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What
are Section 8 Landlord Benefits and Drawbacks?
Section 8 Rentals PART 2
Are
you thinking of having Section 8 rentals but you are not sure if it is
right for you? Then compare the advantages and disadvantages of
becoming a Section 8 landlord in this Part 2 of our
Section 8 Rentals Guide.
Have You Read
Part 1? If No, Click
here for Part 1
of this What is Section 8 Guide.
What
are the Benefits and Advantages of Becoming a Section 8 Landlord?
One
of the best things about accepting Section 8 tenants is that the
government will be footing at least 60% of the rental bills. If the
rent for your rental property is low, the housing authority
may end up paying the entire rent.
This
is single greatest benefit and advantage of owning Section 8 rentals -
Guaranteed and
effortless rent collection paid out to you like clockwork every
month.
For the remainder of the rent that
has to be collected from your tenants, collecting it should be a breeze
as long as you had screened your tenant applicants carefully. Click here for our Section 8
landlord guide to screening tenants.
Most Section 8 tenants will pay up their rents on time
because they do not want to chalk up a bad record and risk losing their
precious rent subsidies.
If your rental property is in a neighbourhood
that attracts residents with lower incomes, accepting Section 8 renters
can greatly boost your pool of potential tenants. That makes it easier
to find your dream tenant so you can enjoy a bump-free ride as
his
landlord.
For some
landlords they do derive a lot of personal satisfaction
taking part in the Section 8 housing program because they are providing
housing
for the poor and needy. One of the Section 8 property owner that I
interviewed told me
being able to help a struggling single mum find a place to stay is a
greater reward than any rental income.
What
are the Drawbacks and Disadvantages of Being a Section 8 Landlord?
If Section 8 rentals are so attractive, why is there still a
shortage for
rental properties for this program? Well nothing is perfect and this
Section 8 housing program does come with its own bag of disadvantages
and drawbacks.
As
a Section 8 property owner, you will enjoy less freedom and will have
to
follow a stricter set of laws. For example, we have already mentioned
in Part 1 of
this guide that you can only ask for a maximum of 1 month's rent as
security deposit instead of the usual 2 months.
The
lease period of your rental agreement will be to be locked in for 1
year
and there is no way for you to end it early unless your tenant does not
pay his rent or commits a serious violation of your lease agreement. If
you are looking for a month to month tenancy or a short term lease,
then Section 8 rentals are not for you.
On top of that, you
cannot freely decide on the amount of your rent. Your Section 8 housing
authority
has the power to decide what is the fair rent of your property
according to the current market rates. Some landlords have complained
that their local housing agencies tend to be stingy and set the rent
too
low.
Before you are accepted as a Section 8 landlord, your
rental property has to be checked by home inspector to make sure that
it passes the housing authority's health and
safety codes. Click
here for our quick and easy tips on passing your Section 8 inspection.
You may have to wait up to 1 month
before the home inspector drops by for an inspection. You can end
up losing a lot of potential rent if your rental property is sitting
empty. If your property is aging or you are unlucky enough to run into
a picky inspector, you may have to fork up extra money to get your
property into shape.
Read
what our visitors have to share below OR Scroll down to
add your own comment
Do You Think that Landlords Should Join Section 8?
Are the secure rent payments from the Section 8 housing program worth the tigher rules and extra trouble? If you rent out to Section 8 tenants or had them before, share your valuable experience with everyone here - We will love to hear your tips, comments and real life stories:
What Our Visitors Have to Say on Being a Section 8 Landlord
Click on the links below to read the valuable tips that our other visitors have to share:
Do you want to learn MORE must-know facts on being a
Section 8 landlord?
Return from
this Section 8 Rentals page to our What is Section 8 Housing guide
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