Section 8

[Ryan Davis]

Can anyone shed light on how to go about accepting section 8 as a landlord, and approximately how long the process takes?

[Andrew Michael]

The Section 8 process is going to change from state to state and even county to county.  I have section 8 tenants in MD and I assume the process is somewhat similar across the board but be sure to check with your local housing authority. 

If the section 8 tenants already have their landlord packet in place, then the process is pretty quick.  A landlord packet basically means they have gone through the housing authority application process and been pre-qualified as program participants.  They will also know how much their voucher is for and what type of homes and rent amounts they qualify for.  I would make sure they already have their land lord packet in place before you accept them as tenants as this is the part of the process that can take some time. This DOES NOT mean they have been screened and pre-qualified as good tenants.  You will still want to do your due diligence and screen them as usual.  

If at that point you decided to move forward, then section 8 will send out inspectors to your property and make sure it is in good condition.  No matter how pristine your property is they will find about 10 things you need to change and fix.  Once you have fixed the issues, they will do a re-inspection and so on until you pass.  

From there its really business as usual.  You will get a monthly check from the housing authority and the remainder of the balance will come from the tenant.  There will be some mid year inspections and such but really there inst much of a difference.  

When done correctly, Section 8 can be a very good investment as you can usually fetch above market rates and the money (or at least the majority) is guaranteed.  Where people run into trouble is they neglect to screen section 8 tenants properly and end up with a bad tenant situation.