Section 8 housing is a program set up by the federal government to help impoverished renters afford homes. A landlord can rent properties at market rates, and the government will then pay a subsidy to qualified tenants to help bridge the gap between what the tenant can afford and the cost of the rent.
There are legal stipulations, benefits, and potential pitfalls of renting to Section 8 tenants, and landlords should familiarize themselves to make the best decisions for their rental properties.
Landlords must ensure that all Section 8 tenants are thoroughly screened just like other tenants. Landlords should always:
- Confirm employment
- Obtain references
- Run a credit check
Always maintain your standard screening process, but it’s important to keep in mind that in the State of Maryland like many other states, you are not allowed to deny a renter because they participate in Section 8 housing. You will always have good tenants and bad tenants, regardless of their income.
Be aware that the Department of Housing and Urban Development sets quality standards for what housing must include like routine inspections along with essential maintenance. Therefore, it’s a good idea to familiarize yourself with these requirements and decide whether participating in the Section 8 program is right for you.
Advantages of Section 8 Housing
There are some attractive advantages that Section 8 can provide landlords, including:
- Consistent rental income
- Assistance with filling rental vacancies
- Pre-screened applicants
- Free advertising
There are also a few drawbacks to the program, including:
- Limited rental prices
- Mandatory inspections
- Inconsistent tenant quality
Regardless of Section 8, you must always maintain the same level of upkeep.
Let Reliable Property Management Take Care of Your Property
A property management company like Reliable Property Management can quickly take away the stress of maintaining rental properties. For more information and to see what a reliable management company can do for you, you should call Reliable Property Management today at 443-869-3799.