"Become a Section 8 Landlord and Reap the Benefits"
I highly recommend being a Section 8 landlord. Yes, there are a couple of downsides but they pale in comparison to the tremendous upsides.
UPSIDE #1: RENT IS EASIER TO MANAGE
First and foremost, Section 8 pays a portion of the rent, and it will always be directly deposited into your account the first day of every month. It will never be late. And while Section 8 tenants usually have to cover some of the rent on their own, their rent expense is very low so it's easier for them to pay.
Additionally, it is much easier for a Section 8 landlord to increase the rent each year because you'll work with the Section 8 office to do this, not with the tenant directly. And of course, increasing your property income is a critical aspect of your long term investment strategy.
The bottom line is that renting to Section 8 tenants eliminates most of the aggravation of collecting and increasing the rent.
UPSIDE #2: TENANTS ARE BETTER-BEHAVED
The second major reason I like Section 8 is that these tenants tend to be better behaved than non-Section 8 tenants. Why? Because there is a waiting list for Section 8 vouchers in just about every city in America, and therefore existing Section 8 tenants do not want to risk losing their status.
In fact, some people wait years to get into Section 8, and once there they walk on eggshells to make sure their landlord does not complain about their behavior, thereby putting their voucher at risk.
- Because the Section 8 office will want to evaluate the property, you will be subject to yet another annual inspection.
- Because Section 8 pays most or all of the rent, their inspections tend to be more stringent than, say, a CO inspection. This often creates some additional property costs in the form of additional repair expenses.
- The paperwork requirements are slightly more cumbersome because you are bound to the Section 8 office's forms and procedures.
- There is less flexibility regarding the terms of the
For example, Section 8 landlords are usually not allowed to begin a lease on any day other than the first of the month, and sometimes you may get some pushback on the rental amount.
CONCLUSION: WE HAVE A WINNER!
As you can see, the benefits of being a Section 8 landlord far outweigh the negatives, and I therefore highly recommend looking into this.
A good first place to start is to visit your local Section 8 office or website to gain an understanding of their policies, procedures, landlord registration requirements, etc.
While there, get a list of inspection requirements so you can determine if your
property will make the cut. This way, you can make your own decision regarding whether or not a Section 8 angle makes sense for you.
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