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Benefits of Being a Section 8 Landlord

Section 8, a government housing assistance program, provides rental subsidies to eligible low-income individuals or families, offering stability for both tenants and landlords. If you’ve considered becoming a Section 8 landlord, or are on the fence about it, read on to learn all about the many benefits.

 

Reliable Rental Income

 

As a landlord, you’re banking on getting that rent check from your tenant in your account so you can use it toward your mortgage payment. With a reliable tenant you can relax a little bit, but let’s face it; there’s always a chance the tenant will be late. 

 

As a Section 8 landlord, a large chunk of your rental income comes from the U.S. Government. And no one pays rent on time like Uncle Sam. The best part is, Uncle Sam’s portion goes straight into your account via direct deposit. The tenant never has a chance to take the subsidy and use it for something else. 

 

Guaranteed Section 8 Rent Each Month

 

In a similar vein, Section 8 landlords are guaranteed to receive the government subsidized portion of the rent each month. Regardless of the tenant’s financial situation, you can rest easy knowing that most of your turnkey rental property’s rent is going to be there each and every month.

 

Potential For Long-term Lease Agreements

 

Section 8 housing requirements don’t dictate how long a lease must be, beyond one year. But because the application and approval process for the tenant is so involved, most Section 8 tenants tend to ask for multiple year leases. Knowing that they have their housing needs met is important for them, and they don’t want to risk you finding some other tenant after one year. This is beneficial for you, since you won’t have as much tenant turnover, and you can be guaranteed that subsidized rent for a year or longer.

 

Reduced Vacancy Rates

 

Because Section 8 tenants know they have a good situation for themselves and their families, they’re much less inclined to look elsewhere for housing. The other facet to this is a little bit sad, but Section 8 tenants simply don’t have the financial resources to buy their own home. So, unlike a lot of tenants who may pick up stakes after a few years to buy a home of their own, you can pretty much be assured that your Section 8 tenants will stick around. 

 

Property Maintenance Assistance

 

Many Section 8 programs offer incentives or assistance for property maintenance and upgrades. Landlords may qualify for grants or low-interest loans to improve their properties, enhancing their value and appeal to prospective tenants. Additionally, regular property inspections conducted by housing authorities help ensure that rental units meet quality standards, fostering safer and healthier living environments for tenants.

 

Diverse Tenant Pool

 

On the side of doing good for the world, Section 8 programs promote diversity and inclusion by offering housing assistance to individuals from various socio-economic backgrounds. As a Section 8 landlord, you have the opportunity to contribute to social equity by providing affordable housing options to low-income individuals and families. Embracing diversity is believed to enrich the community fabric, fostering tolerance, empathy, and cultural exchange. 

 

On the subject of goodwill, you’ll also be providing housing for a family that has likely been kicked around in life a little bit, providing a chance for them to bring up their children in a safe and loving home.

 

Wouldn’t you love the chance to safeguard your real estate income while putting a little bit of goodness into the world at the same time? 

Look for the red balloons depicting Section 8 properties on Martelturnkey.com For a current list, please reach out to sales@martelturnkey.com

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Should You Be a Section 8 Landlord? Here are the Pros and the Cons

Section 8 housing has more than a whiff of bad reputation. It calls to mind decrepit slums and unreliable tenants. Why even consider it?

 

Because thousands of landlords swear by the benefits of offering their prized assets as Section 8 housing … and they have a point. As a property owner, subsidized housing offers several attractive benefits.

 

Here are the significant pros — and a few cons — to taking the plunge and becoming a Section 8 landlord.

Pros of Owning Section 8 Rental Housing

Your Rent Payment is Practically Guaranteed

No more chasing down tenants for late rent payments. The rent is paid to you directly from the government housing bureau. As long as the agency remains solvent, your rent should arrive, in full, like clockwork. 

Little or No Vacancy

Forget budgeting for marketing expenses — the housing agency is your marketing pipeline, and it is always full. Subsidized housing is in high demand, with long waiting lists. High-quality Section 8 properties tend to get snapped up quickly. When a Section 8 tenant finds suitable housing, they tend to burrow in and never leave. As such, you can expect very little turnover or loss due to vacancy as a Section 8 landlord. 

Above-Market Rent

The housing office sets the rent your subsidized housing unit is eligible for based on the number of bedrooms. This isn’t always the case, but the subsidized rent you qualify for is often higher than the market rent. Pick your properties correctly, and you could make out like a bandit — not only less vacancy and no skipped rent payments, but a higher rental rate than you would get on the open market.

Well-Behaved Tenants

The stereotype of the destructive Section 8 tenant is far from true. Yes, there are some bad apples, but Section 8 tenants can lose their housing voucher eligibility for disruptive or destructive behavior. Most don’t want to risk it, so they tend to mind their manners and take reasonable care of the property. 

Cons of Owning Section 8 Rental Housing

It Can Take Awhile to Get Approved

While you will have little vacancy once you are on the Section 8 rolls, you might face some front-end vacancy. This is because it can take several weeks or even months to get approved for the Section 8 rolls. Be prepared to carry some costs while you wait.

Annual Inspections

As a Section 8 landlord, you have to submit to annual inspections of the property. This is to make sure that you are keeping the property liveable. With a MartelTurnkey rental, you have a head start with a pristine, renovated property. MartelTurnkey clients are committed to being conscientious landlords, so there’s little to fear from these inspections. 

You Can Only Accept Section 8 Tenants

As a Section 8 landlord, you can only rent to Section 8 tenants. This is little problem for most landlords, though, since the supply of Section 8 tenants usually far exceeds the supply of Section 8 housing. 

Harder to Evict

If you do get a bad tenant, it can be harder to evict due to the housing office bureaucracy. Fortunately, you are still at your liberty to screen tenants for rental and criminal history. You don’t have to accept tenants just because they have a voucher. 

 

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Every MartelTurnkey asset is eligible for Section 8 housing. If you want to take advantage of this lucrative sector of the rental market, call MartelTurnkey today — we have the resources in place to get you started on the right foot!