13 Aug Is Section 8 Good for Landlords in Southern California Or Not?
Over the years Section 8 has been a staple for many renters in Southern California who enroll in the program so that they can afford to live in rental properties here.
Since the housing crisis began, Section 8 has received mixed reviews from landlords as rents have risen and many owners have been eager to rent their properties for their current market values.
In this article, we will provide you with more information about Section 8 including if it’s a program that you should consider for your rental property in 2019-2020.
How Section 8 Works
Since 1937, Section 8 has been one of the most dependable housing voucher programs in the United States that renters can turn to for help if they are unable to afford to pay the market rent in their area.
With this program, a landlord will be able to rent their property for a market rate that’s lower than what other comparable properties may be renting for in the same city or town.
The way the program works is simple; whenever a rent payment exceeds thirty percent of a renter’s regular monthly income, Section 8 will cover the balance of the rent that’s due.
To qualify for Section 8, a landlord’s rental property must be inspected by the housing authority in their city. Once the property is found to have qualified for Section 8, the rent for that property will be set by the housing authority and the Section 8 tenant who ends up living in that property will be responsible for paying the rent amount that’s not being covered by the Section 8 voucher.
Section 8 Pros and Cons
As with any housing program in the United States, Section 8 does have its pro’s and cons including the following:
Pros – Consistent payments made by the Government, pre-screened tenants, good tenant base and free advertising.
Cons – It may be harder to evict tenants who cause problems, annual property inspections, rental price regulations, HUD doesn’t pay the tenants security deposit, and the voucher isn’t paid until the tenant moves in.
Learn More About If Section 8 Is Right for Your Property
To learn more about if Section 8 is right for your Los Angeles area rental property or to speak with us about our property management services, contact us today by calling (213) 927-2117 or click here to connect with us online.