How to Get Section 8 Tenants for a Rental Property

Section 8 is the U.S. Housing of Urban Development's vehicle for delivering affordable housing to qualified families in most cities of the United States. Without doubt, it serves many minority families as Section 8 has its roots in the Civil Rights Act of 1968, more commonly known as the Fair Housing Act. However, families of all races--including white families do benefit from this program. If interested in participating in the program as a landlord, read on t learn how to get Section 8 tenants for a rental property.

Things You'll Need

• Contact information for your local Housing Authority
• A listing of your property(ies) on the Housing Authority's list of available rental units
• Comparable pricing of similar, nearby units to justify your rental price
• A rental sign for your property
• A budget for advertising
• A resource to screen potential tenants
• A property manager if you are not managing the contract yourself

Instructions

1. Prepare the home for tours and ultimately for the rental. The curb and cosmetic appeal is a necessary incentive for potential tenants to do more than drive by your property. Keep in mind that cosmetic cover-ups of non-functional facilities will be found out in the mandatory Section 8 inspection, and the property will be rejected as meeting the minimum criteria.

2. Contact your local Housing Authority and advise them that your property is available to the program. Regardless of your home state, the general link to find your local Housing Authority is available on the Go Section 8 website. Even though the site allows you to list your property online, this does not guarantee your property will appear on your hometown list. Make sure you contact the Board where your rental property is located and list directly with this organization.

3. Complete the landlord packet. Potential Section 8 landlords will need to provide information confirming their right to rent the property, proof the property is insured, among other details. Incomplete files cause holds on rental payments from Section 8. This is a good time to find out county specific landlord information that is not available on the Go Section 8 site.

4. Create a profile of your property or 'comp' as it compares to other similar rental options. The Section 8 program offers a list of available units that is handed out to prospective tenants. Ask for a copy of this list and compare any that are within 2 miles of your property. Compare those and others currently marketed for rent in your area for square footage, upgrades, location and price.

5. Market your property to attract Section 8 tenants. Without doubt, attracting a Section 8 tenant is easier than convincing a private person to rent your property. For starters, listing your property on the Section 8 available units list, which is distributed directly to qualified tenants makes this process far simpler than prospecting for private tenants. Savvy Section 8 clients sometimes shop the private list and ask those landlords to consider taking their payment vouchers, so in truth, your property is in competition with all the other comparable options on the market.

6. Screen Section 8 clients just as you would any other tenant before writing your lease contract. Due diligence is just smart and ignoring this step could lead to untold tears later. Just because Section 8 officials screen clients for certain criminal offenses does not mean they have not committed any recently, or that they are not guilty of other things that could create major problems for you or your property later.

7. Consider property management. Property management of Section 8 leased units have special considerations. Property management offers some peace of mind in most cases, but the costs and the services attached should be also be considered. Property management impacts cash flow, but it also offers property owners a freedom to enjoy the investment without the headaches. Property maintenance, difficult tenants and compliance issues present challenges that many would rather avoid. If your investment cash flows positively with room to pay a property manager, then by all means get referrals and hand it over to the qualified professionals. However, if property management excites you, or the returns are too closely shaved that paying for it causes a negative impact to your cash flow, then self-management is the way to go.

8. With the client contracted and moved in, sit back and relax as the Section 8 checks are guaranteed to come in month after month, very often on direct deposit to the account you specified. This is by far the most satisfying reason to participate as a landlord in the Section 8 program. Sometimes the loss from taking a smaller rent from a Section 8 client outweighs the costs to evict a non-paying private tenant.

Tips & Warnings

• Being a landlord in the Section 8 program is not limited to the few in some 'good ole boys network' as is commonly assumed. The vouchers are not secretly handed out to a select few with political connections. Anyone can participate as a landlord by submitting an application to their local Housing Authority.

• All the documentation to participate as a landlord in this program are the same needed for rental in the private network. Some counties or cities require a rental permit, title or proof of the right to rent, and landlord contact information for the Section 8 liaison for the client leasing the property.

• Protect your property. Make an appointment with the tenant for you to inspect it at least once per quarter, and walk any maintenance repair persons through as they give their quote so you see first hand how the property is being maintained by the tenant. At the first sign of non-compliance with your rental rules or Section 8 rules, put your warning in writing.

• Follow your cash payments for all expenses associated with renting the unit. It is the small expenses that eventually eat away at profits.

• Property maintenance is the best way to avoid major expenses, and tenant complaints. Section 8 will permit a tenant to break a lease if the landlord does not ensure the unit continues to meet the minimum conditions throughout the life of the rental contract.

Resources

• History of HUD
• Go Section 8 website