It's estimated that half of U.S. tenants struggle to afford their rent. Considering the housing crisis in this country, it shouldn't come as a major surprise. Housing shortages mean good housing is in high demand.
This causes the cost to shoot up. Unfortunately, wages haven't been rising to meet these growing costs. The good news is that there are some government programs in place, like Section 8 that provide a housing safety net for certain demographics.
But exactly what is Section 8? And how does the program determine if the rent you're offering is reasonable? In this landlord advice guide, we'll answer these questions so you can decide if you want to be a Section 8 landlord in Ewing, NJ.
What Is Section 8?
Section 8, otherwise known as the Housing Choice Voucher is a program offered by HUD. Here's how it works: low-income individuals and families are given access to apartments and houses that they otherwise can't afford.
The government covers a large portion of the rent, while individuals cover the rest. So why would a landlord want to offer their properties as part of Section 8? The main reason is the large tenant pool.
Since there's a large number of people trying to benefit from Section 8, there will be no shortage of tenants. That means less money spent on marketing strategies and less turnover time between tenants.
With Section 8 you also get guaranteed rental income, which is hard to find in this day and age.
How Does Section 8 Determine If Your Rent Is Reasonable?
When you first decide to join Section 8, the PHA will determine if the rent you're offering is reasonable. According to HUD, they'll look at a variety of factors including:
- The location of the rental property
- The overall quality
- The size
- The type of unit
- The age
- Any included amenities
- Housing services
- Maintenance
- Utilities
Keep in mind that Section 8 won't just check for rent reasonableness at the beginning. They have the right to check again at any time or if you do something like try to raise the rent.
How Can a Property Management Company Help You?
Finding out what to charge for rent can be a hassle. A property management company can perform a rental analysis on your property to help you determine a reasonable rent.
What's more, they can handle all of the paperwork necessary for Section 8. Then, when you get tenants, they can manage them for you by dealing with any maintenance requests or rent collection.
Just make sure you choose the right type of property management company that's able to help you with Section 8 housing.
Interested in Becoming a Section 8 Landlord? Contact PMI Essential
We hope this guide helped you learn more about Section 8 in Ewing, NJ. Here at PMI Essential, we know that Section 8 isn't for everyone. If you want to give it a try, we can help prepare your property and file paperwork.
Or if you think the program isn't a good fit, we'll still help you find great tenants who will last. So if you're ready to make your life as a landlord easy, get in touch with us today.
