Archive for the ‘Property Management’ Category

The Pro’s of Renting to Section 8 Voucher Tenants

Tuesday, June 14th, 2011

So far, we have looked at:
How to Have Your Rental Property Section 8 Approved
Renting to Section 8 Voucher Tenants
The Con’s of Renting to Section 8 Voucher Tenants

There are several Pro’s of Renting to Section 8 Voucher Tenants. As I mentioned earlier in the article series, I avoided Section 8 housing when I first became a Real Estate Investor. I did not like that stigma associated with it. I have since learned the Section 8 Program is an excellent tool to fill a vacancy.

I do not focus on Section 8 houses; however, the ability to rent to Section 8 Voucher Tenants has opened a few of my rental properties to a new tenant pool and improves my ability to fill my vacant properties.

Guaranteed Payment
First and foremost, the Housing Choice Voucher Program payments are guaranteed each month as long as you, the landlord, and the tenant remain in good standing with and qualify for the Section 8 Program. Yes, both of you have requirements that are to be met on a continuous basis.

To name a few: you, as the landlord, must properly maintain the home when repairs are necessary, and the tenant must maintain their financial obligations, if any, on the home. Both of the requirements ultimately benefit you. There are a few more specifics, so check with your local Section 8 authority.

Tenant Readiness Program
My local Section 8 authority has a Tenant Readiness Program, and it is mandatory for all Section 8 Voucher applicants to be considered for the Section 8 Program. The Tenant Readiness Program is “intended to prepare and give assisted housing families the tools and skill that will help them in becoming more responsible tenants and neighbors in their communities.” That quote is straight from my local Section 8 authority handout.

How great is that? Although the Section 8 Program does not qualify the applicants based on rental criteria, the Program does attempt to make them better tenants. Sounds great to me!!

Landlord Outreach Seminars
Your local Section 8 authority will help you and your home become approved for the Housing Choice Voucher Program. My local Section 8 authority offers a seminar once a year to teach landlords how to become approved to rent to Section 8 Voucher Tenants.

My local Section 8 authority wants to help me succeed, because that means the Section 8 Program will have quality homes for the families they assist.

That is a win-win situation!!

Purchase Assistance
Yes, that is right. The Housing Choice Voucher Program offers home buying assistance to Section 8 Voucher Tenants. Once the tenant has been in the home for a year, the tenant is eligible to inquire about the home buying assistance program.

None of my Section 8 Voucher Tenants have utilized this program yet, but I have a tenant that is interested in the program and is approaching the one year mark.

Not only does the Section 8 Program help find me renters, the Section 8 Program also helps find me buyers!!

If you cannot tell by now, I am a Housing Choice Voucher Program convert. There are too many positives for a landlord to not include the Housing Choice Voucher Program as a tool in your landlord tool box.

Aaron

www.aaronsilverman.com/blog
www.aaronsilverman.com
www.ss-investments.net
www.sandspropertyinvestments.com

Tags: , , , , , , ,
Posted in Investor, Property Management, Real Estate | No Comments »

The Con’s of Renting to Section 8 Voucher Tenants

Tuesday, June 7th, 2011

The first two articles on the Section 8 Program discussed How to Have Your Rental Property Section 8 Approved and Renting to Section 8 Voucher Tenants. Originally, I did not plan to write any more articles on the topic; however, after the feedback on the last article, I decided to expand the article series and write a few more articles on the Section 8 Program.

The Con’s of Section 8 Voucher Tenants
I normally start Pro’s and Con’s topics with the Pro’s, because in life, I tend to think of the positives first. However, this time, I am starting with the Con’s, because there is only one Con. Actually I do not consider it much of a Con, because it can easily be overcome.

For some people, there is a perception or stigma that Section 8 homes, by their very nature, are rundown and the tenants are poor quality. This is, however, an incorrect conclusion.

The quality of the home and tenant are directly related to the owner and/or property manager of the home. The owner and/or property manager are responsible for the maintenance of the home and tenant selection. The Section 8 Program does not control either of those.

Although you, as a landlord or property manager, understand there are many quality homes and quality tenants in the Section 8 Program, your prospective tenants might not know that. Advertising your home as available for Section 8 Voucher Tenants might deter some non-subsidized prospective tenants from calling and inquiring about your rental property.

Overcoming the Section 8 Stigma
You cannot directly control the perception of others, and unfortunately, Perception is Reality (a business blog I wrote a few years back). To summarize the article, each individual’s perception creates and defines that individual’s reality. Since you cannot directly control a potential tenant’s perception when the individual reads your advertisement, you need to attempt to manage and influence that perception.

How can you attempt to manage and influence a possible incorrect perception about your home in an advertisement (remember, you want “Section 8 considered” in your ads to drive Section 8 Voucher recipient inquiries)?

First, if the advertisement allows for pictures, upload and display high quality pictures of your home. The old saying holds true today, a picture is worth a 1,000 words. Great home pictures should override the stigma that a Section 8 home equals low quality.

Second, if the advertisement does not allow for pictures, create two advertisements: one with Section 8 verbiage and one without Section 8 verbiage. Of course, you should also vary other parts of the advertisement, because a potential tenant will notice two advertisements with the exact same wording if the only difference is one line is removed.

Summary
Can you overcome every potential tenant’s perception of your home? No, it is not possible. Whether you own a Section 8 approved home or not, potential tenants are constantly forming perceptions and their version of your home’s reality.

You should not, and cannot, worry about what every potential tenant will think. You should focus on the potential tenants in the market segment you want to rent your home. Those are the individuals you need to focus your advertising and marketing efforts on.

That should be standard practice for any type of advertising or marketing in any business – determine your potential client and focus your time and money on obtaining that client.

Next week article will be The Pro’s of Renting to Section 8 Voucher Tenants.

Aaron

www.aaronsilverman.com/blog
www.aaronsilverman.com
www.ss-investments.net
www.sandspropertyinvestments.com

Tags: , , , , , ,
Posted in Investor, Property Management, Real Estate | No Comments »

Renting to Section 8 Voucher Tenants

Wednesday, June 1st, 2011

A common mistake landlords make is they wait until they and their property are approved by the local Section 8 authority before they advertise for Section 8 Voucher Tenants. As mentioned in the previous article, you should start to advertise your property to Section 8 Voucher Tenants the moment you decide to apply to the Section 8 program.

Finding Section 8 Tenants
Actually, you do not find them; they normally find you. Remember the phrase from the previous article? Insert “Will consider Section 8″ to your advertisements, and you will receive calls. My phone constantly rings when I use that phrase is in advertisements.

Another strategy to find Section 8 Tenants is to add your property to the local Section 8 authority’s approved property list. Once your property is approved, you need to contact the local Section 8 authority and request to be added to the approved property list. Not all local Section 8 authorities automatically add you to the property list, so make sure your property is on it.

Typically, a home is only listed for a specific period of time; therefore, you need to ask your local Section 8 authority how long their listing period is for. If you do not rent your home in that time period, you can request to have your home relisted.

Evaluating Section 8 Tenant Applicants
A Section 8 applicant should be evaluated like every other applicant. There is one additional step, and that step is to verify the Section 8 voucher is valid. To do that, simply contact the agency the Section 8 applicant lists as the local Section 8 authority he/she is approved through.

Our local Section 8 authority does not evaluate and qualify voucher receipts based on rental criteria, so my company, as the property owner, is responsible for qualifying the tenant. Most local Section 8 authorities do not evaluate voucher recipients for rental qualifications, so it is imperative you conduct your due diligence as you would for any other applicant.

Remember, you cannot discriminate when renting your property, because it is wrong to do so and it is against the law! You must have the same rental criteria for a regular paying applicant and a Section 8 Voucher applicant.

If you have any questions about the Section 8 program, please feel free to contact me.
Aaron

www.aaronsilverman.com/blog
www.aaronsilverman.com
www.ss-investments.net
www.sandspropertyinvestments.com

Tags: , , , , , ,
Posted in Investor, Property Management, Real Estate | 1 Comment »

How to Have Your Rental Property Section 8 Approved

Tuesday, May 24th, 2011

The Housing Choice Voucher Program, or commonly known as Section 8, is a federal housing assistance program for individuals that meet the income requirements. The program is federally administered by the Department of Housing and Urban Development (HUD).

On the local level, the Section 8 program is administered by a local agency. The type of agency varies by county. To learn the specific details of your local Section 8 program, you should contact your local office. Use the following link to find your local office – www.affordablehousingonline.com/section8housing.asp. Most local offices hold informational meetings, and those meetings are great information and educational resources.

In order to rent to Section 8 renters and accept Section 8 vouchers, your home must be approved by your local Section 8 authority.

Property Approval
Your first step is to contact your local Section 8 authority and complete their application. Once your completed application is reviewed, the Section 8 authority will schedule a home inspection on your property. Once your home is inspected and approved you are ready to accept a tenant with a Section 8 voucher.

The approval process timeframe can vary drastically from one local authority to another. If the process takes longer than expected and stay positive (I know, sometimes easier said than done) and remain professional. You want to build a long term positive working relationship with your local Section 8 authority.

Some areas have multiple local Section 8 authorities, and your home needs to be on each agency’s approved list as they run different programs. Some areas have a combined list, some accept other agency’s approved homes and some require their own inspection. Once again, it varies, so talk with each of your local Section 8 authorities if there is more than one.

Advertising Your Property
As you wait for your home to be approved for Section 8 occupancy, simple insert “Will consider Section 8” into your rental advertisements.

We have found that once we have an approved Section 8 Voucher applicant and the applicant tells your local Section 8 authority he/she is approved to rent the home, the Section 8 authority will expedient the timeframe for the home inspection.

Property Inspection

HUD and your local Section 8 authority have criteria your home must meet in order to be approved. Normally, their standards are in accordance with local code; however, they could have additional requirements. Your local Section 8 authority should be able to provide you with inspection criteria.

Section 8 Voucher tenants have an unfair stereotype of not taking care of a home. As a landlord, it is your responsibility to ensure your tenant takes care of your home. You do that through properly maintaining the home and selecting a qualified tenant.

If you do not maintain the home, you will be perceived as a “slumlord,” and your tenant, Section 8 or not, will not take care of your home. You must set the example, and you (aka the business owner) do that by offering and maintaining a quality home (aka quality product).

The second, and final, article is Renting to Section 8 Voucher Tenants.

Aaron

www.aaronsilverman.com/blog
www.aaronsilverman.com
www.ss-investments.net
www.sandspropertyinvestments.com

Tags: , , , , , ,
Posted in Home Owner, Investor, Property Management, Real Estate | 3 Comments »