It's estimated that half of renters in the United States are paying at least a third of their income on rent. Unfortunately, a large percentage are likely paying even more than that.
As the housing crisis in this country continues, the government continues to think of solutions for the high demand for affordable housing. One solution is Section 8 housing.
When landlords sign up for this housing program, their rental properties will be offered to low-income earners. In exchange, the government subsidizes a large portion of the rent.
However, becoming a Section 8 landlord in Auburn Hills comes with its pros and cons. This guide will walk you through them so you can decide what's best for you.
The Pros of Section 8 Housing
One of the biggest benefits of Section 8 housing is the large tenant pool. Because these types of apartments and houses are in high demand there will be no shortage of people to rent through.
This saves a lot of time and effort that would usually be spent on property marketing. With Section 8 housing, you also get assured rental payments from the government (70% of the rent will get deposited at the start of the month).
What's more, the tenants are incentivized to pay rent so they can keep their nice living arrangements.
Lastly, there's the long-term stability. Once people get a Section 8 housing unit, they're not likely to leave anytime soon. This can lead to lower turnover rates.
The Cons of Section 8 Housing
Becoming a Section 8 landlord will require a lot of work. Because it's a government program, there are a lot of bureaucratic processes you'll need to go through which can be a hassle.
The rent price that you set for your properties also needs to be approved by the HUD. They will measure your proposed rent against the Fair Market Rents (or FMR) in the area.
As such, you might not be able to charge as much for rent as you'd like. The government also has standards regarding the condition of the housing.
You will need to adhere to this and undergo annual inspections to make sure everything is okay.
How a Property Management Company Can Help You
Becoming a Section 8 landlord will require a lot of effort and paperwork. A property management company can help you deal with all of this. What's more, once your Section 8 tenants have moved in, they can deal with all of the busy work.
Indeed, investment property management companies aren't for everyone. However, if you notice any of these signs you should consider hiring one.
Interested in Becoming a Section 8 Landlord? Contact PMI Great Lakes
We hope this guide helped you learn more about the pros and cons of becoming a Section 8 landlord. Here at PMI Great Lakes, we're passionate about helping landlords regardless of their rental strategies.
If you want to join Section 8, we can help you. Or if you want to find tenants outside the program, then we'll help make it happen. So if you're ready to take advantage of our flexible services, get in touch with us today.
