Becoming a Section 8 landlord involves an extensive property inspection.
Section 8, also called the Housing Choice Voucher Program, is a rental subsidy program for low-income, elderly and disabled persons. Although the U.S. Department of Housing and Urban Development funds Section 8, local public housing agencies are responsible for administering the program and monitoring rental properties. So, getting the information you need to become a Section 8 landlord starts with contacting your local public housing agency.
Identification
Not every community participates in the Section 8 program so your first step is to verify program participation with your local housing authority or check with HUD via its website. Once you verify that your community participates, inform your local public housing agency that you want to be on the Section 8 housing list. Listing your property is free and once you do, no further action is necessary until you find and start the process of approving a Section 8 tenant. You can also include a statement in any rental advertisements that you accept Section 8 vouchers.
The Facts
Property safety and maintenance is a major Section 8 concern. Although being a Section 8 landlord is, in many respects, no different than any other landlord-tenant situation, you will be subject to an extensive property inspection before your tenant moves in and then annually as long as your tenant remains in the unit. If you fail any part of the home inspection, all repairs must be complete before your tenant can move in or within the time an inspector gives you if your tenant is already in the unit. If you want to conduct your own inspection for assessment purposes, ask your local public housing agency for a copy of the inspection form or download a copy at the HUD website.
Process
Becoming a Section 8 landlord means, in some cases, modifying your monthly rental charge. The total out-of-pocket rental expense your tenant pays each month must be at least 30 percent but cannot exceed 40 percent of his adjusted gross income, according to HUD. For example, if the normal rent for a unit is $1,200 per month and you receive 70 percent, or $840 in the form of a Section 8 voucher, this leaves the tenant responsible for the remaining $360. If this amount is more than 40 percent of the tenant's adjusted gross income, you will need to lower the monthly rent to comply.
Paperwork
The process you follow when screening prospective tenants, signing and enforcing terms of a lease, and collecting the portion of the monthly rent for which your tenant is responsible includes additional paperwork. Your prospective tenant will first present a Request for Tenancy Approval form at the time you approve the rental application. Your signature and information you provide is necessary to schedule the property inspection. After the inspection is complete, you sign a contract with the housing authority and include a Section 8 addendum to the lease your tenant signs.
Tags: your tenant, local public, local public housing, public housing, Section landlord, your local, Becoming Section
