If you own rental properties in California, there’s no denying that you’re familiar with Section 8 and may be considering turning one or more of your properties into a Section 8 rental.
Before moving forward with Section 8, this article will provide you with the pros and cons of Section 8 so you will know if it’s the right decision for you to make for your investment property.
Section 8 Pro’s
Since it’s inception in the 1930’s, Section 8 has been a stable housing program that’s made it possible for landlords to rent their properties for fair market rates.
Some of the pro’s pf Section 8 include the following:
- Consistent Income – Your tenant will pay a portion of their monthly rent and the Government will send you the other portion of the rent on a monthly basis.
- Stable Tenants – Since rents in California are high in most cities, Section 8 tenants are stable renters who know the value of the rent that they are paying and they may be inclined to renew their leases with you after 12 months.
- Low Vacancy Rate – Another benefit of Section 8 is that you will never have to worry about vacancies again because as soon as your rental property is about to become vacant, Section 8 will advertise the rental on your website.
Section 8 Con’s
As with anything in life, Section 8 does have some “cons” to consider before you turn your rental into a Section 8 rental property.
- Annual property inspections.
- The security deposit isn’t paid by HUD.
- HUD also doesn’t make the voucher payment until the tenant moves in.
- Some prospective tenants may not want to live in your multifamily rental property if you have Section 8 tenants
Before choosing Section 8 it’s best to consider the pro’s and cons then weigh the importance of turning your investment property into a Section 8 rental or not.
Contact 36 North Property Management
To learn more about Section 8, or the property management services we can offer you, contact us today by calling (831) 484-4604 or connect with us online.