There are an estimated 2.1 million households in the U.S. using the section 8 voucher program to pay their rent. But, sometimes it is difficult for them to find a section 8 landlord.
If you are on the fence about renting to section 8 tenants, then you might be missing out on its benefits.
Read on for the advantages of helping low-income renters find a home in your rental property.
What is Section 8 Housing?
The section 8 program is sometimes misunderstood. So, it is important to know who uses housing vouchers and why.
It is a federal program, however, income thresholds are calculated according to the county or city where the applicant resides. The income of each household cannot be greater than 50% of the average income for that jurisdiction.
Although it is a national program, the local housing authority in Spokane, WA., will review applications, inspect rental units, and choose who is eligible to receive the benefit.
Benefits of Being a Landlord for Section 8 Housing
Section 8 tenants are just like any other renter except that their low income is supplemented by the government to prevent homelessness. And, some benefits that come with it.
Find Tenants Faster
Spokane Housing Authority (SPH) doesn't require landlords to accept section 8 housing vouchers. This means that you can easily find people to rent your space when it is difficult for them to find a section 8 landlord.
You will work with SPH to pick responsible renters by conducting tenant background checks.
Guarantee Rent Will be Paid
One of the hardest parts about being a new landlord is collecting rent on time. With a section 8 tenant, you will have a guaranteed on-time payment (at least a portion of it.)
The renter pays 30% of their gross income to you while the government covers the rest of the cost of their rent. The SPH will send rent payments twice a month to you while the renter's 30% may be collected according to your lease agreement.
Reduce Tenant Turnover
Finding a place to rent can be difficult for many section 8 tenants, so when they do find one they tend to stay. And if they are a good tenant, then you can be happy that you won't need to search for someone to fill your rental unit every time a lease runs out.
Not Part of Rent Control
As rent goes up in your district so do your profits. Luckily, the government voucher for section 8 housing also increases according to the rise of the area's rent.
Renters are also more likely not to care about rent increases either since most of their monthly dues are covered by the vouchers.
Managing Your Section 8 Rental
Being a section 8 landlord has many benefits but it also entails the same property management responsibilities as a normal rental. You need to maintain the proper, screen tenants, and market your property when vacated.
Get all the help you need to keep your rental investment profitable by contacting Spokane Property Management today.