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Section 8 Tenant - Should Real Estate Investors Rent to a Section 8 Tenant?

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Uploaded on Feb 18, 2011

http://www.REIClub.com - Are Section 8 Tenants Good For Rental Property or Just Bad Tenants? This Video Reveals The Pros and Cons of Landlording With Section 8...

Pros:
Section 8 rental housing generally have... 1. Lower turnover and shorter vacancy periods.
2. Rent Security - Rental payments are subsidized, payments are more likely to be dependable and on time
3. Large available pool of potential renters (the waiting list for new Section 8 tenants is usually very long)
4. Strict renter responsibilities - the HUD/PHA contracts are VERY thorough and protect the landlord

Cons: * Full inspection - by HUD's Housing Quality Standards (HQS) and possible remediation's required * fear that a Section 8 tenant or their children will not properly maintain the premises * Rent must be within FMR/FMV- no increasing without approval * Evictions - HUD requires that Section 8 tenants can only be evicted by judicial action, even where state law allows other procedures

Qualifying: 1. First step notify PHA that your property is available, and that you would like to rent to tenants with Section 8 vouchers.
2. Advertising - you are willing to rent to Section 8 tenants,
3. Screening - just as you would any other applicant.
4. Inspection- complies with HUD standards.
5. HAP Contract - You will also sign a lease with the family. HUD requires certain information to be mentioned on this document. You can either use one of their leasing forms, available on their website or from your local PHA, or can add an addendum to the leasing form that you typically use. You will then furnish a copy of this lease to the PHA.

In summary, renting to Section 8 is a great way to your properties rented out, but be aware of the situation you are getting in to. Do your screenings and the necessary due diligence which your PHA's will assist you with and you should be fine.

Again, this is Frank Chen with REIClub.com. Please take the time to leave your comments for this video below and please subscribe to our YouTube channel so you'll be automatically notified when we upload more quick video tips for you. Take care and good investing.
http://www.youtube.com/watch?v=q2CRzY...

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