Renting to Section 8 Tenants
The Housing Choice Voucher Program (once called section eight) was put in place by HUD for low income families to rent property. Many landlords choose this program for one reason…guaranteed rent every month on time. Unfortunately, it’s not always that simple. In some areas the tenant uses 30 percent of their income towards housing when enrolled in the program. For example, if the tenant makes $25,000 per year they are required to pay $625 of the monthly rent. If your rent is $900/month then the program only subsidizes $225/month. The $225 is the only portion that is guaranteed by the government. The rest must be collected from the tenant and there are no guarantees. This is a common misconception of the section 8 program. However, there are no guarantees at all when renting to anyone else. If you have been a landlord for a while, you have experienced this first hand.
There are said to be lots of drawbacks to renting to low income families and I would suggest that you do your homework so you realize what you are getting into. Screening your potential tenants is probably the most important phase of the process. Have the tenant fill out an application and do your due diligence on the prospective tenant’s rental history, salary, etc.
The tenants are not the only ones that can be negligent. The property must be inspected and could be subjected to fines if violations are found. Property owners must submit the property to the local HCVP office or go to gosection8.com website to register. A few items the inspector will be looking for include:
- Smoke detector
- Cracking, scaling, peeling paint
- Handrails
- Roaches and other vermin
- Electrical hazards
- Heating in every room
- Damaged gutters, leaks, water damage, mold
This is NOT a comprehensive list of inspection items. You can go to the Housing Choice Voucher Program website at HUD and also visit your local programs website for more information.
