid by the housing authority until after the tenant moves into the property. The Los Angeles County Development Authority (LACDA) subsidizes the balance of the monthly rent in direct payments to the owner. It is important to be aware of potential HUD changes to the low-income housing program. 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