Becoming a Section 8 Landlord
Becoming a Section 8 landlord is a relatively simple process to complete. There are 2 ways to lease your property through the Section 8 program, but they consist of completing many documents and allowing inspectors to view your property. Although the process can be long, many Section 8 landlords believe it is well worth the wait.
Section 8 Defined
Section 8 is a government run program that subsidizes rent for qualified low-income families. The majority of participants are single women with children or disabled individuals. All of the participants possess a voucher pre-approved with a specific amount of money to use toward rent. If the participant complies with all the program rules, he or she can receive assistance for many years.
Applying Through a HUD Housing Authority
Contact the housing authority that runs the Section 8 program in the area where your property is located. Complete an owner's application, which gathers the necessary information about your property. Then schedule a date and time for an inspector to visit the property. The property must be up to par with HUD regulations. Either the inspector will fail the property and issue the property owner a list of repairs to make, or the property will pass. After a passing inspection, the property owner can officially advertise his or her property as "Section 8 approved." The final step is to find a perspective tenant that has a Section 8 voucher.
Applying Through a Section 8 Participant
Advertise your property as Section 8 friendly to find a perspective tenant with a Section 8 voucher and valid moving papers. Moving papers consists of 4 documents that gather information about the property owner, the property amenities, and the neighborhood. This information will be used to calculate the rent. Complete the packet of documents and return them to your local housing authority. A caseworker will contact the property owner to schedule a time and date for an inspector to view the property. The property must pass inspection before it can be rented by Section 8 participants.
After the entire packet of documents are submitted, a caseworker will negotiate the rental amount. HUD will only pay the amount of rent that is comparable to similar vacant units within the neighborhood. A property owner cannot request for more rent then the neighborhood is worth. Once the rent is negotiated and accepted, the housing authority will ask that the property owner submit proof of ownership and proof that the property taxes are paid and up to date.
When to Expect a Rental Payment
If everything checks out, a contract outlining the program rules will be forwarded to the property owner. Once the owner completes the documents and returns them to the housing authority, the rental payments will begin. The rent amount is divided between the housing authority and the Section 8 tenant. The amount the Section 8 tenant will pay will be based upon his or her income. The housing authority will pick up the remainder. HUD usually submits their payments on the first of every month.