If the rental properties you own are relatively affordable to tenants, you may want to consider getting them approved for Section 8 housing. This program could be beneficial for your rental property business, and the property management firm that manages your properties is likely to be familiar with this program. Here are three things you should know about Section 8 housing.
What is it?
Section 8 housing is a program available to low-income people. When a person does not make a lot of money, he or she could apply for financial help for his or her housing needs. If approved, the person could receive vouchers to help him or her pay for rent each month.
When a person is approved for this, he or she must find a rental property that is approved through the Section 8 program. If you would like to get your properties approved for Section 8, you will need to fill out an application. For your properties to get approved, there are requirements you must meet. One is that the rent must be affordable.
How does it work?
When you have Section 8 properties, you will still be responsible for finding your own tenants. The benefit is that you can advertise that you offer Section 8 properties. Anyone that is looking for one may call your company to see the available units.
When you find a tenant, you can use your normal screening procedures and the same lease you use for other tenants. The new tenant will most likely be responsible for paying a portion of the rent directly to you. The remaining balance of the rent will be paid to you by the housing authority.
What are the benefits of this?
One of the key benefits this program offers is the incentive for tenants to pay their rent. Tenants know that they will only receive help if they pay their required portions. If they fail to do this, the housing authority may stop sending the remaining payments to the landlord, and the tenants will get evicted from the rental property.
If you are having trouble finding tenants, this is a great way to find them. When you have Section 8 housing, you can rent to people that are approved through Section 8, but you may also have the ability to rent to people that are not.
If you would like to learn more about this program and the benefits it offers, talk to the property management firm that is responsible for managing your rental properties. If you're looking for a property management company, visit Taylor Realty.