Are you looking to start investing in rental properties but worried about finding tenants? Every month that the property is not occupied is a month where you are losing potential income. That's why you may be interested in using a rental property for section 8 housing. Section 8 allows renters to have the government pay part of the rent for them, but only if they qualify due to their current income. Section 8 can help you find a tenant that can afford your rental property, but this arrangement has its pros and cons. By understanding what is involved, you can decide if it will be something you want to do.
Lower Tenant Turnover
While the typical lease lasts for a year, it is common for a section 8 housing lease to last longer than that. These housing agreements involve a longer screening process for the tenants, so the agreement with the government can be longer than a year to make up for that.
As a landlord, it is up to you to go through the process of screening your tenants. This means that you have to perform any background check on your own before making the decision about if the tenant will be able to rent your place. The government will screen the tenants for section 8 housing candidates, which means that the whole process is taken care of for you.
Rental Income Security
Since the government is paying for a large part of the rent, it guarantees that you will receive that portion at the very least. The other portion must be paid for by the tenant. Their part of the rent will be lower than if they paid the full amount, so you have a greater chance of receiving the full amount every single month.
In order to qualify your rental property for section 8 housing, it does need to be brought up to code. You may need to make improvements before the property qualifies, and there will be property inspections as well to ensure the tenant's needs are being met.
Rent Control Requirements
While the government will not dictate the exact rental cost of the property, you will be expected to stay within your neighborhood's median rental costs. If you have a property that is especially nice that could potentially get more money, you may be limited by the quality of the properties that are around you
If you are interested in finding a rental property that can be used for section 8 housing, speak to a real estate agent to help you find one.Share