More than five million American households use federal rental assistance to afford modest living. A significant share of these households receives aid under Section 8.
Yet the program lacks funding, and many landlords still don't accept housing vouchers. This means households wait years to receive assistance.
If you are a landlord or a San Francisco Bay property management company, you may wonder why you should accept Section 8 vouchers. Continue reading our Section 8 guide for property management companies in San Francisco Bay to learn more.
What Is Section 8?
Section 8 is a housing choice voucher program that is part of the Housing Act of 1937. But, Congress didn't add the provision to the Act until 1974. This was under the Housing and Community Development Act amendment.
The program allows the government to provide housing aid to low-income households. The government makes payments to landlords on their behalf. This allows those in the program to choose where they want to live.
The program also provides housing assistance to elderly and disabled individuals.
Section 8 Responsibilities for Landlords
There are several steps in the Section 8 approval process that landlords and property management companies in San Francisco Bay, CA, need to understand.
First, a voucher holder will approach a landlord about renting a unit. If the landlord agrees, the local housing authority will conduct an inspection. The inspection ensures the rental is in good condition and meets the requirements of a livable space.
After passing the inspection, the landlord and renter will finalize the lease agreement. Then the landlord needs to submit the lease to the local housing authority. If the housing authority approves the lease, they will create a housing assistance payments contract.
Should the landlord want to change the rental price, they must notify the housing authority first.
Benefits for Property Management Companies in San Francisco Bay
Although the aim of Section 8 is to assist lower-income renters, there are significant benefits for landlords and property management companies in San Francisco Bay, CA.
The top benefit is guaranteed rental payments. For many, the monthly assistance covers all of the tenant's rent. So you can rely on receiving those payments from the government.
Even for tenants that still pay some of their rent, the amount is much smaller than your typical tenant. As a result, there is less risk you won't receive rent payments.
Additionally, since there is always a high demand for Section 8 housing, your rental will consistently be rented out. Therefore, you can expect rent payments for all 12 months of the year.
Further, those who receive vouchers have already been screened by the local housing authority for their:
- Criminal history
Thus, San Francisco Bay property managers can rest assured that these tenants are reliable and trustworthy. Allowing section 8 vouchers reduces the risk of unfavorable tenants occupying your rental.
Find Tenants for Your Rental
Landlords and property management companies in San Francisco Bay stand to gain when they accept Section 8 vouchers. Guaranteed income is what every landlord desires, and it's possible while helping low-income families.
To get started with accepting Section 8 vouchers, contact us at Kenny Realty. We've been a San Francisco Bay property management company since 1967. Today we manage more than 800 units!