Section 8 Tenants – 4 Reasons For Landlords To Let Them In

Posted on: January 28, 2011

Categories: Investors, Property Management, Things To Consider

Author: lbuen

3887536759 6696cb4cc9 m Section 8 Tenants   4 Reasons For Landlords To Let Them InAre you walking on eggshells when wooing delinquent tenants to settle their dues lest they might vandalize your rental property? Are you hesitant to acquire and rent out low-cost rental units because you worry about managing problem tenants that commonly rent such houses? You may want to consider taking in Section 8 tenants.

What Are Section 8 Tenants?

These are low-income families who qualify to avail of the Section 8 housing assistance provided by the US Department of Housing and Urban Development. They are given Section 8 vouchers as tokens to their entitlement to such subsidy. Many of these Section 8 Tenants are single mothers with children while a handful of them are grandmothers with grandchildren.

Why Accommodate Section 8 Tenants?

Ensure Timely Rental Payments

The government will pay for at least 60 percent of the rent, but if your rental fee is rather low then a 100 percent subsidy may be provided for the tenant. Your rental fee must be between 90 and 110 percent of the local Fair Market Rent determined by the housing authority. With Section 8 tenants, monthly rental collection becomes a duck soup because the government will just transfer the due to your specified account monthly. Also, if the tenant has a share of the rental, do not worry as most Section 8 voucher holders are keen on settling dues on time because they do not want to tarnish their records and squander this housing benefit.

Protect Your Property From Vandalism

If you have been in the business for some time, you may have encountered difficult tenants who damage the rental property to get back at you for serving them overdue notice. The security deposit cannot really secure your property as these tenants owe you rent for how months already. However, by accommodating Section 8 tenants, you can give them the heads up that you will report them to the housing authority should they damage your property so that they get booted out of the assistance program.

Lower Turn-Over and Shorter periods of Vacancies

Since most Section 8 tenants are single moms with children, these moms would surely prefer to stay put in a pleasant community especially if the kids have started school already. Moreover, as a Section 8 landlord, you would be required to set the rental period for a year. This translates to long-term tenants. And long-term tenantsĀ  could mean lesser vacancies and responsible tenants who would take care of your property because it will be their home for quite some time. Additionally, supply of Section 8 homes are short, hence, you can immediately find a replacement for a leaving tenant shortening the period of vacancy.

Get Satisfaction from Helping the less Fortunate

Besides enjoying property security, the assurance of timely monthly payments and lesser vacancies by dodging the bugbears of many landlords, housing Section 8 tenants may also give you that satisfying feeling no amount of rental income could beat when you are able to be of service to others especially the less privileged. However, you do not want your rental property to be branded as a welfare building, so also keep in mind to maintain a good mix of Section 8 and compliant non-Section 8 tenants.

The market of Section 8 tenants is one unsaturated niche that rental property landlords should consider because accommodating them could mean effortlessly receiving timely payments, security for your property and lower turn over and vacancy rates.

 Section 8 Tenants   4 Reasons For Landlords To Let Them In
pixel Section 8 Tenants   4 Reasons For Landlords To Let Them In

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