Education and news for smart DIY landlords!
As you put your first unit up for rent, you are going to get tenants who may ask the question, "Is your property eligible for section 8?"
Section 8 is a government program where the government would pay the rent that a tenant cannot afford. In this case, a percentage of the tenant's income goes to his rent while the remaining rental will be covered by the government. This program is designed to help low-income families afford a safe and sanitary housing.
1. How do you become a section 8 housing landlord?
2. What are the advantages of renting to section 8 tenants?
3. What are the disadvantages of renting to section 8 tenants?
Let's talk about the first of these 3 questions. How do you become a section 8 housing landlord?
If you want to your property to be part of the section 8 program, you need to apply for the program and get approved. An inspector would visit your property to check whether it meets minimum housing standards in terms of habitability and safety. You should pay special attention to your doors, windows, lighting, and other structures.
Once you get approved, you can start accepting section 8 tenants who would pay you their portion of the rent directly. The remaining percentage of the rent would be paid by the government through a cheque.
If your unit does not meet minimum standards upon inspection, you will be given a list of things that need to be improved. You can re-apply for the program again.
For the rest of this lesson, existing Landlord Prep students should log-in to the module entitled Between Tenants - Things to Do Before Renting: HUD Section 8 (Govt. Subsidized Rent).
In the module, you will have access to the HUD Website Explaining Section 8 Program and the Directory of HUD Local Offices.
Not a member yet? Join the Landlord Prep: Video E-Course and How-To Tutorials so you can access this section and get the complete DIY landlording course. This will help you stay knowledgeable and confident as a landlord.