How to Become a Section 8 Landlord in San Francisco

How to Become a Section 8 Landlord in San Francisco

Did you know there's a way that landlords can get guaranteed monthly rent from their tenants? When you sign up to become a Section 8 landlord, that's part of the deal.

Every year, the federal government sets aside billions of dollars to help alleviate homelessness across the country, and they'd like to give some of that money to you.

The San Francisco Housing Authority is currently looking for more landlords to join this worthwhile program. Keep reading to find out what's involved.

What Are Section 8 Programs?

The U.S. Department of Housing and Urban Development funds the Section 8 program to help provide housing for low-income families. These people typically earn under 50% of the average income for their area.

Prospective Section 8 tenants apply for Housing Choice Vouchers, which the HUD uses to pay their rent. Usually, the tenants pay only 30% of their monthly income towards rent, and funds from the HUD make up the rest.

Any investment property owner may accept Section 8 vouchers, but you will need to meet a few criteria first.

You can't discriminate against potential Section 8 tenants based on their income, but you should still carry out background checks on them. Section 8 programs don't screen tenants.

Pros and Cons of Being a Section 8 Landlord

While you can expect these low-income families to pay late some months, you're guaranteed to receive the rest of your money like clockwork every month.

Section 8 tenants must take good care of the property, or they could lose their place on the program. They're also likely to renew their leases year after year, helping eliminate vacancies.

Finally, you're assured of fair rent increases every year. Although you won't get the highest possible rent for your property via the Section 8 program, you will enjoy peace of mind.

You could experience delays in receiving your first few months' payments, and you might find the Section 8 application process tedious.

Section 8 Landlord Applications

Would you like to advertise your property as an option for Section 8 tenants? You need to fill out an application with your local housing authority.

Once they've matched you with approved tenants, you can carry out the necessary background checks before accepting them. Before they move in, you must comply with an OHA inspection to ensure your property meets Section 8 standards.

You must ensure your property is well-maintained throughout their tenancy. A property management team can help you keep up with routine maintenance and repairs.

Under Section 8 laws, tenants can file a complaint with the HUD if the housing supplied no longer meets the minimum standards.

After the inspection, you'll negotiate the rent with the authority. Section 8 programs usually take rental comps into account, along with forecasts and inflation.

You can expect them to offer around 40% of the median rent in your area.

Navigating Section 8 Tenants

The best way to avoid most of the complications involved with owning an investment property is by hiring a property manager.

Kenny Realty has been in the real estate business for almost four decades. We can assist you with every aspect of managing your investment property, including taking care of Section 8 tenants.

Get in touch today to discuss your property management needs in San Francisco.

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