Accepting Section 8 tenants into your rental properties may not sound like an ideal situation, but there are very few drawbacks for landlords.
3 million households rent under Section 8. This program has been in place since the mid-1970s, helping low-income households find suitable living situations outside of public housing. Those that qualify receive a voucher, which ensures that the state will cover some or all of their rental costs (usually 60-70%).
Today, we're going to look at some of the benefits of apartments that accept Section 8 tenants. Landlords aren't required to participate in the program, but keep reading and you'll see that there might be something in it for you.
What Is Section 8?
As mentioned, Section 8 is a program that assists millions of Americans. For landlords who participate in the program, automatic rental payments are issued by the US government, leaving the tenant to pay around 30%. How much a tenant covers depends on what their voucher states.
There's always hesitation for landlords to accept low-income tenants. You may feel that it's riskier due to the potential of late or missed rental payments, but Section 8 apartments are among the most reliable for on-time rental payments.
Benefits of Apartments That Accept Section 8
One of the biggest benefits of participating in the Section 8 program is that there's no rent control. When rent goes up in your area, rent control prevents you from raising your rent in order to protect tenants. With Section 8 housing, you can raise rent requirements as much as the market dictates and the program will pay out accordingly.
Another perk is that you'll have shorter vacancies in your rentals. If you enroll in Section 8, you can quickly enter it into the database for other Section 8 renters to see. There's always great demand for apartments that participate in the program and the database makes it easy for renters to find your vacant rentals.
As mentioned, you'll never have to worry about missed rent payments. Landlords who participate are always protected, which is never the case when you rent to traditional tenants.
Because the tenants pay significantly less than market value, they're far less likely to miss their part of the payment. If they do miss their payments, you're not out the full amount. That said, you can still go through the usual eviction channels if you've got a problem tenant.
Will You Accept Section 8 Tenants?
We hope this post has quelled any concerns you may have had about owning apartments that accept Section 8 tenants. It's a simple process that has more benefits than drawbacks, but it's up to you whether you want to do it.
It can be extremely helpful to have a property manager on your side when figuring this out. At Residential Equity Management, we can help you screen Section 8 tenants so you've got the best tenant in your rentals. Contact us today to learn more about our property management services and how we can help you maximize your investment.