How do I register my property with HUD? How does subsidized housing work for landlords? Does the gov give you money? Is it the same thing as Section 8 or voucher tenants?
You probably have a local housing authority (probably for your county or city) that handles the “Section 8” program. Where I am, I can call the local office and let them know I have a property available. They’ll give out my number to applicants. I can also advertise in the paper and find an applicant who already has his/her voucher. Once they clear my screening process, I meet with them again to fill out the Landlord packet. The LL packet is what gets sent back to the Sect 8 office. Once the LL packet is processed by them, a home inspection will be scheduled. The house has to pass inspection before Sect 8 will pay anything. You generally won’t get rent from the Sect 8 office right away. It’s more likely that you’ll get a double payment for the second month to make up for the first one. Make sure you check with the Sect 8 office regarding how much the tenant will pay (if anything). If the tenant doesn’t have to pay anything, I don’t care about their income. If the tenant is required to pay a portion, I want to make sure they have sufficient income to pay their portion. We have Sect 8 tenants whose rent is completely covered by the program and other tenants who pay about 75% of their own rent because they make some money.
The benefit of Sect 8 is you get your rent on time every month. The tenants are just as likely to be good or bad as regular paying tenants. There is a stigma that all Sect 8 tenants are bad and tear everything up. There are some that are clean and take care of things and there are trashy ones too.
Ok thanks, but what is the differents in section 8 and subsidized housing?
Sect 8 is gov’t subsidized housing for them. The tenants may not be paying much, if anything, out of their own pocket. Therefore, the gov’t is subsidizing their rent and paying the balance of your monthly rent to you.
There are actual gov’t units that people can move into that are actually owned by the gov’t and rent is based on the person’s income. Sect 8 will pay market rent (you can ask the upper end of what your market will support for rent) to you for the tenant to rent your unit.