To Become a Section 8 Landlord:
Experienced Section 8 landlords share their opinions online. This one suggests rigorous tenant screening. Landlords should not assume that they're afraid of losing their voucher. In his experience, the PHA lets tenants get away with their acts. They don't want them out of the program and homeless. His best and worst tenants were from Section 8.
This article shares practical steps if you plan becoming a Section 8 landlord. Learn about the benefits, responsibilities, and roles of a landlord in the Section 8 program. The best cities to invest in Section 8 are discussed, as well as the fair market rent. I'll enumerate the housing quality requirements plus a pre-inspection checklist.
Section 8 Benefits To Landlords
What are the Responsibilities of a Section 8 Landlord?
What are the Roles of a Section 8 Landlord?
Section 8 Housing Quality Requirements
Section 8 Inspection Checklist
Best Cities To Buy Section 8 Properties According To Antoine Martel
Antoine Martel believes the best cities for Section 8 investing are Cleveland, Ohio, and Detroit, Michigan. He determined these cities based on median home prices and fair market rents. The goal is to find cities where homes can be purchased for $65,000 to $85,000. The average FMR for the area should be $1,000 to $1,400 a month. This will help you achieve a high return on investment.
Cleveland has a median home price of around $109,000. The rent potential in the area is $1,100 to $1,400 per month. Cleveland is a developing area with a stable population. The real estate market quickly appreciates here. Detroit’s median home price is $65,000 to $80,000. Houses here can be rented out for $1,200 to $1,300 per month. It has a high demand for Section 8 properties. The city is also close to developing neighborhoods.
How Do Section 8 Landlords Screen Tenants?
Jennifer Donnelly screens Section 8 tenants by first asking for proof of income and a picture ID. She then checks the housing voucher details and their validity. She checks if the number of bedrooms matches her property. Jennifer reaches out to the caseworker to ask more questions. She then visits the applying tenants’ homes to see how well they maintain their current residence. Her meticulous process saved her from irresponsible tenants.
Tim Leak observes how the applying tenant dresses when he visits their current home. He also looks at their criminal and eviction history. He does a background check to find any payment issues in the past. Then, he verifies if the applicant is being honest throughout the application. Tim believes these steps will help landlords find tenants that take care of their property.
Bryan Malonga is a doctor and Section 8 investor. He screens tenants by gathering tenant information and checking their financial background. He also checks their rental history. Through references, he verifies the character of the tenant. Bryan personally visits the tenant’s current home to see how well they maintain it.
What is Section 8?
Section 8 is a federal assistance program that helps low-income families afford private housing. It is formally known as the Housing Choice Voucher Program. Section 8 is administered by the local public housing agencies (PHAs). It is funded by the U.S. Department of Housing and Urban Development (HUD).
Qualified Section 8 tenants receive vouchers that cover a portion of their rent. It’s 70% of the total rent value. Landlords participating in the program receive the rent subsidy directly from the PHA. A stable and consistent passive monthly income. PHA always has a long waiting list of Section 8 tenants. So, there's consistent demand for Section 8 homes in America.
What is Section 8 Fair Market Rent?
Fair Market Rent is a recommended rental amount set by the HUD in a specific area. It is re-evaluated annually.
FMR is calculated as 40% of the gross rent for standard-quality units in a local housing market. Low-quality units and subsidized units are not included. The determined FMR value reflects the cost of modest, non-luxury housing. It ensures that rental prices remain affordable for voucher holders. Section 8 landlords are required to keep the monthly rental fee within the fair market value.
Can You Evict a Section 8 Tenant?
Yes, you can evict a Section 8 tenant. However, it should go through a due and legal process. The grounds for eviction are generally the same as for non-Section 8 tenants. The reasons for eviction include non-payment of rent and criminal activity. Drug-related misconduct is also a ground for eviction. Serious or repeated violations of the lease agreement are grounds for evicting a tenant.
The eviction process for Section 8 tenants must comply with both federal and state laws. Landlords must provide proper notice and join court proceedings. The eviction case can be dismissed if the landlord doesn’t submit these requirements.
How To Evict a Section 8 Tenant?
To evict a Section 8 tenant, you must first have a valid reason for eviction. Once you have a valid reason, notify the tenant through a written notice. The notice period could vary depending on the state you're in. It's typically 30 days for non-payment of rent and 60 days for lease violations. Inform the Public Housing Authority (PHA) of your plan to evict a tenant. Provide them with a copy of the notice and supporting documents. According to HUD regulations, you must set up a meeting with the tenant.
They're given 10 days to discuss the termination with you in the presence of a PHA representative. If the tenant does not vacate the property after receiving the notice, you must file an unlawful detainer lawsuit in court.
Attend the court hearing and present your case. If the court rules in your favor, it will issue a judgment for possession. If the tenant still refuses to leave, you can use the court order to have law enforcement carry out the eviction.
Why I Chose To Become a Digital Landlord Than To Become a Section 8 Landlord
I chose to become a digital landlord because I don’t have to comply with extensive paperwork unlike Section 8. I only need to manage digital assets. So, I can focus more on profitability and growth. There are fewer legal requirements because there are no government authorities involved. It’s also easier to “evict” tenants of digital properties. In case of missed payments, I can just kick them out of the site.
I became a digital landlord in 2014 through a business model called local lead generation. This business builds digital assets and ranks them on Google. Ranked digital assets generate leads on autopilot. It’s like owning billboards in prime locations in the real world. The lead gen biz is a lot easier to manage than Section 8 properties. Income is also more promising because leads are sold at 85% to 90% margins. Section 8 rentals typically have 50% margins.
