Section 8 leasing

[Tony Nuttall]

Hello all. What are the good, bad and ugly about leasing to section 8? I was tossing around a few ideas for a new construction build I will start the end of the year. It will be a smaller home. 2bed/ 2bath roughly 900sqft. Of the multiple paths forward one was to build the home, apply very economical finishing and lease to section 8. The lot was purchased cash and the house will be built cash as well. I figured build the house, rent to section 8, pull out 75% and repeat the process. The guaranteed payments from the housing authority is appealing to me. If I did decide to go this route, are there any pro tips anyone can provide on what I should screen for during the tenants application that is more specific to dealing with housing voucher applicants? Thanks for all the help

[Ty Coutts]

Hey Tony,

With a number of benefits, leasing to Section 8 tenants might be a smart move for investors in rental properties. The guaranteed rent payments are one of the most alluring features because the housing authority pays all or most of the money immediately, minimizing the possibility of payments being missing. Furthermore, Section 8 housing is frequently in great demand, which may result in shorter availability times. Seeking stable, long-term housing can lead to longer tenancies and lower turnover costs, which is what many Section 8 renters are after.

There are, however, disadvantages to take into account. The housing authority's specific inspection requirements must be completed by the property, which occasionally calls for more renovations or repairs. The length of the inspection procedure may also cause a delay in the tenancy's commencement. In addition, the rent is capped at the tenant's income and the local market rates, so it may be less than you would receive from a tenant who is not a Section 8 tenant. A number of landlords have also expressed difficulties with the program's bureaucracy and administrative procedures.

As with any other application, it's imperative to thoroughly screen Section 8 tenants in order to reduce dangers. Verify their references, income, and rental history to be sure they will be dependable tenants. A smoother process can also be achieved by cultivating a positive connection with the local housing authority. All things considered, leasing to Section 8 can yield consistent and steady income, but it also necessitates cautious thought and oversight.

Please feel free to reach out to me directly if you want to move forward with this or if you have any other questions. Hope this helps!