Section 8 Housing Program; Good for Landlords?
Having your property approved for Section 8 Housing can seem to be a lengthy and somewhat stressful process. There is so much paperwork and inspections to deal with, it can almost seem like it’s not worth it. But just like any other venture, there are pro’s and con’s involved.
For those unsure of what the Section 8 Housing Program, or the Housing Choice Voucher Program, is a federal program that assists veterans, the elderly, disabled, and low income families to find safe and adequate housing. What this means is that the Public Housing Agency (PHA), who works under the Department of Housing and Urban Development (HUD), pays a set portion of the tenants rent directly to the landlord or property management company while the renter pays the remainder. This is used as compensation for accepting higher risk tenants.
One of the biggest, and seemingly only, con to Section 8 Housing is the application and approval process. There is quite a large amount of paperwork involved, the numerous inspections to make sure your property is up to standards, and accepting tenants that are at a higher risk; the PHA gives vouchers to individuals whose income falls below 30%.
However, one of the biggest pros is that you will always receive a portion, usually the larger portion, of the rent on a set day of the month. Qualified tenants are encouraged to pay the remaining amount on or before a certain date as well. Another plus to having Section 8 Housing tenants is that they usually rent the same property for longer amounts of time instead of looking for another HUD approved location.
Aside from the application and qualifying process, the Section 8 Housing Program is not that much different from normal leasing agreements. You can have screening and background checks still and, if it comes to it, go through an eviction process if the lease agreement is broken.