Being a landlord can be a tough business. You have to worry about filling vacancies, collecting rent checks on time, maintaining the property, and much more. One way to make your life easier is to accept Section 8 tenants for your apartment rentals. This government program ensures that you get the rent on time, each and every month, from tenants who want to stay in the units for more than just one or two years. Here’s how the Section 8 program works. Who’s eligible?
Section 8 provides low-income apartment rentals for people in need. Usually, tenants are single mothers with a couple of kids or older people who live on a limited income. Program participants fill out paperwork from the government and go through a lengthy approval process. Once they’re approved, they can then rent in a Section 8 building. Section 8 tenants usually make good tenants, since they know if they don’t pay on time, they could lose their rights for the subsidized housing. How is the rent paid?
The government pays a portion of the rent and the tenant pays the other part. Tenants usually end up paying up to 30% of the monthly rent, with the rest coming from Uncle Sam. What’s good about Section 8 apartment rentals is that you receive the government’s check on time, every month. How does your building get accepted for Section 8 housing?
Visit your local Housing Authority and tell them you’re interested in becoming a Section 8 landlord. They will come by for an inspection before they grant approval to make sure your property meets the set housing standards. They inspect the exterior, the common areas, apartment rental units, plumbing, and heating and air conditioning units. If any deficiencies are found, they must be corrected before you’re given approval. Inspections are made on an annual basis. You can view the exact checklist on the Housing and Urban Development’s (HUD) website. How much can you charge?
The overall rent that you charge for apartment rentals must be comparable to similar apartment rentals in the area. The government will pay up to 70% of the bill if the rent is less than or equal to the fair market value. If the rent is more, than the tenant will have to make up the difference, with a cap of 40% of the total rental amount. |
