Do you find that fewer and fewer people can afford your monthly rental fee? One way to fill your vacancies and still receive a suitable monthly income is by making your property part of the Section 8 program.
You may have heard a little about the program, but you need more to feel confident about the subject. This article will introduce you to key aspects of Section 8 and explain how you can become a Section 8 landlord.
What is Section 8?
Section 8 housing is a U.S. federal government program that helps low-income tenants meet their monthly rent obligation. However, the program does not try to house low-income residents in substandard, cheaply built apartments or single-family homes. Instead, the program seeks to help people live in well-maintained structures.
How to Become a Landlord of Section 8 Property
The tenants pay a reasonable amount they can comfortably afford, and the program pays the balance. In this way, low-income families can live in clean, healthy environments while real estate owners can receive a fair income from the rental.
Contact Your Nearest Housing Authority
If you have a property you would like to make available for Section 8 housing, you should speak with your local public housing agency (HA). The House and Urban Development (HUD) agency is on the federal level. But near you are state and local HAs.
California has a statewide HA. There is even a Bay Area HA. Additionally, most, but not all, counties and cities have a local office. For example, Pittsburg has an HA, while HUD's official HA list doesn't include one for Concord.
Expect a Property Inspection
Request from your local HA the necessary paperwork. If the department approves your application, it will inspect your property to ensure it meets or exceeds qualifications.
Remember, the idea of Section 8 is to find quality housing. The inspection will determine if the property is safe, sanitary, and comfortable.
For example, inspectors want to ensure kitchens and bathrooms function well, the home has a reasonable way to heat and cool, and there are safety features such as smoke detectors and locks.
Qualify Tenants
Notify the HA whenever your property is available for a new tenant. The AHA will then pass along to you any potential applicants. You can then screen potential tenants as you would any other tenant as long as you don't discriminate.
Submit Any Required Documentation
There's additional paperwork to complete after you select a tenant. Your local HA may have custom forms relevant to your area, but there are some general federal forms everyone has to fill out.
For example, you must submit a Housing Assistance Payments contract form and your standard lease agreement. The HUD form contains an addendum that you can attach to your lease.
You'll also submit information about you and the rental property, plus a Request for Tenancy Approval form. HUD also requires your W-9 form.
Make Section 8 a Part of Your Real Estate Portfolio
Low-income families are struggling to find places to live. You can improve their situation and yours by becoming a landlord of Section 8 property.
And we can support you throughout the process. We can help you find the ideal house or apartment complex, and we can even manage the property for you.
Contact us today to get started on this rewarding new chapter of your real estate investment career.
