Thursday, 20 April 2017

The Pros And Cons Of Renting To Tenants On Section 8

Section 8 is a program the Department of Urban Housing and Development funds which helps to pay part or all of the rent of low income families and individuals. The program's focus is on the elderly, the disabled and other needy populations. To qualify for the program, applicant's total income must be less than half of the area's average income. Three-quarters of people receiving Section 8 have income that's 30% below the average for the area. Properties must meet HUD-approved standards and pass an inspection in order for Section 8 to pay for program participants to live there.

Pros And Cons

The Pros

As with any other program, there are pros and cons to renting your property to tenants that are on having Section 8. Some landlords like renting to Section 8 tenants because they know that their rent is guaranteed to be paid in full and on time by the government. Plus Section 8 recipients comply with all the terms stated on their lease and meet other requirement or they can be dropped from the program. While they do not offer real estate virtual tours of the places in which clients live, the Housing Authority also does annual inspections to ensure the units are being properly maintained.

The Cons

In order to rent to Section 8 recipients, landlords must keep their rental units up to program habitability stands and not their own. While they do not have to offer real estate virtual tours, they must show the place is neat, clean and meets all program requirements. However, Section 8 recipients sometimes allow the home to fall into disrepair and it can be expensive for the landlord to maintain it. This can result in the tenant being dropped from the program, forced to leave and the landlord losing money because they have to repair the apartment themselves without being reimbursed.

Some landlords also complain Section 8 tenants can be difficult to manage and do not properly clean and maintain the apartments. Some landlords say Section 8 tenants damage the properties because they know they are not financially liable for repairing the damage. Other complain they sometimes end up stuck with difficult to evict Section 8 clients that have been kicked off the program and cannot afford the rent. This makes some landlords reluctant to accept Section 8 tenants unless it's their only option.

The Bottom Line

Section 8 can be very helpful for the elderly, disabled and economically deprived. For some landlords, Section 8 tenants represent a guaranteed source of income. Other property owners see Section 8 tenants as generally being problematic. But it is a mistake to generalize about Section 8 tenants. Ideally, landlords considering renting to tenants on Section 8 should screen them carefully and only accept the ones that have a track record for meeting a certain standard for cleanliness, behavior and property maintenance.

Renting a home or apartment to a person on Section 8 can be a lucrative arrangement if you find the right tenant. One that has good references, will abide by the rules and regulations stated on the lease and that has good housekeeping habits. Once the landlord does the proper screening, they can enjoy a good relationship with the tenant and the Section 8 program knowing their rent will be paid each month.

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