Did you know that 2.3 million families are currently living in Section 8 housing?
If you own rental property, deciding to become certified for Section 8 housing can be difficult. This article will tell you what Section 8 is and what is required for a home to qualify under its standards. Keep reading to learn more.
What is Section 8?
It is the government's affordable housing initiative. Families earning less than half of the median earnings in their area qualify for discount rent under this legislation.
The tenant is given a voucher for the amount of money each month the government is willing to pay. They are responsible for any amount over the voucher.
Let's look at the top 4 things you need to know about renting to Section 8 tenants.
1. Yearly Inspections
First, it is important to know that Section 8 rentals must meet the government's basic quality standards. There are thirteen standards which include water condition, security, air quality, and more.
Every year, the government will check your Section 8 housing to confirm that it still meets all the standards.
2. Rent and Security Deposit
While the government will pay 60%-70% of a family's rent expense, you as the landlord are still required to collect the remainder.
Plus, the family is required to pay a security deposit without any government assistance. Remember that their security deposit is essential because it allows you to repair any wear and tear that occurs while your tenant was living in the home.
Also, your rent must be consistent with the other apartments or homes in the area. You can't inflate the rent for individuals on Section 8.
3. Screening Candidates
Another vital thing to remember is that you aren't required to accept all Section 8 renters. You can still run the same credit and background check you would run on any candidate.
The only change is that you don't need to be as concerned about their income because the government will be responsible for most of the payment.
As well, if a candidate doesn't live up to your requirements listed in the lease, you have the right to evict. You will need to go through the normal eviction process.
4. Getting Approval
Finally, you must get approval from the Section 8 office before you approve a tenant. You have to fill out a form that asks for basic information about the tenant and property.
Certify Your Rental Today
Deciding to certify your rentals as Section 8 housing is a significant move. However, it is a good move to make because it will increase your rental pool and allow you to help low-income families.
Since you can still screen candidates, you have a low amount of risk. Plus, the government helps make payments, so you are guaranteed a majority of the rent.
So stop waiting, and get started today! If you are unsure about the process, you could reach out to a property management company for help.
