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Maximize returns, reduce vacancy risk, and achieve consistent rental income through Section 8 property investments.
Section 8 housing offers real estate investors a unique opportunity to earn stable income with government-backed rent payments. With growing demand for affordable housing, Section 8 rentals can be a profitable and recession-resistant asset in any portfolio. Our expert team provides all the tools and insights to help you create, manage, and scale a successful Section 8 property portfolio.
Save up to 0.25% on the standard interest rate when you finance with Bay Equity, our full-service mortgage company
Get a custom investment plan to help you reach your goals.
Find and assess high-demand properties perfect for Section 8 rentals.
Navigate Section 8 regulations and find qualified tenants quickly.
Receive continued support and management strategies for long-term success.
Are you ready to build a portfolio that offers consistent cash flow and reduced risk? Contact us today to learn how we can help you maximize your returns with Section 8 properties.
Section 8 Portfolio Builder - Your Partner in Stable, Long-Term Real Estate Investment Success.
As you are probably aware, California has a law called the Fair Employment and Housing Act (FEHA), which means that (among other things) landlords must accept Section 8 vouchers and other forms of housing assistance.
In many cases, landlords first experience the process of accepting Section 8 vouchers when someone brings it to their attention during the screening process. What can be challenging is that, when you're in the middle of marketing your rental unit and accepting applications from multiple parties, learning the process can take time away from filling your vacancy as soon as possible.
It is for this reason that it is a good idea to be one step ahead and consider listing your vacancy with the local housing authority before leasing begins. These listings will be accessed by voucher holders online, essentially meaning that the government will advertise your vacant units for you for free. Next, we'll explain how to do it.
First, you need to get your rental unit approved for Section 8 with your local public housing authority (PHA). You can usually find this by typing in the name of your city, followed by “public housing authority.” For instance, the City of Los Angeles has its own housing authority (known as HACLA), as does the city we are in (Torrance), even though it is part of Los Angeles County.
There will be a section for landlords on the website that allows you to create an account and start the process of getting your units approved. The site will ask you questions about your building such as whether the landlord or the tenant is responsible for each utility, whether pets are allowed, and what amenities (if any) are offered at the property.
Once the initial application goes through, the housing authority will schedule an inspection of your property and the specific rental units you want to list. After that, you'll meet with an inspector (virtual inspections with your smart phone may also be available in your area) so that the City can ensure that your unit meets habitable standards.
Once you're approved, the housing authority will list your property in their database which is accessible to all voucher holders seeking housing through their website.
You can also register your rental unit online at www.affordablehousing.com (Formerly known as gosection8.com), which is one of the main databases for voucher holders to find affordable housing. It is also the site that the City of Los Angeles' public housing authority will direct voucher holders to.
All you have to do to get started here is to go to the website and create an account (email address and password). From there, the site will ask you similar questions about your building (who pays for which utilities, your pet policy, amenities, etc.) but you will also add photos of your building and the unit you are trying to list.
Listing your property or rental unit with your local housing authority can be a great way to ensure that you have a steady supply of prospective tenants, as well as a guaranteed amount of rent (paid on time) from the Section 8 program. Some housing authorities even offer landlord incentives for signing up and offer free seminars to learn more.
Did you know in 2020 there were 161,548 homeless people living in California? Section 8 programs are available to help lower-income families and individuals. These programs assist those looking for a clean and safe place to live, the problem is there is a long waitlist.
Becoming a Section 8 landlord will not only help people in need but will give you peace of mind knowing you will be receiving income every month. If you are interested in starting or expanding your investment portfolio continue reading.
Section 8 programs receive money from the U.S. Department of Housing and Urban Development to pay landlords to provide housing for lower-income families. While the programs pay the landlord, the tenants will pay a predetermined rent amount. The amount tenants pay is determined by their income and is usually 30% of their monthly income.
As a landlord, you will be responsible for screening and approving your tenants but the programs have partially vetted them and approved them for the program. The program will not select tenants for you.
Section 8 in California will ensure you have constant income coming in. Your tenants will pay rent but even if they don't pay on time you will be receiving the money the program has agreed to pay you. Your tenants are low income so their portion of the rent may not be as constant.
There is high demand for Section 8 housing, many people are on a waitlist, so you don't have to worry about finding tenants. With every investment property, whether it's Section 8 or not there is a chance your personality will clash with your renters.
In your job as a landlord, you will be responsible for keeping things professional and resolving issues quickly. Your property will also have an inspection once a year and you could lose government funding if you haven't maintained property standards.
Maintaining those standards and keeping communication with your tenants can be challenging, especially if you have multiple properties. It could be beneficial to have someone help with rent collection, tenant screening, marketing, and even maintenance.
There is some extra paperwork with becoming a Section 8 landlord. You will need to fill out an application with your local housing authority. Sacramento county has lots of resources and will help you with your application.
Once you find tenants and they have been reviewed and approved, your local public housing agency will come for an inspection. Remember to follow all their requests, they may ask you to be present during the inspection.
After the inspection has passed, you and the agency will agree on the rent. After that, the tenants are ready to move in.
The role of the Federally-subsidized Section 8 Program is to provide decent, safe, and sanitary housing to a tenant at a reasonable rent. The owner is expected to provide the services agreed to as part of the lease signed with the family and the contract signed with the Los Angeles County Development Authority (LACDA). The tenant's rental subsidy, known as the Housing Assistance Payment (HAP), is paid directly to the property owner or designated payee each month. No charges or fees are assessed to owners for services provided under the Section 8 Program. Participating property owners comply with U.S. Housing and Urban Development regulations, but retain control of most of the rights and responsibilities traditionally held by property owners. Owners are responsible for maintaining the unit and making repairs as needed, in accordance with the terms and conditions of the lease HAP contract, including HQS.
In order for your unit to pass inspection, it must meet certain requirements of the U. S. Department of Housing and Urban Development (HUD). The list below covers those items which most commonly cause a unit to fail and inspection.
To Avoid Non-Payments from PHA, it is advised to alwaays inspect your unit in the begining of the date of the lease and HUD contract.
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