Affordable housing is a hot topic in real estate. Home prices are skyrocketing, and investors are making huge profits from short- and long-term leases. In the current market, many low-income residents are facing housing insecurities.
Local and state governments around the country hope to turn things around. They are looking for investors to offer Section 8 rental units. The Section 8 housing program guarantees monthly rent and helps with tenant placement.
Do you have a property that's eligible for Section 8 but requires rental property management? Keep reading to learn more about Section 8 and how to become a landlord.
Eligibility to Become a Section 8 Rental Provider
The Housing Act of 1937, also known as Section 8, assists citizens in the lowest income brackets with securing housing. Recipients of Section 8 vouchers include low-income families, seniors, and people with disabilities.
The program allows for government assistance of up to 70% of their rent. It's estimated that 4.8 million families receive federal housing assistance. Of that number, 2.3 million have a housing voucher.
Housing choice vouchers get assigned to families that meet the program's eligibility.
To become a Section 8 landlord, you must be willing to accept the housing vouchers. A couple of states have laws making it illegal to deny vouchers. They're Oregon and Washington.
Locate Your Local PHA
Make an appointment with local Public Housing Agencies (PHA), also known as Public Housing Authorities. PHA's have the responsibility of issuing vouchers in their city or county. They will assist potential Section 8 landlords with the application process and tenant placement.
Complete an Inspection
To enter the Section 8 Housing program, you'll need to have an inspection of the property. The PHA will ensure the house has water and electricity and is a safe structure. They come with an inspection list, and all items must be met.
Section 8 rental property management comes with a series of documents you must sign. These documents include the rules and regulations governing the Section 8 program.
Create an Account in the Go Section 8 Tenant Portal
One of the biggest benefits of participating in the program is free listings of your property. The tenant portal works the same as any other leasing portal. You post pictures and information about your rental property.
Once the prospective tenant applies for your property, the application gets reviewed by a HUD representative for eligibility. Next, an inspector will come out. Once the application has approval, final documents get signed with the tenant and PHA office.
Hiring a San Diego Property Management Company
The portion of the rent coming from the voucher is paid directly to you. The Section 8 landlord collects the tenant's portion.
Most real estate investors don't handle the day-to-day management of their properties. Instead, they hire a property management company. The company collects rents, property maintenance, and other landlord duties.
Look no further if you're looking for leasing management to handle your San Diego Section 8 rental. Penny Realty, Inc. offers San Diego property management services for all types of rentals including Homes, Condo's, multi-family apartments and Commercial Rentals. Click here to contact us about your property.