Over 2 million households received vouchers for Section 8 housing in the last year. Since COVID-19, a record number of families are expected to apply to be eligible for Section 8 housing.
Section 8 housing can be a lifeline to those living at or below the poverty level and help pay their rent. Typically, with Section 8 housing, the tenant will pay roughly 30 percent while the government voucher program will pay the remaining portion.
Have you ever been curious about what it would be like to become a Section 8 housing landlord?
We have created a complete guide on everything you need to know about becoming a landlord for Section 8 housing and Section 8 rentals.
The Benefits of Being a Section 8 Housing Landlord
There are multiple benefits to becoming a Section 8 housing landlord. You can expect rent payments to come on time, all the time. Since roughly 70% is paid for by the government program, it will not be late.
Considering that over 11 million people are currently behind on rent in the country, you can be rest assured that many Section 8 housing tenants are not.
Another benefit is that you likely will not be left with a lot of vacancies throughout the year. Many landlords refuse to accept Section 8 tenants, leaving them with a slim selection of housing options. This is a huge benefit to a landlord, especially during a tight housing market.
The Drawbacks of Being a Section 8 Housing Landlord
One of the major drawbacks to being a Section 8 housing landlord is the number of inspections that you will inevitably have to go through. Since the government is paying most of the rent, they want to ensure that the housing is adequate and up to quality standards.
Sometimes, with the number of property inspections you undergo, the inspector will recommend updates, repairs, replacements, and more. The cost of all of that comes out of your pocket.
This can get expensive very quickly. If you do not complete the repairs, you may not be eligible to receive the voucher payments.
Best Tools to Becoming a Section 8 Housing Landlord
Despite the drawbacks, becoming a landlord for Section 8 is possible, as long as you have the right tools. Utilizing a quality property management software solution can help you manage properties, keep track of payments and inspections, and more.
Interested in Becoming a Landlord for Section 8 Housing?
Now, you should be familiar with the pros and cons of becoming a Section 8 housing landlord. While it is not for everyone, it can be a great opportunity for some people to grow their wealth and increase their knowledge of real estate investments.
If you are interested in expanding your real estate portfolio and becoming a landlord for Section 8 housing and are in the Kansas City area, reach out to us here at HomeRiver Group.
We are a skilled property management and real estate team that can help you manage your landlord duties. Email us to get your landlord journey started.