It's estimated that for twelve million Americans, 50% or more of their income goes toward rent. There's a serious housing crisis in this country. Luckily, there are federal programs in place to help some of these low-income renters.
One of the more well-known ones is the Section 8 program. But what exactly is Section 8? And why should landlords consider renting to individuals in this program? If you want to learn the answer to these questions, you're in the perfect place.
In this guide, we'll teach you about all the benefits that Section 8 can provide landlords in Philadelphia. That way, you can decide for yourself whether or not it's right for your properties.
What Is Section 8?
Section 8 is another name for the Housing Choice Voucher Program, which was established back in the 1930s. It's an initiative that provides affordable housing to low-income renters.
It allows landlords to rent their properties to these individuals at lower market rates. How does it work? If rent payments exceed a person's income by 30%, the federal government will pay for the balance difference.
All properties that are a part of this program must be inspected before being approved by the housing authority. If you want to learn more about Section 8, you can check out this resource here.
How Does Section 8 Benefit Landlords?
The biggest benefit that Section 8 provides landlords is consistent monthly rent payments. With this program, you'll get a monthly voucher that covers the cost of the balance.
What's more, the Section 8 tenants are more incentivized to pay rent because if they don't, they'll lose access to the housing voucher. There are far fewer things you need to worry about when keeping tenants happy. Some of the other benefits include things like:
- Pre-screened tenants
- Lower vacancy rates
- Less turnover
- Less delinquency
- Not as many evictions
- Improved profit margins
- Free advertising
- The fulfillment of helping people in need
Keep in mind that there is a lot of extra paperwork that comes with this Section 8 program, which might not make it viable for individual landlords. However, as we'll see, larger property management companies can take over all the busy work.
Why You Should Hire a Professional Section 8 Property Manager
Section 8 can be beneficial to landlords, but it can also bring some hassles. An investment property management company that specializes in Section 8 can help you simplify the process. How?
By taking care of things like screening tenants, complying with the guidelines set by the HUD, and providing the required routine inspections. That way, you as a Section 8 landlord, can benefit from the program without dealing with any of the drawbacks.
Need Property Management Services? Contact Property Management International Greater Philadelphia
We hope this guide helped you learn more about the benefits that Section 8 can provide landlords in Philadelphia. It's important to remember that like anything, there are some drawbacks to the program as well.
If you're still on the fence about the issue, consider consulting with a property management company like Property Management International Greater Philadelphia.
We can walk you through everything you need to know about how the program can benefit your specific needs. Contact us today and get started with Section 8.