Over 4.5 million Americans live in Section 8 housing. These properties need qualified landlords, which is there a Section 8 landlord comes in.
But what does a Section 8 landlord need to know before they take on a property? What goes into becoming a Section 8 landlord?
That's what we're here to look at today. Read on to find out more about the basics of being a Section 8 landlord.
Section 8 Definition
The Section 8 Housing Program, which comes from the Housing Act of 1937, aims to give low-income, elderly, and disabled residents the chance to live in a safe and sanitary home. This is done through a voucher system.
These vouchers are given to low-income households to decrease their monthly rent. The U.S. Department of Housing and Urban Development oversees this program, though public housing agencies distribute the vouchers.
As such, Section 8 housing landlords are contacted by these public housing agencies are paid through them. These landlords offer low-income yet high-demand households.
What are the Responsibilities for a Section 8 Housing Landlord?
As you would for any other property, a Section 8 landlord is responsible for upkeeping their properties. This includes maintaining the safe and sanitary conditions that you'd expect from decent housing.
They also have to complete some basic paperwork given by their public housing agencies. Now that we know what a Section 8 landlord does, let's go over what their tenants are generally like.
Understanding a Section 8 Housing Tenant
There are different qualifications for Section 8 tenants, meaning not everyone can become one. Landlords often look at the percentage of their income compared to their area's median income.
Public housing agencies look at which families should receive Section 8 housing vouchers. Factors include the size of the family, applicants' age, disabilities, and previous home placements.
While these vouchers pay for the majority of the tenant's rent and utilities, they still need to make payments out to the tenant. Tenants are responsible for making up approximately 30% of the rent to their landlords.
Process of Section 8 Rental Process
Applicants for vouchers are encouraged to rent apartments through PHA sites or listings from other landlords. They then fill out a request for a tenancy approval form.
The landlord then screens these applicants, no different from any other property. Their public housing agencies also screen tenants, making this a dual effort.
The tenant, after getting approval to rent from the landlord and completing the tenancy approval form, returns to the agency. They then review the prospective tenant's information.
The agency then conducts an inspection to make sure the landlord's property is up to standards. They then agree on rent that the tenant and landlord have agreed on.
After that, the tenant gets a lease to sign. The landlord must sign an agreement to guarantee that they receive a Section 8 subsidy.
Becoming a Section 8 Landlord
Section 8 housing is in high demand, especially in areas with low-income communities. Use this guide to help you understand what a Section 8 landlord does and what goes into getting a Section 8 tenant.
Looking for property management services in the Orlando area? Contact us today and we'll provide you with a solution right away!
